Public Works Agency
www.santa-ana.org/public-works
Item # 19
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 19, 2024
TOPIC: Special Gas Tax and Transportation System Improvement Funds for Existing Approved Capital Projects
AGENDA TITLE
Appropriation Adjustments to Recognize Special Gas Tax and Transportation System Improvement Area Funds Fund Balance and Amendments to the Fiscal Year 2024-25 Capital Improvement Program for Various Projects
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing $200,000 of prior-year fund balance in Special Gas Tax, Prior Year Carry Forward revenue account and Select Street Construction, Transfer from Fund 029 revenue account, and appropriate the same amount into the Gas Tax Interfund Transfer, Transfer to Fund 059 expenditure account and HUTA 2103 Gas Tax, Improvements Other Than Buildings expense account. (Requires five affirmative votes)
2. Approve an appropriation adjustment recognizing $434,400 of prior-year fund balance in the New Transportation System Improvement Area E, Prior Year Carry Forward revenue account, and appropriate the same amount to the New Transportation System Improvement Area E, Improvements Other Than Buildings expense account. (Requires five affirmative votes)
3. Approve an appropriation adjustment recognizing $5,100,000 in prior year fund balance in the Transportation System Improvement Authorization Area B, Prior Year Carry Forward revenue account, and appropriate the same amount into the Transportation System Improvement Authorization Area B Tustin, Improvements Other Than Buildings expenditure account. (Requires five affirmative votes.)
4. Approve an amendment to the Fiscal Year 2024-25 Capital Improvement Program to include $200,000 of Special Gas Tax, HUTA 2103 Gas Tax funds for the 10th Street and Flower Street Project (Project No. 22-1342).
5. Approve an amendment to the Fiscal Year 2024-25 Capital Improvement Program to include $434,400 of New Transportation System Improvement Area E funds for the Warner Widening Phase 1 Project (Project No. 14-6802).
Special Gas Tax and Transportation System Improvement Funds for Existing Approved Capital Projects
November 19, 2024
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6. Approve an amendment to the Fiscal Year 2024-25 Capital Improvement Program to include $5,000,000 of Transportation System Improvement Authorization Area B funds for the Warner Phase 2 Widening Project (Project No. 18-6901).
7. Approve an amendment to the Fiscal Year 2024-25 Capital Improvement Program to include $100,000 of Transportation System Improvement Authorization Area B funds for the Warner Phase 2 Bikeway Project (Project No. 20-6971).
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The Public Works Agency (PWA) staff has evaluated funding sources for Council approved capital improvement projects. Approval of this item will allow staff to use existing developer fees to complete construction of certain street improvement projects and frees up other money for Council to spend on other projects.
Background
The City collects various development impact fees from private developers to fund capital projects. One such fee is the Transportation System Improvement Area (TSIA) Fee. The fee is paid by developers and is used for to build transportation improvements.
Use of TSIA funds are restricted and may only be used on transportation projects within the area where the fees were collected. The City also receives Highway User Tax Account (HUTA) Gas Tax funds from the State which are restricted for use only on street improvement and street maintenance projects.
Staff recommends prioritizing the use of restricted funds for their intended purpose in lieu of non-restricted funds. This allows for non-restricted funds to be reprogrammed to other improvement projects.
Staff has reviewed available TSIA and HUTA funds and recommends that allocated budgets be revised to replace existing funds with available TSIA and HUTA funds. The recommended actions do not increase the overall funding allocated to a project. Other existing allocated funds (restricted and non-restricted) would be released to fund balance and be made available for programming in future capital improvement projects as approved by the City Council.
Recommendation
Staff recommends replacing existing funds in the following projects with TSIA funds and Special Gas Tax funds (Exhibit 1).
•10 th Street and Flower Street Improvements (Project No. 22-1342) •Warner Widening Phase 1 (Project No. 14-6802)
•Warner Widening Phase 2 (Project No. 18-6901)
•Warner Widening Bikeway (Project No. 20-6971)
Special Gas Tax and Transportation System Improvement Funds for Existing Approved Capital Projects
November 19, 2024
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Approval of the recommended actions would release American Rescue Plan Act (ARPA), Measure M2 Local Fair Share, and Road Maintenance and Rehabilitation (RMRA) Gas Tax funds for other improvement projects as approved by Council.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
Approval of the requested appropriation adjustments will recognize $200,000 of prior- year fund balance in Special Gas Tax, Prior Year Carry Forward revenue account (no. 02917002-50001), and Select Street Construction, Transfer from Fund 029 revenue account (no. 05917002-59000-029), and appropriate the same amount to the Gas Tax Interfund Transfer, Transfer to Fund 059 expenditure account (no. 02917019-68000- 059) and HUTA 2103 Gas Tax, Improvements Other Than Buildings expense account (no. 05917663-66220); $434,400 of prior-year fund balance in the New Transportation System Improvement Area E, Prior Year Carry Forward revenue account (no. 03417002-50001), and appropriate the same amount to the New Transportation System Improvement Area E, Improvements Other Than Building expense account (no. 03417660-66220); and $5,100,000 in prior year fund balance in the Transportation System Improvement Authorization Area B, Prior Year Carry Forward revenue account (no. 99217002-50001) and appropriate the same amount into the Transportation System Improvement Authorization Area B Tustin, Improvements Other Than Buildings expenditure account (no. 99217950-66220).
The spendable portion of the Gas Tax fund balance is estimated to be $4,650,999 at June 30, 2025; the spendable portion of the New Transportation System Improvement Area E is estimated to be $1,072,705 at June 30, 2025; the spendable portion of the Transportation System Improvement Authorization Area B is estimated to be $5,642,342 at June 30, 2025. The available fund balance is sufficient to allow for the recommended appropriation adjustments of $200,000, $434,000, and $5,100,000, respectively.
Fiscal
Year
Accounting Unit
– Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account
Description
Amount
APPROPRIATION ADJUSTMENT
2024-25 03417660-66220
(14-6802)
New
Transportation
System
Improvement
Area E
New TSIA E,
Improvements Other
Than Buildings
$434,400
Special Gas Tax and Transportation System Improvement Funds for Existing Approved Capital Projects
November 19, 2024
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Fiscal
Year
Accounting Unit
– Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account
Description
Amount
2024-25 05917663-66220
(22-1342)
Select Street
Construction
HUTA 2103 Gas Tax,
Improvements Other
Than Buildings
$200,000
2024-25 99217950-66220
(18-6901)
Transportation
System
Improvement
Authorization
Area B
TSIA Area B Tustin,
Improvements Other
Than Buildings
$5,000,000
2024-25 99217950-66220
(20-6971)
Transportation
System
Improvement
Authorization
Area B
TSIA Area B Tustin,
Improvements Other
Than Buildings
$100,000
TOTAL $5,734,400
EXHIBIT(S)
1. Fiscal Year 2024-25 CIP Sheets
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager