That the City Council APPROVE AND ADOPT RESOLUTION NO. _____ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, CONCERNING THE MEASURE M2 (M2)  EXPENDITURE REPORT FOR THE CITY OF LA HABRA.

Measure M was a 20-year half-cent local transportation sales tax program approved by Orange County voters in 1990.  The tax measure was scheduled to expire in 2010; however, in November 2006, Orange County voters approved a Renewed Measure M (M2), which extended the tax for an additional 30 years, effectively providing a multi-billion dollar program extension of the original Measure M program.

Every year the Orange County Transportation Authority (OCTA) determines if a local jurisdiction is eligible to continue receiving Renewed Measure M (M2) Fair Share and competitive program funds.  In order to receive M2 funds, OCTA's Local Transportation Authority Ordinance No. 3 requires local jurisdictions to adopt an annual Expenditure Report that accounts for net revenues, development/traffic impact fees, and funds expended by the local jurisdiction which satisfies the program's Maintenance of Effort requirements.  The Expenditure Report must be adopted by the local jurisdiction's council/board and submitted to OCTA each year within six months of the end of the fiscal year in order for that jurisdiction to be eligible to continue receiving net revenues as part of Renewed Measure M2.

This year's expenditure report (attached) for the City of La Habra is for the 12-month period from July 1, 2020, to June 30, 2021.

If City Council does not approve the attached resolution, the City will not be eligible to continue receiving M2 funds for planned capital improvement projects in Fiscal Year 2021-2022.  During Fiscal Year 2020-2021 the City of La Habra received more than $2.6 million from Measure M2 funding sources for streets and roads capital improvement projects.