June 25, 2024
City Council Meeting
PowerPoint Presentations
and
Information distributed
at Council meeting
Figure 1: Simple Transfer of Development Rights
This property has one house and a
deed restriction prohibits any new
housing being built.
SENDING SITE
SENDING SITE
Original Character Retained
RECEIVING SITE
Intensified Development Condition
RECEIVING SITE
The two property owners agree to a price and transfer
the rights from one property to the other that is
formalized through a Development Agreement
approved by the City Council.
TDR Ordinance Sending Area Option: Resource Area General Plan Designation FY 2024-25 BUDGET ADOPTION
JUNE 25, 2024
PRESENTATION
OVERVIEW
FY24 General Fund Year-end Estimates
FY25 Citywide Budget
General Fudn
Recommended Actions
Questions/Comments
FY 2024-25 Budget Adoption 6/25/2024
FY24 YEAR-END UPDATES
FY 2024-25 Budget Adoption 6/25/2024
FY 2024-25 Budget Adoption 6/25/2024
FY24 General Fund Revenues
$147.6 million, including transfers in
Overall: $6 million or 4.2% over budget
FY 2024-25 Budget Adoption 6/25/2024
FY24 General Fund Expenditures
$144.2 million, including transfers out
Overall: $1 million or 0.7% under budget
FY 2024-25 Budget Adoption 6/25/2024
FY24 Fund Balance
Curren Budget YE Estimates YE Estimates Variances
FY24 Mid-Year Q3
Beginning undesignated fund balance 11,687 11,687 11,687 Revenues 137,299,168 137,282,762 142,000,400 4,717,638
Transfers-in 3,992,330 2,629,000 2,629,162 162
C R&R 3,000,000 3,000,000
Total Revenues 141,291,499 139,911,762 147,629,562 7,717,800 Expenditures 145,261,961 142,810,866 144,229,953 1,419,087 Transfers-out 1,363,281 - - -
Total Expenditures 146,625,242 142,810,866 144,229,953 1,419,087 C arryover from FY23 1,736,528 1,736,528 1,736,528 -
Operating Surplus/(Deficit) (3,597,215) (1,162,576) 5,136,137 6,298,713 C hanges in catastrophic reserve 1,606,489 1,199,607 1,435,175 235,568 Projected undesignated fund balance (5,192,017) (2,350,496) 3,712,649 6,063,145 *The additional $1,435,175 is needed to meet the required catastrophic reserve. The C atastrophic reserve balance at June 30, 2024 is projected to be $23,942,172.
FY25 CITYWIDE BUDGET
FY 2024-25 Budget Adoption 6/25/2024
FY 2024-25 Budget Adoption 6/25/2024
FY25 BUDGET FOR ALL FUNDS
Revenues - $259.9 million
General Fund
57%
Special Revenue Funds
8%
Capital Project
Funds
4%
Internal Service Funds
9%
Enterprise Funds
20%
Redevelopment Agency
Funds
2%
FY 2024-25 Budget Adoption 6/25/2024
FY25 BUDGET FOR ALL FUNDS
Expenditures - $284.7 million
General Fund
55%
Special Revenue Funds
8%
Capital Project Funds
5%
Internal Service Funds
10%
Enterprise Funds
20%
Redevelopment Agency
Funds
2%
FY 2024-25 Budget Adoption 6/25/2024
FY25 GENERAL FUND
Revenues - $148.2 million
% Chg
Est.
