Governance by Handshake? Assessing Informal Municipal Service Sharing Relationships

Zachary Spicer

Canadian Public Policy, 2016, vol. 42, issue 4, 505-513

Abstract: This article examines the development and governance of informal, unwritten intermunicipal service-, facilities-, and equipment-sharing agreements. Although these agreements are easier to construct than formal agreements, they lack legal protection. The results show that municipalities are using informal shared services arrangements much less frequently than in the past. Those that have an informal agreement in place note that they are attractive because of the relative flexibility it allows, but they are wary of the inherent risk of entering into an arrangement without legal recourse. These informal arrangements, however, work well in areas in which there is a history of long-term cooperation, a high degree of trust, and some type of forum for resolution. The use of these informal arrangements, however, has been waning for years because most municipalities push for formalized agreements in an effort to insulate themselves, when possible, from the inherent risks of informal cooperation.

Date: 2016
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