Agenda packet — Orange City Council, June 9, 2026 (part 7 of 7)

Nevertheless, the SVTA decision indicates there may be general benefit “co nferred on real property located in the district.” A measure of the general benefits to property within the Assessment area is the percentage of land area within the District tha t is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regiona l purposes could provide indirect benefits to the pub lic at large. Approximately 7.15% of the land area in the District is used for such regional purp oses, so this is a measure of the general benefits to property within the District.

Benefit To The Public At Large
The general benefit to the public at large can be e stimated by the proportionate amount of time that the District’s Improvements including landscaping a re used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same way as park improvements – and they confer far less benefit to the public at large than do similar park improvements.

One way to measure the special benefit to the gener al public is by the car trips through an area with Improvements. Of the five ways benefits are conferr ed (proximity, access, views, extension of a property’s green space, and creation of lots), the only benefit that is conferred by way of pass-by ca r trips is views, which accounts for 10% of the total benefits. For pass-by car trips, the benefit of views is found to be approximately half that of res idents, employees, customers or property owners in the District due to the brevity of the views. Therefore the relative benefit factor is reduced to 5%. 1215
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
16 1.16%

11.31% 11.3% = 10.0%
= 11.6%

21.6% TOTAL GENERAL BENEFIT
100.0% x 11.6% Out -of -District General Benefits
Property within the District 7.15%
Public at Large 3.00%
Total In -District 11.35% 11.4% x 88.4%

1.20%
In -District General Benefits
Outside the District
Relative Percent of
General Overall General
Benefit Benefit Benefit

Next, the views factors are weighted by the relevan t number of car trips. Using the lane miles as representative of pass-by traffic, an analysis show s that 60% of the lane miles are on arterial or collector streets where the general public has view s of the landscaping. Therefore (60% of 5% =)

3.0% of the benefits from the Improvements are general benefits to the public at large.

Special Considerations of Improvements Outside of District The benefits are categorized into to two geographic groupings of Improvements: In-District Improvements that include parkways, medians and pas eos that are either inside the district boundaries, or are traffic medians that directly ab ut or front the district; and Out-of-District Improvements that are parkways or medians that are both outside the District boundaries and are not abutting, fronting or lying adjacent to the Dis trict. Based on weighted square footage of the various types of Improvements, Out-of-District Impr ovements count for approximately 11.6% of the total benefits. These Out-of-District benefits are found to be entirely General Benefit. For example some Improvements at Santiago Canyon Colleg e are maintained, but the funding for this work comes entirely from the College as general benefit funds.

The In-District Improvements, conversely, provide a pproximately 88.4% of the total benefits. The general benefits provided by these Improvements are discussed above.

Total General Benefits
Using a sum of these three measures of general bene fit plus the special considerations of general benefit from Out-of-District benefits (both weighted accordingly), we find that approximately 21.6% of the benefits conferred by the Improvements may b e general in nature and should be funded by sources other than the Assessment. This calculation is shown below.

Although this analysis finds that 21.6% of the Asse ssment may provide general benefits from the Improvements, the Assessment Engineer establishes a requirement for a minimum contribution from sources other than the Assessments of 22%. Thi s minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits.

1216
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
17 Final Step – Calculate the Current General Benefit Contribution from the City This general benefit cannot be funded from the Asse ssments; it must be funded from other sources such as the City’s General Fund or other non-Distri ct funds. These contributions can also be in the form of in-lieu contributions to the installation a nd maintenance of the Improvements such as other City assets that support and protect the Improvemen ts. The City of Orange will contribute both monetary and in-lieu resources to ensure that the g eneral benefits conferred by the proposed Improvements are not funded by the District’s property owners.

A summary and quantification of these other contributions from the City is discussed below:

The City of Orange owns, maintains, rehabilitates a nd replaces curb and gutter along the border of the District Improvements. This curb and gutter ser ves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City towards general benefit from the maintenan ce, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%.

The City owns and maintains a storm drainage system along the border of the District Improvements. This system serves to prevent floodin g and associated damage to the Improvements, and manage urban runoff including local pollutants loading from the Improvements.

The contribution from the City towards general bene fit from the maintenance, and operation of the local storm drainage system is conservatively estimated to be 5%.

The City owns and maintains local public streets al ong the border of the District Improvements.

These public streets provide access to the Improvements for residents’ enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%.

The value of the construction of the Improvements c an be quantified and monetized as an annuity.

Since this construction was performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs, and is conservatively estimated to contribute 10%.

The total General Benefit is liberally quantified a t 22% which is entirely offset by the conservativel y quantified total non-Assessment contribution toward s general benefit described above of 25%.

Therefore, no additional General Benefit must be funded by the City.

Zones of Benefit
The boundaries of the District were developed in co njunction and concurrent with the planning and design of the subdivisions and Improvements, and th us include only the properties in the City of Orange that are proximate to the Improvements and t hat would materially benefit from the Improvements. Certain other properties surrounding the District were not part of the designed association between the Improvements and the assess ed areas, and are generally less proximate to the Improvements. In other words, the boundaries of the District have been narrowly drawn to include only properties that will specially benefit from the Improvements, and would receive a declining level of service if the Assessments were not approved.

The SVTA decision indicates:

In a well-drawn district — limited to only parcels r eceiving special benefits from the improvement — ev ery parcel within that district receives a shared special benef it. Under section 2, subdivision (i), these benefit s can be construed as being general benefits since they are not “particular and distinct” and are not “over and above” the benefits received by other properties “located in the district.” 1217
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
18 We do not believe that the voters intended to inval idate an assessment district that is narrowly drawn t o include only properties directly benefiting from an improve ment. Indeed, the ballot materials reflect otherwise . Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whet her the parcel receives a direct advantage from the improve ment (e.g., proximity to park) or receives an indire ct, derivative advantage resulting from the overall public benefit s of the improvement (e.g., general enhancement of the district’s property values).

In the District, the advantage that each parcel rec eives from the Improvements is direct, and the boundaries are narrowly drawn to include only parce ls that benefit from the Assessment. Therefore, the even spread of Assessment throughout the narrow ly drawn district is indeed consistent with the SVTA decision. For the most part, the benefits from the Improvements within the District do not vary further based on proximity of the parcels to t he Improvements because the increased benefits of greater proximity to the Improvements are genera lly offset by a parallel increase in negative factors such as higher levels of traffic, noise, etc. that comes with increased proximity.

There are two distinct neighborhoods within the Dis trict: Santiago Hills and Hillsdale. Santiago Hills is a complex neighborhood with arterial and c ollector streets traversing the residential areas and a commercial area on the northeast portion. In addition, Santiago Hills has a system of walking paths, or paseos, that provide additional benefits not found in the Hillsdale neighborhood. Hillsdale is a relatively small neighborhood, linear in shape centered on one residential street (Hillsdale Driv e) with Improvements along only one exterior frontage (Santiago Canyon Road).

In order to most conservatively assure that Assessm ents are proportional to the relative level of special benefits in the District, two zones have be en created. Zone of Benefit A (or “Zone A”) consists of all of the parcels that lie within the Santiago Hills neighborhood bounded generally by Chapman Avenue, Jamboree Road, Canyon View Avenue, Skylark Lane and Newport Boulevard.

Zone A receives the full complement of special benefits.

Zone of Benefit B (“Zone B”) consists of all the pa rcels that lie within the Hillsdale neighborhood lying generally north of Santiago Canyon Road. A de tailed analysis of the proportionate benefits received by the Hillsdale neighborhood as compared to the Santiago Hills neighborhood based on the weighted areas of parkways, paseos, and traffic medians within or proximate to the two zones shows that the Hillsdale neighborhood (Zone B) rece ives approximately 75% as much special benefit as the Santiago neighborhood (Zone A). Ther efore Assessments for parcels in Zone B are reduced approximately 20% from the rates for Zone A (see Assessment Diagram).

Method of Assessment
As previously discussed, the proposed Assessments w ill provide comprehensive Improvements that will clearly confer special benefits to properties in the District. The allocation of special benefits to property is partially based on the type of property and the size of property. These benefits can also partially be measured by the occupants on property in the District because such parcel population density is a measure of the relative benefit a parc el receives from the Improvements. It should be noted that many other types of “traditional” assess ments also use parcel population densities to apportion the Assessments. For example, the assessm ents for sewer systems, roads and water systems are typically allocated based on the popula tion density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels.
1218
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
19 The next step in apportioning Assessments is to det ermine the relative special benefit for each property. This process involves determining the rel ative benefit received by each property in relation to a single family home, or, in other words, on the basis of Single Family Equivalents (SFE). This SFE methodology is commonly used to distribute Asse ssments in proportion to estimated special benefit and is generally recognized as providing th e basis for a fair and appropriate distribution of Assessments. For the purposes of this Engineer’s Re port, all properties are designated a SFE value, which is each property’s relative benefit in relati on to a single family home on one parcel. In this case, the "benchmark" property is the single family detached dwelling which is one Single Family Equivalent or one SFE.

Not only residential improved property will be asse ssed, because commercial and other properties may also receive direct benefits from the Improvements, and will be assessed.

A fixed or flat Assessment is proposed for all sing le family residential properties regardless of occupancy or parcel size. Assessments on multi-fami ly residential parcels vary based on the number of dwelling units. Assessments on commercial proper ty are levied on an acreage basis because larger properties generally support larger buildings and h ave higher numbers of employees, customers and guests who would benefit from proximity and improve d access to well-maintained and improved landscaping.

Finally, the special benefits to be derived from th e proposed Assessments will be conferred on property and are not based on a specific property o wner’s use of the improvements, a specific property owner’s occupancy of property, or the prop erty owner’s demographic status such as age or number of dependents. The benefits conferred to pro perty are related to the average number of people who could potentially live on, work at, or o therwise could occupy a property, not how the property is currently used by the present owner. Th erefore, the number of people who could or potentially live on, work at or otherwise occupy a property is one indicator of the relative level of benefit received by a property.

In conclusion, the Assessment Engineer determined t hat the appropriate method of assessment apportionment should be based on the type of proper ty, the relative size of the property, property location, its relative population and its proximity to Improvements. This method is further described below.

Residential Properties
Certain residential properties in the District that contain a single residential dwelling unit are assigned one Single Family Equivalent or 1.0 SFE. D etached or attached houses and zero-lot line houses are included in this category of single fami ly residential property. If there is more than one single family detached dwelling on a parcel, it wil l be charged one SFE per single family detached dwelling.

Properties with more than one residential unit (oth er than parcels with more than one detached single family dwelling as described above) are designated as multi-family residential properties. These properties benefit from the Improvements in proport ion to the number of dwelling units that occupy each property, the average number of people who reside in multi-family residential units versus the average number of people who reside in a single family home (Population Density Factor) and the relative size of each type of residential d welling unit (Square Foot Factor). The population density factors for the area in Orange County encom passing the District, as depicted in the following table, provide the basis for determining the SFE factors for residential properties. Using the total population in a certain property type in the area of the District from the 2010 Census and 1219
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
20 dividing it by the total number of such households, finds that approximately 3.21 persons occupy each single family residence, whereas an average of 2.93 persons occupy each condominium. The ratio of 3.21 people on average for a single family residence and 2.93 people per dwelling unit in a condominium unit results in a population density eq uivalent of 0.91 for condominiums. Next, the relative building areas are factored into the analysis because special benefits are related to the average size of a property, in addition to average populati on densities. For a condominium, this calculation results in an SFE factor of 0.71 per dwelling unit.

Table 1 – Residential Density and Assessment Factors

Type of Residential Property
Pop. Density
Equivalent
SqFt
Factor
SFE
Factor

Single Family Residential

1.00 1.00

1.00 Condominium 0.91 0.78 0.71

There are no other multi-family property types (e.g ., duplex, triplex, fourplex, apartments) in the District, and none are foreseen in the future. Therefore no SFE-based assessment rate is calculated.

Commercial Properties
SFE values for commercial land uses are based on th e equivalence of special benefit on a land area basis between single family residential property an d the average commercial property. The SFE values for various commercial land uses are further defined by using average employee densities because the special benefit factors described previ ously can be measured by the average number of people who work at commercial properties.

In order to determine employee density factors, the findings from the San Diego Association of Governments Traffic Generators Study (the “SANDAG S tudy”) are used because these findings were approved by the State Legislature as being a g ood representation of the average number of employees per acre of land area for commercial prop erties. As determined by the SANDAG Study, the average number of employees per acre for general commercial property is 24.

In comparison, the average number of people residin g in a single family home in the area is 3.21.

Since the average lot size for a single family home in the District is approximately 0.12 acres, the average number of residents per acre of residential property is 26.8.