% Chg
Budget
FY25
Budget
FY24
Estimate
FY24
Budget
2.7%1.2%$55,710,900$54,269,600$55,024,850Property Tax
3.2%2.3%51,617,68850,010,60050,438,051Sales Tax
1.5%0.4%7,089,9376,988,1007,064,011Licenses & Permits
-1.4%9.7%6,053,2736,141,0005,517,791Fees for Services
-0.2%9.3%5,850,0005,860,0005,350,300Transient Occupancy Tax
3.4%12.9%3,220,1943,114,1002,852,060Franchises
50.2%50.3%3,040,6002,024,8002,023,320Fines & Penalties
-42.7%110.2%3,075,2515,369,4001,463,069Use of Money & Property
16.0%20.3%9,540,8988,222,8007,933,872Other Revenues
-46.7%-24.9%3,000,0005,629,1623,992,330Transfers In
0.4%4.6%$148,198,741$147,629,562$141,659,654Total Revenues FY 2024-25 Budget Adoption 6/25/2024
FY25 GENERAL FUND
Revenues - $148.2 million
Property Tax, - 38%
55,710,900
Sales Tax – 35%
51,617,688
Licenses & Permits - 5%
7,089,937
Inter Fund Revenue – 5%
7,050,201
Fees for Services –
4% 6,053,273
Transient Occupancy
Tax – 4% 5,850,000
Franchises - 2% 3,220,194
Use of Money & Property -
2% 3,075,251
Fines & Penalties – 2%
3,040,600
Revenue from Other
Agencies – 1% 1,367,632
Miscellaneous Revenues –
1% 1,123,065
Transfers in – 2% 3,000,000
Other – 10%, 14,826,742
FY 2024-25 Budget Adoption 6/25/2024
FY25 GENERAL FUND
Expenditures - $156.2 million
% Chg
Est.
% Chg
Budget
FY25
Budget
FY24
Estimate
FY24
Budget
7.1%10.1%$106,776,309$99,743,786$96,962,242*Salaries & Benefits -8.1%-17.1%14,733,29016,026,32217,778,415Contractual Services
8.2%-13.7%2,468,2012,280,3392,858,776Materials & Supplies -94.1%-94.8%28,800484,288551,841Capital Outlay
85.5%75.6%642,200346,187365,700Miscellaneous Expenses
0.2%0.0%17,258,73017,220,39717,253,072Debt Service
75.8%75.8%14,293,2018,128,6348,128,634Internal Service Costs 0%-100.0%001,363,281Transfers Out
8.3%7.5%$156,200,731$144,229,953$145,261,961Total Expenditures FY 2024-25 Budget Adoption 6/25/2024
FY25 GENERAL FUND
Expenditures - $156.2 million
Salaries & Benefits - Safety –
50% 77,691,734
Salaries & Benefits - Misc. –
19% 29,084,575
Contractual
Services – 9%
14,733,290 Debt Service –
11%
17,258,730
Internal Service Costs – 9%
14,293,201
Materials & Supplies – 2%
2,468,201
Capital Outlay 28,800
Miscellaneous Expenses
642,200
Other – 2% 3,139,201
FY 2024-25 Budget Adoption 6/25/2024
$ 3,712,649Estimated Beginning Undesignated Fund Balance at 7/01/2024 $ 145,207,541FY25 Projected Revenues
3,000,000FY25 Transfers In from Capital Projects Fund (CR&R) -156,200,731FY25 Projected Expenditures
-7,993,190Operating Deficit
1,987,149Additional Funding for Catastrophic Reserve
-6,267,690Projected Undesignated Ending Fund Balance at 6/30/2025 $25,929,321Projected Catastrophic Reserve at 6/30/2025
FY25 GENERAL FUND
Projected Fund Balance & Catastrophic Reserve
FY 2024-25 Budget Adoption 6/25/2024
RECOMMENDED ACTIONS
Related to Fiscal Year 2024-25
Adopting five resolutions:
1. Resolution No. 11565 – the Fiscal Year 2024-25 Budget and authorizing the transfer of $3 million from the Capital Projects Fund to the General Fund.
2. Resolution No. 11564 – adopting the appropriation limit for the Fiscal Year 2024-25 is $236,389,920 and the City’s appropriation subject to the limitation is $127,216,074, almost 86% under the appropriation limit.
3. Resolution No. 11566 – authorize staff to submit the seven-year capital improvement program to the Orange County Transportation Authority.
