Posted on 06/29/2010 8:22:35 AM PDT by MichCapCon
When City Manager John Szerlag said he would consider privatizing all of Troy's city services, he said if the municipal departments could match the private company bids, he'd keep them.
The city's building department, however, never bothered to even put in an official bid, Szerlag said.
That's because a quick review found that every one of the 22 employees in the building department would have to take a 35 percent cut in pay, an option deemed unacceptable to the city employees, Szerlag said.
From 2001 to 2009, the city's general fund had subsidized the building department to the tune of $5.5 million dollars, according to Jim Nash, the city's financial services director.
Now, Szerlag estimates that the city will save as much as $500,000 a year by privatizing the department. Earlier this month, the Troy City Council approved privatization of the building department. It starts July 1.
"We are not alone," Szerlag said. "If other cities don't follow suit, they will be in trouble."
The city also privatized management of golf course operations, which included five full-time and 40 part-time employees. That started June 18. The city was able to guarantee a revenue stream of $265,000, regardless of rounds played, within the ballpark of a typical year of golf. And city officials say the private company hired has a much better handle on marketing the golf course to generate more money...
(Excerpt) Read more at michigancapitolconfidential.com ...
Michi ping
But I bet the 22 employees are still on the government payroll
They’ll just retire.
http://www.realclearpolitics.com/articles/2010/06/24/government_pensions_face_the_music_106076.html
I live in a small town that provides absolutely no services. No water lines, no gas lines, no sewer lines, no trash pickup, nothin.
Its nice being able to choose who to buy propane from and who to pay for trash pickup. We’re covered by the volunteer fire department from the neighboring towns and we pay the county for police patrols. (I do wish we handn’t dumped our local PD)
“The city also privatized management of golf course operations, which included five full-time and 40 part-time employees.”
If they were serious about getting out of debt they would have sold the course.
I debated a union guy on the merits of Privatization and received a standing O from my classmates . . . at an extremely liberal grad school! That was in ‘94. I’d be tarred and feathered now.
The course makes money for the city and under the privatization play will make no less than $265,000 per year.
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