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29 June 2015 / Sara M. Costanzo

Covering the Expense of City Services

Summer has arrived and it's time to think about what residents will do to stay busy. Many municipalities expand their services by offering fun-filled day camp programs throughout the summer as well as various sports and arts camps, while others offer a schedule of the public pools.  Even more, some municipalities publish a magazine or catalog of programs, events and facilities available throughout the summer months. 

While these are attractive to residents and even non-residents, each come at a cost.  For example, fourth of July celebrations can cost anywhere from about $10,000 for a standard small town fireworks display to several million dollars for multi-day patriotic extravaganzas that sometimes even require corporate sponsors.1  Premier Pyrotechnics, which sells custom fireworks displays for the fourth of July and other events, says many small town displays cost from $2,000 to $7,000 for a short show.  Adding music and other features can increase that cost to nearly $2,000 per minute and more than $20,000 for a full display.2

Another drain for municipalities is summer pools.  Pools are often considered costly extravagances and are being shuttered, taking away a rite of summer for millions. It's especially hard for families that can't afford a membership to a private pool or fitness club and don't live in a neighborhood where they can befriend someone with a backyard pool. While there are arguments in favor of cutting those services, the economic boost received from patrons may be worth the cost.3  In fact, the American Pyrotechnics Association (APA) finds that revenue made from display fireworks at commercial shows has steadily increased from $141 million in 1998 to $328 million in 2012.

Besides the outcome of increased revenue, the costs for summer services can be met through donations and sponsors.  Sponsorships and private donations have become a main source, for example, of continuing the tradition of a Fourth of July celebration. In Elyria, Ohio, officials eliminated fireworks in 2008, but were able to raise $48,000, to support a fireworks show by adding a PayPal link to its website and adding a message in utility bills about how to donate.  In 2012, John Sorgi of the American Fireworks Co. in Hudson attributed part of the turnaround to private companies and organizations picking up tabs for the shows. As a result, he said, sales have been the best since the economic slump began three years ago.4

Local events geared at fundraising, can also lighten the expense load.  For example, many municipalities are hosting events such as 5K races, where the proceeds are earmarked to help pay for summer pools or recreational programs for youth.  In Toledo earlier this year, Mayor Paula Hicks-Hudson — who led a drive last year to solicit donations to open Wilson and Jamie Farr pools in North Toledo — said all seven facilities this summer would be funded through a mixture of donations from companies, unions and other sources.5

While the spring and summer seasons can provide extra expenses in order to provide residents with valuable services, it is important to think outside the box when funding those services.  Sponsorships create opportunities for partnerships with local businesses and keep expenses to residents low. 


1 http://www.pletch.com/2011/07/cost-of-fireworks-how-much-do-cities-spend/ 
2 http://www.foxbusiness.com/personal-finance/2012/06/27/explosive-costs-big-fireworks-displays/ 
3 http://nationswell.com/4-ways-towns-can-save-fourth-july-fireworks-tight-budget/#ixzz3dzLEBTab
4 http://www.cleveland.com/metro/index.ssf/2012/07/tight_city_budgets_wont_stop_f.html
5 http://www.toledoblade.com/local/2015/05/08/6-city-pools-splash-pad-to-open-thanks-to-a-flood-of-donations.html#Tkxwyjv1Zq5uxpqj

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