Many North Texas cities have solved budget shortfalls by slashing costs and raising property-tax rates. But in this down economy a number have turned to a subtler tactic: raising discretionary fees.

LOUIS DeLUCA/DMN

Craig Schumacher works out at the Tom Muehlenbeck Center. Though Plano's recreation centers have fewer members now, the city has seen revenues rise to $2.6 million from $2.3 million.

From field rentals to botanical-garden fees, charges for elective public services are on the rise. Such fees generally constitute a sliver of city budgets, which are fueled mainly by sales and property taxes.

But budget-challenged cities have increasingly turned to fees to make ends meet and help subsidize nonessential services such as recreation centers and parks.

In recent years, Plano has raised fees on a number of elective services or permits ranging from recreation center memberships to house alarm licenses. Irving and Lewisville have increased certain city inspection fees. Other communities have approved targeted increases.

Cash-strapped Dallas, which faced a large deficit last year, has raised fees for permits to hold a large picnic ($25, up from $15), rent a lighted athletic field ($50 an hour, from $30) or put on a special event ($2 per participant, from $1).

Fort Worth raised fees to hold weddings and receptions in the city's Botanic Garden. A prime pavilion spot in the popular Japanese garden now costs $1,500, up from $1,000. Without the increases, the city would have laid off workers.

"You're not trying to make money off the fees. You're acknowledging the fact that not everyone uses the services," said James Kunke, a spokesman for the city of Lewisville. "The idea is to put a little more of the burden onto those who take advantage of those services."

Cities have long used fees, often set at nominal levels, to help pay for ancillary services. But as budgets have tightened and political pressure has grown to keep tax rates steady, fees are becoming a more important revenue source.

Lately, communities have become more aggressive in setting fees, even performing market research to figure out how their charges compare with those of neighboring cities and commercial businesses.

Still, fee increases amount to a balancing act. Communities that raise charges too steeply face the risk of doing more harm than good, observers say.

Facing projected deficits, Plano decided in 2008 to double its annual recreation center membership fee for adults from $65 to $130.

At the time, city officials made a solid case for the increase. Plano's fees were far less than those charged in surrounding cities and private gyms.

Recreation officials predicted that Plano might see a slight membership reduction because of the hike – perhaps 10 percent. But after the increase, the city lost nearly 45 percent of its 40,000 recreation-center members. Colette Hall, the city's recreation services manager, said the fee hike and the slumping economy fueled the drop.

Even with the membership decline, Plano's revenues rose to $2.6 million from $2.3 million. But the city is laboring to win back the crowds. In May, Plano will launch a three-month, reduced-cost membership.

Fort Worth parks officials have tried to avoid a similar exodus by resisting the temptation to raise fees sharply – even if market research shows that fee hikes are warranted.

Richard Zavala, head of Parks and Community Services for Fort Worth, said residents care little about what people pay elsewhere but pay close attention to their own bills.

"People understand that the cost of doing business is going up," Zavala said. "If it's a reasonable increase to the customer, they're going to be more receptive to it."

More fee increases could come this year as cities across North Texas continue to battle budget woes.

"I think there's always going to be some pushback," Plano Mayor Phil Dyer said of his city's recreation fee increase. "When that increase occurred, we did lose quite a few people who were involved members. We're just trying to do the best we can to have the users of the services pay for those services as much as possible."

Some of the increased city fees around North Texas:

DALLAS: Raised various recreation center charges, including for renting a lighted athletic field and making picnic reservations.

FORT WORTH: Increased some fees at the city Botanic Garden, including the one for holding a wedding or reception on the popular Japanese garden "moon deck."

PLANO: Doubled its annual recreation center membership fee for adults. Revenues rose, but the center lost nearly 45 percent of its members.