To:
FROM:
DATE:
SUBJECT:
CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
Honorable Mayor and Council Members
Trevor Agrelius, Finance Director
December 11 , 2025
Measure M2 Annual Expenditure Report for FY 2024-2025
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. 2025-1519 (Attachment A), Adopting the Measure M2 Expenditure Report for Fiscal Year 2024-2025; and
2. Authorize the City's Finance Director to sign and file the report with the Orange County Transportation Authority.
BACKGROUND
In April 2006, Orange County voters approved the renewal of Measure M, the half-cent sales tax for transportation in Orange County, to take effect in April 2011 upon the expiration of the previous Measure M program. The renewed program, known as Measure M2, imposes a variety of new requirements on local agencies if they are to remain eligible to receive a share of the transportation funding. Among the requirements is an annual Measure M2 Expenditure Report, which is required to be prepared for each fiscal year and submitted to the Orange County Transportation Authority (OCTA) within six months of the fiscal year end. The report must be approved by the City Council.
The report must include an annual accounting of all M2 funds received by the local jurisdiction , as well as any developer/traffic impact fees and funds expended to satisfy maintenance of effort requirements. OCTA has designed a report template fashioned after the State Controller's annual Streets and Roads Report to assist local agencies in meeting these reporting requirements. City staff has worked with OCTA staff to complete the M2 expenditure report.
ANALYSIS
Exhibit 1 to the resolution is the Measure M2 Expenditure Report for Fiscal Year 2024- 2025, covering the period July 1, 2024, through June 30, 2025. For Fiscal Year 2024- 2025, the City received $1 ,547,305 in M2 fair share revenues and $117,841 in Senior Mobility Program revenues. Additionally, the City received $164,064 as a
reimbursement for expenditures associated with the Storm Water Catch Basin Project, and $470,697 in reimbursements for the Laguna Niguel Summer Trolley Program.
The City expended the following amounts in Fiscal Year 2024-2025:
• Local Fair Share M2 Funds
• Senior Mobility Program
• Laguna Niguel Summer Trolley
• Crown Valley Widening Project
• Alicia Parkway Reg. Traffic Signal Synchronization
• Storm Water Catch Basin
$2,614,092
$152,072
$290,269
$57,600
$119,064
$22,538
The City is required to continue to expend a certain amount of its own discretionary funds for street-related purposes and not to supplant those expenditures with Measure M2 funds. This requirement is more commonly referred to as the maintenance of effort requirement. The City's maintenance of effort requirement for Fiscal Year 2024-2025 was $990,064. The City expended its own discretionary funds on street-related activities during Fiscal Year 2024-2025 in the amount of $1 ,787,221 , which is more than the established minimum maintenance of effort requirement.
FISCAL REVIEW
This annual report is required to maintain eligibility to receive M2 funding. Failure to adhere to eligibility requirements may result in suspension of funds until such time as satisfactory compliance is achieved.
LEGAL REVIEW
The City Attorney's Office has approved the resolution as to form.
CONCLUSION
Staff recommends that the City Council:
1. Adopt Resolution No. 2025-1519 (Attachment A), Adopting the Measure M2 Expenditure Report for Fiscal Year 2024-2025; and
2. Authorize the City's Finance Director to sign and file the report with the Orange ~a~~ _.,,,,.--_ \ _~- ~ -=====-----'-/h--'--____,...,,,'--""",,,,_...c:..,......,....--:__ __ Tamara S. Letourneau Trevor Agrelius
City Manager Finance Director
Attachment:
A. Resolution No. 2025-1519
ATTACHMENT A
Resolution No. 2025-1519
RESOLUTION NO. 2025-1519
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
ADOPTING THE MEASURE M2 EXPENDITURE REPORT
FOR FISCAL YEAR 2024-2025
WHEREAS, local jurisdictions are required to meet eligibility requirements and submit eligibility verification packages to the Orange County Transportation Authority (OCTA) in order to remain eligible to receive M2 funds; and WHEREAS, local jurisdictions are required to adopt an annual M2 Expenditure Report as part of one of the eligibility requirements; and WHEREAS, local jurisdictions are required to account for Net Revenues, developer/traffic impact fees, and funds expended by local jurisdictions in the M2 Expenditure Report that satisfy the Maintenance of Effort requirements; and WHEREAS, the M2 Expenditure Report shall include all Net Revenue fund balances, interest earned and expenditures identified by type and program or project; and WHEREAS, the M2 Expenditure Report must be adopted and submitted to the OCTA each year within six months of the end of the local jurisdiction's fiscal year to be eligible to receive Net Revenues as part of M2.
