February 10, 2026
City Council Meeting
PowerPoint Presentations
and
Information distributed
at Council meeting
FY 2024 -25 Year End
Report
Presentation
Outline
Accounting Changes
General Fund Results
WHAT CHANGED:
WHY IT MATTERS:
ISFs consolidated into the General
Fund in FY 25:
Information Technology operations
Fleet Maintenance
Dental Insurance program
Major Building Repair and
Maintenance
Accounting Changes
Internal Service Fund (ISF) Consolidation
3 Funds were already supported almost entirely
by the General Fund
Internal charges did not reflect actual funding
practices
Equipment Maintenance Fund operated in a
deficit since FY 2015
Consolidation improves financial transparency
by presenting true total cost of City operations
within the General Fund and simplifies
financial reporting
General Fund Revenues
4 FY25 Actual
$158,708,650
FY25 Revised
Budget
$158,588,713
FY24 Actual
$146,658,649
+$12,050,181; +8.2%
+119,937; 0.1%
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
FY24 Actual FY 25 Revised Budget FY 25 Actual
Change to the General Fund Revenues
5 FY25 Actual
$158, 708,650
FY25 Revised
Budget
$158,588,713
FY24 Actual
$146,658,469
+$12,050,181; +8.2%
119,937; 0.1%
Internal Service
Funds
66%, $8.4M
Property Tax
25%, $3.1M
Fines
7%, $881K
Others
-2%, -$286K
General Fund Expenditures
6 FY25 Actual
$159,407,802
FY25 Revised
Budget
$169,108,334
FY24 Actual
$143,923,840
+$15,483,962; +10.8%
-9,700,532; -5.7%
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
FY24 Actual FY25 Revised Budget FY25 Actual
Changes to the General Fund Expenditures
7 FY25 Actual
$159,407,802
FY25 Revised
Budget
$169,108,334
FY24 Actual
$143,923,841
+$15,483,961; +10.8%
-9,700,532; -5.7%
Internal Service
Funds
69%, $10.6M
Salaries & Benefits
19%, $3M
Contracted
Services
5%, $695K
Utilities
2%, $315K
Other Misc.
Expenses
5%, $821K
General Fund Budget to Actual
8 $150 $152 $154 $156 $158 $160 $162 $164 $166 $168 $170 Revenue
Expenditure
Millions
Budget: $169.1MActual: $159.4M
Actual: $158.7M
Budget: $158.6M
Fund Balance
9 Variance to
FY24FY 25 ActualFY24 Actual
$11,679,343$155,708,650$144,029,307
Operating
Revenues
370,8383,000,0002,629,162Transfers in
12,050,181158,708,650146,658,469Total Revenues
14,996,281158,920,122143,923,841
Operating
Expenditures
487,680487,680-Transfers out
15,483,961159,407,802143,923,841
Total
Expenditures
-$3,433,780-$699,1522,734,628Surplus/(Deficit)
Fund Balance
10 Variance to
FY24FY 25 ActualFY24 Actual
$5,024,458$29,252,874$24,228,416
Beginning Fund
Balance
-3,433,780-$699,1522,734,628Surplus/(Deficit)
1,590,67828,553,72226,963,044
Ending Fund
Balance
2,489,38326,380,74023,891,358
Catastrophic
Reserve
526,2422,003,8071,477,565
Committed/
Carryover
-$1,424,947$169,174$1,594,121
Undesignated
Reserve
Questions?
