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City Charges a Third of Service Costs, Study Says

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From Times Wire Reports

Cash-strapped Santa Barbara charges the public only about a third of what it costs to provide services, including park maintenance, youth programs and Fire Department inspections, according to a study.

The 81-page fee study, performed by a city-hired consultant at a cost of $150,000, gives officials the ammunition they could cite to justify raising fees or cutting programs. The city is facing a $3.5-million budget shortfall for 2004-2005.

Elected officials will have to decide which services should be paid for directly by users and which should be more heavily subsidized by revenue sources such as taxes because they provide greater social benefits.

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