The employee density per acre is roughly equal to ( or 0.9 times) the population density of single family residential property per acre (24 employees per acre / 26.8 residents per acre). However, the benefit derived by employees on commercial properti es is less than that derived by a resident on residential property, generally due to less time of use of services and Improvements. The Assessment Engineer determines that this factor is 0.5 for commercial to 1 for residential. Table 2 below shows the average employees per acre of land area or portion thereof for various types of commercial properties and lists the relative SFE fa ctors per 0.12 acre for properties in each land use category.
1220
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
21 Commercial properties in excess of 5 acres generall y involve uses that are more land intensive relative to building areas and number of employees (lower coverage ratios). As a result, the benefit factors for commercial property land area in excess of 5 acres is determined to be the SFE rate per

0.12 acre for the first 5 acres and the relevant SFE rate per each additional acre over 5 acres.

Table 2 – Commercial Density and Assessment Factors

Type of Commercial Land Use
Average
Employees
per Acre 1
SFE Unit
per

0.12 Acre
s

2 General Commercial

24 0.500
Office 3 68 1.420
Shopping Center 24 0.500

1. Source: San Diego Association of Governments Traffic Generators Study.

2. The SFE factors for commercial and industrial parce ls are applied by the 0.12 acre of land area or portion thereof. (Therefore, the minimum assessment for any assessable parcel in these categories is the SFE Units listed herein.) The rates apply up to first 5 acres of parcel size. Additional acreage i s benefited at the rate shown above per acre or portion thereof.

3. Currently there are no parcels in the District in t he Office category. This rate is included in the event General Commercial space is converted to Office space.

Vacant/Undeveloped Properties
The benefit to undeveloped properties is determined to be proportional to the corresponding benefits for similar type developed properties, but at a lower rate due to the lack of improvements on the property. A measure of the benefits accruing to the underlying land is the average value of land in relation to Improvements for developed prop erty. An analysis of the assessed valuation data from the County of Orange found that approximately 55% of the assessed value of improved properties is classified as the land value. It is r easonable to assume, therefore, that approximately 55% of the benefits are related to the underlying l and and 45% are related to the improvements and the day-to-day use of the property. Using this rati o, the SFE factor for vacant/undeveloped parcels is 0.55 per parcel.

Other Properties
Article XIIID stipulates that publicly owned proper ties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the Assessment.

All properties that are specially benefited are ass essed. Certain other publicly owned property that lie within the District boundaries, including Santiago Canyon College, Chapman Hills Elementary School, Santiago Hills Park, and City of Orange pub lic safety facility on East Fort Road, are not assessed. These are discussed below.

Santiago Canyon College: The College lies within th e District and certain Improvements lie on their property. Although the College is not assessed in this District, the College pays for any special 1221
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
22 benefit through a separate agreement with the City, and that monetary contribution is shown in Table 1. In addition, all benefit attributable for the College property is included in the General Benefit calculation shown above.

Chapman Hills Elementary School: Any special benefi t attributable to the School buildings and parking lots are entirely offset by the benefit pro vided to the neighborhood by the outdoor fields.

This facility was also included in the list of regi onal facilities in the calculation of general benef it to properties inside the district that is indirect and derivative above.

Santiago Hills Park: Any special benefit attributab le to the Park is entirely offset by the benefit provided to the neighborhoods by park facilities. T his facility was also included in the list of regional facilities in the calculation of general b enefit to properties inside the district that is in direct and derivative above.

City of Orange Public Safety Facility on East Fort Road: Any special benefit received by this facility is entirely offset by the benefit provided back to the neighborhood similar to other in-lieu contributions to the General Benefit contributions that are funded by the City’s General Fund or other non-District funds.

Miscellaneous, small and other parcels such as road s, right-of-way parcels, and common areas typically do not generate significant numbers of em ployees, residents, customers or guests, and have limited economic value. These miscellaneous parcels receive minimal, if any, benefit from the Improvements and are assessed an SFE benefit factor of zero SFEs.

Annual Cost Indexing
The Assessment is subject to an annual adjustment t ied to the Consumer Price Index-U for the Los Angeles-Long Beach-Anaheim area as of December of e ach succeeding year (the “CPI”), with a maximum annual adjustment not to exceed 3%. Any cha nge in the CPI in excess of 3% shall be cumulatively reserved as the “Unused CPI” and shall be used to increase the maximum authorized assessment rate in years in which the CPI is less t han 3%. The maximum authorized assessment rate is equal to the maximum assessment rate in the firs t fiscal year the Assessment was levied adjusted annually by the minimum of either 3% or the change in the CPI plus any Unused CPI as described above.

Appeals of Assessments Levied to Property
Any property owner who feels that the Assessment le vied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Orange City Manager or his or her designee. Any such appeal is limited to correction of an Assessment during the t hen-current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Manager or his or her designee finds that the Assessment should be modified, the a ppropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or h er designee is authorized to refund to the property owner the amount of any approved reduction . Any dispute over the decision of the City Manager or his or her designee shall be referred to the Orange City Council, and the decision of the City Council shall be final.
1222
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
23 Assessment Funds Must Be Expended Within the District Area The net available Assessment funds, after incidenta l, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrati ve costs as defined in the Plans and Specifications section.
1223
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
24 ASSESSMENT
The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the District for the Fiscal Year 2026-27 is generally as follows:

Table 3 – Summary Cost Estimate
For Landscape Maintenance District No. 15 -1
For Fiscal Year 2026-27

BUDGET ITEM COST

ANNUAL MAINTENANCE
Operating Expenses

$945,812
Salaries & Benefits $59,348
Administration and Project Management $75,308
Capital Expenses/ Revenues $0
Total for Services $1,080,468
Less Other Revenue ($556,558)
Reserve Funds $122,247

Net Amount of Assessment $401,663
As required by the Act, an Assessment Diagram showi ng the exterior boundaries of the Improvement District is hereto attached and incorpo rated herein by reference. The distinctive number of each parcel or lot of land in the Distric t is its Assessor Parcel Number appearing on the Assessment Roll.
1224
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
25 ASSESSMENT DIAGRAM
The parcels proposed to be assessed in Landscape Ma intenance District No. 15-1 are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Orange, and includes all those properties included in the original formation of LMD No. 86-2. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within t he District are those lines and dimensions as shown on the maps of the Assessor of the County of Orange, for Fiscal Year 2026-27, and are incorporated herein by reference, and made a part of this Diagram and this Report. 1225
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
26 1226
Engineer’s Report
City of Orange
Landscape Maintenance District No. 15-1
27 ASSESSMENT ROLL
An Assessment Roll (a listing of all parcels assess ed within the Assessment District and the amount of the Assessment) will be filed with the City Cler k and is, by reference, made part of this Report and is available for public inspection during norma l office hours at the City Hall at 300 East Chapman Avenue, Orange, California 92866.

Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by referenc e made part of this Report. These records shall govern for all details concerning the description of the lots or parcels. 1227
Agenda Item
Orange City Council
Item #: 8.4. 6/9/2026 File #: 26-0251
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider approval of the Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) Final Engineer’s Report for Fiscal Year 2026-2027

2. SUMMARY
Resolution 11696 is the second step and will complete the process of the annual assessment for Landscape Maintenance Assessment District 94-1 (Sycamore Crossing). Staff recommends no increase in the assessments for Fiscal Year 2026-2027 and that they remain $293.08 per unit. The total assessment to be levied in Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) will be $47,877.

3. RECOMMENDED ACTION

1. Conduct and close the Public Hearing.

2. Adopt Resolution No. 11696. A Resolution of the City Council of the City of Orange approving the Engineer’s Report and providing for the annual assessment for Landscape Maintenance Assessment District 94-1 (Sycamore Crossing).

3. Establish the assessment for Fiscal Year 2026-2027 for Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) at $293.08 per single family unit per year.

4. FISCAL IMPACT
There is no direct fiscal impact to the City. The approval of the annual assessment will generate $47,877 in revenue with a proposed expenditure of $54,725 in the Sycamore Crossing Landscape Maintenance Assessment District Fund (293):
293-0000-40330- Landscape Assessment $47,877

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology.

6. DISCUSSION AND BACKGROUND
In 1995, Landscape Maintenance District No. 94-1 (LMD 94-1) was established to maintain the landscape and flood control improvements along Santiago Creek that were constructed by Tract No. 14752 (Sycamore Crossing). Resolution No. 8462 approved Conditional Use Permit 2088-94 for Tentative Tract 15053 (Sycamore Crossing) and Resolution No. 8463 approved Tentative Tract Map City of Orange Printed on 6/4/2026Page 1 of 2
powered by Legistar™
1228
Item #: 8.4. 6/9/2026 File #: 26-0251
15053, which is part of Tract 14751.

Annually, staff performs a detailed accounting of expenses and calculates a new assessment for the benefiting property owners. All assessments are recommended to remain the same for Fiscal Year 2026-2027 (FY27) as they are for the current fiscal year. The 124 units in the interior of the Tract are currently assessed annually at $293.08. The 36 units adjacent to the landscape improvement have a 2% premium and are currently assessed at $298.94 per unit, per year. The senior housing site (Harmony Creek) is currently assessed at $597.88 per year. In addition, the City owns two lots within the district that also pay into the District. The larger lot which remains as open space is assessed at $117.23 per year and the smaller lot for a future water well is $58.62 per year.

The total expenditure for FY27 is estimated to be $54,725. The proposed assessment will generate $47,877 in revenue. The projected year-end reserve fund balance is $141,505 and the District is funded entirely by annual assessment revenue. The deficit revenue between the annual assessment and the expenditure is $6,848. Reserve funds will be used to supplement any potential deficit in FY27 expenditures.

The attached Final Engineer’s Report contains detailed information about the assessment.

Each year, the process for setting the assessment of the Landscape Maintenance Districts is initiated. The process began on May 12, 2026, with the City Council’sApproval of Resolution No. 11678 which approved the Preliminary Engineer’sReport for LMD 94-1 and set June 9, 2026, as the date for the public hearing. This public hearing is the second step in the process and is held in accordance with the Lighting and Landscape Maintenance Act of 1972 as outlined in the “Order of Procedure”. At this time, property owners will have an opportunity to be heard on this issue.

7. ATTACHMENTS
· Resolution No. 11696
· Final Engineer’s Report for the Annual Levy Assessment Landscape Maintenance District No. 94-1 Fiscal Year 2026-2027
City of Orange Printed on 6/4/2026Page 2 of 2
powered by Legistar™
1229
Agenda Item
Orange City Council
Item #: 8.4. 6/9/2026 File #: 26-0251
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider approval of the Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) Final Engineer’s Report for Fiscal Year 2026-2027

3. RECOMMENDED ACTION

1. Conduct and close the Public Hearing.

3. Establish the assessment for Fiscal Year 2026-2027 for Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) at $293.08 per single family unit per year.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology.

6. DISCUSSION AND BACKGROUND
In 1995, Landscape Maintenance District No. 94-1 (LMD 94-1) was established to maintain the landscape and flood control improvements along Santiago Creek that were constructed by Tract No. 14752 (Sycamore Crossing). Resolution No. 8462 approved Conditional Use Permit 2088-94 for Tentative Tract 15053 (Sycamore Crossing) and Resolution No. 8463 approved Tentative Tract Map City of Orange Printed on 6/4/2026Page 1 of 2
powered by Legistar™
1230
Item #: 8.4. 6/9/2026 File #: 26-0251
15053, which is part of Tract 14751.

The attached Final Engineer’s Report contains detailed information about the assessment.

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE APPROVING THE
ENGINEER’S REPORT AND PROVIDING FOR

THE ANNUAL ASSESSMENT FOR LANDSCAPE
MAINTENANCE DISTRICT 94-1 (SYCAMORE

CROSSING)

WHEREAS, the City Council of the City of Orange has previously formed a special maintenance district pursuant to the terms of the “Landscaping and Lighting Act of 1972” being part 2 of Division 15 of the California Streets and Highways Code, in what is known and designated as Landscape Maintenance District No. 94-1 (“Assessment District”); and

WHEREAS, the City Council has initiated proceedings for the levy of the annual assessment for the Assessment District; and

WHEREAS, at this time a public hearing has been held in the manner and form as required by law, and the City Council has considered all oral statements and written protests made or filed by all interested persons; and

WHEREAS, this City Council is now satisfied with the assessment and diagram and all other matters as contained in the Engineer’s Report as now submitted for final consideration and approval, and is now desirous of proceeding with the levy of the annual assessment.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:

SECTION I:

That the above recitals are all true and correct.

SECTION II:

That all protests and objections of every kind and nature by, and the same hereby are, overruled and denied.

SECTION III:

That the Final Engineer’s Report consisting of the final submitted assessment and diagram for the proceedings, is hereby approved and confirmed and a copy of said Report is hereby filed with the City Clerk.