Michelle Kresan,
Assistant Finance Director
Trang Nguyen, Finance
Director
GENERAL FUND YEAR END REPORT 11FY 2024-25
Lease and Lease
Option-OC
Riverwalk
Project/Rampart
Street Park
Project
February10, 2026
Katella Property
1 Katella Property
2 Rampart Property
3 Rampart Property
4 Lease and Lease
Option-OC
Riverwalk
Project/Rampart
Street Park
Project
February10, 2026
Business Confidential - Willdan
1 Energy & Infrastructure
Improvements
Preliminary Analysis Review
February 10, 2026
City of
Orange
Business Confidential - Willdan
Presentation Agenda
HIGHLIGHTS
2 Willdan energy solutions process
City of Orange energy-related goals
Preliminary Analysis results
Discussion & next steps
Willdan energy solutions process
City of Orange energy-related goals
Preliminary Analysis results
Discussion & next steps
AGENDA
Business Confidential - Willdan
Willdan’s Energy Program Process
3 Performance MaximizationPerformance Maximization
M&V &
Ongoing Support
Performance Maximization
M&V &
Ongoing Support
Project ImplementationProject Implementation
Construction &
Staff Training
12-18 months
Project Implementation
Construction &
Staff Training
12-18 months
Investment Grade Audit
Part 2
Investment Grade Audit
Part 2
ASHRAE Level 3 Audit &
Funding Solutions
12-16 weeks
Investment Grade Audit
Part 2
ASHRAE Level 3 Audit &
Funding Solutions
12-16 weeks
Investment Grade Audit
Part 1
Investment Grade Audit
Part 1
Investment Grade Audit
Part 1
Identify Potential Scopes
of Work
Site Walks & Staff
Interviews
Utility Analysis
Estimate Energy &
Operational Savings
Review Grants, Utility
Incentives, and Financing
Subcontractor Engagement
& Scope Cost Estimation
Select Scopes of Work
Determine Energy and
Operational Savings
Identify Funding Solutions
Develop Local Hiring Plan &
Community Outreach Plan
Complete Design &
Competitive Procurement
Complete M&V Plan
Turnkey Implementation of
Selected Scopes
Detailed Schedules and Site-
Specific Safety Plans
On-Site Willdan Project
Management
Extensive Commissioning of
Systems
Detailed Staff Training
Measurement &
Verification of Energy
Performance
Finalize Incentives &
Rebates
Community Engagement
Ongoing Maintenance or
Staff Training (If Desired)
Preliminary
Engineering Analysis
8-12 weeks (To Begin After Construction)
Single Source Accountability Collaborative Solution Development Streamlined Project Delivery Single Source Accountability Collaborative Solution Development Streamlined Project Delivery
Business Confidential - Willdan
City of Orange Energy Goals
4 Reduce energy costs
Address energy-related projects with a
comprehensive approach
Adopt a holistic strategy that integrates
energy efficiency, renewable sources (e.g.,
solar), Fleet electrification
Fiscally-responsible funding for projects
Cash flow neutral project
Enable "no upfront cost" models through
performance contracts or financing that
repays via reduced utility bills
Reduce energy costs
Address energy-related projects with a
comprehensive approach
Adopt a holistic strategy that integrates
energy efficiency, renewable sources (e.g.,
solar), Fleet electrification
Fiscally-responsible funding for projects
Cash flow neutral project
Enable "no upfront cost" models through
performance contracts or financing that
repays via reduced utility bills
Orange Objectives
Business Confidential - Willdan
Preliminary Analysis – Measures Summary
5 Energy Efficiency Measure
Killefer Park
Eisenhower Park
El Camino Real Park
El Modena Park
Fred Barrera Park
Grijalva Park
Handy Park
La Veta Park
McPherson Athletic Facility
Olive Park
Pitcher Park
Santiago Hills Park
Serrano Park
Shaffer Park
Steve Ambriz Park
Sycamore Park
Yorba Park
Lighting Upgrade X X X X X X X X X X X X X X X
Energy Efficiency Measure
Corp Yard
Water Division Bldg
City Hall
Economic Development
Community Services Annex
Senior Center
Police Department
Grijalva Sports Center
Hart Park
Parking Structure
Main Library
El Modena Library
Taft Library
Fire Station 1
Old Fire Station 1
Fire Station 2
Fire Station 3
Fire Station 4
Fire Station 5
Fire Station 6
Fire Station 7
Fire Station 8
HVAC Replacement and Retrofit X X X X X X X X X X X X
Retro-Commissioning X
Interior Lighting Retrofit X X X X X X X X
Lighting Controls Upgrade X X X X X X X X X X X X X X X X X x X Exterior Lighting Retrofit X X X X X X X X X X X X
Park Exterior Lighting Retrofit X X
Solar/Storage/Resiliency X X X X X X X
Public EVCS X X X X X X X
Fleet Electrification X X X X
Pool Efficiency Measures X
Business Confidential - Willdan
HVAC & Lighting
6 Current Challenges
Aging rooftop units (RTUs) and HVAC equipment nearing or past end-of-life
Park lighting mostly high-intensity discharge (HID) lamps Interior lighting largely LED but with minimal controls Proposed Solutions
Replace/retrofit high-efficiency HVAC systems across key facilities
Convert remaining lighting to advanced LED with smart controls
Pool Efficiency Measures at Hart Park (VFD controls)
Fountain Timer at City Hall
Benefits
Significant reduction in energy and maintenance costs Improved comfort, air quality, and building performance Supports City sustainability, resilience, and energy
efficiency goals
Current Challenges
Aging rooftop units (RTUs) and HVAC equipment nearing or past end-of-life
Park lighting mostly high-intensity discharge (HID) lamps Interior lighting largely LED but with minimal controls Proposed Solutions
Replace/retrofit high-efficiency HVAC systems across key facilities
Convert remaining lighting to advanced LED with smart controls
Pool Efficiency Measures at Hart Park (VFD controls)
Fountain Timer at City Hall
Benefits
Significant reduction in energy and maintenance costs Improved comfort, air quality, and building performance Supports City sustainability, resilience, and energy
efficiency goals
HIGHLIGHTS
Business Confidential - Willdan
Existing Conditions
Full Dependence on the Utility Grid
Limited EV Charging Infrastructure.
