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Posted on Sun, Oct 31, 2010 : 11 a.m.

Ypsilanti voters asked to consider charter amendment to fund public transportation

By Tom Perkins

Ypsilanti Transit Center_3.jpg

Ypsilanti resident David Johnson boards a bus at the Ypsilanti Transit Center to attend class at Washtenaw Community College. Johnson said he uses the bus daily and would have to do more walking if service were cut.

Tom Perkins | For AnnArbor.com

Ypsilanti resident Leon Womack recently sat at the Ann Arbor Transportation Authority's Ypsilanti Transit Center waiting to board an AATA bus for the first time. He says it will likely be the first of many rides.

He and his wife live nearby, and she recently got a job at Visteon working the same shift he works at the University of Michigan Hospital. That means he will ride the bus to work everyday. Without the bus service, he says he would likely be forced to buy a second car because there's no cheap transportation alternative in the region.

“The bus system has to be top of the line because without the bus routes a lot of people wouldn’t be able to get to work or to where they’re going,” he said.

That's why Womack plans to vote for a charter amendment that will provide a dedicated source of funding for public transportation. The .9789 mill Headlee Amendment override would allow the city to levy the full 20 mills in taxes allowed by the state instead of the 19.0211 mills it currently levies because of Headlee rollbacks

That new tax would provide an additional $281,000 for public transportation in its first year and mean a home with a taxable value of $100,000 will pay an additional $97.80 per year. But officials have pointed out that property taxes are likely to drop far more than the roughly 1.5 percent increase the charter amendment would represent.

The Headlee Amendment rolls back the millage rate in a municipality when the assessed value of all taxable property, excluding new construction and improvements, increases by more than the inflation rate. If that happens, the maximum authorized property tax rate must be reduced so that the same gross revenue, adjusted for inflation, is collected as before.

The proposal appeared on the Aug. 3 primary ballot but did not count because charter amendments cannot be decided on primary ballots. The proposal that will appear on the November ballot is the same, but this time the vote will count. Roughly 70 percent of voters approved the measure on the invalid vote.

The City of Ypsilanti’s budget projects the city will spend $218,000 on public transportation in fiscal year 2011 and $281,000 in fiscal year 2012. That money will come from an already tight general fund if the charter amendment is not approved, but the Headlee Override would provide dedicated funding each year.

Ypsilanti Transit Center_2.jpg

Area residents board the bus at the Ypsilanti Transit Center.

Tom Perkins | For AnnArbor.com

According to the AATA, 667,000 passengers boarded its buses in Ypsilanti in 2009.

City Council approved a 21-month contract with the AATA in September 2009 that provided for bus service through June 30, 2011, at a cost of $312,000. Part of that cost was paid for with a one-time allotment of American Recovery and Reinvestment Act dollars.

But that agreement relies on other communities continuing to be able to pay for the service levels they currently have, which worries Ypsilanti Mayor Paul Schreiber.

“It’s a house of cards,” he said. “If one municipality decides to cut it back, it cuts back service for everybody.”

When the current contract was negotiated, city officials hoped a discussed countywide busing plan would materialize, but it has not. Should the AATA establish a countywide busing plan, the city will not need to levy the tax unless a new rate structure is required to make up the difference.

Council Member Pete Murdock said he first brought up the idea of a dedicated source of funding in 2005, but it didn’t gain much support. Now that the city’s financial picture has worsened and the countywide busing plan has not panned out, the city “needs to take care of business.”

“Failure is not an option. We have got to make sure it passes,” Murdock said.

According to the AATA statistics, an average 47 people board a bus each “service hour” in Ypsilanti. In the AATA system as a whole, that average is around 32 people per service hour.

“The service in Ypsilanti is quite productive - it definitely does well,” Chris White, manager of services development for the AATA, said.

Last year the AATA sent out a survey asking riders why they use the bus. Roughly 40 percent said they use it for school, 35 percent said they use it for work, and 23 percent said for shopping.

Richard Murphy is the co-chairman of Keep Ypsi Rollin’, a group formed to campaign for the charter amendment. He said loss of public transportation service would negatively impact the neighborhoods and community because it would force many people to move closer to their jobs outside of Ypsilanti or, as in the case of Womack, buy a second car.

