Federal stimulus dollars will likely be used to keep Ann Arbor Transportation Authority buses running in Ypsilanti, the AATA said.

Service has been in danger of being shut down this fall in the cash-strapped city because the AATA told Ypsilanti it needed to pay more toward the service.

AATA spokeswoman Mary Stasiak said today that the AATA board Planning and Development committee will recommend using $220,000 of American Recovery and Reinvestment Act federal stimulus funds to assist Ypsilanti over the next 21 months.

The AATA board is expected to vote on the recommendation at its Sept. 23 meeting.

Stasiak said the funds would allow Ypsilanti to retain its current level of service instead of reducing service.

The Ypsilanti City Council at a meeting last month discussed several options, including reducing service in the city.

The City Council asked the AATA to reconsider a proposed 30-percent rate hike for bus service, with yearly 10 percent increases through 2012. By 2012, Ypsilanti is expected to pay around $291,000 to the AATA.

Stasiak said the AATA is not planning to reduce the 10 percent yearly increase to Ypsilanti for the next three years, but said the stimulus money will cover the increases.

Before the AATA meeting later this month, the service plans to verify that using stimulus funds would be consistent with the federal regulations attached to the funds, Stasiak said. The AATA received $6.1 million in federal stimulus money.

Stasiak said AATA committee members, who met Wednesday night, are also in favor of Ypsilanti's resolution to place a proposal that would designate tax revenues to solely fund public transportation on the 2010 general election ballot.

Ann Arbor residents pay 2 mills in property tax to help fund the bus service.