The Humboldt County Board of Supervisors voted 5-0 to adopt a five-year spending framework for Measure O revenue on April 22, directing most proceeds toward local road repair while preserving a dedicated portion for public transit operations and capital.

What the board adopted
- Baseline: Staff presented a baseline projection of $24 million per year in Measure O revenue; the board adopted that planning baseline for the five-year spending framework (vote 5-0).
- Split: The plan directs about 85% of baseline revenue to county roads and about 15% to public transit (Humboldt Transit Authority) as a starting allocation.
- Contingency and negative-balance priority: The board established a $3 million contingency in the new Measure O account and gave priority to using surplus revenue to reduce the county's negative roads fund balance before allocating additional ongoing increases.
- Timing and cashflow: The plan will operate on an annual cycle with funds collected in one fiscal year made available for project work the following fiscal year (typical sales-tax cashflow is collected in arrears). Staff described this as a deliberate approach to avoid overcommitment and allow engineering and procurement lead times.
- Carry-forward and capital purchases: Agencies may carry forward funding that is obligated (encumbered) into the next fiscal year. For HTA (transit), the board adopted staff's carry-forward rules and permitted HTA to request up to $1,000,000 of unspent allocation from the prior year as a working balance; the board also approved allowing the County Administrative Officer to approve extra carry-forward in cases of large capital purchases (for example bus procurement) when purchase orders are in place.
- Oversight and reporting: The board directed annual reporting to its audit committee and annual presentation of expenditures, with quarterly reimbursement claims for work-in-progress and monthly/quarterly staff oversight as projects proceed.

Why the board moved this way
Deputy County Administrative Officer Sean Quincy framed the vote around cashflow realities and the desire to provide stable year-ahead allocations that Public Works and HTA could use to plan multiyear projects. Public Works Director Tom Mattson described the need to address a negative roads fund balance, prepare for storm seasons and advance paving, grant-matching and equipment purchases. Humboldt Transit Authority General Manager Greg Pratt told supervisors transit faces near-term capital needs including future zero-emission vehicle purchases and operations costs; the adopted plan keeps a dedicated ongoing allocation for HTA while allowing HTA to carry obligated funding forward for capital purchases.

What happens next
Public Works and HTA will prepare annual work plans and present them for review; HTA and Public Works must document obligated purchases when carrying funds forward. Staff will return regular reports to the board and the audit committee. The board also directed staff to set up the public reporting and oversight structure required by the ordinance that created Measure O.

Board reaction and public comment
Board members debated the split between roads and transit and asked staff to build in transparency around carry-forward rules and the use of contingencies. Members of the public and transit advocates asked the board to dedicate a larger share to transit (some speakers urged 20 percent or more); the board adopted the 85/15 split and the additional governance language by a 5-0 vote.

Implementation notes
The plan was written to allow annual adjustments (within the framework voted) and to prioritize debt reduction and a modest contingency so the county does not overcommit funds in the early months following collection. Staff and departments were told to prepare procurement schedules consistent with the plan and to expect audit/oversight reporting on each funded project.