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Posted on Thu, Dec 24, 2009 : 6 a.m.

AATA dismisses treasurer's report on countywide millage as inaccurate

By Ryan J. Stanton

As the Ann Arbor Transportation Authority looks to expand and become the transit agency for all of Washtenaw County, its leaders have different opinions about how to get there. Right now, it's a game of numbers.

Ted_Annis_report.jpg

Ted Annis, AATA treasurer, isn't happy about a new report from the agency's administration that counters his revenue projections for a countywide plan.

Ryan J. Stanton | AnnArbor.com

Ted Annis, treasurer for the agency's governing board, recently issued a report that recommends the agency eliminate the current 2-mill tax that Ann Arbor property owners pay and replace it with a countywide 1-mill tax.

That runs contrary to an idea floated by AATA's administration that calls for layering a new countywide millage on top of the 2-mill tax in Ann Arbor. But even that isn't set in stone.

According to Annis, a flat 1-mill tax spread out across the county could increase the agency's operating revenues by $7.8 million, for a total budget of $33.25 million. He claims another $3.7 million could be realized in operating efficiencies.

AATA's administration now is countering Annis' claims with a response paper that calls the treasurer's figures wildly inaccurate. In fact, it says revenues would decrease - not increase - if Annis' plan were put into effect.

It claims AATA’s budget for providing services in Ann Arbor would be reduced from $25.46 million to $16.46 million if Annis' suggestions were followed, requiring service cuts of up to 35 percent to close the gap.

The report claims reducing the millage in Ann Arbor to 1 mill would result in a loss of $7.6 million that would play out in the form of reduced services inside the city limits. That follows the assumption that nearly $5 million in city tax revenue would disappear and state aid would decrease by $1.2 million. Additionally, passenger revenues would decrease by $1.1 million due to required service cutbacks.

The report also claims Annis' estimations of county fare revenues are $2.17 million too optimistic.

"In summary, the treasurer's plan is highly flawed and would negatively affect the amount and levels of service available to the citizens of Ann Arbor," the report concludes. "The loss of 1.06 mills from the city would be devastating to AATA's services and would result in services being cut back by approximately $7.6 million. Furthermore, reducing AATA's operating budget to $84 per service hour would not only greatly degrade the level of service available to city residents; it would still result in the necessity of cutting an additional $5.24 million in Ann Arbor's transit services." The report states Annis' report ignores the Ann Arbor Transportation Plan Update, a document adopted by the City Council and AATA's governing board earlier this year. It calls for substantial future increases in public transit services in the city and supports the expansion of a commuter rail service between Ann Arbor and Detroit.

Annis said he disagrees with the report's conclusions and thinks the agency's staff is demonstrating a resistance to change that inevitably must happen.

"I think the response from AATA staff was done much too rapidly and without proper deliberation with me or anybody else," Annis said. "Unfortunately, I believe it contains some very serious errors and I don't think it can be believed. The more obvious error is the passenger revenues would decrease by $1.1 million due to less ridership."

CEO Michael Ford said the report prepared by his staff was an attempt to put out accurate information. He said there are talks of having a third party analysis done to settle the dispute between the two reports.

Ford also said he thinks it's premature to be talking about the numbers before the AATA has come up with a countywide service plan that reflects what the community wants out of a countywide transportation authority.

"I just think there's a lot of unknowns right now," he said. "There's a lot more information to come."

Download the AATA's response to Annis' report here. Download another report from AATA staff showing additional detailed calculations here.

Go here to read Ted Annis' report from October.

Ryan J. Stanton covers government for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.

Comments

HappySenior

Sat, Dec 26, 2009 : 8:29 a.m.

I don't agree with localguy that "professionalism" means you go along with the group. Everyone has a right to their opinion. Annis has demonstrated he is willing to put his head about the horizon to voice his opinion. Kudos to him for having the courage of his convictions. Other commenters wonder if there has been research on what the public wants and is willing to pay for. Those are excellent questions. There is talk of a county-wide AATA, a rail from Brighton/Howell to Ann Arbor, sidewalks from the suburbs that only the Ann Arbor mayor seems to think are needed, and upgrading the road and surrounds from Ann Arbor to Ypsilanti. And, of course, there is also a national group that wants to see large investment in transportation throughout the country. They recently had a job posting for a state field coordinator in Michigan to work with the various local governments and agencies. In the background, there are people with construction and transportation-based businesses looking to make money and people looking for jobs to earn money. Truth be told, those are noble pursuits. We have lived through some good economic times when governments and agencies decided what they wanted to do and then hired consultants to help them convince the voters to go along. We are no longer enjoying good economic times. Governments need to adjust to that.

kenUM

Fri, Dec 25, 2009 : 1:12 p.m.

I am confused, is Ted Annis a concerned tax payer that is actually suggesting that AATA cuts it's umbilical cord to the taxpayers of Ann Arbor, or is he just embarrassed that Ann Arbor has a public bus system? Many contributors on this blog complain and point out that certain projects should be cut as a waist of tax money (some rightly so)or demand that the University pay pay and pay for being in Ann Arbor; but when Mr. Annis publicly proposes a plan (and even provides a written copy)to cut the fat or trim a budget that he sees as a waist of taxpayer money, then the daggers start to fly at him. Perhaps some of his plan may be extreme, or depending on individual points of view it may hit the nail on the head. My intention is not to bash or suggest the dismantlement of the AATA but I do not believe that this is the proper time to go after a County wide millage. Again I ask.....what is AATA offering in exchange for a County wide tax? Answer?..............Anyone!

sbbuilder

Fri, Dec 25, 2009 : 10:44 a.m.

