The Ann Ann Arbor Transportation Authority had budgeted for a nearly $1 million deficit this year, but wound up with an excess of expenditures over revenues that was actually $260,000 more than that. The unaudited figures reported to the AATA board at its Oct. 18, 2012 meeting showed a deficit for the year of $1,255,312. [.pdf of unaudited FY 2012 financials]
Several reasons were given for the additional shortfall, which resulted in only $27,617,099 in actual revenues compared with the $29,418,995 that was budgeted. Those reasons included: $120,842 less in passenger revenue; $269,095 less in local transit tax revenue; $529,214 less in purchase-of-service revenue; and $927,149 less in federal funding. That was balanced somewhat by reduced expenses in some categories, including: about $500,000 less in compensation; $600,000 less in purchased services (including consulting); and $550,000 in savings due to the delayed launch of the service between downtown Ann Arbor and Detroit Metro Airport.
Based on board discussion at the meeting, the AATA currently has just about exactly the three month operating reserves on hand that it’s required to maintain by board policy.
This brief was filed from the downtown location of the Ann Arbor District Library, where the AATA board holds its meetings. A more detailed report will follow: [link]