4. Resolution No. 11560 – increase salary for a classification in the Orange Municipal Employees’ Association.
5. Resolution No. 11562 – amending the Fiscal Year 2024-25 Citywide Pay Schedule.
QUESTIONS/COMMENTS
FY 2024-25 Budget Adoption 6/25/2024
City of Orange
Budget Priority and Revenue Measure
Issues Follow-up Survey
220-7211
2 May 29-June 4, 2024Dates
Dual-mode Voter SurveySurvey Type
Likely November 2024 VotersResearch Population
812Total Interviews
(Full Sample) ±3.5% at the 95% Confidence Level
(Half Sample – Each Measure) ±4.9% at the 95% Confidence Level Margin of
Sampling Error
Contact Methods
Data Collection Modes
December 2023Survey Tracking
English, Spanish and VietnameseLanguages
(Note: Not All Results Will Sum to 100% Due to Rounding) Text
Invitations
Telephone
Calls
Email
Invitations
Telephone
Interviews
Online
Interviews
Survey Methodology
3 Context
4 Q.
Right
Direction
46%
Wrong
Track
27%
Don't
Know/
Refused
27%
December 2023 May/June 2024
Right
Direction
41%
Wrong
Track
35%
Don't
Know/
Refused
24%
A plurality perceives that the City of Orange is
headed in the right direction, down slightly
from the end of last year.
Would you say that things in the City of Orange are generally headed in the right direction or do you feel that things are off on the wrong track? 5 Q. In your personal opinion, do you think the City of Orange has a great need for additional funding, some need, a little need, or no real need for additional funds to provide the level of City services that Orange residents need and want? 25%
35%
9%
15%
16%
Great need
Some need
A little need
No real need
Don’t know
December 2023 May/June 2024
28%
38%
11%
13%
10%
A Little/No
Real Need
24%
Great/
Some Need
60%
A Little/No
Real Need
24%
Great/
Some Need
66%
Up from December 2023, two-thirds perceive the
City of Orange has at least some need for additional funds; however, less than 3-in-10 said there is a “great need.” 6 Hypothetical
Ballot Measure Questions
7 Hypothetical Ballot Title and Summaries
Tested in the Survey
Q. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample (As Approved by Legal Counsel)
(Sales Tax – Until Ended by Voters)
Shall the measure providing funding for City of Orange’s general government use such as maintaining 911 response, fire/police protection/paramedic services; recruiting/retaining well-trained police/firefighters; preventing property crimes/thefts; addressing homelessness; keeping public areas/parks safe/clean; reducing availability of opioids; repairing streets/potholes by establishing a 1% transaction and use tax (sales tax) providing approximately $40,000,000 annually until ended by voters; requiring audits, public spending disclosure, all funds benefit City of Orange residents, be adopted? (Sales Tax – Expiring after 8 Years)
Shall the measure providing funding for City of Orange’s general government use such as maintaining 911 response, fire/police protection/paramedic services; recruiting/retaining well-trained police/firefighters; preventing property crimes/thefts; addressing homelessness; keeping public areas/parks safe/clean; reducing availability of opioids; repairing streets/potholes by establishing a 1% transaction and use tax (sales tax) providing approximately $40,000,000 annually, expiring after 8 years; requiring audits, public spending disclosure, all funds benefit City of Orange residents, be adopted? City of Orange Public Safety/City Services Measure
8 28%
23%
8%
2%
8%
27%
3%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
59%
Q. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample 51%
Total
No
37%
Overall, close to 6-in-10 initially support the simple
majority sales tax measure until ended by voters,
with only slightly more than one-quarter saying
they would definitely vote yes.
(1% Sales Tax, Until Ended by Voters; M.O.E. =±4.9%)
9 33%
19%
4%
3%
11%
25%
5%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
56%
Q. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample 52%
Total
No
39%
Overall, 56% initially support the simple majority sales tax measure expiring after 8 years, with one-third
having said they would definitely vote yes.
(1% Sales Tax, Expiring After 8 Years; M.O.E. = ±4.9%)
10 Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
28%
23%
8%
2%
8%
27%
3%
Total
Yes
59%
51%
*Until Ended by Voters Combined*Expiring After 8 Years
33%
19%
4%
3%
11%
25%
5%
Total
Yes
56%
30%
21%
6%
3%
9%
26%
4%
Total
Yes
58%
52% 51%
Q Combined. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? *Split Sample Total
No
37%
Total
No
39%
Total
No
38%
Overall, one-in-two initially support the simple
majority sales tax measure, with roughly one-quarter
saying they would definitely vote yes.
(Each Measure, M.O.E. = ±4.9%; Combined Measure, M.O.E.= ±3.5%) 11 67%
38%
45%
29%
60%
45%
4% 2%
10%
Great/Some Need A Little/No Real Need Don't Know
Total Yes Total No Undecided
The more one perceives the City of Orange has a need
for additional funds, the more one is likely to vote yes.
Q Combined. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? (% of
Sample) (66%) (24%) (10%)
Initial Vote on the 1% Sale Tax Measure by Perception that the City of Orange Needs Additional Funds (Combined Ended by Voters/Expiring in 8 Years)
12 Voter Budget Priorities
13 Ext./Very
Impt.
88%
85%
83%
81%
80%
80%
80%
79%
76%
Public safety-related services and staff lead voter priorities, and ensuring children have safe places to play, addressing homelessness and requiring all funds benefit City of Orange residents are also considered among the top priorities by high percentages.
Q. I am going to read you a list of possible projects, features, and provisions that might be included in this local ballot measure. Regardless of how you feel about this measure, as I read each one, please tell me how important it is to you personally that each provision or use of funds is included in the measure:
extremely important, very important, somewhat important, or not too important. ^Not Part of Split Sample (Ranked by Extremely/Very Important)
57%
53%
49%
43%
48%
43%
39%
45%
49%
31%
32%
34%
38%
31%
37%
41%
34%
27%
8%
10%
11%
15%
12%
15%
15%
14%
16%
6%
5%
9%
7%
8%
^Maintaining 911 response
^Maintaining fire and police protection and
paramedic services
^Preventing property crimes, including thefts
^Keeping public areas and parks safe and clean
Requiring all funds benefit
City of Orange residents
Helping ensure children have
safe places to play
^Protecting the City of Orange’s long-term
financial stability
^Recruiting and retaining well-trained police
and firefighters
Requiring all funds are locally controlled
Ext. Impt. Very Impt. Smwt. Impt. Not Too Impt./Don't Know 14 Ext./Very
Impt.
74%
73%
72%
70%
69%
69%
66%
66%
59%
Q. I am going to read you a list of possible projects, features, and provisions that might be included in this local ballot measure. Regardless of how you feel about this measure, as I read each one, please tell me how important it is to you personally that each provision or use of funds is included in the measure:
extremely important, very important, somewhat important, or not too important. ^Not Part of Split Sample (Ranked by Extremely/Very Important)
34%
42%
41%
31%
39%
28%
36%
34%
34%
40%
31%
32%
38%
30%
41%
30%
32%
25%
17%
19%
19%
25%
22%
26%
22%
23%
21%
10%
8%
9%
6%
10%
5%
12%
11%
20%
Preparing for and responding to wildfires and
natural disasters
^Addressing homelessness
Maintaining safe routes to schools
^Repairing streets and potholes
Maintaining gang enforcement programs
Maintaining parks
Reducing availability of opioids
such as fentanyl
Maintaining gang prevention programs
Reducing availability of opioids
Ext. Impt. Very Impt. Smwt. Impt. Not Too Impt./Don't Know Continued
15 Effects of Education and
Critical Statements
16 Q. I am going to read you some statements from people who may support the potentialCity of Orange Public Safety/City Services Measureyou have been considering. Please tell me if this makes you more inclined to vote Yes on this measure. Not Part of Split Sample 36%
42%
37%
34%
27%
28%
71%
69%
64%
Much More Incl. Smwt. More Incl.
(RESPONSE TIMES - MEDICAL) Last year, 82% of all calls to the City of Orange Fire Department were related to medical emergencies.
This measure will ensure that the City of Orange has the needed firefighters and paramedics, and lifesaving equipment to maintain its emergency response times and save lives.
(ACCOUNTABILITY) This measure includes tough accountability provisions such as public disclosure of all spending and annual independent financial audits. These fiscal safeguards will ensure that funds from this measure will be used efficiently, effectively, and as promised.