“That’s something we’ve heard when out talking to younger households or renters ... “I’m living in Ypsi because I can get to Ann Arbor. If we didn’t have that choice we'd move to Ann Arbor rather than buy a car or buy a second car,’” Murphy said.

“At the neighborhood level, getting back and forth to Ann Arbor is important to Ypsilanti residents and the bus system is a pretty important part of making that happen.”

Murphy is employed by the Michigan Suburbs Alliance. It recently completed a study asking people 18 to 35 years old about their main concerns in the region. He said 75 percent of respondents listed a lack of public transportation as a problem, while 60 percent considered availability of jobs an issue.

Although the study did not include Washtenaw County, the AATA’s service provides Ypsilanti with a competitive advantage in attracting younger people, Murphy said.

“It's one of the places in the region that’s pretty well served and can attract those households that say they want public transportation,” he said.

The results of the invalid August primary vote were encouraging to Keep Ypsi Rollin, but the group is working to ensure that residents understand the first vote didn’t count. Murphy said members of the group are also concerned that voters might forget about or skip over the charter amendment because of the November ballot’s length.

“It’s easy for people to get overwhelmed by everything that’s going on right now, so we’re just making sure that this is clear in people’s mind and not something that gets lost in the pile,” he said.

Tom Perkins is a freelance reporter for AnnArbor.com. To reach the news desk, e-mail news@annarbor.com or call 734-623-2530. For more Ypsilanti stories, visit our Ypsilanti page.

Comments

jjc155

Tue, Nov 2, 2010 : 8:22 a.m.

Just curious as to why there is a charter amendment vote for a millage for AATA and there is not one for the police and/or fire depts that had to take concessions, lose people and have essentially been on the chopping block for the past decade in ypsi? Again just curious as it seems to really speak to the what the city leadership puts as a priority. Plus it seems like a great way to cement some votes next time certain people are up for re-election.

Glen S.

Mon, Nov 1, 2010 : 8:10 p.m.

A "Yes" vote to support public transportation in Ypsilanti is a wise investment, and will actually help to CREATE jobs by helping low-income people, seniors, students, the disabled, and others get where they need to go to work, shop, go to school, etc. What's more, as someone who lives near Depot Town and frequently takes the bus to my job in downtown Ann Arbor, I can't help noticing how many of my fellow riders appear to be "middle class professionals" who depend on AATA to get from Ypsilanti to jobs at St. Joseph Mercy Hospital, WCC, the U-M Hospitals and the main U-M Campus. My point is this: Public transit is a community asset that benefits the whole community, either directly or indirectly -- and a "Yes" vote on tomorrow's proposal is a vote FOR jobs and FOR economic development.

Martin Church

Mon, Nov 1, 2010 : 3:58 p.m.

I'm voting No, yes property taxes (really the value of the property) has gone down. so has my income. This month I lost my job supporting the auto industry building fuel tanks I am looking for new work and I am finding because the of the availblity of workers with my same skills, the pay for my work as dropped 50%. It is time for the government to be redefined and rebuilt to allow private companies to do what government is doing. that includes public transportation.

pseudo

Mon, Nov 1, 2010 : 1:17 p.m.

@KenUM...again, look at the math. If you live in Ypsilanti your tax bills are WAY down compared to just 5 years ago. WAY down. This money is well worth it. Our income taxes are far less than they were 10 years ago, our property taxes are far less than they were 5 years ago. Government isn't free. City Services aren't free. Public Transportation isn't free. I will be voting yes on this one. No question. I believe it is vital for Ypsilanti to keep its link with Ann Arbor and Pittsfield township and their larger economic bases to continue the improvements it has been making the improvements we have enjoyed so far. Vote yes, keep Ypsi Rolling.

Paul Schreiber

Mon, Nov 1, 2010 : 11:07 a.m.

