Agenda Item Wording:
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Approval of Fiscal Year 2025/2026 Transportation Development Act Claim - Approve Resolution No. 2025-76 for the Transit Division’s Fiscal Year 2025/2026 Transportation Development Act Claim in the amount of $12,058,805.60.
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Deadline for Action: 11/17/25
Submitting Department: Administration - Transit Division
Prepared by:
Carmen Quevedo, Financial Analyst, Carmen.Quevedo@Visalia.City, (559) 713-4592 Angelina Baker, Transit Manager, Angelina.DeRossett@Visalia.City, (559) 713-4591 John Lolis, Assistant City Manager, John.Lollis@Visalia.City, (559) 713-4323.
Department Recommendation:
Staff recommends that the City Council approve Resolution No. 2025-76 for the Transit Division’s Fiscal year 2025/2026 Transportation Development Act (TDA) Claim funds in the amount of $12,058,805.60.
Summary:
The City Council approve the required Resolution for the Transit Division to submit its Fiscal Year 2025/2026 TDA Claim for processing in the amount of $12,058,805.60.
Background Discussion:
The Transportation Development Act (TDA) was passed in 1971 providing transit funding for local agencies from two sources: 1) the Local Transportation Fund (LTF), derived through ¼ cent general sales tax collected statewide; and 2) the State Transportation Assistance (STA) Fund, derived through a statewide sales tax on gasoline and diesel fuels and augmented by funds received via State Senate Bill 1 (SB1).
The Tulare County Association of Governments (TCAG) approves the State apportionments for transit services for each fiscal year, accounting for transfer agreements between agencies. TCAG reviews the claims and instructs the County Auditor on the payment of funds to each respective agency. There are requirements that exist for approving claims, including items such as an adopted transit budget, key performance indicators, vehicle safety inspection reports, and compliance with fiscal and performance audits. In addition, the 2025 update to the TCAG TDA Claims Manual requires agencies to: 1) submit a Resolution for the proposed claim or a Resolution of Concurrence from the agency contributing to the proposed claim; 2) submit a draft Short Range Transit Plan (SRTP) by July 1, 2025; and 3) fully utilize available Federal Transit Administration (FTA) Section 5307 and STA funds before LTF can be used as a local match. Once transit services have been fully funded, the remaining LTF balance may be transferred to street and road projects.
For FY 2025/2026, TCAG apportioned the City funds of $1,772,258.04 in STA, $307,361.44 in State of Good Repair (SGR), and $9,979,186.12 in LTF for a total of $12,058,805.60. Roads and streets will receive $275,000 from the LTF portion. The LTF portion also includes transfer amounts from the Cities of Exeter and Farmersville, and the unincorporated community of Goshen. Visalia Transit has a current Memorandum of Understanding (MOU) with each agency to provide transportation services on their behalf according to the following table:
The table below is a list of projects that will be funded with LTF funds. These projects were previously approved during the budget process.
Fiscal Impact:
These funds are applied toward transit operating and capital assistance and are a significant source of funding to support Transit operations.
Prior Council Action: N/A
Other: N/A
Alternatives:
Do not authorize the submittal of the TDA claim and forfeit the funds to the State.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve Resolution No. 2025-76 authorizing the FY 2025/2026 Transportation Development Act Claim for the Transit Division in the amount of $1,772,258.04 in State Transit Assistance funds and $307,361.44 in State of Good Repair funds, and $9,979,186.12 in Local transportation Fund funds for a total of $12,058,805.60, subject to the TCAG 2025 TDA Claims Manual.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Draft Resolution No. 2025-76