Metro - File #: 2026-0393

• File #: 2026-0393
• Type: Formula Allocation / Local Return
• Status: Agenda Ready
• File created: 5/19/2026
• In control: Finance, Budget and Audit Committee
• On agenda: 7/16/2026
• Title: CONSIDER: A. ESTABLISHING new Local Return funded Capital Reserve Accounts for the Cities of Bell (Measure M), Beverly Hills (Measure M), Compton (Proposition C), Lawndale (Proposition C and Measure M), Lynwood (Proposition C), Palmdale (Proposition C, Measure R, Measure M), Palos Verdes Estates (Proposition C), Rolling Hills Estates (Proposition C, Measure R, Measure M), Rosemead (Proposition C), San Dimas (Proposition C, Measure M), Santa Monica (Proposition C, Measure M), Sierra Madre (Proposition A), and Torrance (Proposition C), and amending the Local Return funded Capital Reserve Account for the City of Lomita (Proposition C) (Attachment A); and B. AUTHORIZING the Chief Executive Officer to negotiate and execute all necessary agreements between Los Angeles County Metropolitan Transportation Authority (LACMTA) and the Cities in Recommendation A for their Capital Reserve Accounts as approved.
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Americans With Disabilities Act, Audit, Bell, Beverly Hills, Budget, Budgeting, Capital Project, Capital Project Funds, Compton, Construction, Curbs, Formula Allocation / Local Return, Funding plan, Gateway Cities (Southeast LA County) Service Sector, Gateway Cities subregion, Grant Aid, Guidelines, Hubs, Intersections, Lawndale, Local Returns, Lomita, Lynwood, Maintenance, Measure M, Measure R, North Los Angeles County subregion, Palmdale, Palos Verdes Estates, Pedestrians, Program, Program Management, Project, Proposition A, Proposition C, Ramps (Interchanges), Rehabilitation (Maintenance), Rolling Hills Estates, Rosemead, Safety, San Dimas, Santa Monica, Sidewalks, Sierra Madre, South Bay Cities subregion, South Bay Service Sector, Striping, Torrance, Traffic signals, Westside Cities subregion, Westside/Central Service Sector

Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
JULY 16, 2026

Subject
SUBJECT: FY26 LOCAL RETURN CAPITAL RESERVE ACCOUNTS

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
CONSIDER:

A. ESTABLISHING new Local Return funded Capital Reserve Accounts for the Cities of Bell (Measure M), Beverly Hills (Measure M), Compton (Proposition C), Lawndale (Proposition C and Measure M), Lynwood (Proposition C), Palmdale (Proposition C, Measure R, Measure M), Palos Verdes Estates (Proposition C), Rolling Hills Estates (Proposition C, Measure R, Measure M), Rosemead (Proposition C), San Dimas (Proposition C, Measure M), Santa Monica (Proposition C, Measure M), Sierra Madre (Proposition A), and Torrance (Proposition C), and amending the Local Return funded Capital Reserve Account for the City of Lomita (Proposition C) (Attachment A); and

B. AUTHORIZING the Chief Executive Officer to negotiate and execute all necessary agreements between Los Angeles County Metropolitan Transportation Authority (LACMTA) and the Cities in Recommendation A for their Capital Reserve Accounts as approved.

Issue
ISSUE

A local jurisdiction may need additional time to accumulate sufficient Local Return funding to implement a project, or to avoid lapsing of funds. To avoid lapsing, a local jurisdiction may request that funding be dedicated in a Capital Reserve Account. Board approval is required to set up these Capital Reserve Accounts and any amendments to existing accounts.

Background
BACKGROUND

Local Return Funds are generated from 4 half-cent sales taxes that are directly allocated to the 88 cities plus the County of Los Angeles based on population share for transit and transportation related projects. Proposition A (voter approved in 1980) local return has a 25% share; Proposition C (voter approved in 1990) local return has a 20% share; Measure R (voter approved in 2008) has a 15% share; and Measure M (voter approved in 2016) local return has a 17% share. Togeth...