Public Works Agency
www.santa-ana.org/pw
Item # 36
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
December 2, 2025
TOPIC: Resolution Approving the Submission of the Fiscal Year 2024-25 Measure M2 Year-End Expenditure Report
AGENDA TITLE
Resolution Certifying the Submission of the Fiscal Year 2024-25 Measure M2 Year-End Expenditure Report
RECOMMENDED ACTION
Adopt a Resolution certifying the Measure M2 Annual Expenditure Report for Fiscal Year 2024-25 and authorize submission of the report to the Orange County Transportation Authority as required by Measure M2 Funding Eligibility Guidelines.
RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONCERNING THE MEASURE M2 (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 thirty 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, amount of street 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.
The Public Works Agency has been awarded $129,734,828 in Competitive Transportation Funding Program (CTFP) grants and $70,760,747 in Local Fair Share funds since 2011. This money benefits over 30 project phases aimed at street and road improvements that expand roadway capacity, coordinate traffic lights, improve water quality from transportation-generated pollution, and maintain existing roads and infrastructure. Currently, the city is expected to receive $6,338,621 in Local Fair Share
Resolution Approving OCTA Funding Program Eligibility Requirements December 2, 2025
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funds in FY 2025-26 and is looking to apply for $11,479,522 in competitive funding for the upcoming call for projects.
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 funds. The report accounts for receipt, interest earned, and use of M2 funds while delineating the distribution of actual revenue and expenditures compliant 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 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 2025-26. 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: Rodolfo Rosas, P.E., Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager