One way or another, you're going to pay.

That was Pittsburgh Mayor Luke Ravenstahl's message to big hospitals and universities, and to commuters yesterday, as he outlined his strategy to win new revenues for the city -- either through changes in state law or surcharges that he thinks he can impose unilaterally.

"As we see the reductions [in voluntary contributions from nonprofit organizations] continue, and not meet what we need, this is our alternative," he said of surcharges on hospital admissions, undergraduate students, all-day parkers and nonprofit water users. A move toward fees "potentially would be the best way to compel the nonprofits to come to the table." The mayor discussed the issue during a session with the Post-Gazette editorial board.

While the city's two big universities did not comment, its major hospital systems argued that they already contribute much.

"At a time when the nation's severe economic recession has precipitated negative operating margins on many of the region's hospitals, we welcome the opportunity to provide the mayor with perspective on those challenges and the potential implications of proposals that would add to that burden," said West Penn Allegheny Health System spokesman Dan Laurent.

The mayor's proposals open a new front in the decades-old battle over payments for city services by big tax-exempt landowners.

The ad hoc agreements of the 1980s and '90s gave way to payments by a consortium of nonprofit groups this decade. But the agreement with tax-exempt groups that brought the city $14 million from 2005 to 2007 has eroded to a proposed $5.5 million in donations for 2008 through 2010. So far, city council has turned up its nose at that deal.

"You need to contribute to the city more than you are today," Mr. Ravenstahl said in comments to the hospitals and universities.

A proposed recovery plan under Act 47 for distressed municipalities, meant to address a huge pension fund shortfall, calls upon the city to beg $6 million a year from tax-exempt institutions. Mr. Ravenstahl said that state law gives him little leverage to negotiate for voluntary payments.

The plan also endorses the expansion of a payroll tax on businesses to include nonprofit institutions. That would require General Assembly approval.

The administration has concluded that it doesn't need the state's OK to charge hospitals $25 per inpatient admission, or colleges and universities $50 per undergraduate student per semester. Those fees would raise $5.4 million and $3 million, respectively.

The Pittsburgh Water and Sewer Authority also could boost the $9.83 per 1,000 gallon rate charged to educational and medical institutions -- already far above the $7.50 that homeowners pay -- to $11.80. Charge that rate, and make the Pittsburgh Zoo, Phipps Conservatory and National Aviary pay for the water they now get for free as former city properties, and the city could net $10 million, said Finance Director Scott Kunka.

The water authority already pays the city millions in an annual contribution and would increase that amount by $10 million if the rates are increased.

The area's largest mostly-tax-exempt institution, the University of Pittsburgh Medical Center, responded that its contributions to the city's dynamism are already huge.

One-third of UPMC's revenues come from its for-profit components, which pay "more than $24 million in parking, property and business taxes" to various local governments, said Frank Raczkiewicz, UPMC's director of media relations. The hospital system has also pledged $100 million to the Pittsburgh Promise of tuition aid to public school graduates, which has "a huge multiplier effect when it comes to housing values and the desirability of Pittsburgh as a place to live."

The health system also has been the biggest voluntary donor to the city in recent years.

Mr. Ravenstahl said his administration, city council and the state-picked Act 47 recovery team would consult next week about whether to detail the potential surcharges in a new fiscal plan, expected to come up for a council vote by June 30. Fees on tax-exempt groups are mentioned as an option in the current draft plan, but aren't detailed.

"To the extent legally enforceable, all of these [surcharge] options are available under the amended plan," said Act 47 team co-leader James Roberts.

Plan A for tapping commuters is increasing the $52-a-year tax on everyone who works within the city limits to $145. If the administration can't win needed General Assembly approval to hike the $52 levy, a $5 charge on all-day parkers at Pittsburgh Parking Authority garages would raise $10 million, Mr. Ravenstahl said.

"I could make the argument today that $52 a year from a person who works in the city is not enough for what we provide them," the mayor said, noting estimated attendance at Monday's Penguins parade, for which the city provided services, exceeded the city's population.

City Chief of Staff Yarone Zober held out hope that the local legislative delegation will let the city hike the $52 tax, though it has been panned by some lawmakers. "Sooner or later, delegations do the right thing when there's a need," he said.