1232
2 SECTION IV:

That the assessments for fiscal year 2026-2027 be established as approved by the City Council, and are hereby confirmed and levied upon the respective subdivisions of land in the Assessment District in the amounts as set forth in said final approved Engineer’s Report.

SECTION V:

The City Clerk shall immediately accomplish the following:

A. Deliver to the City Engineer the assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with a Certificate of Confirmation attached and the date thereof. Said City Engineer shall then immediately place for a record said diagram and assessment in his office in a suitable book as a permanent record and attach a Certificate of Recordation.

B. Cause to be filed a certified copy of a diagram and assessment with the County Auditor, said filing to be completed no later than the 3rd Monday in August.

SECTION VI:

That the above confirmed assessment shall be collected at the same time and in the same manner as County property taxes are collected, and all laws providing for the collection and enforcement of these assessments.

ADOPTED this 9th day of June 2026.

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney,
City of Orange
1233
3 STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ORANGE )

I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the9th day of June 2026 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
1234
Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1
1 CITY OF ORANGE
FINAL ENGINEER’S REPORT

FOR THE ANNUAL LEVY ASSESSMENT

LANDSCAPE MAINTENANCE
DISTRICT NO. 94-1
FISCAL YEAR 2026-2027

LANDSCAPE MAINTENANCE DISTRICT NO. 94-1

SYCAMORE CROSSING

Intent Meeting: May 12, 202 6
Public Hearing: June 9, 202 6

LMD 94-1 Final ER FY 2026-27
1235
1236
3 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

TABLE OF CONTENTS
AFFIDAVIT FOR THE ENGINEER’S REPORT .......................................................... 2 INTRODUCTION ............................................................................................................. 4 PART I — PLANS AND SPECIFICATIONS ................................................................... 6 A. Description of the District ...................................................................................................... 6 B. Improvements and Services .................................................................................................... 6 PART II — METHOD OF APPORTIONMENT ............................................................ 7 A. Background ............................................................................................................................... 7 B. Method of Assessment ............................................................................................................ 7 C. Financial Analysis ..................................................................................................................... 9 PART III — DISTRICT BUDGET ................................................................................. 10 PART IV — DISTRICT DIAGRAMS .............................................................................. 12 PART V — ASSESSMENT ROLL ................................................................................... 14

1237
4 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

INTRODUCTION
Pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 o f Division 15 of the California Streets and Highways Code, commencing wit h Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the substantive and p rocedural requirements of the California State Constitution Articles XIIIC and XIIID (hereafter referred to as the “California Constitut ion”) , the City Council of the City of Orange, County of Orange, State of California (hereafter referred to as “City”), in connection with the annual levy and collection o f assessments of the special benefit assessment district designated as:

Landscape Maintenance District No. 94-1
(hereafter referred to as the “District”), which includes all lots and parcels of land that specially benefit from the improvements within the District. This Engineer’s Report (hereafter referred to as “Report”) has been prepared in connection with the annual levy and collections of assessments for said District pursuant to Chapter 1, Article 4 of the 1972 Act.

The City Council proposes to levy and collect annua l assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the landscaping improvements originally installed in connection wit h the development of properties within the District. The improvements to be provided by the Di strict and the assessments described herein are made pursuant to the 1972 Act.

This Report describes the District, the improvement s, and the proposed assessments to be levied in Fiscal Year 2026-2027 against properties in connect ion with the special benefits the properties will receive from the maintenance and servicing of the District improvements. The annual assessments to be levied on properties within the District will pr ovide a funding source for the continued operation and maintenance of local landscaping improvements installed in connection with the development of properties within the District. The assessments des cribed in this Report are based on an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the improvements.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (APN) by the Orange County Assessor’s Office. The Orange County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.

This Report has been prepared and presented to the City Council to address any proposed changes to the District or improvements, if any, and the proposed budget and assessments for Fiscal Year 2026- 2027. The City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the levy and collection of assessments for Fiscal Year 2026-2027. Upon conclusion of the public hearing, if majority protest does not exist the City Council may approve this Report (as submitted or amended) and levy the asses sments for Fiscal Year 2026-2027. In such case, the assessments for fiscal year 2026-2027 shall be submitted to the Orange County Auditor/Controller for inclusion on the property tax roll for each par cel. If the proposed annual assessments for this District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed throu gh another property owner protest ballot proceeding before such an assessment may be imposed.
1238
5 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

This Report consists of five (5) parts:

Part I
Plans and Specifications: A description of the District boundaries and the improvements associated with the District. The District has been formed as a single benefit zone encompassing all properties within the territory identified as Landscape and Maintenance District No 94-1.

Part II
The Method of Apportionment: A discussion of benefits the improvements and servi ces provide to properties within the District and the method of calculating each property’s proportional special benefit and annual assessment.

Part III
The District Budget: An estimate of the annual costs to operate, maintai n and service the landscaping and appurtenant facilities installed an d constructed as part of the development of properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses. The special benefit assess ments are based on the overall operation costs minus any costs that are considered general benefit. The proposed assessments for Fiscal Year 2026- 2027, and each subsequent year shall be based on th e estimated net annual cost of operating, maintaining and servicing the improvements for that fiscal year as well as funds to be collected in installments to perform maintenance activities that cannot be reasonably collected in a single fiscal year’s assessments.

Part IV
District Diagram: A Diagram showing the exterior boundaries of the Di strict is provided in this Report and includes all parcels that will receive special benefits from the improvements. Reference is hereby made to the Orange County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District.

Part V
Assessment Roll: A listing of the proposed assessment amounts to be levied on Assessor’s Parcel within the District for Fiscal Year 2026-2027. The proposed assessment amount for each parcel is based on the parcel’s proportional special benefit as outlined in the method of apportionment. 1239
6 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

PART I — PLANS AND SPECIFICATIONS
A. Description of the District
The assessment district boundary is shown on a map entitled Assessment Diagram, Landscape Maintenance District No. 94-1, City of Orange, which is on file with the City Clerk of the City of Orange.

A reduced scale copy of the Diagram can be found in Part IV of this document.

All parcels of real property affected are more particularly described in maps prepared in accordance with Section 327 of the Revenue and Taxation Code, which are on file in the Office of the Orange County Assessor, and which are made a part of this report by reference.

B. Improvements and Services

Improvements and Services Permitted Pursuant to the 1972 Act The location of the works of improvement to be maintained under these proceedings is described as follows:

A. Lot E Tract 14752 - Generally a 23-foot wide strip of land along the northerly upper banks of Santiago Creek within Tract 14752;
B. Lot F Tract 14752 - Generally a 55-foot wide strip of land along the southerly upper banks of Santiago Creek with Tract 14752;
C. Lot C Tract 14752 - Generally an irregular shaped parcel adjacent to Lot F Tract 14752.

A general description of the works of improvement to be maintained under these proceedings are those generally described as follows:

A. Ornamental shrubs, trees, and ground cover
B. Habitat area including natural shrubs, trees, and ground cover C. Complete irrigation system including pipes, valves, sprinkler heads, and controller D. Soil cement erosion protection

The following items are excluded from the Maintenance District:

A. The center low flow channel of Santiago Creek.

B. Complete recreation trail/maintenance road including asphalt, signing, striping, and lighting.

Maintenance shall include, but not be limited to:

A. Repair, removal, or replacement of all or any part of any included improvement; B. Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; and C. The removal of trimmings, rubbish, debris, and other solid waste. 1240
7 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

PART II — METHOD OF APPORTIONMENT
A. Background
The Landscaping and Lighting Act of 1972 provides t hat assessments may be apportioned by any formula or method, which fairly distributes costs a mong all lots or parcels within the district in proportion to the estimated benefits received. It i s necessary to identify the special benefit that th e Works of Improvement will render to the properties within the Assessment District. It is also necessary that the properties receive a special and direct benefit as distinguished from benefit to th e general public.

B. Method of Assessment
Identify the Special Benefit

First of all, it is necessary to identify the special benefit that the public improvement will render to the properties within the boundaries of Landscape Maint enance District No. 94-1. The improvements consist of landscaping and a recreation trail/maint enance road along the upper banks of Santiago Creek. The creek was a natural flood control channe l running through Tentative Tract 14752. As a condition for developing the tract, it was necessar y to improve the creek to provide 100-year flood protection consistent with the National Flood Insur ance Program. Alternative designs were looked at ranging from a concrete lined channel to a multi-use natural looking channel. The later was chosen to provide a visually pleasing channel with landsca ping along both banks, erosion control bank protection, a useful recreation trail and a maintenance road. An interesting biotic habitat was added to fulfill 404 & 401 permit requirements.

The Orange County Flood Control District owns and m aintains the center 96-foot wide low flow channel. The City of Orange owns and LMD 94-1 maintains 23 feet on the north side and 55 feet on the south side of the channel.

The special and direct benefits that each property owner will receive are:

• The Landscape Maintenance District fulfills the fin ancial obligation of the property owners to maintain the improvements in Santiago Creek installed by the Tract development and as required by Conditional Use Permit 2088-94, condition of app roval of Tract 15053 and the Development Agreement for Sycamore Crossing.
• A pleasing landscape visible at the entrance to the tract. • Enhanced desirability of district properties through association with the improvements. • Enhancement of the urban environment by providing open space and landscaping. • Necessary flood protection provided by the improvements. • Improved erosion resistance, dust control and fire prevention. • There are many homes in the District that back up t o Santiago Creek and the landscape improvement. Their back fences are made of wrought iron so they can enjoy the beauty and spaciousness of the landscape improvement.
1241
8 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

Prior to 2011, the recreation trail, which begins within the Tract boundary and provides direct access to Hart Park, a City park with numerous recreation facilities, was considered as a special benefit. The recreation trail has been extended through the District and is now incorporated into the City regional trail system. This altered the special benefit of t he recreation trail within the District. District f unds are no longer used for the maintenance of the trail pavement, stripping and rail safety fence.

Apportionment of Cost

In further making the analysis, it is necessary tha t the property owners receive a special and direct benefit distinguished from that of the general public. In this case, an in-depth analysis was made, and several factors are being used in the final method and spread of assessments. In analyzing the overall district, it is noted that there are two types of d evelopment. There are 160 single family detached residential units on the north side of Santiago Cre ek and a 1.385 acre commercial site on the south side recently developed with senior housing.

All 160 residential units are relatively the same except for the fact that 36 units back up to the landscape improvement. The developer has placed an approximat e 2% lot premium on these lots. This same differential was used in determining the assessment. A unit cost factor of 1.02 is assigned to these 3 6 units and the remaining 124 units have a cost facto r of 1.0. The commercial site has been developed as low income housing for senior citizens.

The unit cost for the current FY 2026-2026 is $293. 08 per unit for a total levy of $47,877.49. No increase is recommended for fiscal year 2026-2027. The levy will remain at $293.08. Therefore, the assessment levied on the 124 interior residential units will be $293.08, and for the 36 residential units along the channel it will be $298.94. In analyzing the special benefit to the senior citizen housing site we recognize the fact that seniors are generally not mobile enough to use the bike and pedestrian trail and therefore have limited access to the landscape improvement. The special benefit is limited to the visibility of the landscaping from the north facing units. With this in mind, a unit cost factor of 2. 04 was assigned to the seniors housing site and the assessment levied will be $597.88. Since the enactment of Prop 218, publicly owned property within the District is no longer exempt from assessment. There are two lots within the boundaries of the District that are owned by the City of Orange. One is a small lot to be used in the future for a domestic water well. The other is a larger lot that will some day be used for recreation purposes. The special benefi t to these lots is minimal at this time. A unit cos t factor of 0.20 is assigned to the well site and a unit cost factor of 0.40 to the recreation site. The City will be levied $58.62 and $117.23 respectively. The total of the assessments levied on all the parcels will be $47,877.49.

1242
9 Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1

C. Financial Analysis
The facilities, which are to be maintained by this landscape maintenance district, were installed by the developer of Tract No. 14752. The estimated costs of maintenance, operation, and administration of the facilities are shown in Part III.

Resolution 8462 approved Condition Use permit 2088- 94 for Tentative Tract 15053 and Resolution 8463 approved Tentative Tract Map 15053, which is a part of Tract 14751. Both resolutions contain the following condition:

“To the satisfaction of the City of Orange’s Public Works Department and City Engineer, prior to the recordation of Final Tract M ap 15053, the City shall form a landscape maintenance district which shall include the project for the purpose of levying and collecting an assessment to maintain the open space dedicated to the City by Tentative Tract 14752 and defining in Exhibit E- 1 of the development agreement for this project. Said assessment shall not exceed the sum of $28.00 per month per residential unit in the project but may increase an nually in accordance with the applicable increase maintenance cost index as provi ded in the Engineering News Record or such other comparable index as the partie s shall agree. The future homeowner’s contributions (financial payments) towards the maintenance of Santiago Creek open space shall be included in the disclosure requirement to future buyers.”

The individual 2026-2027 assessments, tabulated by Assessor's Parcel Number, are on file with the City Clerk of the City of Orange, and can be found in Part V, Assessment Roll.

The 1972 Act permits carrying forward surpluses or recovering deficits in subsequent fiscal years.

Costs for the District are reviewed annually and su bsequent year's assessments will be credited or debited, as necessary.

The total assessment to be levied for fiscal year 2026-2027 by the district is recommended to be $47,877.49. This assessment is the same as fiscal year 2025-2026.

The assessments for Landscape Maintenance District No. 94-1, City of Orange, have been apportioned in direct accordance with the special a nd direct benefits that each parcel receives from the maintenance, operation, and administration of the Works of Improvement. 1243
Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1
10 PART III — DISTRICT BUDGET
The following budget outlines the estimated costs to maintain the improvements for 2026-2027.

ANNUAL LEVY OF ASSESSMENT
LANDSCAPE MAINTENANCE DISTRICT NO. 94-1
City of Orange

ESTIMATED COSTS

OPERATION & MAINTENANCE FUND BALANCE FROM PRIOR YEA RS
Estimated Fund Balance as of April 2026 $141,505

The estimated budget necessary for the 2026-2027 Fiscal Year for the District is as follows:

BUDGET ITEM COST

ANNUAL MAINTENANCE
Salaries & Benefits

$8,478
Telephone $125
Water $8,050
Electricity $400
Landscape Maintenance $19,332
Landscape Repairs $7,347
Other Professional & Consulting $800
Contractual Services, Tree Trimming Contract $6,516
Contractual Services, Electrical Maintenance $0
Contractual Services, Misc. Contract Services $0
Office Supplies & Operating Expenses $150
City Administrative Services $3,527
TOTAL LANDSCAPE MAINTENANCE EXPENSES $54,725

1244
Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1
11 FUNDS TO BE TAKEN FROM RESERVE $(6,848)

● This Budget Estimate is for the purpose of establis hing an Annual Assessment. It may vary from the adopted City Budge t. All assessments collected by the District may only be used for Dist rict expenditures regardless of the Budget Estimate.

BALANCE TO LEVY (maximum assessment) $47,877
1245
Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1
12 PART IV — DISTRICT DIAGRAMS
The following diagram incorporates all parcels within the District, as the same existed at the time this Report was prepared. The combination of this map and the Assessment Roll contained in this Report constitute the Assessment Diagram for the Landscape and Maintenance District No. 94-1, also known as Sycamore Crossing.
1246
Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1
13 1247
Engineer’s Report
City of Orange
Landscape Maintenance District No. 94-1
14 PART V — ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is based on available parcel maps and property data from the Orange County Assessor’s Off ice, as they existed at the time this Engineer’s Report was prepared and the City Council adopted th e Resolution of Intention. A listing of the lots and parcels to be assessed within this District along with the assessment amounts is provided herein.

If any parcel submitted for collection is identifie d by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parc el number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Co ntroller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as app roved by the City Council. Therefore, if a single parcel is subdivided to multiple parcels, the asses sment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment for the parcel.

The following is a list of the parcels and proposed assessment amounts for Fiscal Year 2026-2027 for each of the parcels within the District as determin ed by the assessment rates and method of apportionment described herein:
1248
Agenda Item
Orange City Council
Item #: 8.5. 6/9/2026 File #: 26-0255
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
Continued Public Hearing to consider Introduction and First Reading of Ordinance No. 04-26 adding Chapter 8.38 of Title 8 (“Healthand Safety”)to the Orange Municipal Code relating to maintenance and security standards for unoccupied or abandoned properties and adoption of fees and fines for regulations, monitoring and progressive administrative citations (Continued from May 26, 2026)

2. SUMMARY
The proposed ordinance will help the City reduce the negative secondary impacts associated with unoccupied and abandoned properties, including community blight, nuisance conditions, criminal activity, health, safety, and welfare hazards. The ordinance establishes maintenance and security standards for unoccupied and abandoned properties, creates a monitoring program to ensure compliance, and provides enforcement mechanisms to address neglected and unmaintained sites. It authorizes the imposition of monitoring and response fees to recover City staff time spent investigating violations, and it provides for civil penalties and summary abatement procedures when necessary. The companion Resolution will set the amount of fees and fines for regulations, monitoring and progressive administrative citations relating to unoccupied or abandoned properties.

3. RECOMMENDED ACTION

1. Conduct and close the Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 04-26. An Ordinance of the City Council of the City of Orange adding Chapter 8.38 to the Orange Municipal Code relating to the maintenance and security standards for unoccupied or abandoned properties.

3. Adopt Resolution No. 11687. A Resolution of the City Council of the City of Orange amending the City’sMaster Fee Schedule setting the amount of fees and fines for regulations, monitoring and progressive administrative citations relating to unoccupied or abandoned properties as contained in newly added Chapter 8.38 of the Orange Municipal Code.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services

6. DISCUSSION AND BACKGROUND
Unoccupied or abandoned properties, both commercial and residential, have been a persistent issue City of Orange Printed on 6/4/2026Page 1 of 5
powered by Legistar™
1249
Item #: 8.5. 6/9/2026 File #: 26-0255
Unoccupied or abandoned properties, both commercial and residential, have been a persistent issue throughout the City of Orange. Unoccupied or abandoned properties are a significant source of blight in residential neighborhoods and commercial corridors, particularly when not properly maintained or secured by property owners. These properties often attract illegal activities such as trespassing, vandalism, criminal and drug activity, fire hazards, and other public safety concerns. They also create nuisance conditions including overgrown vegetation, illegal dumping, litter, graffiti, structural deterioration, and unsecured buildings. Over time, these conditions diminish property values, limit housing and commercial opportunities, deter investment, and adversely impact the City’seconomic development and tax revenue. Prolonged vacancy poses clear risks to the health, safety, and welfare of the community.

The City of Orange currently expends considerable resources responding to complaints and enforcing violations at unoccupied or abandoned properties. Addressing these properties requires coordination among multiple departments and divisions, including Code Enforcement, Police, Fire, Building and Safety, and the City Attorney’sOffice. While Code Enforcement’sprimary role is to issue notices of violation with reasonable compliance timelines, some property owners delay or refuse to comply, resulting in prolonged blight. In such cases, the City must pursue additional enforcement actions, including administrative citations, criminal prosecution, or civil remedies such as receivership or injunctions. These processes are resource-intensive and can take several months to over a year to resolve. In some instances, administrative fines alone are insufficient, as certain property owners treat them as a cost of doing business rather than taking corrective action.

The proposed ordinance places direct responsibility on property owners to proactively maintain and secure unoccupied or abandoned properties. It imposes strict liability on owners and their property managers, reducing reliance on City enforcement and minimizing demands on public resources. By establishing clear standards, accountability measures, and cost recovery mechanisms, the ordinance promotes timely compliance and protects the community from the adverse impacts of vacancy.

The applicability of this proposed ordinance would not apply to certain Unoccupied or Abandoned Properties under the following circumstances:
· Active Construction: Properties with a valid building permit, ongoing construction, inspections at least every three months, and diligent progress toward completion. · Pending Permits, Licenses, or Approvals: Properties where the owner or leaseholder has applied for and is actively pursuing the permits, licenses, or approvals required for lawful occupancy or use.
· Actively Marketed Residential Properties: Vacant residential properties that are continuously listed for sale, lease, or rent and comply with all applicable Federal, State, and local laws.

In all cases, properties must remain properly maintained and secured to prevent nuisance conditions.

Similar Ordinances Adopted by Orange County Cities:

Staff reviewed unoccupied and abandoned property policies and programs to identify potential City of Orange Printed on 6/4/2026Page 2 of 5
powered by Legistar™
1250
Item #: 8.5. 6/9/2026 File #: 26-0255
Staff reviewed unoccupied and abandoned property policies and programs to identify potential strategies for addressing these issues. This research identified several effective regulatory models currently implemented by cities throughout California. Several Orange County cities, including Garden Grove, Santa Ana, Stanton, Placentia, Huntington Beach, and Fountain Valley, have adopted ordinances regulating unoccupied, abandoned, distressed, or vacant properties to address property maintenance, security, and blight-related conditions. In May 2026, the City of Westminster adopted a vacant commercial and storefront registration program in response to 17 vacant non-residential properties and 109 vacant commercial storefronts citywide.

Data on Unoccupied or Abandoned Properties in the City:

Code Enforcement has identified approximately over 230 known unoccupied or abandoned properties in the City.

Commercial properties with buildings 36
Commercial lots 8
Commercial storefronts 165
Residential properties with buildings 13
Residential lots 8
Total: 230
Overview of the proposed Maintenance and Security Standards for Unoccupied or Abandoned Properties
· Imposes a clear duty and strict liability on property owners to maintain and secure their properties.
· Defines a vacant property as one that is unoccupied, distressed, abandoned, or otherwise exhibits evidence of vacancy for more than 30 consecutive days. · Establishes minimum maintenance and security standards, including landscape maintenance, graffiti and debris removal, securing structures, repairing or boarding openings, and fencing vacant lots.
· Requires window screening for unoccupied or abandoned commercial storefronts to reduce visual blight.
· Establishes monitoring and response fees to recover the City’s administrative and enforcement costs, including inspections, staff time, equipment, supplies, and printing. · Applies monitoring and response fees to Level 2 (At-Risk) and Level 3 (Problematic) properties with ongoing code violations.
· Provides property owners with due process through an appeal to an independent hearing officer.
· Authorizes the hearing officer to conduct hearings, evaluate evidence, and issue written decisions.
· Grants Code Enforcement authority to secure and abate properties that fail to comply with the ordinance.
· Establishes procedures to bill and recover unpaid fees, abatement costs, and related City of Orange Printed on 6/4/2026Page 3 of 5
powered by Legistar™
1251
Item #: 8.5. 6/9/2026 File #: 26-0255
expenses as a debt owed to the City.

Monitoring and Response Fees
Monitoring and Response Fees shall be imposed when an Unoccupied or Abandoned Property is found to be in violation of one or more provisions of the City Code. Following an inspection, the property owner shall be provided with written notice of the violations and a reasonable period to correct them. If the violations remain uncorrected after the compliance period, the property shall be classified into one of the following categories:

1. Level 1 - Stable Property:

An unoccupied or abandoned property maintained in full compliance with the Orange Municipal Code (OMC) and this chapter. No additional monitoring or response fees apply.

2. Level 2 - At-Risk Property:

An unoccupied or abandoned property with violations of the OMC or this chapter. In addition to any citations, notices, or abatement costs, the property shall be subject to biweekly monitoring by Code Enforcement and a corresponding Monitoring and Response Fee.

3. Level 3 - Problematic Property:

An unoccupied or abandoned property with violations that render it dangerous, unsafe, or an immediate threat to public health, safety, or welfare. In addition to any citations, notices, or abatement costs, the property shall be subject to weekly monitoring by Code Enforcement and a corresponding Monitoring and Response Fee.

If a property’scondition changes, its classification and applicable fees shall be adjusted accordingly.

Property owners may request a reassessment by the Code Enforcement Division.

Appeals
The proposed Ordinance provides that any owner of an Unoccupied or Abandoned Property may appeal the following determinations to a City hearing officer:
· Compliance with maintenance and security standards;
· Imposition of monitoring and response fees;
· Assessment of abatement costs; and
· The Director’sdecision to deny or modify a request for waiver or modification of unoccupied or abandoned property requirements.

Property Rights Retained
Property owners retain the right to keep their properties unoccupied. The proposed ordinance does not require owners to occupy, sell, lease, or develop their properties. Instead, it simply requires that unoccupied or abandoned properties be maintained and secured in accordance with minimum maintenance and security standards for the duration of ownership. The ordinance is intended to protect public health, safety, and neighborhood quality while fully preserving private property rights.

City of Orange Printed on 6/4/2026Page 4 of 5
powered by Legistar™
1252
Item #: 8.5. 6/9/2026 File #: 26-0255
Economic Development Opportunities
Implementation of the Maintenance and Security Standards for Unoccupied or Abandoned Properties Program can support economic development by encouraging property owners to maintain, secure, and improve vacant properties. While these properties may comprise a relatively small portion of the City’s land area, they can depress nearby property values, deter private investment, and constrain housing and commercial opportunities.

By returning unoccupied and abandoned properties to productive use or occupancy, the City can stimulate reinvestment, enhance neighborhood vitality, and increase property and sales tax revenues. City Planning, Building, and Economic Development staff will be available to assist property owners with permitting, redevelopment, and marketing efforts when they are ready to rehabilitate, reuse, or sell their properties.