Clearly they have moved beyond the point of questioning whether county residents want this, to how they will pay for it. They need to back up a little. No, we don't want this. What a terribly conceited attitude to have, especially in times like these. Why not have some research done (and not some silly phone poll) to determine if this will be supported by county-wide voters. This will lead to public embarrasment for these officials when their proposal is soundly rejected down the road.. In case these folks can't read the writing on the wall, it reads like this: "NO MORE TAXES."

CynicA2

Thu, Dec 24, 2009 : 10:17 p.m.

Earth to AATA - if voters rejected a similar millage for schools recently, why on earth would they support one for buses, which relatively few tax-payers ride in the first place?! Certainly not so Livingston county workers can get a free ride to A2. I seem to recall when AATA offered service to Dexter and Chelsea for a couple years, and discontinued it because of few riders. Why do they think it would be any different today?

local guy

Thu, Dec 24, 2009 : 2:25 p.m.

The unprofessionalism lies in Annis going public with a report full of flaws and misplaced assumptions without having it fully vetted by the staff and other people involved with the agency's finances. Annis seems to have an agenda to always cut service and taxes -- and this is quite apparent since he was a leader in the movement opposing the school millage. He's built his mansion in town and does not want to pay taxes. Too bad. While I'm not convinced that all of the Ann Arbor based tax revenue must be spent in Ann Arbor (since Ann Arbor benefits by having so many others able to get to our town easily and we benefit by being able to get to St. Joe's Hospital, WCC, etc.), it seems that Annis's report is quite suspect and that he's grandstanding without first making sure that his analysis will hold up. Let's face it, he's not a professional when it comes to analyzing transit numbers. Rather, he's a part-time volunteer Board member from other industries. He's surely smart, but he's not in his element. He owes it to us to better vet his theories before claiming that he's right. He now disagrees with staff, but the staff is using facts and real assumptions, not flawed theories. If there's less money for fixed route service, there will be less service. If there's less service, there will be less fare revenue. If there are fewer local dollars, there's less state and federal matching dollars. These are simple truths that he's ignored -- either intentionally or negligently. Annis is a minority on the AATA Board and because he's outspoken, he gets more ink (in the digital sense) than he deserves. Staff's assumptions may not be perfect, but they at least reflect the system and goals of the full Board. The issue of one or two mils is still being mulled over by the full Board, and there are arguments going both ways. If we add a mil for everyone, then Ann Arbor will continue to enjoy its fixed route service but, with the extra mil: that service can be expanded beyond its borders; that service can be increased (made more frequent) within its borders; and Ann Arbor will greatly benefit by its citizens being able to get to more places and others being able to get to Ann Arbor (and spend money here) more easily. As for the WALLY subsidy, I don't know how much, if any, of the millage would be used for that purpose. I think that all we really know on that front is that it's not been decided. Annis has a right to make proposals and even be wrong at times. His "m.o." though appears to get a view made public by exploiting his "treasurer" title, get the headline, and put the very agency he's sworn to support on the defensive. That's showmanship, not leadership. Work with your Board and don't put the staff in a position of having to argue with you in public. That may be fun sport and good for AA.Com's circulation, but good leaders should be above that. At the end of the day, Annis is just one of a number of Board members. The other Board members appear to be more deliberate in their approach, and thus to me, their view is more thought out and credible.

Justiceforsome

Thu, Dec 24, 2009 : 12:37 p.m.

The primary reason for the millage (which will primarily be carried by City taxpayers if admin has their way) is to provide annual funding for the WALLY project (at least $7-8 million). It will provide light rail transportation for Livingston County commuters to Ann Arbor. AATA has agreed to run project annually. As Livingston County doesn't want to foot the bill, the cost would need to be carried by Washtenaw taxpayers. The only way this works other places is to tax everyone REGIONALLY. I don't want to pay for Livingston County people to get to work.

Steve Hendel

Thu, Dec 24, 2009 : 12:06 p.m.

Will Ann Arbor residents be getting 3X the service that the rest of Washtenaw gets if the County-wide 1 mill is layered on top of the City's 2 mills? Anyway, if voters reject 2 mills for schools as they did recently, what is the likelihood they will approve this?

Patlit701

Thu, Dec 24, 2009 : 10:14 a.m.

The Treasurer report is an attempt to reduce Ann Arbor resident taxes and put the tax burden on the rest of the county and the AATA admin report sounds like an attempt to increase the overall budget. In any case who from outside the city of Ann Arbor and the city of Ypsi would ride the AATA bus? There is no real evidence that Dexter, Saline, Milan, Chelsea would have enough ridership to cover any costs with or without a county-wide millage. Find the demand before trying to raise out-county taxes.

H.

Thu, Dec 24, 2009 : 9:31 a.m.

As the saying goes, the truth usually lies somewhere in the middle. I have never met the Treasurer, but I hear he is meticulous with numbers. I suspect his statement that staff is unwilling to change and leave their comfort zone is true. The tone of the administration report is unprofessional. It publicly embarrasses a Board member that staff must report to on a regular basis. Even if the statements and opinions in the administration rebuttal are accurate, it could have been stated in a more neutral tone. I cannot figure out why rebuttals to the Treasurers report were not discussed at a working session. Instead, a missile was fired back, only increasing tensions. Real or perceived, it looks like battle lines have been drawn in the sand downtown. Enemies last for a life time; yours or theirs.