The city has released ballot language on its website for the local sales tax measure the Orange City Council voted earlier this month to put before voters in November.
Orange is calling its proposal to add a half-cent sales tax to raise local revenue over the next decade the “City of Orange Public Safety and City Services Measure.” If approved by Orange voters it will raise the sale tax on purchases in town from 7.75% to 8.25%.
City officials say the tax bump, if approved, would generate approximately $19 million per year until the tax sunsets after 10 years. Without the money, officials say Orange’s annual deficit could grow to $26 million by 2029, yet the city expects to run out of reserve funding in 18 to 24 months if it maintains current service levels and does not receive additional revenue.
City leaders say Orange began running a structural deficit during the Great Recession despite making $91 million worth of departmental operating cuts and deferring $30 million of maintenance since 2008.
“Like many California cities, Orange’s key sources of revenue such as sales and property taxes have not kept pace with the rising costs of maintaining city services,” officials say on a new city website dedicated to explaining the tax measure. “Our city’s budget challenges aren’t a new problem. Orange projected a $7.7 million deficit as far back as Fiscal Year 2010-2011. Despite annual budget balancing measures, such as staffing cuts and operating cost reductions, as well as delaying maintenance on city infrastructure, the deficit has recently grown much larger with an estimated $7-11 million deficit for the upcoming fiscal year and growing to $26 million in five years.”
According to that estimate, not even $19 million from the half-cent sales tax would completely bridge the gap between city revenue and expenses in 2029.
In addition, city officials add that forecasts anticipate Orange needing more than $80 million “in the near future” for civic infrastructure, including improving city facilities, replacing four fire stations, and maintaining streets and traffic lights.
To reduce the deficit this year, the City Council has already approved at least $5 million in service cuts and could vote on more. Orange has eliminated special events such as the Christmas tree lighting ceremony and next year’s Third of July fireworks show. The council also froze five firefighter positions and 11 vacant city staff positions.
City officials say Orange is currently operating with more than 40 vacant staff positions.
The council voted to eliminate a school crossing guard program that cost $450,000 and to reduce library services by $510,000. Cuts were also made to maintenance and cleaning services of at least $550,000. Staff training and general operational expenses have been cut by $400,000, and the city has withdrawn membership from key Southern California governmental organizations that influence public policy and regional planning decisions.
More information from the city, including the ballot language that will appear in November, can be found at cityoforange.org/our-city/services-measure.