(PROPERTY CRIME) Last year in the City of Orange, there were close to 1,500 reported robberies, burglaries, and thefts, including 372 reported stolen vehicles. This measure will help maintain 911 emergency response times and police patrols in neighborhoods and business areas to keep residents and their property safe. (Ranked by Total More Inclined to Vote Yes)
Ensuring the City has the needed firefighters, paramedics and equipment to maintain its emergency response; addressing property crimes; and ensuring the measure has tough accountability provisions are among leading reasons to support the measure.
17 Q. I am going to read you some statements from people who may support the potentialCity of Orange Public Safety/City Services Measureyou have been considering. Please tell me if this makes you more inclined to vote Yes on this measure. *Split Sample 31%
34%
29%
33%
28%
34%
64%
63%
63%
Much More Incl. Smwt. More Incl.
(PARKS) The City of Orange prides itself on 22 parks serving the community, but the City does not have the funding needed to continue to keep them clean and safe. This measure will upgrade playgrounds, so children have safe places to play; repair park bathrooms and leaky roofs; update safety lighting; and keep park facilities clean.
(HOMELESS) Last year, the City of Orange had one of the highest numbers of homeless individuals in North Orange County.
This measure will help provide funding for the City to address homelessness by connecting them with available non-profit and regional services, including mental health and substance abuse treatment, emergency shelter, food services, and health and social services. This will also ensure The Plaza, and other business districts, parks, and public areas are safe and secure for everyone. *(WILDFIRES) The Freeway Complex Fire and the Canyon Fires are important reminders that our community is vulnerable to ongoing threats of Santa Ana winds that lead to wildfires. This measure will improve the City’s ability to respond to one or more fires before they get out of control by helping to retain and attract well-qualified firefighters, update the fire equipment and trucks, and support efforts to reduce the risk of wildfires.
(Ranked by Total More Inclined to Vote Yes)
Continued
18 Q. I am going to read you some statements from people who may support the potentialCity of Orange Public Safety/City Services Measureyou have been considering. Please tell me if this makes you more inclined to vote Yes on this measure. *Split Sample 32%
34%
26%
27%
30%
26%
34%
26%
61%
60%
60%
53%
Much More Incl. Smwt. More Incl.
*(KEEPING GANGS OUT) Hundreds of gang members live in or frequent the City of Orange. Passing this measure will help local police to continue to fight gang violence; keep gang members and drug dealers from nearby communities out of our City; and offer healthy and safe activities and programs for at-risk youth so they do not get involved with gangs.
*(PATROLS)During certain times of the day, there are no more than ten police officers patrolling our City, which makes up more than 137,000 residents plus visitors. This measure would help retain and attract police officers to increase the number of patrols and keep neighborhoods and residents safe.
(STREETS) Prior to this year’s rainy season, independent engineers rated nearly one-quarter of the City of Orange’s streets and roads as “fair,” “poor,” or “very poor;” and the roads have only gotten worse.
It is time we fund these needed street and pothole repairs before the problem gets even worse and more expensive to fix.
*(PROPERTY VALUES) Safe neighborhoods and well-maintained streets and parks are all a big part of maintaining property values.
This measure will help to maintain or increase the value of our homes. (Ranked by Total More Inclined to Vote Yes)
Continued
19 Q. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample Initial Vote Vote After Education
28%
23%
8%
2%
8%
27%
3%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
59%
51%
Total
No
37%
After education, overall support for the 1% sales tax
until ended by voters increases 4 percentage points
from 59 to 63 percent, with only about one-third
having said they would definitely vote yes.
(1% Sales Tax, Until Ended by Voters; M.O.E. = ±4.9%)
35%
23%
5%
1%
8%
23%
4%
Total
Yes
63%
58%
Total
No
33%
20 Q. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample Initial Vote Vote After Education
33%
19%
4%
3%
11%
25%
5%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
56%
52%
Total
No
39%
After education, overall support for the 1% sales tax
expiring after 8 years increases 7 percentage points
from 56 to 63 percent, with 4 in 10 having said they
would definitely vote yes.
