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IMPEDIMENTS to Public-Private Partnering

In Question 5 of the Survey, respondents were asked to list the biggest impediments to implementing public/private partnership arrangements. The biggest impediments noted were:

Labor Issues;
Intergovernmental Relations; and
Procurement Restrictions.

Loss of Control: In addition to these impediments, 10% of respondents cited Loss of Control (includes control of: the total asset; expansion decisions; maintenance; customer service and responsiveness; and environmental compliance) and

Cost: 13% of respondents cited Cost Considerations (includes: increased future costs [maintenance, unanticipated, capital]; and little or no savings) as impediments to public/private partnership arrangements.

Tax Code: A similar number (12%) cited the Federal Tax Code as an impediment. Please note that the Survey was conducted prior to the January 1997 announcement of new Private Activity Bond Rules and related Revenue Procedures.

Compared to the overall response, small communities considered Federal Tax Code less of an impediment. Large communities considered Labor Issues, Procurement Restrictions and Intergovernmental Relations more and Federal Tax Code less of an impediment.

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