CITY OF HAWAIIAN GARDENS
CITY COUNCIL
STAFF REPORT
Agenda Item #B4
DATE: October 8, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Ernesto Marquez, City Manager
BY: Linda Hollinsworth, Finance Director
RECOMMENDATION:
RECOMENDATION TO ADOPT RESOLUTION 027-2025 OF THE CITY COUNCIL OF
THE CITY OF HAWAIIAN GARDENS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA APPROVING THE EXCHANGE OF FY 2025-2026 PROPOSITION A
FUNDS BETWEEN THE CITY OF HAWAIIAN GARDENS AND THE CITY OF LA HABRA
HEIGHTS, CALIFORNIA AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
NECESSARY DOCUMENTS
SUMMARY
The City recognizes that the cost to support the City’s transportation needs exceeds the revenues received from the available restricted funding. Transfers from the General Fund are required to subsidize transportation related expenses. One way to reduce the impact on the General Fund is to purchase Proposition A Transportation Funds at a discount from other cities in return for unrestricted General Fund dollars.
The City will receive approximately $350,000 in Prop A Local Return Transit Funds in FY 25-26 that can only be used for public transportation purposes. The budgeted expenditures FY 25-26 for the Prop A Fund will exceed the budgeted revenues. The City of La Habra Heights has $80,000 of Prop A Funds for the FY 25-26 allotment. They would like to exchange these Prop A funds at a rate of 75/100 or $60,000 of General Fund dollars. This additional revenue for Prop A is included in the Citywide FY 25-26 Budget.
FISCAL IMPACT
The Exchange of Prop A Funds is budgeted with an expense of $60,000 from the General Fund and an increase of $80,000 Prop A Fund revenue.
SUGGESTED ACTION
Approve Recommendation.
ATTACHMENTS
A. Resolution 027-2025
B. Assignment Agreement with La Habra Heights