Public Works Agency
www.santa-ana.org/public-works
Item # 26
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
December 17, 2024
TOPIC: OCTA Funding Program Eligibility Requirements
AGENDA TITLE
Resolution Approving the Submission of the Fiscal Year 2023-24 Measure M2 Year-End Expenditure Report
RECOMMENDED ACTION
Adopt a resolution approving the Measure M2 Annual Expenditure Report for Fiscal Year 2023-24 and authorize submission of the report to the Orange County Transportation Authority as required by Measure M2 Funding Eligibility Guidelines.
RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONCERNING THE MEASURE M2 EXPENDITURE
REPORT FOR THE CITY OF SANTA ANA
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
In November 1990, Orange County voters approved Measure M, a 20-year one-half- cent sales tax to fund transportation projects in Orange County. Sixteen years later, in November 2006, the voters again approved the Renewal of Measure M (M2) for an additional 30 years. Once becoming effective in April 2011, the net revenues generated by M2 contribute to two types of funding: Local Fair Share (LFS) and Competitive Grants. All Orange County cities are eligible for Competitive Grants and LFS funding which is distributed based on population, number of existing Master Plan of Arterial Highways centerline miles, and taxable sales. There are a total of 13 M2 eligibility requirements; fulfilling these requirements allows the City to continue to qualify for M2 funding in future years.
Each year local agencies are required to submit documentation to the Orange County Transportation Authority (OCTA) that includes the End of Year Expenditure Report adopted via Resolution. The Expenditure Report (Exhibit 1) is a detailed financial document which is used to track and validate financial activity related to M2 Program
Resolution to Approve Measure M2 Expenditure Report
December 17, 2024
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funds. The report accounts for receipt, interest earned, and use of M2 funds while delineating the distribution of actual revenue and expenditures consistent with requirements. Adoption of the Measure M2 Annual Expenditure Report by Resolution (Exhibit 2) is a required eligibility element that must be submitted within six months of the jurisdiction’s fiscal year end.
Staff recommends that the City Council adopt a resolution to continue M2 funding eligibility.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
Approval of the Recommended Action will maintain the City’s eligibility to receive Measure M2 funds annually. Upon renewal of Measure M2 eligibility, the City of Santa Ana is anticipated to receive over $6 million in LFS funds and potentially over $8 million in M2 competitive grant funds for Fiscal Year 2024-25. If the Recommended Action is not approved, the City will lose access to all Measure M2 funding.
EXHIBIT(S)
1. Measure M2 Year-End Expenditure Report
2. Resolution – M2 Year-End Expenditure Report
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager