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ADOPT RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AND SUBMIT THE TRANSPORTATION DEVELOPMENT ACT CLAIM FOR FISCAL YEAR 2025-26
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to authorize the City Manager or his designee to:
1. Execute and submit a claim to the San Joaquin Council of Governments for the Transportation Development Act tax revenue for the 2025-26 fiscal year.
2. Receive and deposit the proceeds in Transportation Development Act Fund 245 pursuant to State of California requirements.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The City is entitled to a formula-based apportionment of the statewide Transportation Development Act (TDA) tax revenue to offset costs related to transportation projects. The San Joaquin Council of Governments (SJCOG) administers the State apportionment on an annual basis to agencies within the county. No matching funds are required as a condition of receipt, but SJCOG requires that the claim documents include a resolution by the governing body authorizing an annual claim. The recommended action authorizes the City Manager or his Designee to submit a claim to SJCOG for the TDA funds.
DISCUSSION
Background
SJCOG is responsible for the ongoing administration of TDA funds provided by a State Tax allocation to its Local Transportation Fund (LTF) established in 1972. The funding is for local public transit as well as bicycle and pedestrian projects. The LTF receives revenue from a 1/4 percent retail sales tax collected by the State of California in accordance with the TDA legislation.
Pursuant to the TDA regulations, 98 percent of the LTF funding is dedicated to fund public transit and is allocated to the City’s transit provider, San Joaquin Regional Transit District (SJRTD). Two percent of the LTF funding can be allocated for bicycle and pedestrian purposes. This “non-motorized” apportionment is distributed within San Joaquin County by SJCOG to cities and unincorporated areas based on population. The City uses these funds for bicycle paths, sidewalk repairs, and wheelchair ramps. Public Works maintains a database of wheelchair ramps and sidewalks in need of repair, and the non-motorized LTF-TDA funding is allocated entirely to these projects in the annual Capital Improvement Plan (CIP).
SJCOG calculates the apportionments, allocates the resources, and notifies the agencies of the value of available funding. To receive TDA funds, the City is required to submit a claim to SJCOG, along with a Council resolution.
Present Situation
The total amount to be claimed by the City for the 2025-26 fiscal year is $2,301,826. This includes $1,801,269 previously claimed, received by the City, and allocated to CIP projects but not yet expended. These funds must be reclaimed as part of the annual process.
The 2025-26 fiscal year TDA available funding for the City is $500,557.
FINANCIAL SUMMARY
The TDA revenues and expenditures are allocated to a special revenue fund (Fund 245). Projects are allocated funding through the annual CIP budget or other Council action. The recommended action authorizes a 2025-26 TDA claim, upon receipt of which, the funds will be deposited into TDA Fund 245 for the Sidewalk, Curb, and Gutter Repair Program. No General Fund or matching resources are required to receive TDA funds as a result of this action.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.