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Unlocking Community Impact: Why Cities Are Turning to Third-Party Operators

By

Ally Azzarelli
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December 15, 2025 6:56PM EST
Pelican Bay (1)

Courtesy of SFC

From libraries to dispatch centers to sports facilities, cities across America are rethinking how they deliver essential services, and third-party management appears to be the strategic key to unlocking both economic and operational advantages.

During a joint webinar hosted by Sports Facilities Companies, Library Systems and Services and IXP, Hoover, Alabama City Retired Administrator Allan Rice, Brad Raney, parks and recreation director for the City of Edmond, Oklahoma; Addison, Texas Deputy City Manager Ashley Shroyer; and City of Escondido, California Deputy City Manager Joanna Axelrod, shared insights into how outsourcing goes beyond budgeting to deliver more innovative services and improve operational efficiency.

Why Cities Are Turning to Third-Party Partners

“It’s not always about cost savings,” said Brad Raney, Parks and Recreation Director for the City of Edmond, Oklahoma. “It’s about serving your community in the most effective way.”

In Edmond, where sales tax is the city’s primary source of funding, public projects often face financial strain as soon as construction ends. Partnering with an experienced operator enables Edmond to expand its amenities without incurring additional staff costs.

Third-party management of the city’s outdoor aquatic center, Pelican Bay, is driving programming and community engagement that the city couldn’t sustain alone. “They have events going on almost every night of the week,” Raney shared. “That level of activity just wouldn’t happen if we ran it ourselves.”

Freeing Up Staff to Focus on Strategy

Working with a third party isn’t about being hands-off. It’s more about enabling management to allocate resources wisely and strategically. “It helps take the burden off HR, finance, and the city manager’s office,” Raney noted. “Third-party operators are more incentivized to offer programming and generate new revenue.”

The model also frees up municipal staff to think bigger. “I spend less time on daily operations and more time on strategy, building parks, working with council, and finding new funding,” Raney explained. “That’s a huge return in itself.”

Addison, Texas’ Regional Dispatch Success

Drawing on her background in public safety, Addison, Texas Deputy City Manager Ashley Shroyer also expressed a positive experience with a third-party management solution.

While working on a regional emergency communications project that united four cities, her organization partnered with IXP, an emergency communications consulting company, to operate their new dispatch center.

“We wanted to provide a better service by having instant responses and updated equipment,” she said. “Cost savings were important, but that wasn’t the main factor. It was about quality and reliability.”

Since the regional center launched, the results have exceeded expectations. The team now beats national call-answer standards and has saved nearly $20 million in its first decade, almost double the original projection. “We’ve gotten better at what we do,” Shroyer stated. “That’s what true ROI looks like, service and efficiency improving together.”

Courtesy of Riverside County Library

Libraries, Leadership, and Long-Term Value

Libraries are another space that can leverage outsourcing to save costs, thereby positively impacting the community. When the City of Escondido, California, partnered with Library Systems and Services, an experienced library services company, the goal was to preserve quality while managing a long-term budget deficit. The result? A complete revitalization of the city’s library services.

According to Deputy City Manager Joanna Axelrod, “The partnership changed the trajectory of our library.” By working with a third-party management company, Escondido’s library has introduced data-driven decision-making, expanded digital access, and even secured a $10 million state grant to renovate its aging facility.

Choosing the Right Partner

The hidden ROI of third-party management provides enhanced focus, superior service, and improved outcomes for cities seeking a more effective management strategy. It’s important to remember — when done right — outsourcing doesn’t replace accountability, it enhances it.

As Raney summed up, “The public doesn’t see our sports facilities management company — they see the City of Edmond. That’s why choosing the right partner matters.”

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