NOW, THEREFORE, the City Council of the City of Laguna Niguel hereby resolves as follows:
1. The M2 Expenditure Report (attached as Exhibit 1) is in conformance with the template provided in the Measure M2 Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year, and balances at the end of fiscal year.
2. The M2 Expenditure Report for Fiscal Year 2024-2025 is hereby adopted by the City of Laguna Niguel.
3. The City of Laguna Niguel Finance Director is hereby authorized to sign and submit the M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2025.
Resolution No. 2025-1519 Page2
PASSED, APPROVED AND ADOPTED this 11th day of December, 2025.
ATTEST:
Marissa J. Asistin
City Clerk
Exhibits
Gene Johns, Mayor
1. Annual Measure M2 Expenditure Report
Exhibit 1
2025 Draft M2 Expenditure Report
City of Laguna Niguel
City of Laguna Niguel
Description
Balances at Beginning of Fiscal Year
M2 Expenditure Report
Fiscal Vear Ended June 30, 2025
Beginning and Ending Balances
Schedule 1
Amount Interest
: A-OM!~~~:::,.~~=~~ Pmgcam (RCP) ::::::::::::::::::=: =::::: :::::::: :::= •=••·· ~::::: .~ :: :::: : ::: ::: =: : : :L:::::::::::::::: :: :::: :::::::
P !Regional Traffic Signal Synchronization Program (RTSSP) 3 $ $ Q \ocal Fair Share 4 $ 2,980,632.00 $ 15,897.00
····: ···l~:;~;;~~~=~s~~:~:~:~r!~:ce .................................................................. ~······· ··; ................................... -....... ··; ................................... -..... . k~nvert Metrolink Station(s) to Regional Gateways that
T !connect Orange County with High-Speed Rail Systems 7 $ $ U 1senior Mobility Program or Senior Non-Emergency Medical 8 $ 476,799.00 $ ........... ].Program ................................................................................................................................................................................................................................... .
V !Community Based Transit/Circulators 9 $ {363,962.95) $ - W !Safe Transit Stops 10 $ - $ -
X )Environmental Cleanup Program (Water Quality) 11 $ {141,526.00) $ - )Other* 12 $ $
Balances at. Beginning .of Fiscal.Year ........................................................................ 13 ........ $ .............. 2,951,942.05 .... $ ................... ..15,897 .oo. \Monies Made Available During Fiscal Year 14 $ 2,299,906.43 $ 156,791.01 Total Monies Available {Sum Lines 13 & 14) 15 $ 5,251,848.48 $ 172,688.01 \Expenditures During Fiscal Year 16 $ 3,082,947.94 $ 172,688.01 Balances at End of Fiscal Year r-7~~
A-M ]Freeway Projects 17 $ - $ -
O )Regional Capacity Program (RCP) 18 $ {57,600.00) $ - •••••••••n.; ·•••••••••••u••••••••••••n••••••••o•u•• .. ••••• .. •••••••••••••••••••••••••••••••••••••••••••••u•••••••••••••n••••••••••••••• •••••••••••••--•••• .. •••••••• .. •••• .. ••••••••••••••••u•••••••u•••• ••••••••••••••••••••••••••••••••••••••••••••••••• P )Regional Traffic Signal Synchronization Program (RTSSP) 19 $ {119,064.90) $ - Q \ocal Fair Share 20 $ 2,056,950.64 $
::::: :::l~:;~;;E~~=~s~~:~:~:~r!~:ce :::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::::: ~~ :::::. ::; :::::::::::::::::::::::::::::::::::-::::::: ::; :::::::::::::::::::::::::::::::::::-:::::::
)Convert Metrolink Station(s) to Regional Gateways that $ $ T \connect Orange County with High-Speed Rail Systems 23 U \Senior Mobility Program or Senior Non-Emergency Medical 24 $ 472,150_21 $ _ ........... ~Program ................................................................................................................................................................................................................................... .
