STAFF REPORT
Meeting Date:
December 9, 2025
CONSENT
10 SUBJECT: RESOLUTION ADOPTING MEASURE M2 EXPENDITURE REPORT FOR FISCAL YEAR 2024-25
RECOMMENDATION: It is recommended that the City Council:
1. Adopt the attached Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, CONCERNING THE MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF LAGUNA BEACH,” approving the Orange County Measure M2 Transportation Improvement Tax Expenditure Report for Fiscal Year 2024-2025, as certified by the Director of Finance subject to technical revisions in conformance with Orange County Transportation Authority guidelines; and
2. Authorize the Director of Finance to sign and submit the report to the Orange County Transportation Authority.
SUMMARY OF THE MATTER
In 1990, Orange County voters approved Measure M, which provides funding for transportation improvements from a county-wide one-half percent retail sales tax. In 2006, Orange County voters approved Renewed Measure M (Measure M2), which extends the one-half percent sales tax to 2041. To remain eligible for receiving these funds, local agencies are required to submit annual accounting of Measure M2 revenues and expenditures to the Orange County Transportation Authority (OCTA) by December 31 of each year.
DISCUSSION
For Fiscal Year (FY) 2024-25, the City of Laguna Beach received $586,303 for street repairs and maintenance under this program known as the Local Fair Share. The City is also eligible for competitive grant funding under the Measure M2 programs. In FY 2024-25, the City also received $50,385 in Senior Mobility Program (SMP) funding for paratransit services. To remain eligible for receiving these funds, local agencies are required to submit annual accounting of Measure M2 revenues and expenditures to OCTA by December 31 of each year.
Prior to submitting the required Measure M2 revenues and expenditures accounting to OCTA, the annual report must be adopted by resolution of the City Council. Attached are the Measure M2 Expenditure Report for FY 2024-2025 (Attachment 1) and accompanying Resolution (Attachment 2).
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ENVIRONMENTAL ANALYSIS
RESOLUTION ADOPTING MEASURE M2 EXPENDITURE REPORT FOR FISCAL YEAR 2024- 25 December 9, 2025
The annual report is not considered a project subject to the California Environmental Quality Act review pursuant to State CEQA Guidelines, section 15378(b)(4), which states that a project does not include “[t]he creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.” The City’s consideration of the Measure M2 Expenditure Report for FY 2024-2025 is a necessary step before submitting this annual accounting to OCTA in order to remain eligible for Measure M2 grant funding. This is a fiscal activity that is not tied to any specific project that may have significant environmental impacts and therefore is not a project requiring environmental review.
ATTACHMENTS
1. M2 Expenditure Report (Pgs. 3-7)
2. Resolution (Pgs. 8-14)
Submitted By: .Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Finance
Director
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Shannon Espinoza, Finance Manager