Staff recommends the City Council adopt the proposed ordinance to further the City’slong-term economic development objectives and Code Enforcement’s property maintenance objectives.

7. ATTACHMENTS
· Ordinance No. 04-26
· Resolution No. 11687
City of Orange Printed on 6/4/2026Page 5 of 5
powered by Legistar™
1253
Agenda Item
Orange City Council
Item #: 8.5. 6/9/2026 File #: 26-0255
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director

3. RECOMMENDED ACTION

1. Conduct and close the Public Hearing.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services

6. DISCUSSION AND BACKGROUND
Unoccupied or abandoned properties, both commercial and residential, have been a persistent issue City of Orange Printed on 6/4/2026Page 1 of 5
powered by Legistar™
1254
Item #: 8.5. 6/9/2026 File #: 26-0255
Unoccupied or abandoned properties, both commercial and residential, have been a persistent issue throughout the City of Orange. Unoccupied or abandoned properties are a significant source of blight in residential neighborhoods and commercial corridors, particularly when not properly maintained or secured by property owners. These properties often attract illegal activities such as trespassing, vandalism, criminal and drug activity, fire hazards, and other public safety concerns. They also create nuisance conditions including overgrown vegetation, illegal dumping, litter, graffiti, structural deterioration, and unsecured buildings. Over time, these conditions diminish property values, limit housing and commercial opportunities, deter investment, and adversely impact the City’seconomic development and tax revenue. Prolonged vacancy poses clear risks to the health, safety, and welfare of the community.

In all cases, properties must remain properly maintained and secured to prevent nuisance conditions.

Similar Ordinances Adopted by Orange County Cities:

Staff reviewed unoccupied and abandoned property policies and programs to identify potential City of Orange Printed on 6/4/2026Page 2 of 5
powered by Legistar™
1255
Item #: 8.5. 6/9/2026 File #: 26-0255
Staff reviewed unoccupied and abandoned property policies and programs to identify potential strategies for addressing these issues. This research identified several effective regulatory models currently implemented by cities throughout California. Several Orange County cities, including Garden Grove, Santa Ana, Stanton, Placentia, Huntington Beach, and Fountain Valley, have adopted ordinances regulating unoccupied, abandoned, distressed, or vacant properties to address property maintenance, security, and blight-related conditions. In May 2026, the City of Westminster adopted a vacant commercial and storefront registration program in response to 17 vacant non-residential properties and 109 vacant commercial storefronts citywide.

Data on Unoccupied or Abandoned Properties in the City:

Code Enforcement has identified approximately over 230 known unoccupied or abandoned properties in the City.

Commercial properties with buildings 36
Commercial lots 8
Commercial storefronts 165
Residential properties with buildings 13
Residential lots 8
Total: 230
Overview of the proposed Maintenance and Security Standards for Unoccupied or Abandoned Properties
· Imposes a clear duty and strict liability on property owners to maintain and secure their properties.
· Defines a vacant property as one that is unoccupied, distressed, abandoned, or otherwise exhibits evidence of vacancy for more than 30 consecutive days. · Establishes minimum maintenance and security standards, including landscape maintenance, graffiti and debris removal, securing structures, repairing or boarding openings, and fencing vacant lots.
· Requires window screening for unoccupied or abandoned commercial storefronts to reduce visual blight.
· Establishes monitoring and response fees to recover the City’s administrative and enforcement costs, including inspections, staff time, equipment, supplies, and printing. · Applies monitoring and response fees to Level 2 (At-Risk) and Level 3 (Problematic) properties with ongoing code violations.
· Provides property owners with due process through an appeal to an independent hearing officer.
· Authorizes the hearing officer to conduct hearings, evaluate evidence, and issue written decisions.
· Grants Code Enforcement authority to secure and abate properties that fail to comply with the ordinance.
· Establishes procedures to bill and recover unpaid fees, abatement costs, and related City of Orange Printed on 6/4/2026Page 3 of 5
powered by Legistar™
1256
Item #: 8.5. 6/9/2026 File #: 26-0255
expenses as a debt owed to the City.

1. Level 1 - Stable Property:

An unoccupied or abandoned property maintained in full compliance with the Orange Municipal Code (OMC) and this chapter. No additional monitoring or response fees apply.

2. Level 2 - At-Risk Property:

3. Level 3 - Problematic Property:

If a property’scondition changes, its classification and applicable fees shall be adjusted accordingly.

Property owners may request a reassessment by the Code Enforcement Division.

City of Orange Printed on 6/4/2026Page 4 of 5
powered by Legistar™
1257
Item #: 8.5. 6/9/2026 File #: 26-0255
Economic Development Opportunities
Implementation of the Maintenance and Security Standards for Unoccupied or Abandoned Properties Program can support economic development by encouraging property owners to maintain, secure, and improve vacant properties. While these properties may comprise a relatively small portion of the City’s land area, they can depress nearby property values, deter private investment, and constrain housing and commercial opportunities.

Staff recommends the City Council adopt the proposed ordinance to further the City’slong-term economic development objectives and Code Enforcement’s property maintenance objectives.

7. ATTACHMENTS
· Ordinance No. 04-26
· Resolution No. 11687
City of Orange Printed on 6/4/2026Page 5 of 5
powered by Legistar™
1258
ORDINANCE NO. 04-26

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE ADDING CHAPTER 8.38 TO THE

ORANGE MUNICIPAL CODE RELATING TO THE

MAINTENANCE AND SECURITY STANDARDS FOR
UNOCCUPIED OR ABANDONED PROPERTIES.

WHEREAS, California Constitution, Article XI, Section 7, authorizes cities to make and enforce within its limits all local, police, sanitary, and other ordinances, and regulations not in conflict with general laws; and
WHEREAS, California Government Code section 38771 provides that legislative bodies of cities may declare what constitutes a nuisance; and
WHEREAS, California Government Code section 38772 et seq. further provides that legislative bodies of cities may also provide for the summary abatement of any nuisance at the expense of the persons creating, causing, committing, or maintaining it, and by ordinanc e may make the expense of abatement of nuisances a lien against the property on which the nuisance is maintained and a personal obligation against the property owner; and WHEREAS, California Health and Safety Code section 101450 authorizes the City Council to take measures necessary to preserve and protect public health, including the adoption of ordinances and regulations to address unsafe, unsecured, and nuisance conditions associ ated with unoccupied and abandoned properties; and
WHEREAS, the Legislature of the State of California, in adopting section 2929.3 of the California Civil Code (requiring owners of vacant residential property acquired at a foreclosure sale or by foreclosure under a mortgage or deed of trust to adequately maintain the property and to abate any violations threat) specifically provides that said section does not preempt any local ordinance; and
WHEREAS, Unoccupied or Abandoned Properties can be a major cause and source of blight in the City; and
WHEREAS, Unoccupied or Abandoned Properties that are not actively maintained or secured may pose a serious threat to public health and safety due to the secondary effects of criminal activity, vandalism, trespassing, graffiti, fire hazards, unsafe conditions, depre ssed surrounding property values, and reduced economic development; and WHEREAS, property owners are responsible for preventing their property from becoming a nuisance to the community and from creating a financial burden on City resources due to repeated responses by code enforcement, police, and fire services; and WHEREAS, the City Council finds that Unoccupied or Abandoned Properties may create conditions that threaten the public health, safety, and welfare; and further finds that it is in the best interests of the City and its residents to ensure that all properties within the City are maintained to 1259
2 reasonable standards through the adoption of a Maintenance and Security Standards for Unoccupied or Abandoned Properties Ordinance; and
WHEREAS, implementing the foregoing ordinance will assist the City in protecting the community from the negative impacts and conditions that occur as a result of vacancy, absentee ownership, and lack of compliance with City regulations and laws.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I:

The Ordinance is not a “project” subject to the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378 because it involves an organizational and administrative activity of the City of Orange that will not resu lt in direct or indirect physical changes in the environment.

SECTION II:

A new Chapter 8.38 of Title 8 (“Health and Safety”) of the Orange Municipal Code (OMC) is hereby added to read as follows:

CHAPTER 8.38

MAINTENANCE AND SECURITY STANDARDS FOR UNOCCUPIED OR

ABANDONED PROPERTIES

8.38.010 Purpose and Intent.

8.38.020 Definitions.

8.38.030 Applicability ; Exceptions.

8.38.040 Right of Inspection and Entry.

8.38.050 Inspection, Classification, Monitoring and Response.

8.38.060 General Maintenance and Security Standards for Unoccupied or Abandoned Properties.

8.38.070 Screening Standards for Unoccupied or Abandoned Storefronts.

8.38.080 Waiver or Modification Request.

8.38.090 Administrative Regulations.

8.38.100 Appeals.

8.38.110 Collection of Fees and/or Costs.

8.38.120 Emergency Abatement Authority.

8.38.130 Enforcement.

8.38.010 Purpose and Intent.

A. The purpose of this chapter is to establish regulations and monitoring program for Unoccupied or Abandoned Properties to assist the City with code enforcement efforts to reduce blight in the City.
1260
3 B. By establishing maintenance and security standards, inspection and enforcement procedures, penalties, and cost recovery mechanisms, the City will reduce the adverse secondary effects associated with vacant, distressed, unoccupied, and abandoned properties.

C. The Community Development Director is hereby authorized to administer and enforce the provisions of this chapter.

8.38.020 Definitions.

If a term or phrase is not defined in this chapter, or elsewhere in this Code, the most common dictionary definition is presumed to be correct unless the context clearly requires otherwise.

“Abandoned” or “Distressed” means any real property (Property) that is Vacant and meets any of the following conditions: (i) is under a current notice of default; (ii) is under a current notice of trustee’s sale; (iii) is pending a tax assessor’s lien sale; (iv) has been the subject of a foreclosure sale where the title was retained by the beneficiary of a deed of trust involved in the foreclosure; or (v) has been transferred under a deed in lieu of foreclosure.

“Business Activity” means the lawful, continuous operation of a mixed -use, commercial, or industrial use within a structure, building or on a property for its intended and permitted purpose, as evidenced by customary ongoing activities, including the presence of employees, contractors, or customers during normal or posted business hours, the active offering of goods or services for sale, the maintenance of valid business licenses and required permits, the operation of utilities at levels consistent with occ upancy, and the maintenance of inventory, equipment, furnishings, or fixtures appropriate to the business. Business activity shall not include sporadic or incidental use; pop up events or activities, temporary or vending permits; the mere storage or display of furniture, equipment, furnishings, fixtures or merchandise without active operations; maintenance of a business license without on -site activity; administrative use lacking regular physical occupancy (unless such use constitutes the primary permitted use); or any activity undertaken solely to avoid classification as a Unoccupied or Abandoned Property.

“Evidence of Vacancy” means condition s existing on or around a Property including but not limited to overgrown and/or dead vegetation; accumulation of newspapers, circulars, flyers, and/or mail; past due utility notices and/or disconnected utilities; accumulation of trash, litter, junk, and/or other debris; the absence of window coverings such as curtains , blinds, and/or shutters; unsecured or broken doors or windows; the absence of commercial furnishings; statements by neighbors, passersby, delivery agents , and government employees or any other evidence that demonstrates that the Property is Vacant, Distressed, Unoccupied or Abandoned.

“Owner” includes any person or entity having legal title to, or who leases, rents, occupies or has charge, control, or possession of any real Property in the City, including all persons listed as Owners on the last equalized assessment roll of the Orange County Assessor’s Office. Owners include persons with power of attorney, executors of estates, trustees, heirs, or court -appointed administrators, conservators, guardians, receivers, and any beneficiary and trustee who holds a deed of trust on a Property in the City. For providing notice to an Owner under this Code, “Owner” includes the Owner’s agent, employee, property manager or other legal representative. 1261
4 “Screening” means a professionally designed display made of film, vinyl, polymath, canvas, or heavy-duty paper or other material and that is placed on the inside of a window, window area and glass door of an Unoccupied or Abandoned Storefront which conceals the interior of the premises from any public or private view.

“Securing” means making the Property inaccessible to unauthorized person(s), including, but not limited to repair or installation of fences, walls, and other barriers ; chaining or pad locking of gates, doors ; the repair, replacement or boarding of doors, windows, and/or other openings.

“Storefront” means the ground -floor or second story exterior façade of any building , structure or tenant space on a mixed -use, commercial, or industrial property that is designed or intended to provide visual access to the interior and direct access for members of the public to engage in business activity, and that contains one or more display windows, glazed wind ow areas, or glass doors visible from a public street, sidewalk, walkway, private parking area open to the public, or other public ly accessible right-of-way.

“Unoccupied” means any vacant p roperty that is not lawfully inhabited, leased, rented, or actively used for business activity or other purposes consistent with its intended mixed -use, residential, commercial, or industrial zone.

