Andrew Oftelie,
Chief Financial Officer
Budget delivers bus and rail service while making conservative projections to plan for the future
ORANGE – The Orange County Transportation Authority Board of Directors today approved a balanced budget of $1.76 billion for the upcoming fiscal year that begins July 1.
The budget keeps essential transportation improvements moving forward while responsibly planning for a balanced and sustainable transportation future for Orange County.
The approved budget makes significant investments in public transit – totaling approximately 52% of the overall budget – and makes improvements to Orange County’s freeways and streets to keep the county moving safely and efficiently.
Overall, the fiscal year 2024-25 budget represents approximately a $58 million increase (about 3.4%) over the previous year’s budget. This mirrors a similar budget increase last year, which followed two years of budget cuts largely due to the COVID-19 pandemic.
“I’m proud to see OCTA deliver another balanced budget that will continue to enhance our transportation system, improving transit, freeways and local streets,” said OCTA Chair Tam T. Nguyen. “The hard work done by OCTA staff and our Board means that we can be responsible stewards of taxpayer money while continuing to improve quality of life for Orange County residents, workers and visitors.”
Other themes of the budget include:
Measure M – the voter-approved half-cent sales tax for transportation – will continue to fund improvements to freeways and streets throughout Orange County, in addition to multiple transit and environmental programs. Transportation funds are provided to cities through formula and competitive funding.
Major initiatives for the budget include advancing capital improvement projects on freeways, including I-5 in South County, SR-55, SR-57 and SR-91. The year ahead will also improve local streets and continue serving Orange County’s transit needs, while moving toward a goal of zero-emissions to help improve air quality for the entire community.
The FY 2024-25 budget encompasses all services, projects and programs that are administered by OCTA.
An 11-member independent oversight committee reviews how the funds are being spent to improve transportation in Orange County and found OCTA is delivering on promises for 33rd straight year
ORANGE – The Measure M Taxpayer Oversight Committee has determined for the 33rd consecutive year that the Measure M transportation investment plan is being delivered as promised to the voters of Orange County.
The Taxpayer Oversight Committee held its annual Measure M public hearing Tuesday, June 11, and found that the Orange County Transportation Authority is proceeding in accordance with the Measure M plan, which was renewed by 70% of voters in 2006.
“It’s important we have the members of this independent committee ensuring OCTA is investing taxpayer funds as intended to improve the way we all move throughout the county,” said OCTA Chair Tam T. Nguyen, also a public representative on the Board of Directors. “It’s reassuring that for the 33rd year in a row the committee has determined those funds are being properly used to improve quality of life in our county.”
The independent 11-member oversight committee was formed to monitor OCTA’s use of Measure M funding, approve all changes to the investment plan and hold annual public hearings on whether OCTA is proceeding in accordance with the plan.
Measure M will continue funding balanced and sustainable transportation improvements through 2041 with revenues expected to exceed $14 billion. The voter-approved funding plan allocates 43% to freeways, 32% to streets and roads, 25% to transit, and includes two environmental programs.
The goals of Measure M include:
The original Measure M made possible more than $4 billion worth of transportation improvements to help Orange County residents, workers and visitors travel more efficiently throughout all parts of the county.
For more information about Measure M or the Taxpayer Oversight Committee, visit www.octa.net/TOC.
Chair Tam T. Nguyen and CEO Darrell E. Johnson unveil plan for OCTA to sustain and enhance a balanced, innovative transportation network for all Orange County
ORANGE – The Orange County Transportation Authority in 2024 will focus on continuing to build a transportation network that is balanced, equitable and reliable, is fiscally responsible with taxpayer dollars, and protects the environment that makes Orange County such a special place to live.
Those guiding principles are part of the 2024 Board and CEO Strategic Initiatives and Action Plan, which was unveiled during this week’s Board meeting by OCTA Chair Tam T. Nguyen and by OCTA CEO Darrell E. Johnson.
Each year, the newly elected chair works with the CEO to formulate and present the document that guides the agency’s efforts throughout the coming year. The initiatives are then presented to the full 17-member board for a vote. The board unanimously approved this year’s initiatives. OCTA continues to prioritize safety, which has always guided all OCTA actions.
“OCTA has a strong history of working diligently on our promise to provide a reliable and equitable transportation network that has thrived even through challenging times and improved the quality of people’s lives,” Chair Nguyen said. “I look forward to working with my colleagues to deliver on our transportation initiatives that will have a meaningful impact on the lives of Orange County’s residents, workers and visitors in the coming months and years.”
The overarching initiatives for OCTA in 2024 include:
“Each year, the initiatives and action plan ensure that OCTA Board members and staff are working in lock step to deliver on our promises to taxpayers and to continue delivering a balanced, innovative transportation system that evolves with changing needs to keep Orange County moving safely and efficiently,” CEO Johnson said.
To learn more about OCTA programs and projects, visit www.octa.net.
