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Box 21, Folder 6, Document 56
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‘
HAMMER.GREENE.SILER ASSOCIATES
ECONOMIC CONSULTANTS WASHINGTON «© ATLANTA
2TETA,
230 Peachtree Street, N.E.
Atlanta, Georgia 30303
December 15, 1966 Area Code 404/524-6441
Mr. Glenn E. Bennett, Executive Director
Atlanta Region Metropolitan Planning Commission
900 Glenn Building
Atlanta, Georgia 30303
Mr. Henry L. Stuart, General Manager
Metropolitan Atlanta Rapid Transit Authority
808 Glenn Building
Atlanta, Georgia 30303
Gentlemen:
The minutes of the December 5, 1966 meeting of the Metropolitan
Atlanta Rapid Transit Authority contain an excerpt from a verbal
progress report made to the Authority on the financial consider-
ations analysis which should be clarified. With reference to
the tentative formula for allocating the estimated share of local
costs of a minimum operational system among participating govern-
ments, the statement on page 4 says: "All local finance officers f
had given tentative approval to these proposals." b
This statement could be misintepreted. We did not mean to imply
that the finance officers had agreed to the formula; rather, that
there was general agreement among them that the economic indices
and the analysis procedure used in arriving at a tentative formula
seemed to be reasonable. We recognize that any agreements on this
subject must come out of negotiations between the heads of local
governments and the Authority.
Philip Hammer and Raul Garcia of this firm met with James Carroll,
Charles Davis and John Still, the finance officers of DeKalb
County, City of Atlanta and Fulton County respectively, on Friday,
November 18, 1966. At these meetings they reviewed our research
into tax digests, our estimates for planning purposes as to the
pace and degree of financial support that might come from Federal
Mr. Glenn E. Bennett
Mr. Henry L. Stuart
December 15, 1966
Page 2
and State sources, the estimated local share of capital costs for
the minimum operational system, and our research into economic
indices that appeared to be reasonable in arriving at an equitable
distribution of the local share of capital costs among the partici-
pating governments. Our understanding was that all of the financial
officers were in agreement that the data fairly represented popula-
tion and economic trends and projections for their jurisdictions
and that the research procedures were realistic. We did not ask and
did not expect these finance officers to agree to any allocation
formula on behalf of their respective governments.
I believe we all recognize that the materials presented to MARTA
and ARMPC represent a research model which will make possible the
development of a recommended allocation formula by this firm when
final capital requirements are obtained from the engineers now
updating the 1962 study.
Moreover, it is not at all clear at this time whether a fixed or
sliding-scale formula would be desirable. We will make available
all materials necessary to help the Authority and local participating
governments make a determination on this question.
It is my understanding that Mr. James Carroll, Internal Auditor,
and Mr. Marvin Beadle, Planning Director of DeKalb County have
asked MARTA and ARMPC for copies of the preliminary data we pre-
sented at the December 12 meeting of ARMPC. Enclosed are three
copies of that tabular material as well as three copies of our tax
digest estimates and allocation formula indices contained in our
staff memorandum of December 2, 1966. We wish to advise that the
tax digest data discussed with the finance officers was presented
in constant 1965 dollars while the data attached has been converted
to current dollars to reflect anticipated inflation.
We stand ready to provide any financial data and personnel you
may require in talks with the finance officers and heads of local
participating governments. It is understood that these conferences
are now being scheduled. We believe such talks would be very fruit-
ful in preparation for subsequent meetings planned for early 1967,
at which time the new capital cost data will be available to develop
up-to-date information on indicated local government financial sup-
port requirements.
Sincerely,
Leen lig
Alan E. Welty
Principal
cc: Philip Hammer
HAMMER.GREENE.SILER ASSOCIATES
ECONOMIC CONSULTANTS WASHINGTON «© ATLANTA
2TETA,
230 Peachtree Street, N.E.
Atlanta, Georgia 30303
December 15, 1966 Area Code 404/524-6441
Mr. Glenn E. Bennett, Executive Director
Atlanta Region Metropolitan Planning Commission
900 Glenn Building
Atlanta, Georgia 30303
Mr. Henry L. Stuart, General Manager
Metropolitan Atlanta Rapid Transit Authority
808 Glenn Building
Atlanta, Georgia 30303
Gentlemen:
The minutes of the December 5, 1966 meeting of the Metropolitan
Atlanta Rapid Transit Authority contain an excerpt from a verbal
progress report made to the Authority on the financial consider-
ations analysis which should be clarified. With reference to
the tentative formula for allocating the estimated share of local
costs of a minimum operational system among participating govern-
ments, the statement on page 4 says: "All local finance officers f
had given tentative approval to these proposals." b
This statement could be misintepreted. We did not mean to imply
that the finance officers had agreed to the formula; rather, that
there was general agreement among them that the economic indices
and the analysis procedure used in arriving at a tentative formula
seemed to be reasonable. We recognize that any agreements on this
subject must come out of negotiations between the heads of local
governments and the Authority.
Philip Hammer and Raul Garcia of this firm met with James Carroll,
Charles Davis and John Still, the finance officers of DeKalb
County, City of Atlanta and Fulton County respectively, on Friday,
November 18, 1966. At these meetings they reviewed our research
into tax digests, our estimates for planning purposes as to the
pace and degree of financial support that might come from Federal
Mr. Glenn E. Bennett
Mr. Henry L. Stuart
December 15, 1966
Page 2
and State sources, the estimated local share of capital costs for
the minimum operational system, and our research into economic
indices that appeared to be reasonable in arriving at an equitable
distribution of the local share of capital costs among the partici-
pating governments. Our understanding was that all of the financial
officers were in agreement that the data fairly represented popula-
tion and economic trends and projections for their jurisdictions
and that the research procedures were realistic. We did not ask and
did not expect these finance officers to agree to any allocation
formula on behalf of their respective governments.
I believe we all recognize that the materials presented to MARTA
and ARMPC represent a research model which will make possible the
development of a recommended allocation formula by this firm when
final capital requirements are obtained from the engineers now
updating the 1962 study.
Moreover, it is not at all clear at this time whether a fixed or
sliding-scale formula would be desirable. We will make available
all materials necessary to help the Authority and local participating
governments make a determination on this question.
It is my understanding that Mr. James Carroll, Internal Auditor,
and Mr. Marvin Beadle, Planning Director of DeKalb County have
asked MARTA and ARMPC for copies of the preliminary data we pre-
sented at the December 12 meeting of ARMPC. Enclosed are three
copies of that tabular material as well as three copies of our tax
digest estimates and allocation formula indices contained in our
staff memorandum of December 2, 1966. We wish to advise that the
tax digest data discussed with the finance officers was presented
in constant 1965 dollars while the data attached has been converted
to current dollars to reflect anticipated inflation.
We stand ready to provide any financial data and personnel you
may require in talks with the finance officers and heads of local
participating governments. It is understood that these conferences
are now being scheduled. We believe such talks would be very fruit-
ful in preparation for subsequent meetings planned for early 1967,
at which time the new capital cost data will be available to develop
up-to-date information on indicated local government financial sup-
port requirements.
Sincerely,
Leen lig
Alan E. Welty
Principal
cc: Philip Hammer
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