STAFF REPORT
Meeting Date:
May 12, 2026
CONSENT
16 SUBJECT: TRANSPORTATION DEVELOPMENT ACT ARTICLE 4 FUND ACTIVITY FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 RECOMMENDATION: It is recommended that the City Council:
1. Receive and file the Transportation Development Act (TDA) Article 4 Fund Activity financial statements for the fiscal year ended June 30, 2025; and
2. Find that the recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as it does not constitute a project.
SUMMARY OF THE MATTER
This report presents the Transportation Development Act (TDA) Article 4 Fund Activity financial statements for the fiscal year ended June 30, 2025, and recommends that the City Council receive and file the statements. The financial statements were reviewed and approved by the Audit Committee on April 21, 2026.
The City receives approximately $1.4 million annually in TDA funds from the Orange County Transportation Authority (OCTA) to support transit operations. The financial statements were audited by an independent auditor, who issued an unmodified opinion with no findings.
DISCUSSION
Staff are pleased to present TDA Article 4 Fund Activity financial statements for fiscal year ended June 30, 2025 and 2024. These financial statements present only the TDA Fund Activity. The City receives approximately $1.4 million annually in TDA Funds from the OCTA to fund the City’s transit operations.
OCTA contracted with Crowe LLP to perform a financial and compliance audit of the TDA funds for the fiscal year ended June 30, 2025.
The auditors expressed an unmodified opinion on the TDA Fund Activity’s fiscal year ended June 30, 2025, financial statements, indicating the financial statements present fairly, in all material respects, the financial position and changes in financial position of the TDA Fund Activity in accordance with generally accepted accounting principles. The auditors also opined that the TDA Fund Activity complied with the compliance requirements described in California Code of Regulations related to the TDA Article 4. There were no audit findings reported by the auditors.
The Audit Committee reviewed and approved the financial statements on April 21, 2026, and recommends the City Council receive and file the report.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
TRANSPORTATION DEVELOPMENT ACT ARTICLE 4 FUND ACTIVITY FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025
May 12, 2026
ALIGNMENT WITH CITY COUNCIL GOALS & PRIORITIES
This action supports the City’s goal of fiscal responsibility and transparency by ensuring proper oversight, accountability, and reporting of restricted transportation funds.
ENVIRONMENTAL ANALYSIS
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it does not qualify as a “project.” The proposed action involves the receipt and filing of financial statements, which is an administrative activity that does not result in any direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS
1. TDA Financial Statements Packet for Fiscal Year Ended June 30, 2025 (Pgs. 3-19) Submitted By: Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Director of
Administrative Services
Dave Kiff, City Manager
Report Prepared By:
Tiffany Fung, Accounting Manager