V !Community Based Transit/Circulators 25 $ (183,535.41) $ - ::: ~ ::l:~~:~r:r:~~~::~~l:anup· Program :(Water :Quality):::::::::::::::::::::::::: ::::::: ~~ :::::· ::; :::::::::::::::::::::::::::::::::::~ ::::::: : t::::::::::::::::::::::::::::::::::~ ::::::. )Other* 28 $ $
* Please provide a specific description
Note: The beginning balances for the following projects were adjusted:
Project O Reduce beginning balance by ($201,826)
Project Q Increase beginning balance by $327,455
Project X Reduce beginning balance by ($141,526)
Crown Valley Widening ROW Project
Trash Control Devices on Stormwater
Catch Basins 2022
The reason Project O and X need to be adjusted is because the City had pending reimbursement requests that were paid out, and if those adjustments aren't made it will appear as though the City advance funded those projects, which is not the case. Previous M2 Expenditure Reports inadvertently reported those expenditures as LFS expenditures as opposed to other project expenditures. The net adjustment for all projects is $15,897, which was made to match the ACFR figures and is due to unallocated unrealized interest.
City of Laguna Niguel M2 Expenditure Report
Fiscal Year Ended June 30, 2025
Sources and Uses
Schedule 2
Description
Revenues:
A~M ;·F;~~~ay Pr~Je~t·s ... ••• ...... ••• ... ... •• 1 . $., ...... ... ... ... - . $. ......... . • 6' '['R~gi'~~~I C~p-~c'iiy'i,';~g~-a~·,R·EPi' ... " ......... .. 2 . $. ... ... ,. . .. .... ~ . $.. .. ... ... .. " "p .. )i~gi~~-~-1 Tr~'iti~'sig~a'isv~·c·h;~~-i·~ati'~;·p·~og~am (RTSSP) 3 .$. ........ , ............. -~ .. $ .. ................ .. . :·cc\~i-~i/~i~ .. ~~.?~i-: .. ::.::·::··:::::·: .. :·:: ... :: .. : .. ·::: ·: .. ·: .. :·::·::·:: ... "' ............ ........ .. " 4 ·• .. $. .... ~i?~.?.1.?o.~.?.2.,. $. .. . ~.2.7.t.~q~:9.9 R 1 High Frequency Metrolink Service .... ? ......... ,$.., ...................... ~ . $ ...................... . ""f5~~~~i~.~~f~.6~i~6:~}~.:~iifr~fi~~:::: .... ::· .... ·: ................. :: ·: ... ·:_: .. :: ·::. ••• . .-:: ...... :....... • 6 ,$.... - .$ ................... .. ;convert Metrolink Station(s) to Regional Gateways that connect T 7 $ - $ !orange County with High-Speed Rail Systems -~ ··.: s~-~!9r..~.~b-iii.~v.l~~i.~~~:~r..?.i6fo/'~~-~=~~-~~ii~~:~v::~~dica,!. Pr.9wam V , ~9.!!1!!11:1.ni.~y-~~?f:~ Tr~.n~_i_t/ Cir~_~la_!.°~~.. ... ... .. . ............ .
W '.Safe Transit Stops
.. ~- "Ti~~~ir.~~-~:~~t,{~t~?~~P . .P~.~i;~~-("\~i~-~ .. q~:~lfiv) ...
Other*
TOTAL REVENUES (Sum lines 1 to 12)
~xper:i~!t':IE~.~:
~~~; fr~e-.yay ProJe.c.ts
Q ! Re,gior,i_a_l, c_a,P.?~.i~y .. P_r_o!$.ra.!TI _(R~~). .. ... . . .. .. .. . ~ ... ;.~.e,gi_~~~I .!r~_lf.ic S\g_n~.1 Sy_~c~:°.!1\~a-~)or,i ~_f0.$r.?m _(RT~SP,) .. q 1 ~~c_a! .. Fa!_r ?,h_?r.e .. ... .. ... .. ..