@KenUM: "If the Countywide tax issue passes will this tax (the Ypsilanti transit charter amendment) go away or will Ypsi residents continue to pay this tax along with the new tax?" If the Ypsilanti transit charter amendment passes, it can only be reversed by a vote of the people. Municipalities can opt in or opt out of a proposed county-wide or regional transit authority tax. The AATA is conducting a county-wide transit vision (http://www.movingyouforward.org/) to determine short and long-term transit needs of Washtenaw County. This is another important step for attracting and keeping families and businesses in Washtenaw County. Paul Schreiber 734-277-5446

kenUM

Mon, Nov 1, 2010 : 9:21 a.m.

I think the AATA millage will be much more than $50.00 per year. My concern is that each year AATA wants to charge more money for the Ypsi service. $312,000.00 through the end of the 2011 fiscal year, how long will this tax issue keep up with AATA's demand for more money? If the Countywide tax issue passes will this tax go away or will Ypsi residents continue to pay this tax along with the new tax?

jns131

Mon, Nov 1, 2010 : 8:54 a.m.

We are voting yes because our child needs this bus service to get to school. Otherwise, one of us will have to quit our job to get ours to a closest bus so she can get to school. I remember way back when they thought of closing AATA or charging more for services from Ypsi to Ann Arbor. Guess they didn't. Dingel gave money to Ann Arbors Transit why can't they for Ypsi? Ypsi could use a make over as well. I do agree with one thing. If you don't own property? Then tax the apartment dwellers another way.

information please

Mon, Nov 1, 2010 : 8:49 a.m.

Overall, property taxes have significantly decreased as a result of the decline in local property values. According to the Ann Arbor Chronicle, Washtenaw County's 2010 Equalization report indicates that "The city of Ypsilanti and Ypsilanti Township took the hardest hit, with taxable value falling 10.93% and 12.26%, respectively." Overall tax revenue is down significantly as a result, along with your personal tax bill. This is why millages are needed to support essential services such as police, transportation, and libraries. Here's an example on a real home in the City of Ypsilanti: Tax valuation of $55,500, so that assumes a market value of $111,000: Summer 2008 and Winter 2009 taxes $3522. Summer 2009 and Winter 2010 taxes $3420. Tax savings due to decrease in taxable value $102. Annual cost of proposed library millage on this home $17. Annual cost of transportation millage $54. Total cost of both millages $71 per year. Which would leave a savings of $31 over the previous year's taxes. If the homeowner choses to approve the Natural Spaces County Levy for $14 per year, she/he would still be paying $17 less in property taxes. You do this calculation for your own property by accessing the online tax records for most of the local jurisdictions in this area at: http://www.aaabor.com/resources/mls_resources/property_tax_links/ Just to clarify, your overall tax bill has been significantly reduced due to the decline in your property's taxable value. It is likely that the actual out-of-pocket cost to you in supporting all of the millages on the ballot is less than zero in terms of real dollars as compared to what your tax bill was in the previous year. The reality is that a $71 per year difference in property taxes is not going to keep people that are at a risk of foreclosure in their homes. Supporting these millages insures that critical services will remain intact. Zero real cost to individuals, with a major impact on the quality of life in our community seems like quite a bargain to me.

jjc155

Mon, Nov 1, 2010 : 8:17 a.m.

@johnny-By flat tax I mean get rid of the progressive income tax structure and take everyones INCOME at a flat rate of say 20%. That has nothing to do with sales tax or anything like that (atleast in the way that I am using the term, there are some taxes suchas as gasoline tax that by virtue of they way they are applied are techincally a "flat tax" but I am speaking about a flat income tax). You make a 100bucks a year, you pay 20 in tax. You make 100K a year you pay 20k in tax. As for my property my choice, u r are rightly correct on that. u are also correct on any apt complex paying more than 4k in taxes, HOWEVER figure out that each tennants "cut" of the property taxes are and on a large complex they are likely paying a couple of hundred bucks a year per tennant towards the owners taxes.

Steve Pepple

Mon, Nov 1, 2010 : 7:39 a.m.

An off-topic comment was removed.

Mark

Mon, Nov 1, 2010 : 7:08 a.m.

