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.

In 1990, Orange County voters approved Measure M, a 20-year half-cent local transportation sales tax program to support local transportation projects.  Measure M 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.

Each year, the Orange County Transportation Authority (OCTA) determines if a local jurisdiction is eligible to continue receiving its 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, 2021, through June 30, 2022.

In the event the City Council does not approve the attached resolution, the City would be ineligible to receive M2 funds for planned capital improvement projects during Fiscal Year 2022-2023.  For Fiscal Year 2021-2022, the City of La Habra received more than $1.6 million from Measure M2 in support of local street and road capital improvement projects.