. ~.. ~_i_gh Ft.f::guencv .. JYl.~t_rol!nk Servi~~
S ;Transit Extensions to Metrolink
,. •••• •• .• •• -.~, ••• .. ••• u ••
;convert Metrolink Station(s) to Regional Gateways that connect T , Orange County with High-Speed Rail Systems
00 •' • ·• OoO .,.,., •• •• •• 00 oO .. M • 0••· 00 ,0 oOT 00 ·•• •· U )S~_nio,r_!Vlo~!l!.!Y P.TO.W.~1:,1 or.~~niO.E N<:>.~-Emerl$ency .~edical Pr,o~r~.m V : Community Based Transit/Circulators
W ;saf~_T~a-~slt St;pi.. • .. ... .. ..
X 'Environmental Cleanup Program (Water Quality) iot.iie~*.. ..• ... .... .. .... . ... . .. .. ... .... ... .. ..
TOTAL EXPENDITURES (Sum lines 14 to 25)
TOTAL BALANCE (Subtract line 26 from 13)
* Please provide a specific description
8 $
9 $.
10 ,$
1~?1.8.~~ .. ?.'.4 .. $. " ?.~,.?.8.?:9.1.
" ~79,?.~.~ .. ~? .. $. ..
.............. - . $ ........ .... " ...
.. ... }~ .... $. }~.~,.06.~_.qo . . $. ... •" .. .. ..... 12 $ - $
13 $ 2,299,906.43 $ 156,791.01
14 15
"
16 17
18 ..
19 20
21 22
23 ..
24 25
26 27
. $ - $. ..
$ .?.716q_o:.9!?. . . $ ..
.$ ~!_9(_96_~-~9 . $. " .. ........ ... . .
. ~- ?1470,,.9~~--.?.~ .. $.. .. ~'.43!~.□.?.:09.
$ - ..$
$ .. - $
$ - $
..
. $ __122,~90.0,3. $, .. 29,_58?.q_l .
.. $.. 290,~?9}3 $
.$ " - $
$ 22!53?,_.o,p. $..
$ - $
$ 3,082,947.94 $ 172,688.01
$ (783,041.51) $ (15,897.00)
City of Laguna Niguel
line Type of Expenditure No.
Indirect and/or Overhead 1
Construction & Right-of-Way
New Street Construction 2
Street Reconstruction 3a
Street Reconstruction - Pavement 3b
Signals, Safety Devices, & Street Lights 4
Pedestrian Ways & Bikepaths 5
Storm Drains 6
Storm Damage 7•
Storm Damage - Pavement 7b
Total Constructlon 1 (Sum Unes 2 to 7b) 8
Right of Way Acquisition 9
Total Construction & Right-of-Way (Sum lines 8 & 9) 10
Maintenance
Patching 11
Overlay & Sealing 12
Street lights & Traffic Signals 13
Storm Damage 14
Other Street Purpose Maintenance 15a
Other Street Purpose Maintenance· Pavement 15b
Total Malntenance 1 (Sum Lines 11 to 15b) 16
other 17
GRAND TOTALS (Sum Lines 1, 10, 16, 17) 18
Finance Director Confirmation 19
1 Includes direct charges for staff time
2 Other M2 includes A·M, R,S,T,U,V, and W
• Transportation related onlv
• Please provide a specific description
Developer/ MOE Impact Fees•
0 $ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ s
$ s s $
$ $ $ 57,600.00 s
$ 1,787,221.47 $ $ s
$ 1,787,221.47 $ $ 57,600.00 $
$ $ $
$ 1,787,221.47 $ $ 57,600.00 $
M2 Expenditure Report
Fiscal Vear Ended June 30, 2025
Streets and Roads Detailed Use of Funds
0 p p Q Interest Interest
$ $ $
$ $ $
$ $ $
$ $ $ 2,071,911.38
$ $ $
$ $ $ 383,592.00
$ $ $ 15,482.50
$ $ $
$ $ $
$ $ $ 2,470,985.88
$ $ $
$ $ $ 2,470,985.88
$ $ $
$ $ s
$ $ $
$ $ $
s 119,064.90 $ $
$ $ $
$ 119,064.90 s $
$ $ $
$ 119,064.90 $ $ 2,470,985.88
Q X Other Other
X
M22 MZ Other• TOTAL Interest Interest Interest
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ 143,106.00 $ $ $ $ $ $ 2,215,017.38
$ $ $ $ $ $ $
$ $ $ $ $ $ $ 383,592.00
$ $ $ $ $ $ $ 15,482.50
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ 143,106.00 $ $ $ $ $ $ 2,614,091.88
$ $ $ $ $ $ $
$ 143,106.00 $ $ $ $ $ $ 2,614,091.88
$ $ $ s $ $ s
$ $ $ s $ $ $
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ $ 22,538.00 s $412,759.16 $ 29,582.01 $ s 641,544.07
$ $ $ $ $ $ $ 1,787,221.47
$ $ 22,538.00 $ $ 412,759.16 $ 29,582.01 $ $ 2,428,765.54 $ $ $ s $ $ $
$ 143,106.00 $ 22,538.00 $ $ 412,759.16 $ 29,582.01 $ $ 5,042,857.42 Any California State Constitution Article XIX streets and road eligible expenditure may be Hcounted" in local jurisdictions' calculation of MOE if the activity is supported (funded) by a local jurisdictions' discretionary funds (e.g. general fund).