(1% Sales Tax, Expiring After 8 Years; M.O.E. = ±4.9%)
40%
17%
6%
1%
7%
21%
8%
Total
Yes
63%
57%
Total
No
29%
21 28%
23%
8%
2%
8%
27%
3%
35%
23%
5%
1%
8%
23%
4%
33%
19%
4%
3%
11%
25%
5%
40%
17%
6%
1%
7%
21%
8%
Definitely yes
Probably yes
Undecided,
lean yes
Undecided,
lean no
Probably no
Definitely no
Undecided
Total
Yes
59%
Total
Yes
63%
Total
Yes
63%
Total
Yes
56%
51% 58% 52% 57%
Q. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample Total
No
37%
Total
No
33%
Total
No
29%
Until Ended by Voters Expiring After 8 Years
Initial Vote Vote After
EducationInitial Vote Vote After
Education
Total
No
39%
After education, both measures’ overall support
is above the simple majority threshold and above the
margin of error for passage.
(M.O.E. = ±4.9% for Each Measure)
22 Q. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample Vote Progression 1% Sales Tax, Until Ended by Voters (Dec 2023) vs. 1% Sales Tax, Until Ended by Voters (May/June 2024) vs. 1% Sales Tax, Expiring After 8 Years (May/June 2024) (M.O.E. = ±4.6% For Dec 2023; M.O.E. = ±4.9% for May/June 2024) 50%
60% 59% 63%
56%
63%
43%
34% 37% 33%
39%
29%
7% 6% 3% 4% 5% 8%
Initial
Vote
Vote After
Education
Initial
Vote
Vote After
Education
Initial
Vote
Vote After
Education
Total Yes
Total No
Undecided
1% Sales Tax,
Until Ended by Voters
December 2023
1% Sales Tax,
Until Ended by Voters
May/June 2024
1% Sales Tax ,
Expiring After 8 Years
May/June 2024
23 Alternative Rates and Durations
24 Q7. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample Q8. What if the proposed measure I just described established a 3/4% sales tax, raising $30,000,000, instead of the 1% sales tax I just described which would raise $40,000,000? If that were the case, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample Vote After Education
1% Sales Tax
Vote After Education
¾% Sales Tax
35%
23%
5%
1%
8%
23%
4%
31%
17%
5%
3%
12%
27%
6%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
63%
Total
Yes
53%
58% 48%
Total
No
33%
Total
No
42%
After education, overall support declines 10 points
with a decrease in the sales tax rate from 1% to ¾%.
(Until Ended by Voters: M.O.E. = ±4.9% For Each Measure) 25 Q9. If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample Q10. What if the proposed measure I just described expired after 5 years, rather than 8 years? If that were the case, do you think you would vote “yes” in favor of this measure or “no” to oppose it? Split Sample
Vote After Education
1% Sales Tax
Expiring After 8 Years
Vote After Education
1% Sales Tax
Expiring After 5 Years
40%
17%
6%
1%
7%
21%
8%
37%
14%
9%
3%
7%
21%
9%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
63%
Total
Yes
60%
57% 51%
Total
No
29%
Total
No
31%
After education, overall support for the 1% sales tax declines 3 percentage points when the duration changes from an
8-year expiration date to a 5-year expiration date.
(M.O.E. = ±4.9% For Each Measure)
26 Conclusions
27 Conclusions
Summary
Statistically, there appears to be no difference between a 1% sales tax measure with a duration of until ended
by voters or 8 years.
Neither lowering the sales tax rate, nor lowering the duration of the sales tax from 8 to 5 years, will
significantly improve the chances of the measure
passing.
A 1% sales tax measure could be viable on a November
2024 City of Orange ballot, if there is ongoing and
persistent education and limited opposition.
28 Conclusions; Continued
Context
While a plurality has optimistic views about the
direction of the City of Orange, that has declined
slightly since December.
Two-thirds perceive the City has a need for additional funds, a slight increase from December, but only
slightly more than one-quarter perceive there is a
“great need.”
