News Summary
The city of Anaheim has announced plans to take control of the Anaheim Transportation Network (ATN) due to severe financial challenges caused by rising labor costs and budget deficits. Although ATN serves over 8 million riders annually, it faces a substantial operating deficit, largely reliant on hotel contributions. The city aims to stabilize ATN’s finances while maintaining current hotel payment levels. Discussions about alternative funding solutions, including potential fees on rideshare services, are ongoing as the city prepares for a transition in leadership.
ANAHEIM – The city of Anaheim has announced plans to take control of the Anaheim Transportation Network (ATN) in a move intended to address serious financial challenges facing the agency. This decision comes amidst rising labor costs and ongoing budget deficits without the option of increasing hotel taxes, which are a primary funding source for ATN.
The ATN, which provides transportation services primarily through its ART bus system, serves over 8 million riders annually. Funding for the agency is largely reliant on contributions from hotels based on the number of rooms and rider fares. However, ATN has encountered financial struggles, with hotel contributions lagging behind a staggering 60% increase in labor costs since 2020. This gap has led to fears of an unsustainable operating deficit that has no clear solution.
Public Works Director Rudy Emami shared that the goal of the takeover is to stabilize ATN’s financial situation while promising that hotel payments would not increase beyond their current levels. A meeting recently convened at Anaheim City Hall introduced the city’s plan, although the specifics of the transition were not disclosed in detail.
Earlier this year, the city and ATN entered a letter of understanding aimed at exploring the feasibility of the takeover. If successful, Anaheim’s City Council would gain authoritative control over ATN, while an advisory board would still manage certain operational decisions.
ATN’s board currently includes numerous hoteliers and a representative from Disney, and members have expressed concern about the agency’s financial outlook. The potential service cuts that may follow the takeover are still uncertain, especially since ATN already tailors its services around the operational hours of Disneyland, which is a significant component of the agency’s ridership.
The city plans to seek state transit assistance funds in an effort to fortify ATN’s finances further. Projections that combined increased hotel payments and potential state assistance continued to forecast a deficit for ATN, indicating the complexity of the financial challenges ahead.
To address funding issues, alternative ideas are being explored, including the implementation of fees on Uber and Lyft rides, as well as potential investment in emerging transportation technologies such as gondolas or autonomous vehicles. Discussions are also ongoing with the Orange County Transportation Authority regarding managing ATN’s bus operations.
Despite these financial hurdles, ATN has been recognized for its operational efficiency, recovering 59% of its expenses through fares, which is markedly higher than the state average of 25%. Moreover, the agency continues to work on expanding its environmentally friendly initiatives. ATN is in the process of transitioning to a fully electric bus fleet, with a plan to acquire 25 more electric buses this year and has introduced services such as an on-demand electric van connecting John Wayne Airport to Anaheim.
ATN plays a crucial role in mitigating the environmental impact of the city’s growth, effectively reducing over 2.5 million car trips annually and contributing to lower greenhouse gas emissions. The agency’s dedication to sustainability and transit solutions coincides with broader city objectives aimed at enhancing transportation infrastructure.
The current ATN CEO, Diana Kotler, who has been at the agency’s helm since 2003, announced her resignation with her final working day set for September 12, 2025. Following the city’s presentation on the takeover proposal, ATN’s board gathered in a closed-door meeting to deliberate the matter; however, no decision was reached during that session, with another board meeting scheduled later this month to continue discussions.
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Additional Resources
- OC Register: Anaheim Proposes City Takeover of Disneyland Area Transit Provider
- Google Search: Anaheim Transportation Network
- OC Register: Anaheim Looks at Takeover of Resort Transit Operator Facing Continuing Budget Challenges
- Wikipedia: Public Transport in California
- KTLA: Late Night Bus Service for Anaheim Resort Workers Gets Federal Backing
- Encyclopedia Britannica: Public Transportation
- Mass Transit: Anaheim Transportation Network Opens Solar-Powered EV Charging Hub
- Google News: Anaheim Bus System
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