The California State Controller also provides useful information on Article XIX and the Streets and Highways Code eligible expenditures in its "Guidelines Relating to Gas Tax Expenditures for Cities and CountiesH I have reviewed and am aware of these guldelines and their appllcability in calculating and reporting on Maintei:iance of Effort expenditures, Finance Director Initial: TA
Legend
• ProJ~~r.... Des_crlp_tloh . . •· ... •·· ... .
A·M Freeway Projects
0 Regional Capacity Program (RCP)
p Regional Traffic Signal Synchronization Program (RTSSP) Q Local Fair Share
R High Frequency Metrolink Service
5 Transit Extensions to Metrolink
T
Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems
u Senior Mob\Uty Program or Senior Non-Emergency Medical Program V Community Based Transit/Clrculators
w Safe Transit Stops
X Environmental Cleanup Program (Water Quality)
Schedule 3
City of Laguna Niguel
PROJECT NAME
-~~t:?1 -~-°-a9."'!~Y . .P~yem.~~! ~_e.~a~il_i_!.?!io_~ Pr9.je_~! ........
Active Transportation Study & Bicycle Improvements
A.e~id~n~ia:( ~~i~.d.~~)ni f r.~ir.~i.dt~~:~i s.. -6( .........
M2 Expenditure Report
Fiscal Year Ended June 30, 2025
Local Fair Share Project List
TYPE OF EXPENDITURE
CON - Street Reconstruction - Pavement ., .. ., ....................... , .... .
SPN -.P.l:~1:.st~_i_a~_li\!_ay~ ~ B)_k_eP.a.~h~ ...
CON - Street Reconstruction - Pavement .......................
Schedule4
AMOUNT INTEREST
.. ... 9.9.~A0~ -~.o $ ;_43,106.00
.... ~8.~.i?..9?-~.9. ,. .. .. .. ,. ..
..1,.0~?.i?.q?-~~.
Trash Control Devices on Stormwater Catch Basins 2022 CON - Storm Drains ... 1.?.,~8.?-~.o TOTAL PROJECT Q EXPENDED $ 2,470,985.88 $ 143,106.00
GRAND TOTAL PROJECT Q EXPENDED ._! _$ ______ 2,_6_14_,_o9_1_.s_s_.l City of Laguna Niguel
I hereby certify that:
M2 Expenditure Report
Fiscal Year Ended June 30, 2025
Signature Page
ief' All the information attached herein and included in schedules 1 through 4 is true and accurate to the best of my knowledge;
~ he interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated;
ef"The City of Laguna Niguel is aware of the State Controller's "Guidelines Relating to Gas Tax Expenditures for Cities and Counties", which is a guide for determining MOE Expenditures for M2 Eligibility purposes; ~ The City Expenditure Report is in compliance with direction provided in the State Controller 's "Guidelines Relating to Gas Tax Expenditures for Cities and Counties;" and lefr he City of Laguna Niguel has expended in this fiscal year an amount of local discret ionary funds for streets and roads purposes at least equal to or exceeding the FY 2024-25 MOE benchmark dollar amount 11 .
Director of Finance (Print Name) Date
Signature
11 Jurisdictions are encouraged to submit MOE eligible expenditures higher than their MOE benchmark , so that should certain expenses be ruled ineligible during an MOE audit, the local jurisd iction still has sufficient MOE expenditures to demonstrate continued achievement of the MOE benchmark .