Over the past several years, Kansas City's budget doubled to nearly $1 billion. Despite this increase, cost to provide services outpaced revenues. The result: a $79 million deficit with shortfalls projected in coming years.

Responsible government explores ways to be fiscally prudent. Privatization is an option many cities across the nation have used to look outside city hall for solutions. We have seen first hand how competing with the private sector caused city departments to become more innovative in providing services to the community.

Competition does not always result in privatization. However, it often leads to better service at a lower cost. We should not resist the opportunity to explore options that privatization presents.

Competition facilitates better customer service and fiscal accountability. Private business has the challenge of providing goods and services with the knowledge that their customers can go elsewhere. A private business must make payroll and pay debts on an ongoing basis by creating demand for their services.

In the absence of competition, city government has little incentive to improve service. When complaints are not resolved in a timely manner, due to lack of funds or inadequate staffing, the taxpayer does not have the option of asking for a refund for services not rendered, or the option to go elsewhere. City government passes a budget once a year and has no incentive to reduce costs or improve service once the funding is allocated.

We do not operate city government like a business. While reasonable people can argue the pros and cons of this point, there is no reason why compassion and social responsibility cannot coexist with fiscal responsibility.

Kansas City taxpayers should expect their elected officials to find ways to provide the best possible services for our tax dollars. Therefore, privatization is a tool we should consider on a service-by-service basis.

Councilwoman Becky Nace represents Kansas City's Fifth District at-Large. She can be reached at tom_wyrsch@kcmo.org or 816.513.1633.

There is nothing inherently wrong with government wanting to experiment with privatization. Let us be clear, however, about the word that is being bandied about in cities throughout America. In its essence, "privatization" means profits, money, moolah--not for the respective government but for the business to which the service has been sold.

The successful opportunity to derive greater rewards and avoid catastrophe in government rests in the word "partnership." In this regard, building sound business partnerships enables governments to minimize their risks, enhance their opportunity to improve performance, make their employees smarter and better, and accrue at least conservative revenue gains.

There are numerous aspects of government that, when successfully partnered with business, can derive a win-win formula. Consider bottled water, one of the fastest growing beverages in America. Most cities provide potable water to their communities, and in many cities there is surplus water that could be disposed of through bottled water sales.

Cities that partner with good bottled water distributors, manufacturers, marketers and the like are going to experience new revenues for long periods of time. Cities can offer vast amounts of expertise and support to growing local business and industry, serve as the spine or backbone to those companies and also derive a great financial benefit as a result.

Another example of partnership is working with the social business partners to manufacture inexpensive, energy efficient doors and windows for inner-city residents. Identifying a business willing to invest in the manufacturing of the product and in the hiring and training of inner-city employees can provide not only a good business partnership but also a financial and environmental benefit to the city.

These types of partnerships are the kind of progressive arrangements that make a city known for being innovative and attractive to new markets. The key word is partnership, a two-way street where both win. Partners are those who grow with and go with you. Think about it!

Greg Baker is assistant to the city manager in Kansas City, Mo. He can be reached at greg_baker@kcmo.org or 816.513.3554.