“Vacant” or “Vacant Property” means any lot, tract, or parcel of land, or any and each building, structure, or improvement thereon, including but not limited to any storefront, individual unit, tenant space, or portion thereof, located within a mixed -use, residential, commercial, or industrial zone, that is not lawfully inhabited, leased, rented, or actively used for business activity or other intended purpose consistent with the Code , and that either (i) remains Unoccupied for more than sixty (60) consecutive calendar days, and/or (ii) exhibits objective Evidence of Vacancy, and/or (iii) is Abandoned or Distressed.

8.38.030 Applicability; Exceptions.

A. Applicability. This chapter applies to all Unoccupied or Abandoned residential, commercial, industrial, and mixed -use properties, including undeveloped land and tenant spaces within multi-tenant buildings.

B. Exceptions. This chapter does not apply as follows:

1. Active Construction Activity. An Unoccupied or Abandoned Property with a valid, unexpired building permit where inspections occur at least once every three (3) months for construction activities (e.g., demolition, repair, alteration, rehabilitation, or ten ant improvements), and the owner is diligently progressing toward completion.

2. Pending Permits, Licenses or Approval. The owner or leaseholder has filed an application for, and is actively seeking to obtain authorization, permits, or licenses required by State, County, or local law permitting the lawful use and occupancy of the Unoccupied or Abandoned Property.

1262
5 3. Actively Marketed Residential Properties. A vacant unit or entire dwelling including, but not limited to, a multi-family development, apartment, duplex, condominium, townhouse, single-family residence, ADU, JADU, or short -term rental in a residential zone that is actively and continuously offered for sale, lease, or rent, and otherwise complies with all applicable Federal, State, and OMC requirements, including this chapter.

C. Notwithstanding this section, an Unoccupied or Abandoned Property is ineligible for exclusion if the owner, although promptly correcting violations within forty-eight (48) hours of notice by the Code Enforcement Division, receives more than two (2) written notices of violation within any sixty (60) calendar-day period.

8.38.040 Right of Inspection and Entry.

The Community Development Director, or any authorized City personnel, may enter and inspect any unoccupied, abandoned, or suspected vacant property at reasonable times for purposes of enforcing this chapter, with the verbal or written consent of the owner or person in control of the property. If entry is refused, the City may seek an administrative inspection warrant in accordance with applicable law. In cases of emergency, or where conditions pose an immediate threat to public health, safety, or welfare, t he City may enter the Property without prior notice or warrant to the extent permitted by law. The City may also enter the Property to abate violations as authorized by law, this chapter, or other provisions of the Code.

8.38.050 Inspection, Classification, Monitoring and Response.

A. Upon receipt of a complaint or through proactive enforcement efforts involving an Unoccupied or Abandoned Property, the City, including the Community Development Department, Fire Department, Police Department, and other designated City personnel, may conduct an inspection of the interior and/or exterior of the Property following reasonable notice or as otherwise authorized by law or this chapter . Reasonable notice shall consist of the City providing not less than three (3) calendar days’ advance written notice of the inspection, specifying the date and time of the inspection. A visual exterior inspection of an Unoccupied or Abandoned Property may be conducted by City personnel without entering the Property and from a public right-of-way, adjacent private property with the consent of the owner or person in control of such property, or as otherwise permitted by law.

B. Notice of Violations and Classification of Unoccupied or Abandoned Property. Following an inspection by Code Enforcement, the owner of an Unoccupied or Abandoned Property that does not qualify as a Level 1—Stable Property shall be either served, by mail, certified mail, personal service, and/or posting on the Property, with a written notice of violation. The notice shall specify the violations as contained in this chapter and provide a reasonable period to correct or otherwise remedy them. If the violations remain uncorrected after the compliance period, the Property shall be assigned a classification based on its overall condition and level of compliance, as follows:

1. Level 1—Stable Property: An Unoccupied or Abandoned Property maintained in full compliance with the OMC and provisions contained in this chapter. Stable Properties shall 1263
6 not be subject to Monitoring and Response Fees, and the related Code Enforcement case shall be closed.

2. Level 2—At-Risk Property: In addition to any citations, notices and/or fees or costs of City enforcement efforts, including costs to abate a nuisance, Unoccupied or Abandoned Property that exhibits violations of the OMC and/or provisions contained in this chapter shall be subject to biweekly monitoring and response by City Code enforcement. At Risk Properties are subject to biweekly Monitoring and Response Fees.

3. Level 3—Problematic Property: In addition to any citations, notices and/or fees or costs of City enforcement efforts, including costs to abate a nuisance, a Unoccupied or Abandoned Property that exhibits violations of the OMC and/or provisions contained in this chapter and is unsafe, dangerous, substandard, unlawful, hazardous, condemned, fire damaged buildings, structures, equipment, or property that are not safe and/or unfit for human occupancy pursuant to the OMC or State law , and/or poses immediate threat to the public health, safety, and welfare shall be subject to a weekly monitoring and response by City Code enforcement. Problematic Property is subject to weekly Monitoring and Response Fees.

C. In addition to the provisions of this chapter, Level 2 and 3 properties are subject to all applicable City enforcement actions, including but not limited to, criminal, administrative, and civil citations, for violations of the OMC, State or Federal law, or for conditions constituting a public nuisance.

D. Unsafe, dangerous, substandard, unlawful, hazardous , condemned, or fire damaged buildings, structures, equipment, or property that are not safe and/or unfit for human occupancy pursuant to the OMC or State law shall either be demolished or fully repaired by obtaining a valid building permit within ninety (90) days. The Community Development Director may grant continuation if documentation is provided to the satisfaction of the Director showing any delay is of no fault of the Owner and the Owner has made good faith efforts to demolish or fully repair within said ninety (90) days. Until demolition or repairs are completed, the Owner shall secure the building, structure, and property to prevent unauthorized access.

E. If an Unoccupied or Abandoned Property moves from Stable to At Risk or from At Risk to Problematic, the Monitoring and Response Fees will be set to the higher classification.

Likewise, if an Unoccupied or Abandoned Property moves to a lower classification, the fees will be the lower classification , if any . The Code Enforcement Division of the City will conduct a reassessment of the Unoccupied or Abandoned Property upon request of the Property Owner.

F. An Unoccupied or Abandoned Property may be reclassified based on the following:

1. The Property Owner has made the required corrections to the Unoccupied or Abandoned Property to become fully compliant with the OMC and/or provisions contained in this chapter;
1264
7 2. The Property Owner has had no new violations documented or observed for the past sixty (60) consecutive days by the Community Development Department; and

3. The Property Owner requests a site inspection at least two (2) weeks prior to the due date of the current monitoring and response fee being billed.

G. If the Unoccupied or Abandoned Property qualifies for a lower classification, then the corresponding Monitoring and Response Fees, if any, will be assessed.

H. Monitoring and Response Fees as established by resolution of the City Council and those contained in the City’s Master Fee Schedule shall be billed and paid to the City within thirty (30) calendar days of the billing notice to any applicable property owner of an Unoccupied or Abandoned Property . Monitoring and Response Fees shall fully recover the City’s costs for Code Enforcement administration, equipment, supplies and personnel, as well as applicable hourly rates set forth in the City’s Master Fee Schedule for personnel responses by Building and Safety, Fire, Police and/or any other designated City personnel enforcing the provisions of this chapter. These fees are not refundable, prorated, or rebated . The assessment of applicable Monitoring and Response Fees by Code Enforcement upon a property owner of an Unoccupied or Abandoned Property is final, unless appealed in accordance with this chapter.

8.38.060 General Maintenance and Security Standards for Unoccupied or Abandoned Properties.

A. Every owner of real property within the City is required to maintain such property in a manner so as not to violate the provisions of this chapter or this Code and such owner remains strictly liable for violations thereof regardless of any contract or agreement with any third party regarding such property.

B. Unless the Community Development Director provides in writing waiver from the following requirements, Unoccupied or Abandoned Property Owners shall ensure:

1. Maintenance of landscaping be maintained in a clean, watered, and weed -free condition, with hedges, bushes, and shrubs not exceeding forty -two (42) inches in height to ensure clear visibility from the public right-of-way, trees regularly pruned to remove overgrowth and dead or dying material, adequate irrigation provided to sustain all vegetation, and any dead or dying plant material removed; additionally, approved groundcover, hardscape, or softscape shall be installed and maintained throughout the period of vacancy, with groundcover not exceeding six (6) inches in height and supported by adequate irrigation, and the Director may require additional measures as necessary to eliminate unsafe conditions.

2. Maintenance of the exterior of the building or structure , including, but not limited to, ensuring paint, finishes, roof, windows and doors , fences and walls, and porches and patios are in a good condition.

1265
8 3. Maintenance of any swimming pools, spas, or water in such a manner so as to be free and clear of pollutants, debris, mosquitoes, insects, vectors, water that is clouded or green, bacterial growth, or algae and properly Securing with minimum security fencing and self-locking devices , as required by State law.

4. Regular removal of interior and exterior junk, trash, litter, debris, newspapers, flyers, lumber, construction materials, household furniture, appliances, clothing, combustible material, or discarded, unused, or abandoned personal property and graffiti, tagging, or other markings, with any painting over to be done with similar exterior grade colored paint.

5. Property is secured so as to prevent unauthorized trespassing on the premises, or, squatting, drug or criminal activity, malicious mischief , vandalism , and other public nuisances.

6. Provide power for exterior lighting, any applicable fire sprinkler system, fire or b urglar alarm, security surveillance system s or irrigation systems, which shall all be maintained in working order.

7. Maintenance of Screening material free from blight and not accessible to unauthorized persons, including, but not limited to, the replacement of broken windows, doors and the closing and locking of windows, doors (walk -through, sliding and garage), gates, fences and any other opening that may allow access to the interior or exterior of the Property.

8. Provide evidence of pest and rodent control if requested by Code Enforcement Division to verify th at any infestation has been treated by a State licensed pest control professional.

9. Remove any parked, abandoned, or inoperative vehicles including any vehicle parts thereof that are visible to public view and/or from an adjoining Property.

10. Maintain all emergency access areas, egress points, stairways, roof -access ladders and exit signage are in functioning condition and free from obstruction .

11. Removal of abandoned sign s that advertise goods or services which have not been available for a period of ninety (90) or more days and the area where signs were installed maintained or painted to match the existing building or structural color .

12. Maintenance of parking areas free of deterioration, potholes and in accordance with the applicable zoning standards and off -street parking requirements and/or conditions of approval, including, but not limited to, lighting, stall markings, art installations, signage, bollards, fire lane markings, and permitted mechanical equipment .

13. Installation of a key box to provide emergency access, if necessary, and as approved by the Fire Chief , or designee.

1266
9 14. Posted with conspicuous signage displaying the name and 24 -hour contact telephone number of the owner or local property management company for receipt of public and City complaints to mitigate nuisance conditions, as well as “No Trespassing” signage, as required by State law.

15. Motion-activated video surveillance cameras and lighting in working order and provides two-way communication and mobile live -view video feed for physical monitoring by means of the Owner. “Continuous physical monitoring” shall mean the use of a local and CA licensed security patrol agency providing either onsite fixed security personnel, roaming security patrol and/or video surveillance;

a. Property Documentation demonstrating adequate security patrol is being provided by as determined by the Code Enforcement Division.

16. Broken windows, doors, and other openings are secured as required by the Code Enforcement Division or Police Department including temporary board-up must be painted in a color consistent with the exterior of the building. Plywood must be of un - sanded CDX grade and must have a minimum thickness of one -half inch for window openings, five -eighths inch for door openings and three -quarter inch for a sliding door and French door openings ; Plywood boarding must be completed to a minimum of the current United States Department of Housing and Urban Development (HUD) Securing standards at the time the boarding is completed or required and must be consistent with the requirements of this chapter.

a. Long-term boarding of windows, doors or other openings exceeding thirty (30) days may be considered and approved by the Director upon a showing of good cause or reason by the Owner for keeping the boarded building secured against unauthorized trespassing long -term.

17. If applicable m aintain unimproved Vacant lots or improved Unoccupied or Abandoned buildings or structures secure in accordance with the following standards:

a. Temporary perimeter fencing, a minimum of forty -two (42) inches and not exceeding six (6) feet in height, constructed of wrought iron, chain link, Kentucky - style fencing, or other building materials approved by the Director, including mesh or other screening material secured to the interior side, that provides at least fifty percent (50%) visibility from ground level and includes a secured gate for emergency access.

b. Temporary fencing must be kept free of posters, signs, graffiti, artwork, or similar decoration unless it is approved by the Director. All unauthorized postings, signage, artwork, graffiti, or similar decoration must be immediately removed, and/or the fencing, mesh, or other Screening material be painted over to match the existing color;

1267
10 c. Missing or damaged temporary fencing or mesh material must be repaired or replaced.

