A review of Oxford City Council's area committees said that the shake-up has made local government in the city more democratic.
The review said fewer formal meetings took place, helping save money.
Area committees, which replaced traditional council service-based committees in 2001, have widely been accepted as having improved democracy, according to the review.
Compared with 1998/9, the number of recorded meetings fell from 389 to 205 in 2002/3.
The average number of monthly meetings has been cut from 32 under the old committee system in 1998/9 to 17 in the last year.
Tenants' forums have continued to meet under the new system, but they may be disbanded, the report said.
Planning meetings were not included in the figures because council records were not comprehensive. But the review said: "The perception is that they have reduced."
Room hire for the area committees costs the council an average of £50 per meeting and PA equipment costs £250.
Officers are investigating ways to reduce the costs.
The review also said fewer council staff, such as accountants and solicitors, now attend public meetings.
The report noted: "While many do not welcome this change, it represents a considerable saving in staff time."
Council leader Alex Hollingsworth said: "The new system has got these people back to their offices doing their jobs, which is where they want to be."
Further savings are thought to have been made by the council no longer providing refreshments at meetings.
The review concluded that the same amount of council business is being completed under the new system.
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