Minimal Backup Power / Resiliency
No on-site generation or storage to support
critical loads during outages or PSPS
events.
Proposed Solutions
Install PV solar to offset 50%+ of facility
electricity consumption
Benefits
Reduce utility costs
Provide shade for parking
Reduce greenhouse gas emissions
Existing Conditions
Full Dependence on the Utility Grid
Limited EV Charging Infrastructure.
Minimal Backup Power / Resiliency
No on-site generation or storage to support
critical loads during outages or PSPS
events.
Proposed Solutions
Install PV solar to offset 50%+ of facility
electricity consumption
Benefits
Reduce utility costs
Provide shade for parking
Reduce greenhouse gas emissions
Solar
7 EV Charger
Requirements
PV system size
(kWDC)
PV Site Location
-193.4Civic Center/City
Hall
-154.4Main Library
4 L2s
+ 4 Make-ready
124.0Corporation Yard
6 L2s
+ 7 Make-ready
277.1Police
Department
4 L2s
+ 4 Make-ready
148.8Grijalva Sports
Center
4 L2s
+ 4 Make-ready
223.2Water
Department
2 L2s
+ 2 Make-ready
62.0Senior Center
20 L2s
+21 Make-ready
1.18 MWTotal PV MWdc
Business Confidential - Willdan
Solar Layouts
8 Main Library
Police Department
Senior Center
Water Department
Business Confidential - Willdan
Solar Layouts
9 City Hall
Corp Yard
Grijalva Park
Business Confidential - Willdan
ITC Tax Credit
Key Facts About the ITC Tax Credit
Base Credit Rate: 30% of qualified solar project costs (e.g., equipment and installation)
Eligibility for Tax-Exempt Entities: As a municipality, the City of Orange qualifies for "direct pay"
Bonus Adders: Up to 10% additional for using energy
community bonus & 10% domestic content
Sustainability Impact: For our 1.18 MW solar project, the ITC could offset ~30% of costs
Phase-Out Timeline: Under OBBB modifications, solar
ITC eligibility requires beginning construction by July 4, 2026, or placing the project in service by December 31, 2027, to secure the full 30%
10 Business Confidential - Willdan
AMI Water Metering
11 Accelerate & Complete Existing AMI Program
Expand network and implement Customer Experience Portal (CEP) Financially Sustainable
Accelerate program without new CIP or operating funds Full Standardization & Upgrade
Replace and retrofit where appropriate
Accelerate & Complete Existing AMI Program
Expand network and implement Customer Experience Portal (CEP) Financially Sustainable
Accelerate program without new CIP or operating funds Full Standardization & Upgrade
Replace and retrofit where appropriate
HIGHLIGHTS
Self-Funding
$500K in projected annual free cashflow, after project costs CIP Relief
Frees ~$400K annually for other capital priorities
Better Customer Experience
Modern CEP for better engagement and transparency
Proactive Operations
Automated reading for operating efficiency and real-time remote monitoring to extend equipment life and reduce water loss Self-Funding
$500K in projected annual free cashflow, after project costs CIP Relief
Frees ~$400K annually for other capital priorities
Better Customer Experience
Modern CEP for better engagement and transparency
Proactive Operations
Automated reading for operating efficiency and real-time remote monitoring to extend equipment life and reduce water loss
KEY BENEFITS
Business Confidential - Willdan
Fleet Vehicle Electrification
12 Need and Benefits
Existing conditions: City fleet has minimal EVs.
Regulatory drivers (CA):
Building code: EVCS required when solar
PV canopies are installed.
CARB Advanced Clean Fleets:
electrification requirements for MD/HD
public works vehicles.
Benefits: supports regulatory compliance,
reduces fuel/maintenance costs, and public
charging can generate revenue.
SCE Charge Ready Transport
Make-ready electrical infrastructure to reduce
upfront cost
Final charger counts, phasing, and the selected Charge Ready delivery option will be confirmed during the IGA.
Need and Benefits
Existing conditions: City fleet has minimal EVs.
Regulatory drivers (CA):
Building code: EVCS required when solar
PV canopies are installed.
