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The City funds transportation projects through a variety of federal, state, and local fund sources. Some of the transportation improvement funding sources are listed below.

Measure A Funds

Measure A Funds account for revenue generated from a 1/2 cent local sales tax specifically for transportation improvements. Sales tax is imposed on retailers selling tangible personal property in California. Each year, the City Council approves an expenditure plan for these funds, which is submitted to the Sacramento Transportation Authority for final approval.

Gas Tax and Road Maintenance & Rehabilitation Account Funds

Gas Tax Funds and Road Maintenance & Rehabilitation Account (RMRA) Funds account for the $0.417 per gallon tax on gasoline and a portion of the $0.36 per gallon tax on diesel fuel. The newly created California Department of Tax and Fee Administration administers the tax, and the State Controller distributes the revenues from the tax.

Major Street Construction Fund

The Major Street Construction Fund derives revenues from a tax (imposed by the City in 1978) on all building valuations for new construction or for alterations, which add area to existing buildings (disaster reconstruction is excluded).

Capital Grants Funds

Capital Grants Funds account for various grants received from the state, the federal government, and other agencies that are designated to be used for specific projects or purposes.