HomeMy WebLinkAbout16 - CC-8 - Measure M2 Expenditure Report - 12/1/2015CITY COUNCIL AGENDA REPORT
MEETING DATE: DECEMBER 1, 2015
SUBJECT: MEASURE M2 EXPENDITURE REPORT
DATE: NOVEMBER 17, 2015
ITEM NUMBER: CC -8
FROM: PUBLIC SERVICES DEPARTMENT AND FINANCE DEPARTMENT
PRESENTATION ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR AND
BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT: RAJA SETHURAMAN, TRANSPORTATION SERVICES
MANAGER (714) 754-5032
RECOMMENDATION:
Adopt the Resolution (Attachment 1) approving the Measure M2 Expenditure Report.
BACKGROUND:
The approved guidelines for Renewed Measure "M" (M2) eligibility require that local agencies
prepare and adopt an annual expenditure report on Measure M2 funds. The expenditure report
is a detailed financial report which tracks financial activity as it relates to Measure M2 and other
improvement funds. The report should account for receipt, interest earned, and use of Measure
M2 and other funds as outlined in the Ordinance approved by the Orange County Transportation
Authority (OCTA) Board and finally the Orange County voters. OCTA requires the annual report
to be provided within six (6) months from the end of the jurisdiction's fiscal year.
ANALYSIS:
In order to qualify for Measure M2 funding, all agencies have to meet certain eligibility criteria
established by the Ordinance approving the "M2" Program. Preparation of the expenditure report
is one such requirement that each jurisdiction has to meet on an annual basis.
The guidelines require each City to prepare and adopt an annual expenditure report to account
for Measure M2 funds, developer/traffic impact fees, and funds expended by the City to satisfy
Maintenance of Effort requirements. The following are the requirements of the expenditure report:
• Submit report within six (6) months of jurisdiction's end of fiscal year;
• Include all Measure M2 revenue, fund balances, and interest earned;
• Identify expenditures by activity type (capital, operations, administration, etc.) and funding
source for each program/project; and
• Submit the expenditure report signed by the Finance Director accompanied by a resolution
from the City Council.
The City of Costa Mesa's report for Fiscal Year 2014-15 is due by December 31, 2015. Finance
Department staff prepared the attached expenditure report (Attachment 2) in accordance with
OCTA guidelines. The report was reviewed in draft form by OCTA staff, and the information
provided was determined to be acceptable.
Staff requests City Council's approval of the attached resolution approving the expenditure report
and authorizing staff to submit the report to OCTA.
ALTERNATIVES CONSIDERED:
The City Council may choose not to approve the attached resolution. This alternative would make
the City ineligible to receive Measure M2 funds from the Orange County Transportation Authority.
FISCAL REVIEW:
The expenditure report was prepared by Finance Department staff and took into account the final
auditing of revenues and expenses for Fiscal Year 2014-15. The information contained in the M2
Expenditure Report was also reviewed by OCTA staff and determined to be acceptable.
LEGAL REVIEW:
The City Attorney's office has reviewed and approved the Resolution (Attachment 1) as to form.
CONCLUSION:
The voter -approved Measure M2 requires local agencies to meet certain eligibility requirements for
receipt of Measure M2 funds, including approval of the M2 Expenditure Report. Staff recommends
that the City Council adopt the attached Resolution approving the M2 Expenditure Report for Fiscal
Year 2014-15, for submittal to OCTA.
STEPHEN DUNIVENT
Interim Finance Director
COLLEEN O'DONOGHUE
Assistant Finance Director
ATTACHMENTS: 1 — Resolution
2 — M2 Expenditure Report
ERNESTO MUNOZ
Public Services Director
RAJA SETHURAMAN
Transportation Services Manager
DISTRIBUTION: Chief Executive Officer
Assistant Chief Executive Officer
City Attorney
City Clerk Division
Staff
File
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