The designated manager system, in which local governments entrust the management of public facilities such as gymnasiums to the private sector, is spreading across the country. In 2015, the Ministry of Internal Affairs and Communications issued a ministerial notification requesting further utilization of the designated management system. This notification was aimed at improving resident services and reducing costs by leveraging private sector know-how. It seems that many local governments sign multi-year contracts with private designated managers selected through public recruitment and pay commission fees. The implementation rate of designated management was 34.8%, increasing for the seventh consecutive year from 29.4% in 2015. In 2022, 39,914 of the 114,855 target facilities in 1,741 municipalities will have adopted designated management.
Yonezawa City, Yamagata Prefecture, has achieved the highest adoption rate in the country through a designated manager system that motivates the private sector to participate. In Yonezawa City, 57 of the 58 facilities covered by the report have introduced it. The mayor of Yonezawa City also said, “We need to present conditions that will allow the private sector to make a profit if they make efforts.” It seems that both local governments and the private sector are required to devise a system that will generate profits. In addition, Yamato City, Kanagawa Prefecture, which ranks third in the introduction rate, has adopted a system in which multiple facilities are grouped together and submitted for bidding. The library, cultural hall, and lifelong learning center facilities will be put together as one bidder. In this bid, Yamato City is asking the designated manager not to be biased toward cost reductions. The city continues to monitor the improvement of citizen services every year, based on factors such as the number of users. We have created a database that allows you to search materials and cultural assets from both facilities in an integrated manner, and are also creative in our exhibitions.
Sagamihara City, Kanagawa Prefecture, was in a financial crisis. Before fiscal 2019, Sagamihara City’s finances had become rigid, with little money available for new measures. Sagamihara City basically “frozen” new businesses in the initial budget for 2020. In fiscal 2021, it has created an austere budget with almost no new projects. In the face of the fiscal crisis, Sagamihara City has carried out a thorough review of expenditures. As a result, it is experiencing a V-shaped recovery. With limited finances, Sagamihara City also used the power of the private sector to come up with measures to enhance the city’s appeal. It appears that they are building a system to curb government spending and utilize the power of the private sector and citizens. As the population declines and the population ages, local governments’ tax revenues will decline. As the population continues to decline, it appears that efforts will be needed throughout Japan to create areas that are comfortable for residents to live in.