CARB Advanced Clean Fleets:
electrification requirements for MD/HD
public works vehicles.
Benefits: supports regulatory compliance,
reduces fuel/maintenance costs, and public
charging can generate revenue.
SCE Charge Ready Transport
Make-ready electrical infrastructure to reduce
upfront cost
Final charger counts, phasing, and the selected Charge Ready delivery option will be confirmed during the IGA.
Business Confidential - Willdan
Energy Performance Contract Project Funding
13 Business Confidential - Willdan
Performance MaximizationPerformance MaximizationPerformance MaximizationProject ImplementationProject ImplementationProject ImplementationInvestment Grade Audit Part 2
Investment Grade Audit
Part 2
Investment Grade Audit
Part 2
Investment Grade Audit
Preliminary Analysis
Investment Grade Audit
Preliminary Analysis
Initial Investigation
Investment Grade Audit
Preliminary Analysis
Initial Investigation
Next Steps
14 Next Steps for City of Orange Energy Program
NEXT STEPS
Refine scopes, costs, and savings for staff review
Finalize project scopes, costs, and savings guarantees Finalize contracting
Recommendation to City Council
NEXT STEPS
Refine scopes, costs, and savings for staff review
Finalize project scopes, costs, and savings guarantees Finalize contracting
Recommendation to City Council
PROGRAM BENEFITS
Efficiency and deferred maintenance improvements to lighting, controls, and HVAC. Solar renewable generation with parking lot shading.
Capture up to $1.2M in incentives and savings.
Full-service delivery with cost guarantees and performance guarantees.
PROGRAM BENEFITS
Efficiency and deferred maintenance improvements to lighting, controls, and HVAC. Solar renewable generation with parking lot shading.
Capture up to $1.2M in incentives and savings.
Full-service delivery with cost guarantees and performance guarantees.
Determine Client Goals
Identify Potential Scopes of
Work
Site Walks & Staff Interviews
Utility Analysis
Estimate Energy & Operational
Savings
Review Grants, Utility
Incentives, and Financing
Subcontractor Engagement &
Scope Cost Estimation
Business Confidential - Willdan
Thank You!
Colton Gorman
858-951-2195
[email protected]
Brandon Link
605-366-2072
[email protected]
Quarterly Treasurer Report
February 2026 Report on
October, November & December 2025
Topics of Discussion:
Treasury Intern Launch
EOY 2025 Update
Investment Portfolio Update
2026 Look Forward
Questions
City of Orange Treasury Internship
Ethan Goldberg – Chapman University Senior with a major in Business Administration, emphasis in International Business and a Minor in Political Science
Key Projects: (analysis and research with presentation to council nearing graduation)
Comparative Analysis on investment portfolios, managers and key economic factors in neighboring OC cities
What is the role of a Treasurer - looking at varying cities dynamics Real property analysis for City of Orange owned properties – market value, purchase price, rent and rent potential
Chapman University Financial Study
Mills Act understanding and analysis
End of Year 2025 Trends
Yield curve (trickling off to a more normal curve)
Shift in money market dollars that were at historic highs to longer higher yield and longer duration bonds
Tightening of credit spending pushing stability on repayments of principal and interest
Fed rate cuts (2)
50 basis point reduction in the quarter boosting bond prices (October and December 4%-4.25% to 3.5%-3.75%)
Price appreciation on currently held bonds
Interest rate volatility decreased as inflation uncertainty somewhat fades
100% compliance with investment policy
Drop in managed dollars due to movement of around $14M to LAIF in Q4 2025 (yielding close to 4.1%) Since this point, there has been a shift, and we will look to move this money to mid length duration bonds this month Buena Park @ 3.6/3.8% Purchase Yield on $106M
Costa Mesa @3.19/3.3% Purchase Yield on $178M
Purchase Yield - Return percentage we can expect if we hold through maturity date I had previously set a goal for us to reach 4% by the end of 2025 and we came in just under, at 3.94% I anticipate a jump in Q1 2026 with an increase in mid / longer duration bonds and an extra $15M, giving our overall average a boost
Growth in total funds due to large property tax disbursement in December 2025
2026 Forward Look
Treasury yield curve has recently steepened suggesting strong growth moving forward
Credit quality continues to support core holdings
Issuer has strong ability to repay principal and interest on time Great for capital preservation
Fed policy and the path of interest rates remain key uncertainty. If the market reprices rates higher or the yield curve steepens unexpectedly, bond prices could weaken
Q1 is set to see positive growth from Purchase Yield perspective and Chandler is actively looking at all options for growth
Questions