KEEP YPSI’ ROLLIN’ CHARTER AMENDMENT
City Council has placed a Charter Amendment on the August 3, 2010 Primary Election Ballot that would restore the 20 mil tax limit (Headlee Override) and dedicate the additional millage (0.9789 mils)for the sole purpose of funding public transportation in the City of Ypsilanti. With the approval of this Amendment, a dedicated source of funding will be secured for public transit.

CHARTER AMENDMENT – PUBLIC TRANSIT
An amendment to Section 6.01 of Article VI, Taxation, of the City Charter to restore the levy of 0.9789 mills for Public Transit purposes.

This amendment will authorize, in any year a millage is NOT otherwise levied for county wide or regional public transit, or when needed to supplement a county wide or regional millage, as approved by City Council, a tax of 0.9789 mills solely for public transit purposes. Approval would increase the tax levy by 0.9789 mills as new additional millage in excess of the limitation imposed by law, restoring the authorized Charter millage to 20 mills, since reduced by the Headlee amendment. It is estimated that if levied, 0.9789 mills would raise approximately $ $281,429 when first levied in 2011.

Shall the proposed amendment be adopted?
__YES
__NO

KEEP YPSI’ ROLLIN’ – VOTE YES ON CHARTER AMENDMENT – AUGUST 3.

BACKGROUND
Since the 1970’s, the City of Ypsilanti has provided funding for the public transit system operated by the Ann Arbor Transportation Authority (AATA). With the recent financial challenges facing the City of Ypsilanti, the competition for funds has been intense. Over the last decade or so, it has become evident that a dedicated source of funding must be found in order to protect and maintain this service. Discussions ensued to create a county or regional system funded by its own millage or other revenue source. Although these discussions are still going on, a proposal has not been formalized.

In the interim, the City of Ypsilanti was facing ever increasing budgetary challenges. In the Fall of 2009, the City and AATA reached an agreement on interim funding for public transit and a path to a dedicated source of funding as a more permanent solution. That plan is described in the following memo:

YPSILANTI CITY COUNCIL SECURES AATA FUNDING AND SERVICE LEVEL FOR TWO YEARS
Pete Murdock – City Councilmember – Ward Three

With the action of the AATA board on September 23rd, the Ypsilanti City Council has secured an expanded contract for public transportation with no service reductions through June 30, 2011. The details of this agreement are as follows.

EXTENDED CONTRACT
For the first time, the City and AATA will be entering into a service contact that is longer than one year. The contract will run twenty-one (21) months from October 1, 2009 through June 30, 2011. This secures and stabilizes the public transportation services in the City of Ypsilanti while a more permanent funding solution is pursued.

NO SERVICE REDUCTIONS
There are no service reductions in the new extended contract.

ADDITIONAL RESOURCES FROM THE CITY OF YPSILANTI
The City Council has pledged an amount of $218,000 for the AATA contract for FY 2010-11 - an increase of $ 60,000 over this year’s allocation. The City’s commitment for the two year cycle is now $ 376,000.

USE OF RECOVERY ACT (STIMULUS) FUNDS
AATA received $6.4 million dollars in stimulus money of which 10% can be used for operations. Stimulus money was awarded on a formula that contained Ypsilanti’s population and ridership. The AATA Board agreed to provide up to $ 202,000 to cover the shortfall for this contract period while a regional authority or other permanent funding mechanisms are pursued.

LONG TERM FUNDING STRATEGY
A secure dedicated source of funding for public transportation is necessary for the long term. This contract gives us a little breathing room to develop such a program. A regional system – either County wide or consisting of the Urban communities, with a dedicated millage would provide the best service at the lowest overall cost. City Council, cannot by itself make that happen, but is committed to pursuing that goal with those that can – AATA, the City of Ann Arbor and Washtenaw County.

CITY COMMITMENT TO FUNDING AATA
AATA’s decision to use Stimulus money to fill the shortfall was clearly based on the City’s commitment to the two year funding cycle as well as the City Council’s commitment, in the event that no regional system emerges, to place on the November 2010 ballot, a Headlee override - City Charter Amendment (.9 mil) designated for the sole purpose of funding public transportation. Without the commitment to securing dedicated funding in the long term and the two year funding in the near term, it was unlikely that the AATA would have authorized the use of the stimulus funds for Ypsilanti.

The hoped for regional/county transportation system and ballot proposal has not materialized, and although, it is still being pursued, the timeline is unknown, Consequently the City Council placed the issue on the August 2010 ballot to fulfill our commitment under the agreement and to secure a needed dedicated funding source for public transportation.

Pete led the effort to craft this agreement with AATA and to place this issue on the ballot when a regional funding mechanism did not materialize and wholeheartedly supports its passage.