Chief Financial Officer
Director of Finance and Administration
Department Manager, Treasury and Public Finance
The 91 Express Lanes was born from the need for congestion relief on SR-91 when no public funds were available to solve this critical transportation problem. Built by the California Private Transportation Company (CPTC), the 91 Express Lanes embodied a unique concept: The private sector would take the risk and the state would get congestion relief at no cost to taxpayers.
Built at a cost of $135 million, the Orange County section of the project was authorized as a toll road by the State of California in 1989 and opened in 1995. An agreement with the State of California Department of Transportation (Caltrans) included a non-compete provision that created a 1.5-mile protection zone along each side of SR-91. This zone prohibited improvements along the corridor and created mobility problems as the region and corresponding transportation demands grew.
To mitigate growing concerns over congestion, the Orange County Transportation Authority (OCTA) acquired the 91 Express Lanes franchise rights in January 2003. This eliminated the non-compete provision, clearing the way for future enhancements that will increase capacity and improve traffic flow along the SR-91 corridor.
In 2008, the Riverside County Transportation Commission (RCTC) received authority to extend the Express Lanes to I-15. Traffic congestion on eastbound SR-91 between Anaheim and Corona is routinely among the worst five areas in the nation. At a cost of $1.4 billion, the RCTC 91 Corridor Improvement Project added regular lanes, tolled express lanes, auxiliary lanes and direct express lane connectors from the northbound I-15 to the westbound SR-91 and from the eastbound SR-91 to the southbound I-15. Improvements to interchanges, ramps and surface streets were also made along the 91 corridor.
The Riverside section of the 91 Express Lanes opened in 2017, providing customers with 8 additional miles of travel time certainty.
To provide 91 Express Lanes customers with excellent customer service, OCTA and RCTC entered into an agreement with the current 91 Express Lanes operator to service both segments of the Express Lanes.
In July 2013, OCTA issued Senior Lien Toll Road Revenue Refunding Bonds, Series 2013, to refund the outstanding Series 2003 Bonds, which were originally issued to finance the acquisition of the 91 Express Lanes for the design, construction and installation of the toll road. The current bonds outstanding are the Senior Lien Toll Road Revenue Refunding Bonds, Series 2023 Bonds, issued in July of 2023 to refund the Series 2013 Bonds.
Quick Facts
Bond Ratings: Aa3/AA-/AA-
Final Maturity: 2030
Debt Outstanding as of 3/31/2024: $47,545,000
On November 7, 2006, the voters of Orange County chose to extend the Measure M1 half cent sales tax for another 30 years from 2011 through 2041. Measure M2 (M2), administered by the Orange County Transportation Authority (OCTA), will generate billions of dollars to improve transportation in Orange County. M2 is designed to reduce traffic congestion and enhance overall mobility. Improvements in the plan include improving key freeways, upgrading major interchanges, and adding capacity and maintaining streets and roads. M2 allocates 43 percent of funds to freeway projects, 32 percent to streets and roads, and 25 percent to transit projects.
While the COVID-19 pandemic negatively impacted sales tax revenue through the first half of FY 2020-21, the second half of the FY showed tremendous growth as the Orange County economy began emerging from the pandemic. Though restaurants, gas
stations, and brick and mortar retail continued to be impacted in FY 2020-21, the impacts were more than offset by increased online purchases and the benefit of collecting sales tax on out-of-state online purchases, made possible by the Wayfair decision. As a result, sales tax collections for FY 2020-21 grew by 8.6 percent to $345 million, which is the highest annual sales tax collection for M2. Based on the strong sales tax growth in FY 2020-21 coupled with more optimistic near-term economic recovery, the 2021 sales tax revenue forecast for M2 is $13.2 billion. The revised forecast represents a $1.6 billion gross increase from what was assumed in the prior year's forecast.
On December 13, 2021, the 2021 Next 10 Plan was approved by the Board, reflecting updates to the Measure M2 sales tax revenue forecast, external funding assumptions, and project cost estimates. This comprehensive plan sets priorities and funding commitments over a ten-year period (2021-2030) to ensure the realization of Measure M2 commitments, maintain fiscal sustainability, and strive to deliver transportation benefits early.
The largest component of the overall M2 Program is the Freeway Program. It receives 43 percent of the net sales tax revenue. In the 2021 Next 10 Plan, $4.7 billion in freeway projects are scheduled to be delivered. The I-405 Improvement Project, which at $2.1 billion in estimated cost, will be the largest capital project that OCTA has delivered in its history. This project, slated to open in 2023, is concurrently under final design and construction.
OCTA issues Sales Tax Revenue bonds to provide funds for certain transportation projects, such as the Series 2019 Bonds issued in February 2019 for the funding of the general purpose lanes for the I-405 Improvement Project. The current bonds outstanding are the Series 2010 A Bonds, and Series 2019 Bonds. The 2021 Next 10 plan maintains just one bond issuance during the Next 10 Plan timeframe of approximately $200 million in Fiscal Year 2023; the amount assumed decreased by approximately $375 million from the 2020 Next 10 Plan.
Quick Facts
Final Maturity: 2041
Bond Ratings: Aa2/AA+/AA+
Debt Outstanding as of 3/31/2024: $569,315,000