Metro - File #: 2025-0292

• File #: 2025-0292
• Type: Formula Allocation / Local Return
• Status: Agenda Ready
• File created: 4/14/2025
• In control: Finance, Budget and Audit Committee
• On agenda: 6/18/2025
• Title: CONSIDER: A. ESTABLISHING new Local Return funded Capital Reserve Accounts for the Cities of Hidden Hills (Measure M), Lakewood (Proposition C and Measure M), Long Beach (Proposition C), and amend the existing accounts for the Cities of Industry (Proposition A), Lynwood (Proposition A), South Pasadena (Proposition C, Measure R and Measure M), and Whittier (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: Arroyo Verdugo subregion, Audit, Bikeways, Budget, Budgeting, Capital Project, Capital Project Funds, City of Industry, Construction, Formula Allocation / Local Return, Gateway Cities (Southeast LA County) Service Sector, Gateway Cities subregion, Greenways, Guidelines, Hidden Hills, Lakewood, Las Virgenes/Malibu subregion, Local Return Management System, Local Returns, Long Beach, Lynwood, Maintenance, Park and ride, Project, Rehabilitation (Maintenance), Safety, San Fernando Valley Service Sector, South Pasadena, Transit centers, Whittier

Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
JUNE 18, 2025

Subject
SUBJECT: FY25 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 Hidden Hills (Measure M), Lakewood (Proposition C and Measure M), Long Beach (Proposition C), and amend the existing accounts for the Cities of Industry (Proposition A), Lynwood (Proposition A), South Pasadena (Proposition C, Measure R and Measure M), and Whittier (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. Together, these 4 funding sources make up over $800 million annually in revenue that support projects such as local bus and dial-a-ride services, bus stop improvements, street paving, active transportation, and much more. Each of these local return revenue sources has a t...