Here's a few ideas: First, try checking your local library. They often have summer activites and a listing board. Certainly your kids could get a pile of books. Their school might be another source of info. I don't know about their ages or your financial background - but many communities offer free or reduced cost camps. They might also be old enough for some summer jobs or even better, voluteer work. Our state encourages middle school kids to participate in volunteer work, and the kids often find it really rewarding.
Then there are local parks (sports, canoes, trail blazing). Check listings in those local papers that everyone tosses. Our area has all sorts of local theater groups, free movies (at parks). Another source might be your local grocery store - ours carry bulletin boards ( and more newspaper guides) for local fairs, and day camps and stuff.
Bowling can be inexpensive. Pools, water parks (we have a great one that's owned by the town), minature golf. We used to love going to putting ranges too. Churches are another source to check out. Often they gear their activities around the religion, but many welcome outsiders to participate, and hey, if it's free, why not meet some new neighbors.
One of our local strip malls offers a kids' hour once a week. They have free stories and food. I've never been, but it sounds like it could be fun.
Another summer activity I love is visiting a local farm to pick berries and other fruits. The strawberries have passed in many areas of the country, but blueberry season is just starting - then come raspberries, peaches, apples, pumpkins, flowers, etc. Nothing like having your kids learn where food comes from, and picking your own is cheaper than getting it at the grocery store! Some farms also have animals and petting zoos. Some will also take on helpers. You may also have a local chapter of 4-H in your area. They offer all kinds of kid activities, pro-rated on you financial ability.
Summer is a time for kids to explore their interests without having their creativity hampered by grading and testing. One of my favorite summer activities was a science class I took. At first I wasn't too thrilled about taking a class in the summer, but I sort of always liked science, and my mom sort of forced me. I was hugely surprised to realize that doing experiments which weren't going to be graded was great fun! It really made me rethink my attitude towards learning. It's amazing how much the pressure of grades and tests can hamper creativity in our kids.