29 Conclusions; Continued
Budget Priorities:
Maintaining 911 response
Maintaining fire and police protection and paramedic services Preventing property crimes, including thefts
Keeping public areas and parks safe and clean
Requiring all funds benefit City of Orange residents
Top Reasons to Support the Measure:
82% of calls to the Fire Department are for medical emergencies – providing staff and equipment to save lives
Preventing and responding to property crimes
Maintaining the City parks to ensure they are safe and clean Addressing homelessness
ACCOUNTABILITY
City of Orange
Budget Priority and Revenue Measure
Issues Follow-up Survey
220-7211
Transactions and Use Tax
(Sales Tax) Discussion
Tuesday, June 25, 2024
10.2 Different Scenarios from
June 11th
2 10.2
Possible TermsPossible Sales Tax Rate
20, 15, or 10 Years1% Sales Tax Rate
20, 15, or 10 Years0.75% Sales Tax Rate
Additional Option for
Council Consideration
3 10.2
Possible TermPossible Sales Tax Rate
Until Ended By Voters1% Sales Tax Rate
Fiscal Outlook Dependent
on Sales Tax Rate
4 Without Funding Deferred Maintenance or Restoring any Budget Reductions:
10.2 Deficit BeginsSales Tax Rate
No Ongoing Deficit1%
No Ongoing Deficit0.75%
Ongoing Deficit Begins in FY290.5%
Note: At a 0.75% sales tax rate, it is projected FY25 will end with a deficit with ongoing surpluses thereafter.
Fiscal Outlook Graphs – 1%
5 Without Funding Deferred Maintenance or Restoring any Budget Reductions:
10.2 Ongoing Surplus
Fiscal Outlook Graphs – 0.75%
Without Funding Deferred Maintenance or Restoring any Budget Reductions:
10.2 Ongoing Surplus after FY25
Fiscal Outlook Graphs – 0.5%
Without Funding Deferred Maintenance or Restoring any Budget Reductions:
10.2 Ongoing Deficit
Projected to Begin
in FY29
Fiscal Outlook Dependent on
Sales Tax Rate
8 With Funding Deferred Maintenance or Restoring any Budget Reductions:
10.2 Surplus BeginsSales Tax Rate
Fiscal Year 361%
Ongoing Deficit0.75%
Ongoing Deficit0.5%
Fiscal Outlook Graphs – 1%
With Deferred Maintenance and Restored Budget Reductions.
Surplus
Begins
Fiscal Outlook Graphs – 0.75%
With Deferred Maintenance and Restored Budget Reductions.
Ongoing Deficit
Fiscal Outlook Graphs – 0.5%
With Deferred Maintenance and Restored Budget Reductions.
Ongoing Deficit
Fiscal Outlook Graphs – 1%
With Deferred Maintenance Only
Ongoing
Surplus
Rebuilding the Fund Balance
To rebuild our undesignated reserves, the 1% rate without budget reductions immediately restored is necessary.
Sales Tax Mechanics
14 Increased revenue stays in Orange.
2% Cap in Orange County.
Does not apply to:
Unprepared Groceries
Prescription Medicine
Property Tax and Rent
Medical, Legal, or Dental Services
Education
7.4 Resolution 11559 and Ordinance 17-24
15 Resolution No. 11559 places the measure before
Orange Voters.
If approved by Orange voters, Ordinance No. 17-24
would:
Establish the tax rate and term.
Identify exemptions pursuant to State law.
Create an Independent Citizens’ Advisory
Committee.
7.4 Resolution No. 11561
16 City Council may authorize arguments for or
against the measure.
City Attorney Impartial Analysis
Priority per California Elections Code if multiple
arguments are filed.
7.4 Conclusion
17 7.4
Sales Tax Rate and Term Need to be identified
City Council has the authority to place the measure
before Orange Voters.
5/7 of the City Council must agree to place the
measure before Orange Voters.
Thereafter, it is up to Orange Voters to consider
the measure.
Fiscal Outlook Graphs – 0.75%
With Deferred Maintenance Only
Ongoing
Surplus
Fiscal Outlook Graphs – 0.5%
With Deferred Maintenance Only
Ongoing Deficit
Fiscal Outlook Graphs – 1%
With Deferred Maintenance and Restored Budget Reductions (No Fire Stations) Ongoing
Surplus
Fiscal Outlook Graphs – 0.75%
With Deferred Maintenance and Restored Budget Reductions (No Fire Stations) Ongoing Deficit
Fiscal Outlook Graphs – 0.5%
With Deferred Maintenance and Restored Budget Reductions (No Fire Stations) Ongoing Deficit