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Home My WebLink About06 MEASURE M2 FAIRSHARE ANNUAL EXPENDITURE REPORTDocusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 6 Initial AGENDA REPORT Reviewed: a`V� City Manager Finance Director DECEMBER 2, 2025 ALDO E. SCHINDLER, CITY MANAGER JENNIFER KING, DIRECTOR OF FINANCE MEASURE M2 FAIRSHARE ANNUAL EXPENDITURE REPORT The Local Transportation Authority Ordinance No. 3 requires the City to adopt an annual expenditure report detailing Net Revenues, developer/traffic impact fees, and City expenditures that meet the Maintenance of Effort (MOE) requirements. The Orange County Transportation Authority (OCTA) established the MOE benchmark with the original passage of Measure M. Under the MOE requirement, the City must spend local funds on transportation -related projects each fiscal year to remain eligible to receive Measure M2 Fairshare funds. For Fiscal Year 2024-25, the City's required MOE expenditure is $1,938,025. RECOMMENDATION: It is recommended that the City Council adopt Resolution No. 25-73, adopting the Measure M2 Expenditure Report for Fiscal Year 2024-2025 (attached), and direct staff to file the report with the Orange County Transportation Authority. FISCAL IMPACT: There is no fiscal impact associated with this agenda item. CORRELATION TO THE STRATEGIC PLAN: Filing the Measure M2 Fairshare Annual Expenditure Report contributes to the City's Strategic Plan Goal C, Financial Strength, by ensuring that the City adheres to the Local Transportation Authority Ordinance Number 3 and continues to receive Measure M2 Fairshare funds. BACKGROUND AND DISCUSSION: On November 7, 2006, voters approved the renewal of Measure M, known as Measure M2. This 30-year, multi -billion -dollar program extends the original Measure M (1991-2011) and introduces a new set of projects and programs managed by the Orange County Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City Council Agenda Report Measure M2 Fairshare Expenditure Report December 2, 2025 Page 2 Transportation Authority (OCTA). To receive Measure M2 Fairshare funds - representing a proportionate share of the 0.5% sales tax - the City must establish and maintain additional eligibility requirements introduced with Measure M2. Local Transportation Authority Ordinance No. 3 mandates that the City adopt an annual Expenditure Report to account for Measure M2 Fairshare funds, other Measure M2 funding (including the Senior Mobility Program), developer/traffic impact fees, and City expenditures satisfying Maintenance of Effort (MOE) requirements. This Annual Expenditure Report must be adopted by the City Council and submitted to OCTA within six months following the end of the City's fiscal year. The Measure M2 Expenditure Report for Fiscal Year 2024-2025 is attached to this agenda report. During this fiscal year (July 2024—June 2025), the City received $2,198,648 in Measure M2 Fairshare revenues. The City expended $713,718 in Measure M2 funds, which includes $627,836 in Fairshare funds used for various projects, such as traffic signal controller and synchronization improvements and pavement maintenance. Additionally, the City expended $6,814,184 from various sources, including the General Fund and the Land Sale Proceeds Fund, during the Fiscal Year 2024-2025. These expenditures satisfy Measure M2's MOE requirements, with a portion of the costs being for projects in Tustin Legacy. Signed by: �v"u�� 9F� 6 U 4D86AFAFFF77473... Jennifer King Finance Director/City Treasurer Attachments: 1. Measure M2 Expenditure Report for the Fiscal Year 2024-2025 2. Resolution No. 25-73 Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City of Tustin Schedule 1 M2 Expenditure Report Fiscal Year Ended June 30, 2025 Beginning and Ending Balances Description Line Amount Interest No. Balances at Beginning of Fiscal Year 1 $ A-M Freeway Projects $ O Regional Capacity Program (RCP) 2 $ $ P Regional Traffic Signal Synchronization Program (RTSSP) 3 $ $ Q Local Fair Share 4 $ 2,982,402.00 $ R High Frequency Metrolink Service 5 $ $ S Transit Extensions to Metrolink 6 $ $ T Convert Metrolink Station(s) to Regional Gateways that 7 $ $ connect Orange County with High -Speed Rail Systems U Senior Mobility Program or Senior Non -Emergency Medical 8 $ 2,959.00 $ 2,118 Program V Community Based Transit/Circulators 9 $ - $ - W Safe Transit Stops 10 $ - $ X Environmental Cleanup Program (Water Quality) 11 $ - $ Other* 12 $ - $ - Balances at Beginning of Fiscal Year 13 $ 2,985,361.00 $ 2,118 Monies Made Available During Fiscal Year 14 $ 2,283,397.47 $ 191,248 Total Monies Available (Sum Lines 13 & 14) 15 $ 5,268,758.47 $ 193,366 Expenditures During Fiscal Year 16 $ 527,341.93 $ 186,376 Balances at End of Fiscal Year A-M Freeway Projects 17 $ - $ - O Regional Capacity Program (RCP) 18 $ - $ P Regional Traffic Signal Synchronization Program (RTSSP) 19 $ - $ Q Local Fair Share 20 $ 4,737,471.80 $ R High Frequency Metrolink Service 21 $ $ S Transit Extensions to Metrolink 22 $ $ T Convert Metrolink Station(s) to Regional Gateways that 23 $ $ connect Orange County with High -Speed Rail Systems U Senior Mobility Program or Senior Non -Emergency Medical 24 $ 3,944.74 $ 6,990 Program V Community Based Transit/Circulators 25 $ - $ - W Safe Transit Stops 26 $ $ X Environmental Cleanup Program (Water Quality) 27 $ $ - Other* 28 1 $ $ - * Please provide a specific description Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City of Tustin M2 Expenditure Report Schedule 2 Fiscal Year Ended June 30, 2025 Sources and Uses Description Line Amount Interest No. Revenues: 1 A-M Freeway Projects $ - $ O Regional Capacity Program (RCP) 2 $ - $ P Regional Traffic Signal Synchronization Program (RTSSP) 3 $ - $ Q Local Fair Share 4 $ 2,198,648 $ 184,258 R High Frequency Metrolink Service 5 $ - $ - S Transit Extensions to Metrolink 6 $ - $ T Convert Metrolink Station(s) to Regional Gateways that connect 7 $ $ Orange County with High -Speed Rail Systems U Senior Mobility Program or Senior Non -Emergency Medical Program 8 $ 83,403 $ 6,990 V Community Based Transit/Circulators 9 $ - $ - W Safe Transit Stops 10 $ - $ X Environmental Cleanup Program (Water Quality) 11 $ - $ Other* 12 $ 1,347 $ - TOTAL REVENUES (Sum lines 1 to 12) 13 $ 2,283,397 $ 191,248 Expenditures: A-M Freeway Projects 14 $ - $ - O Regional Capacity Program (RCP) 15 $ - $ P Regional Traffic Signal Synchronization Program (RTSSP) 16 $ - $ - Q Local Fair Share 17 $ 443,578 $ 184,258 R High Frequency Metrolink Service 18 $ - $ - S Transit Extensions to Metrolink 19 $ - $ T Convert Metrolink Station(s) to Regional Gateways that connect 20 $ $ Orange County with High -Speed Rail Systems U Senior Mobility Program or Senior Non -Emergency Medical Program 21 $ 82,417 $ 2,118 V Community Based Transit/Circulators 22 $ - $ - W Safe Transit Stops 23 $ - $ X Environmental Cleanup Program (Water Quality) 24 $ - $ Other* 25 $ 1,347 $ - EXPENDITURES (Sum lines 14 to 25) 26 $ 527,3422$ 186,376 FOTAL OTAL BALANCE (Subtract line 26 from 13) 27 $ 1,756,056 1 $ 4,872 * Please provide a specific description * Revenue - Red Hill Avenue Meter Revenue Refund - So Cal Edison * Expenditure - direct staff time toward annual pavement maintenance Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City of Tustin Schedule 3 M2 Expenditure Report Fiscal Year Ended June 30, 2025 Streets and Roads Detailed Use of Funds Line Developer/ O P Q X Other Other Type of Expenditure No. MDE Impact Fees O interest P Interest Q Interest X Interest M2' M2 Other' TOTAL Interest Indirect and/or Overhead 1 $ - $ - $ - $ - $ - $ - $ - $ - 5 - $ - S - 5 - $ - $ - COnstructiOn & Right -of -Way New Street Construction 2 $ 4,987,075,00 $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ 4,987,-5 Street Reconstruction ..... _............. ....._ ..... .-.,..... ,.,.... ..... .,......... ,..... .... 38 ..-.. ...... $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - _, Street Reconstruction - Pavement 3b _.__.__ - $ 4B4O38.00 - _.__.. $ - _____....,............».................. $ - $ - .................-....-...-.. $ - _._-- $ - --._,.. __.._,-- $ 206,336.67 .____. $ 86,008.71 _,--,.......--_.. $ - $ - $ - $ - _..,.,...,, $ 1,346.64 .... .,.,. .,., ., ..,..... $ 3411730 5ignals, Safety Devices, & Street Lights _.. __..._ _.. _. _... _ _. _ _,..,. _. 4 __..., ...,,.-.,,.., _ ..,.., ... ....,.....,.....,....,....... .,........,....,... Pedestrian Ways & Bikepaths .�....... .......... ............ ... .., ..,..... ............_............. 5 ....... .,.., $ 17,602,00 ........ .. ...., .,.,., .. ....... $ 129,265,48 ..... ., ........... $ - .,. .,... .,.., „ $ - ....,-...,....,......... $ - ....,. .,....,....,_. .................-...................................................... $ - ..,_...,__ $ 3,535.73 ._.. $ 1,464.27 .. .. $ - .. $ - .... ........................... $ - 5 - ..... ........... $ - .......... ....,..,..,.. $ 251,867 Storm Drains 6 $ - $ - $ - $ - $ - 5 - _.._,_.. $ - _..,_... $ - $ - $ - $ • $ - $ - $ - Storm Damage 7a $ - $ Storm Damage - Pavement 7b $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Construction° (Sum Lines 2 to 71 .,,.-. ___.._ _.. .- ., ., .,-, .,_...,...._.. .............. ... ........... 8 $ .. 5,052,725.00 ... .... .. .. ...... $ 129,265.48 .... .. _.,,.... ,.... $ - ..... ,...... ..,..,. $ - ..........., .,..... $ - ..._. ............. $ - ............... $ 209,972.40 _............. ..... $ 87,472.98 ...... __........... $ - .............. $ - .... .. $ - ..... ... ... $ - ._......... $ 1,346.64 __ ...._.,,... .... $ 5,480,673 Right of Way Acquisition 9 $ - $ - $ - $ - $ - $ - $ - $ - S - $ - $ - $- Total Construction & Right-of-Waq {Sum Lines a & 91 10 $ 5,052,715.00 $ 129,265,48 $ - $ - $ - $ - $ 209,972.40 $ 37,472.95 $ - $ - $ - $ - $ 1,346,64 $ 5,480,673 Maintenance Patchin ....... ...... .. ........ ........ .. „...,,....,,.... ..,....,.. .,,... . .,.,, .,. 11 ..,... $ - . .. ..... ..,, ... $ - ..,.., ..,..... ,..... ,.... $ - ........... ,............ ...... $ - .... $ - .... ,..... ,......... .,... .,.. $ - ....,..,..,.... $ - ..,..,....., ., ..... „.. $ - _...,.....,..... $ - .... ,..... ,...., $ - ........... ,......... ..... $ ..... ,..... ....,.............. $ - ..... ..... ,,.... ,, ..., $ .. „ ..,, ...,....,....,.... $ - ...... ,..... .. ...,. ............,. Overlay &Sealing 12 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - ....,.... .„ ............. .......,.............................,.................- Street Lights & Traffic Signals 13 .. .......... ..... ,. $ 321,145,00 ... ,.... ........ ......... $ - .. .. ... ....._...................,.. $ - $ - .......... ........ $ - $ - ...... ,..., $ 12,809,96 ..... ......... ............ $ 5,505.04 ................. $ - ............... ,.,............ $ - ......... ,... ,...... .,..,............,..... $ - .., $ - .. ..,...,....,.......... $ - ,._ ..,.,..,, .... $ 339,260 Storm Damage 14 _ $ - _ .... .......... $ - .__...,.... $- __ $ - _.. _._.... $ - _.,..,._,_ $ - _.._,_,..,._, .,.. $ - .,....,...,... .,._, _ $ - ..,..... ,..... $ - .....,.... ..... ,.., $ ........,.... ...... $ - ...,.......... .... ................. $ - . .. .. $ - ..... .... ...,..... $ - Other Street Purpose Maintenance 15a $ 1,440,324.00 $ - $ - $ 175,899.70 $ 72,846.03 $ - $ - $ - 5 - $ - $ 1,689,070 Other Street Purpose Maintenance -Pavement 15b $ - $ - I $ - $ - $ - $ - $ 44,995.74 $ 16,634.26 $ - $ - $ - $ $ 63,630 Total Maintenance'(Sum Lines 11 to li 16 $ 1,7 51,469 00 S - $ - $ - $ - $ - $ 233,705.40 $ 96,785.33 S • $ - $ - $ - $ - $ 2,091,960 Other 17All $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 82,417.49 $ 2,118.00 $ - $ 84,535 GRAND TOTALS (Sum Lines 1, 10, 16, 17) 18 $ 6,814,184 $ 129,265 $ - $ - $ - $ - $ 443,578 $ 184,258 $ - $ - $ 32,417 $ 2,115 $ 1,347 $ 7,657,169 Any California State Constitution Article XIX streets and road eligible expenditure may be "counted" in local jurisdictions' calculation of MOE ifthe 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 Counties'. I have reviewed and am aware of these guidelines and their applicability in calculating and reporting on Maintenance of Effort expenditures. Finance Director Confirmation 19 Finance Director initial: 4— ' Includes direct charges for staff time x Other M2 includes A-M, R,S,T,U,V, and W • Transportation related or ly Please provide a specific description ' other - direct staff time toward annual pavement maintenance Leeend Project Description A-M Freeway Projects O Regional Capacity Program (REP) P Regional Traffic Signal Synchronization Program (RTSSP) Q Local Fair Share R High Frequency Metrobnk Service 5 Trans it Extensions to Metro Iirk T Convert Metrolink Stations) to Regional Gateways that connect Orange County with High -Speed Rail Systems U Senior Mobility Program or Senior Nor -Emergency Medical Program V Community Based Transit/Cimulators W Safe Transit Stops X Environmental Cleanup Program (Water Quality) Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City of Tustin Schedule 4 PROJECT NAME Traffic Sig Controller Upgrade/Rep ................. . Main Street Improvements ................................................................................... Red Hill Ave Synchronization First Street Signal Synchronization ..................................................................................... Tustin Ave Signal Synchronization .................................................................................... FY 23/24 Major Pavement Maintenance .................................................................................... FY 23/24 Major Pavement Maintenance ..................................................................................... FY 24/25 Major Pavement Maintenance FY 24/25 Major Pavement Maintenance .................................................................................... FY 24/25 Major Pavement Maintenance .................................................. FY.2 5 Major Pavement Maintenance .................................................................................... Direct Labor M2 Expenditure Report Fiscal Year Ended June 30, 2025 Local Fair Share Project List TYPE OF EXPENDITURE Cher Street Purpose Maintenance ........................................................................................ )N - Street Reconstruction - Pavement ........................................................................................ aintenance - Street Lights & Traffic Signals ........................................................................................ aintenance - Street Lights & Traffic Signals ........................................................................................ aintenance - Street Lights & Traffic Signals ........................................................................................ )N - Street Reconstruction - Pavement ........................................................................................ :her Street Purpose Maintenance ........................................................................................ )N - Pedestrian Ways & Bikepaths ........................................................................................ )N - Street Reconstruction - Pavement ........................................................................................ ther Street Purpose Maintenance ........................................................................................ :her Street Purpose Maintenance - Pavement ........................................................................................ )N - Street Reconstruction - Pavement AMOUNT INTEREST 2.169.65 S 898.53 $ 9,314.00 ...................................................................... $ 3,857.25 $ 3,085.81 ...................................................................... $ 1,277.94 $ 410.15 $ 169.85 ...................................................................... $ 153.80 $ 63.70 ...................................................................... $ 80,057.04 ...................................................................... $ 33,154.34 S 3.535.73 5 1.464.27 $ 161,490.43 ...................................................................... $ 66,878.67 $ 93,673.00 ...................................................................... $ 38,793.17 $ 44,995.74 ...................................................................... $ 18,634.26 S 35.250.36 S 15.156.06 TOTAL PROJECT Q EXPENDED 1 $ 443,577.79 I $ 184,258.32 GRAND TOTAL PROJECT Q EXPENDED 1 $ 627,836.11 Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 City of Tustin Signature Page M2 Expenditure Report Fiscal Year Ended June 30, 2025 I hereby certify that: JX All the information attached herein and included in schedules 1 through 4 is true and accurate to the best of my knowledge; r The interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated; The City of Tustin 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's Expenditure Report is in compliance with direction provided in the State Controller's "Guidelines Relating to Gas Tax Expenditures for Cities and Counties;" and The City of Tustin has expended in this fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to or exceeding the FY 2024-25 MOE benchmark dollar amount 11 Jennifer King Director of Finance (Print Name) _ ) `VvCND Signature 11/21/202S Date " 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 jurisdiction still has sufficient MOE expenditures to demonstrate continued achievement of the MOE benchmark. Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 RESOLUTION NO. 25-73 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA CONCERNING THE MEASURE M2 (M2) EXPENDITURE REPORT FOR THE CITY OF TUSTIN, CALIFORNIA 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 jurisdiction 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. that: NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Tustin a) The M2 Expenditure Report 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. b) The M2 Expenditure Report is hereby adopted by the City of Tustin, California. c) The City of Tustin, California Finance Director is hereby authorized to sign and submit the M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2025. Resolution 25-73 Page 1 of 2 Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3 APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on the 2nd day of December 2025. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk APPROVED AS TO FORM: DocuSigned by: DAVV $EF3KEM,IG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Resolution No. 25-73 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 2nd day of December, 2025 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk Resolution 25-73 Page 2 of 2