Finance directors can use public-private partnerships to reduce fixed costs

Starting with the building department

Local, state and federal governments are experiencing shortfalls in every major budget category. Many communities are looking at or have already made significant reductions in staff and services in hopes of riding out the storm. Privatization of services, or public-private partnerships, is proving to be a common and a viable short- and long-term solution to reduce costs while maintaining service.

Finance Directors can assume the role of finding and assessing privatization initiatives.
• A public-private partnership may make it easier for the Finance Director to determine the actual cost of a service.
• Public-private partnerships can reduce the financial expense and emotional stress of layoffs during slow economic times and over-hiring during good economic times.

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Finance Directors Can Lead Charge
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There are many examples of public-private partnerships, including those for the building department function.

The recession has impacted the traditional building department structure due to decreasing property values, lack of credit availability, fee schedules based on previous levels and the cyclical nature of construction. Traditionally a revenue generating or self-supporting department, it has become more challenging to contain the fixed operating costs and at the same time predict the amount of revenues that should offset those expenses.

Privatizing all or part of the building department is an effective solution. A public-private partnership allows for long-term resilience and flexibility to adapt to the changing conditions. Because it is revenue-driven outsourcing, it is a no-risk option that allows governments to control resources and save money.

SAFEbuilt is one such public-private partner that provides full-service building department services as well as supplemental plan review, project support and building code inspections for public agencies.

SAFEbuilt offers local governments benefits including:
• Full-support or supplemental building department services help keep a focus on service levels and public safety during slow and busy times
• Services are paid for from permit fees, so costs never exceed revenues
• A constant and consistent outside labor pool eliminates emotional and financial costs of hiring and firing to match economic conditions
• A depth of resources nationwide guarantees mobile teams for special or unpredictable short-term projects, including natural disasters
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Finance Directors Can Lead Charge
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SAFEbuilt provides contract building department services for nearly 100 public agencies in Washington, Colorado, Georgia, Louisiana and Florida.
In 2008, SAFEbuilt supported over $1.5 billion in residential and commercial building valuations, performed 5,125 plan reviews and approximately 85,000 inspections.

White Papers Available at www.SAFEbuilt.com:

1. Recession Options for Finance Directors of Public Agencies – It’s not business as usual for the building department
2. Building Safety during Economic Downturns – A Fiscal Rationale for Continued Code Enforcement
3. Building Departments Face Budget Crisis: Contract Providers Offer a Solution