Correctional Facility Economic Analysis/ Planning
CFCS’s can provide assistance as governmental agencies make financial and budgeting decisions regarding their corrections’ systems or facilities being developed by private operators within their communities. Given our experience and in-depth knowledge of privatization, facility economics and budgeting, CFCS can help governments make prudent well informed financial decisions as they plan for the growth of their correctional systems or the development of privately run facilities.
Ø CFCS’s experience can greatly complement an agency’s existing staff in the analysis and formation of a complete and detailed historic and projected facility budgets. For privately run facilities, CFCS can advise on negotiating strategies for revenue sharing and development of new facilities.
Ø CFCS can assist governmental entities in reviewing and analyzing the budgetary impact of growing inmate populations and decisions relating to expansion versus new construction and privatization versus public management.
Ø CFCS can advise on decisions relating to maintaining populations in state/county or leasing beds from third parties. If third party leasing is a viable option, CFCS can assist in the negotiation of the required agreements.
Financial Advisory Services
Often, governmental agencies will rely on information provided by certain professional organizations working on their corrections’ project (architects, developers, construction firms, etc.), in making crucial financial decisions about their project. Questions about facility size versus current need, the viability of third party users, the reasonableness of operating budgets and the financing methodology all have a direct impact on the viability and long term success of the project. The inability to service debt as expected could have a devastating effect on municipal budgets, cause unnecessary and dramatic increases in tax rates and irreparably harm the government’s access to the bond market in the future.
Ø As an independent advisor, CFCS can help responsible government officials make informed decisions about the most suitable structure and financing of their planned correctional facility, reducing the risk of future difficulties and unexpected burdens on taxpayers. CFCS often works with the government's chosen underwriter.
Ø If requested, CFCS can act as project director and assist governmental entities in putting together and choosing the right financing team (underwriters, lawyers, etc.) to ensure its clients the most cost effective financing solution possible.
Ø CFCS’s unique expertise, experience and independence allow for its governmental clients to be comfortable that their interests are being protected in every step of the process and that they did all they could to ensure a project's long term success.
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