This millage will keep renters in their homes. If you are all for the rights of property owners, pay the fifty bucks a year to ensure that other property owners don't wind up with empty building that will kill your property values. 60,000 dollars a year is an insult to your sensibilities? That is thirty dollars an hour for operating a piece of heavy machinery without killing anyone for 2,000 hours a year. Your use of salary betrays your disdain for blue collar work. It's really simple. If you care for your community, vote yes on the millage. If you care more for fifty dollars a year... don't vote at all.

skenney1384

Sun, Oct 31, 2010 : 10:25 p.m.

I'm voting no and so are several of my family members. It's encouraging that I've been seeing many of the "Vote No on Taxes" yard signs popping up but where can I find one!!??

Life in Ypsi

Sun, Oct 31, 2010 : 7:51 p.m.

We need the bus system, but I am voting no on this. Did you know AATA drivers make $40,000 to $60,000 a year? I'm all for a living wage, but the rest of us are taking pay cuts and losing our jobs and now they want us to pay more money for taxes? When the drivers take a pay cut like everyone else then I will vote yes.

johnnya2

Sun, Oct 31, 2010 : 7:47 p.m.

Flat tax is the worst idea ever. Call it what it is. A sales tax. Those that make large amounts of money can put their money in savings and not pay on that portion of their income since it is not taxed until spent. The fact that you pay more for your property tax means you have home that is considered more valuable than the person that rents. I bet any apartment complex in the county pays far more than $4000 a year. Your up north property is YOUR decision, deal with it

jjc155

Sun, Oct 31, 2010 : 7:34 p.m.

@kristine-while I agree that some of your rent is used by the landlord to pay property taxes on the complex that you live in, I find your arguement that "you pay property taxes" hard to agree with. There is no way you are paying the 4K a year that I pay for my house and 1K a year that I pay for my property upnorth, through increased rent so that that your landlord can pay taxes. Discussions like this are why I argue that a Flat Tax would be better than the property tax and progressive income tax system that we currently have.

M.

Sun, Oct 31, 2010 : 3:34 p.m.

When you vote on Tuesday, of course you should think of yourself and your family, but please also consider the disadvantaged in our community. Public transportation enables a lot of us to be able to get to work, school, and everything else we need to do. Please help ensure the continuation and improvement of our public transit.

Kristine

Sun, Oct 31, 2010 : 1:52 p.m.

@Val, just because I don't own a home does not mean I don't pay property taxes. My apartment-complex management company pays property taxes, and that cost is passed along to us renters. Don't think we're getting off for free, Val, just because we rent and can't afford to purchase homes.

Greggy_D

Sun, Oct 31, 2010 : 1:49 p.m.

" this is a $50 thing over the course of the year. So small that it does not really impact this issue you describe." It's $50 here for this millage, $98 for that millage, $76 for another millage. It all adds up. Everyone else is cutting back, so can the cities/townships. If $50 is no big deal, then you can pay mine.

pseudo

Sun, Oct 31, 2010 : 12:12 p.m.

@Ken - this is a $50 thing over the course of the year. So small that it does not really impact this issue you describe. In terms of being painted as a selfish uncaring person...handle it, its your choice.

Val

Sun, Oct 31, 2010 : 12:07 p.m.

Property taxes should be done away with. People who don't own property can vote the tax onto people who own property. That is not right. Just because one can buy a piece of America doesn't mean that they can afford to pay ever increasing property tax. There are many States which do not have property tax so you own your home outright and no one can take it away. The government taking your property for property tax payment is not a foreclosure, it is outright stealing of ones home which they have worked hard to buy and to take care of. None property owners should not have the right to impose a tax on property owners. Taxes should be based on ability to pay and on profits.

kenUM

Sun, Oct 31, 2010 : 11:15 a.m.

How do you address this issue, and others? If voted in, people who are barely holding onto their homes may very well lose them. In which case the outcome of the vote means nothing, because when the house is foreclosed on by the County no property taxes are paid anyway. On the other hand if you voice opposition because you feel you are taxed to death then you are made out to be an uncaring stingy person who does not understand the needs of others. Libraries, Schools, and Mass Transit; very hot items with the November vote. In the end how anybody votes is a personal decision, but it is VERY IMPORTANT to get out and mark the BOX!