Dyer Has Plan to Save $10 Million--at Least on Paper

RTD General Manager John A. Dyer attended his last board meeting Thursday, one that featured an accounting scheme providing on-paper savings of $10 million, criticism of the county Transportation Commission and the Los Angeles Times, and a lucrative consultantship for Dyer.

In a resolution praising Dyer’s 6 1/2-year service as the transit system’s top administrator, the board praised him “for a job well done” and asserted that, following recent controversies and intense scrutiny, the bus operations had “emerged as one of the most efficient, productive bus systems in the country.”

Later in closed session, Dyer, whose resignation takes effect Sunday, signed a consulting contract to shepherd environmental plans for the second leg of Metro Rail through federal, state and local reviews. Dyer will be paid $7,500 a month for up to three months.

Accounting Method

In one of Dyer’s last moves, he persuaded the board to adopt a new accounting method that will slash $10 million off a projected $14-million deficit. Under federal funding requirements, the district must balance its budget by the close of the fiscal year, June 30, or face the loss of federal funds.

Officials explained that the $10 million, under previous accounting methods, was classified as money spent for spare parts--a debit item and part of the deficit. Under the new accounting procedure, the value of warehoused spare parts will be reflected as an asset. Only when the parts are used would they be charged on the books as an expenditure.

The change provides only a one-year savings. On Feb. 20, the RTD board will hold a public hearing to consider increases of the basic fare of 85 cents.

Later, Dyer and two directors criticized the county Transportation Commission and The Times concerning a news article of Jan. 22 which reported that the RTD had lost $3.6 million in interest earnings because it was six months tardy in filing state-mandated reports.

While acknowledging that reports were delayed and the $3.6 million was not received by the RTD, Dyer asserted that the district had acted responsibly and that “the board’s careful analysis and final actions avoided a fare increase or service cuts, thus saving transit riders many millions of dollars in commuting expense.”

The $3.6 million, Dyer said, remains with the Transportation Commission and is still available for allocation to the RTD. Commissioners and staff members, however, say the money will not necessarily go to the RTD.

Directors Joseph Dunning and Marvin Holen joined in the criticism, saying that the commission’s report misrepresented the facts. Commission officials insist that their analysis was accurate based on the information available last week.

Times staff writer Rich Connell contributed to this article.