18. Compliance with Laws. The Property, including any building, structure, tenant space, or storefront, shall be maintained and operated in compliance with all applicable local, State, and Federal laws, including, but not limited to, zoning, building, fire, public health, safety, welfare and administrative regulations.

8.38.070 Screening Standards for Unoccupied or Abandoned Storefronts.

A. An Unoccupied or Abandoned Property with a Storefront shall maintain at least one of the following types of Storefront window Screening displays on or inside all ground -floor or second story exterior façade windows, window areas and glass doors visible from a public street, sidewalk, walkway, private parking area open to the public, or other publicly accessible right -of-way of the Property:

1. Faux window dressings containing goods, services, or a future business at the location with the appearance of a vibrant business using background panels or other methods to screen views of the Unoccupied or Abandoned Storefront windows, window areas and glass doors;

2. Works of art, including paintings or sculptures or other displays of cultural, historical pictures of the City, or educational value, utilizing colorful and vibrant materials, and using background panels or other methods to screen views of the Unoccupied or Abandoned Storefront windows, window areas and glass doors ;

3. Paintings or graphic design applied directly to the windows, window areas and glass doors surface featuring visually appealing, colorful, vibrant scenes, shapes, or images; Other design or decorative measures approved by the Director or designee in writing that achieves the purpose of this chapter to avoid visual blight in the City’s mixed-use, commercial or industrial zones and to enliven pedestrian or vehicular traffic experiences while passing through;

a. Storefront window, window area, and glass door Screening shall comply with the following standards:

i. Any adhesive materials used to affix the Screening shall not be visible from the exterior of the Storefront windows, window areas, or glass doors;

ii. No seams, gaps, or overlaps in the Screening material shall be visible from the exterior of the Storefront windows, window areas, or glass doors;

iii. All window Screenings shall be maintained in a clean, neat, and orderly condition and shall not be torn, faded, damaged, or otherwise deteriorated;

iv. Storefront windows, window areas, and glass doors shall not be screened or covered with textile or temporary materials, including but not limited to fabric, 1268
11 tarps, cloth, plastic film, metal foil, rubber sheeting, vinyl plastic, cardboard, or paper; and

v. All window Screening shall be removed within thirty (30) calendar days after lawful occupancy and active business activity or operations have commenced, unless an extension is approved in writing by the Director or designee.

8.38.080 Waiver or Modification Request.

The Owner may submit to the Community Development Director a Request for Waiver or Modification of the Unoccupied or Abandoned Property Requirements on a form provided by the Community Development Department. The Director shall consider the relevant facts and circumstances in determining whether the requested change is necessary to protect the property or surrounding community from nuisance conditions or threats to the public health, safety, and welfare. The Director’s decision is final, unless appealed in accordance with this chapter.

8.38.090 Administrative Regulations
Authority to Adopt Administrative Regulations. The Community Development Director may adopt, modify and implement administrative rules, procedures, and requirements consistent with this chapter as necessary to enforce and administer the Unoccupied or Aband oned Property regulations. All regulations must be published in advance and filed with the City Clerk's office for public inspection.

8.38.100 Appeals.

A. Any Owner may appeal to the City Manager, or designee any decision or action arising from this chapter by filing a written notice of appeal to the City Clerk’s office .

B. The appeal and payment of the administrative appeal fee must be received at the Clerk’s Office no later than fourteen (14) days of a decision or action . The administrative appeal fee as established by resolution of the City Council. An appeal will not be accepted without payment of the administrative appeal fee.

C. An independent hearing officer shall be selected by the City Manager to hear and make a determination as to the appeal. The hearing officer shall set the date and time of the hearing.

At the hearing, the Owner who filed the appeal shall have the burden of proof by a preponderance of the evidence and may be given the opportunity to testify, present witnesses and evidence concerning the appeal as determined by the hearing officer.

D. The hearing officer shall issue a written decision within fourteen (14) business days to either uphold, dismiss, or modify any decision or action. The hearing officer shall state the reasons for the decision and shall send a copy of the decision to the appellee and to the Community Development Department. The decision of the hearing officer is final , unless appealed as permitted by State law.

1269
12 8.38.110 Collection of Fees and/or Costs.

A. Each collection of fees in connection with any applicable Monitoring and Response Fee(s) and/or emergency abatement costs, shall be billed, and paid to the City within thirty (30) calendar days of each billing notice date.

B. If the fees are not paid within thirty (30) calendar days of each billing notice date, the City may use all available legal and equitable remedies to collect any fees as allowed by law , including, but not limited to, the recordation of a lien (secured or unsecured) with the Orange County Recorder’s Office.

C. The City may also withhold, or refuse to issue, extend, or renew any City permit, license, or other City approval to any Owner who has unpaid fees and/or costs under this chapter.

8.38.120 Emergency Abatement Authority.

Nothing in this chapter shall supersede or otherwise interfere with the City’s rights or remedies pursuant to other provisions of the Orange Municipal Code, or Federal, State, or local laws. Upon the failure or refusal of an Owner to eliminate or abate any violation(s) of this chapter, the City may, at its election, to cause the Unoccupied or Abandoned Property to be maintained, secured or in any other manner necessary to eliminate or abate the violation(s) and charge the Unoccupied or Abandoned Property Owner for the City’s costs thereto. This abatement may be performed by City personnel, private contract vendor, or by any other means as determined by the City. The failure by the Owner to abate the violation(s) shall result in any costs and/or expenses incurred by the City to abate any violation(s) be billed to the Owner, which may be assessed as a lien against the Property, including interest thereon, until paid in full.

8.38.130 Enforcement.

A. Strict Liability. Any violation of this chapter constitutes a strict liability offense and shall be deemed to have occurred regardless of the Owner’s intent, knowledge, negligence, or fault, and regardless of whether the Owner knew or reasonably should have known of the violation.

B. Violations Unlawful. It is unlawful and declared a public nuisance for any person or Owner having charge, control or failed to maintain an Unoccupied or Abandoned Property contrary to the provisions of this chapter.

C. No limitation on other remedies. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity.

D. This chapter provides a nonexclusive and cumulative method of enforcement. The City may pursue any and all other remedies authorized by this Code and applicable law, whether concurrently, separately, or consecutively, including but not limited to administrative and criminal enforcement under Chapters 1.08 and/or 1.10, civil actions (including injunctive relief), and nuisance abatement procedures. This chapter supplements all other remedies available under the Orange Municipal Code, State law, and other applicable regulations.

1270
13 E. Any person or Owner found in violation of Sections 8.38.060, and/or 8.38.070 of the Orange Municipal Code may be subject to administrative citation, with progressive fines established by City Council resolution.

1. Progressive fines shall be as follows for each violation:
a. 1st Violation within a twelve (12) month period:
b. 2nd Violation within a twelve (12) month period:
c. 3rd and Subsequent Violation within a twelve (12) month period:

F. Appeals of Fines. Administrative fines issued under this chapter may be appealed in accordance with Chapter 1.10 upon payment of an applicable administrative citation appeal fee as adopted by resolution of the City Council . The administrative citation appeal fee is intended to offset City costs associated with report preparation, evidence compilation, and hearing officer services.

SECTION III:

If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

SECTION IV:

The City Clerk is hereby directed to certify the adoption of this Ordinance and cause the same to be published as required by law. This Ordinance shall take effect thirty (30) days from and after the date of its final passage.

ADOPTED this ____ day of ___________________, 2026.

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

1271
14 APPROVED AS TO FORM:

Nathalie Adourian, City Attorney
City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the ___ day of _____________, 2026, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2026 was duly passed and adopted by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

1272
RESOLUTION NO. 11687

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING THE CITY’S MASTER

FEE SCHEDULE SETTING THE AMOUNT OF FEES

AND FINES FOR REGULATIONS, MONITORING AND

PROGRESSIVE ADMINISTRATIVE CITATIONS

RELATING TO UNOCCUPIED OR ABANDONED

PROPERTIES AS CONTA INED IN NEWLY ADDED
CHAPTER 8.38 TO THE ORANGE MUNICIPAL CODE.

WHEREAS, Unoccupied or Abandoned Properties can be a major cause and source of blight in the City;

WHEREAS, Unoccupied or Abandoned Properties may pose a serious threat to the public’s health and safety in part because of the secondary effects of criminal activities, fire, depressed market values of surrounding properties, less economic development around the Unoccupied or Abandoned Property; and

WHEREAS, the City Council desires to prevent the adverse problems associated with unattended Unoccupied or Abandoned Properties by adopting a Maintenance and Security Standards for Unoccupied or Abandoned Properties ordinance;

WHEREAS, on June 9, 2026, the City Council introduced Ordinance No 04-26, adding Chapter 8.38 of Title 8 (“Health and Safety”) to the Orange Municipal Code relating to the Maintenance and Security Standards for Unoccupied or Abandoned Properties.

NOW, THEREFORE, IT BE RESOLVED by the City Council of the City of Orange as follows:

1. Monitoring fees shall be assessed for each registered or unregistered vacant property based on its classification into one of three categories, as determined by Code Enforcement through a visual inspection of the property’s overall condition. Monitoring and Response Fees are intended to fully recover the City’s cost s, including Code Enforcement personnel and applicable hourly rates for Building and Safety, Fire, and/or Police services involved in enforcing this chapter.

• “Stable (Level 1)” – No monitoring fee required due to ongoing compliance with the City Code.
• “At-Risk (Level 2)” – Biweekly monitoring fee of $710.00 required until full compliance with the City Code is achieved.
1273
2 • “Problematic (Level 3)” – Weekly monitoring fee of $1,310.00 required until full compliance with the City Code is achieved.

2. As provided in Section 8.38.130.E of the Orange Municipal Code, the following schedule of administrative fines is adopted for progressive penalties:
a. 1st Violation within a twelve (12) month period is punishable by a fine of $1,000. b. 2nd Violation within a twelve (12) month period is punishable by a fine of $2,000. c. 3rd and Subsequent Violation within a twelve (12) month period are punishable by a fine of $5,000.

3. This Resolution shall be effective immediately upon the effective date of Ordinance No. 04-26.

ADOPTED this day of , 2026

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney, City of Orange

1274
3 STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

1275
Agenda Item
Orange City Council
Item #: 9.1. 6/9/2026 File #: 26-0356
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Fiscal Year 2026-2027 City of Orange Operating Budget and Five-Year Capital Improvement Program

2. SUMMARY
The City Council affirmed the Fiscal Year 2026-2027 preliminary operating budget and capital improvement plan at the May 26 Regular City Council meeting. This budget document is prepared following the affirmation and directions given by the City Council.

3. RECOMMENDED ACTION
The following action items are recommended to adopt the Fiscal Year 2026-2027 Budget, effective July 1, 2026:

1. Adopt Resolution No. 11702. A Resolution of the City Council of the City of Orange adopting said City’s Budget for the Fiscal Year 2026-27 and authorizing transfer of funds within and between appropriations, transfer of funds between funds, and additional appropriations. a. Total revenues of $292.4 million and total expenditures of $315.7 million, including transfers.
b. General Fund revenues totaling $170.7 million and expenditures totaling $169.6 million; c. Staffing for Fiscal Year 2026-2027 at 708.7 budgeted FTEs; and d. Five-Year Capital Improvement Program.

2. Adopt Resolution No. 11699. A Resolution of the City Council of the City of Orange adopting the appropriations limit for the Fiscal Year 2026-2027.

3. Adopt Resolution No. 11700. A Resolution of the City Council of the City of Orange amending Resolution No. 11668 between the City of Orange and the Orange Municipal Employees’ Association.

4. FISCAL IMPACT
The Fiscal Year 2026-2027 Annual Operating and Capital Improvement Budget includes total revenues of $292.4 million and total expenditures of $315.7 million for all funds, including transfers.

Available fund balance will be used to cover the difference between revenue and expenditure in Special Revenue Funds and Capital Improvement Project Funds. This does not necessarily reflect an ongoing structural imbalance, but rather timing and funding strategy for these funds.

The total General Fund revenues are $170.7 million, and expenditures are $169.6 million, including City of Orange Printed on 6/4/2026Page 1 of 19
powered by Legistar™
1276
Item #: 9.1. 6/9/2026 File #: 26-0356
transfers.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.

6. DISCUSSION AND BACKGROUND
Background:

The City’sbudget is a financial plan based on anticipated revenues and expenditures in a fiscal year starting July 1st through June 30th. Each year, the City’sbudget is prepared, prioritizing public safety and infrastructure projects, City Council Goals, and providing the highest possible level of service to the community. The Fiscal Year 2026-2027 (FY27) budget development has been presented and reviewed over the course of three City Council budget study sessions, taking place in March, April, and May 2026.

As noted in the budget study sessions, FY27 continues to present significant financial challenges for the General Fund, as the City faces an ongoing structural imbalance between recurring revenues and expenditures. Development of the FY27 Budget began with a zero-based budgeting approach, requiring departments to justify expenditures from the ground up rather than relying on prior-year spending as the baseline. Over the last couple of months, staff continued to refine the FY27 budget to incorporate the City Council directions, reprioritize operational needs, and incorporated changes from the third quarter financial information.

The FY27 Preliminary Budget was affirmed by the City Council on May 26th for all funds, with total revenues of approximately $292.9 million and total expenditures of $317.3 million, including transfers.

In response to the City Council’sfeedback related to the inclusion of a vacancy rate in the budget, the following adjustments have been made to the proposed adopted budget:
· Reduced the General Fund salaries budget by $1.2 million; · Reduced the transfer in from Capital Projects Fund (CIP) by $500,000; and · Increased the Catastrophic Reserve to 20% from 18%.

Details of these adjustments are noted in the discussion of the staff report.

The FY27 Adopted Budget document reflects $292.4 million in revenue, a decrease of $500,000, and expenditures of $315.7 million, a decrease of $1.7 million, in all funds when compared to the FY27 Preliminary Budget. Available fund balance will be used to cover the difference between revenue and expenditure in Special Revenue Funds and Capital Improvement Project Funds. This does not necessarily reflect an ongoing structural imbalance, but rather timing and funding strategy for these funds. The total full-time equivalent (FTE) is 708.7 FTEs, with approximately 600 FTEs being funded by the General Fund. The total General Fund revenues are $170.7 million, a decrease of $500,000, and expenditures of $169.6 million, a decrease of $1.2 million, from the FY27 Preliminary Budget.

Discussion:

Fiscal Year 2025-26 (FY26) General Fund Year-End Estimates There are no changes to the FY26 Year-end Estimates as presented last month. The FY26 General Fund revenues are estimated at $157.4 million. Revenue estimates are based on FY26 trends in property transfer tax, fees for services, fines, plan check fees, construction inspection fees, building City of Orange Printed on 6/4/2026Page 2 of 19
powered by Legistar™
1277
Item #: 9.1. 6/9/2026 File #: 26-0356
permit revenues, and miscellaneous revenues.

FY26 General Fund expenditures are estimated at $161.1 million. Expenditures estimates are based on ongoing operating expenses incurred throughout FY26, including several costs recognized later in the fiscal year, such as the City's $1.5 million North SPA payment and one-time paid-parking implementation costs.

Considering these estimates, the General Fund is projected to end FY26 with an operating deficit of $3.7 million. After maintaining the 18% Catastrophic Reserve, the estimated undesignated fund balance is $1.9 million. These estimates are based on year-to-date actual results and do not include year-end accounting entries. A comprehensive review of FY26 financial results will be presented following completion of the annual financial audit.

Table 1: FY26 Year-End Estimated Fund Balance
FY26 YE Estimate
Operating Revenues $157,868,578
Total Revenues 157,868,578
Operating Expenditures 144,093,480
Debt Service 17,519,111
Total Expenditures 161,612,591
Operating Surplus/Deficit -3,744,013
Transfers-In 4,485,252
Transfers-Out 1,455,252
Net Surplus/Deficit -714,013
Estimated Beginning Fund Balance -
7/1/2025
28,553,772
Estimated Ending Fund Balance - 6/30/2026 27,839,759 Catastrophic Reserve 25,936,826
Undesignated Ending Fund Balance -
6/30/2026
$1,902,932
Fiscal Year 2026-27 (FY27) General Fund Revenue
The FY27 General Fund operating revenues, including transfers, is projected to be almost $170.7 million, a decrease of $500,000 from the preliminary budget. This is due to the decrease in transfers from the CIP Fund.

Provided below is a summary of the assumptions used for the FY27 General Fund revenues as presented at the preliminary budget meeting.
· Property Tax: The City’slargest source of General Fund revenues is proposed to be $61.7 million in FY27, an increase of approximately $1.9 million (3.1%) over the FY26 year-end estimates. The increase reflects revised year-end revenue estimates and signs of a strengthening housing market driven by slightly lower interest rates and rising rental costs, which have contributed to increased home sales activity. While Proposition 13 generally limits annual assessed value increases to 2% on existing properties, additional growth occurs when properties change ownership and are reassessed at current market value. The housing market is expected to remain stable in FY27, supporting continued modest growth in property tax City of Orange Printed on 6/4/2026Page 3 of 19
powered by Legistar™
1278
Item #: 9.1. 6/9/2026 File #: 26-0356
is expected to remain stable in FY27, supporting continued modest growth in property tax revenues.

FY25 Actuals: $57,658,841
FY26 Year-end Estimate: $59,822,181
FY27 Budget: $61,700,600
Increase/Decrease to YE: +$1,878,419 or +3.1%
· Sales Tax: The FY27 revenue is projected at approximately $51.6 million, reflecting a $258,000 (0.5%) increase over the FY26 year-end estimates. According to statewide reports from the City’ssales tax consultant, while inflation has moderated and interest rates have declined, statewide economic indicators suggest consumers still remain cautious. As a result, taxable sales growth is expected to remain modest in all other categories, with consumer spending largely focused on essential goods and value-oriented purchases. Although fuel prices have continued to trend upward due to external and foreign market factors, the FY27 projections assume moderate additional growth in sales tax revenues due to thresholds within the City’s current sales tax agreements and the potential volatility of this sector.

FY25 Actuals: $49,342,726
FY26 Year-end Estimate: $51,335,804
FY27 Budget: $51,594,300
Increase/Decrease to YE: +$258,496 or +0.5%
· Fines and Forfeitures: Fine and forfeitures revenue is projected at approximately $2.9 million in FY27, an increase of about $471,000 (19.4%) over the year-end estimates. This reflects anticipated revenues of approximately $1.0 million from the City’spaid parking program in Old Towne, as well as $300,000 from increased collections associated with Transient Occupancy Tax and Business License audit activities.

FY25 Actuals: $2,636,075
FY26 Year-end Estimate: $2,426,324
FY27 Budget: $2,897,600
Increase/Decrease to YE: +$471,276 or +19.4%
· Fees for Service: The city is projecting just under a total of almost $8.0 million in FY27, an increase of just over $300,000 (4.0%), compared to the year-end estimates. These fees are intended to offset the City’s operating costs of providing services and have been revised following the user fee study to more appropriately align charges with the cost of service delivery. This estimate considers the updated fees adopted at the January 13th Council meeting, the April 28th Council meeting.

FY25 Actuals: $6,602,124
FY26 Year-end Estimate: $7,647,596
FY27 Budget: $7,953,100
Increase/Decrease to YE: +$305,504 or +4.0%
· Internal Service Charges: Internal Service Charges are projected to be approximately $4.8 million, an decrease of $5.2 million (-52.1%) from the FY26 year-end estimates. The decrease in Internal Service Charges reflects a revised methodology that excludes Internal Service Charges charged to and from the General Fund; as a result, both expenditure and revenue projections are lower compared to the FY26 Year-End Estimate. This does not reflect any City of Orange Printed on 6/4/2026Page 4 of 19
powered by Legistar™
1279
Item #: 9.1. 6/9/2026 File #: 26-0356
projections are lower compared to the FY26 Year-End Estimate. This does not reflect any reduction in services but rather an accounting change.

FY25 Actuals: $15,474,265
FY26 Year-end Estimate: $10,077,495
FY27 Budget: $4,830,500
Increase/Decrease to YE: -$5,246,995 or -52.1%
· Miscellaneous/Other Revenue: Miscellaneous/other revenue is projected at almost $4.2 million in FY27, an increase of approximately $183,000 (4.6%) compared to year-end estimates. This category includes one-time reimbursements, donations, and other miscellaneous revenues, including approximately $1.0 million in Cal OES reimbursements for fire deployments and $150,000 to offset credit card fee surcharges.

FY25 Actuals: $1,620,906
FY26 Year-end Estimate: $3,995,136
FY27 Budget: $4,177,800
Increase/Decrease to YE: +$182,664 or +4.6%
· Revenue from Other Agencies: FY27 revenue in this category is projected at approximately $1.5 million, almost $312,000 (-17.2%) decrease from the FY26 year-end estimates. This category is primarily comprised of revenue received from other government agencies, as well as one-time grants from state funded programs. As is typical, revenue in this category may fluctuate throughout the year as additional grant programs are awarded and recognized.

FY25 Actuals: $2,501,399
FY26 Year-end Estimate: $1,816,924
FY27 Budget: $1,505,100
Increase/Decrease to YE: -$311,824 or -17.2%
· Transfers In: Transfers into the General Fund are projected to total $15 million in FY27, a decrease of $500,000 from the FY27 Preliminary Budget, and an increase of over $10.5 million (234.4%) over the FY26 year-end estimates. This amount primarily reflects one-time transfers of available fund balances from the Emergency Medical Transport Fund ($3.5 million), Equipment Replacement Fund ($3 million), and Capital Improvement Program Fund ($8.5 million) to temporarily offset the projected General Fund operating deficit. These transfers are non-recurring in nature and provide temporary budget relief rather than a long- term structural solution.

FY25 Actuals: $3,250,000
FY26 Year-end Estimate: $4,485,252
FY27 Budget: $15,000,000
Increase/Decrease to YE: +$10,514,748 or +234.4%
Provided in Table 2 is a summary of the major General Fund revenues by source type, comparing the changes from the FY26 year-end estimates and FY27 Adopted Budget:

Table 2: General Fund Revenues
Revenue Category FY25 Actual FY26 YE
Estimate
FY27 Adopted Variance
to FY25
Actual
Variance
to FY26
Estimate
Property Tax $57,658,841 $59,822,181 $61,700,600 7.0% 3.1% Sales Tax
49,342,726 51,335,804 51,594,300

4.6% 0.5%
Internal Service
Charges 15,474,265 10,077,495 4,830,500
-68.8% -52.1%
Fees for Services
6,602,124 7,647,596 7,953,100

20.5% 4.0%
Licenses and Permits
6,667,071 7,645,141 7,835,100

17.5% 2.5%
TOT
6,150,976 6,100,192 6,198,100

0.8% 1.6%
Miscellaneous
Revenue 1,620,906 3,995,136 4,177,800
157.7% 4.6%
Use of Property
3,730,340 3,922,905 3,929,100

5.3% 0.2%
Franchises
2,753,299 3,078,880 3,057,300

11.0% -0.7%
Fines and Forfeitures
2,636,075 2,426,324 2,897,600

9.9% 19.4%
Revenue from other
Agencies 2,501,399 1,816,924 1,505,100
-39.8% -17.2%
Total Operating
Revenues 155,138,022 157,868,578 155,678,600

0.3% -1.4%
Transfers-In
3,250,000 4,485,252 15,000,000
361.5% 234.4%
TOTAL REVENUES $158,388,022 $162,353,830 $170,678,600 7.8% 5.1% City of Orange Printed on 6/4/2026Page 5 of 19
powered by Legistar™
1280
Item #: 9.1. 6/9/2026 File #: 26-0356
Revenue Category FY25 Actual FY26 YE
Estimate
FY27 Adopted Variance
to FY25
Actual
Variance
to FY26
Estimate
Property Tax $57,658,841 $59,822,181 $61,700,600 7.0% 3.1% Sales Tax
49,342,726 51,335,804 51,594,300

4.6% 0.5%
Internal Service
Charges 15,474,265 10,077,495 4,830,500
-68.8% -52.1%
Fees for Services
6,602,124 7,647,596 7,953,100

20.5% 4.0%
Licenses and Permits
6,667,071 7,645,141 7,835,100

17.5% 2.5%
TOT
6,150,976 6,100,192 6,198,100

0.8% 1.6%
Miscellaneous
Revenue 1,620,906 3,995,136 4,177,800
157.7% 4.6%
Use of Property
3,730,340 3,922,905 3,929,100

5.3% 0.2%
Franchises
2,753,299 3,078,880 3,057,300

11.0% -0.7%
Fines and Forfeitures
2,636,075 2,426,324 2,897,600

9.9% 19.4%
Revenue from other
Agencies 2,501,399 1,816,924 1,505,100
-39.8% -17.2%
Total Operating
Revenues 155,138,022 157,868,578 155,678,600

0.3% -1.4%
Transfers-In
3,250,000 4,485,252 15,000,000
361.5% 234.4%
TOTAL REVENUES $158,388,022 $162,353,830 $170,678,600 7.8% 5.1% In summary, FY27 General Fund operating revenues, excluding transfers, are projected at approximately $155.7 million. