Agenda Item AGENDA STAFF REPORT ASR Control 25-000825
MEETING DATE:	12/02/25
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Christine Gardea (714) 834-3014
	Robert McLean (714) 647-3951

Subject: FY 2024-25 Measure M2 Expenditure Report

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution to Form

Consent Calendar

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No
Levine Act Review Completed: N/A

Prior Board Action: 12/3/2024 #14

RECOMMENDED ACTION(S):

Approve the M2 Expenditure Report 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.

Adopt Resolution for the County of Orange FY 2024-25 Measure M2 Expenditure Report.

Authorize the County Chief Financial Officer or designee to sign and submit the M2 Expenditure Report to the Orange County Transportation Authority for the fiscal year ending June 30, 2025.

SUMMARY:

Adopting the Resolution approving the FY 2024-25 Measure M2 Expenditure Report will support compliance with the Orange County Transportation Authority's requirements and maintain the County's eligibility to receive Measure M2 funding.

BACKGROUND INFORMATION:

In November 1990, the voters in Orange County approved a one-half cent sales tax for transportation improvements known as Measure M. Measure M2 was adopted by Orange County voters in 2006 to provide an additional 30 years of funding through a one-half of one percent sales tax, which is administered by the Orange County Transportation Authority (OCTA). This funding supports County projects including local street and road improvements, traffic signal synchronization and other programs. The County is required to meet annual eligibility requirements for receiving funding, which include adopting and submitting an annual expenditure report to OCTA no later than six months after the close of the prior fiscal year. On December 3, 2024, the Board of Supervisors (Board) adopted the FY 2023-24 Resolution and M2 Expenditure Report.

Crowe, a third-party auditor, was retained by the Orange County Local Transit Authority to determine the County’s level of compliance with the provisions of the Measure M Local Transportation Ordinance No. 3. On March 28, 2025, Crowe issued the Orange County Local Transportation Authority Measure M2 Local Fair Share Agreed-Upon Procedures Reports for the Year ended June 20, 2024. The report indicated County was found to be in compliance with no exceptions found.

The attached Measure M2 Expenditure Report (Report) provides an accounting of M2 project funding and associated developer/traffic impact fees and funds expended by the County through June 30, 2025, to confirm satisfaction of maintenance of effort requirements. The Report includes all Measure M2 net revenue, fund balances and interest earned, as well as identifies expenditures by activity type and funding source. FY 2024-25 Report includes revenue of $12.7 million for County administered projects under the Regional Capacity Program, Local Fair Share, Senior Non-Emergency Medical Program and Community Based Transit/Circulators project categories. The completion, adoption and submission of the M2 Expenditure Report to OCTA will support maintaining the County's eligibility to receive Measure M2 funding for County administered projects.

Compliance with CEQA: These activities are not a project within the meaning of project in California Environmental Quality Act (CEQA) Guidelines Section 15378 and are therefore not subject to CEQA, since they do not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The approval of this action does not commit the County to a definite course of action in regard to a project since this is the adoption of an expenditure report. The proposed activities are therefore not subject to CEQA.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

REVIEWING AGENCIES:

OC Community Resources
OC Public Works

ATTACHMENT(S):

Attachment A - FY 2024-25 Board Resolution
Attachment B - FY 2024-25 Measure M2 Expenditure Report
Attachment C - FY 2024-25 M2 Revenue Reconciliation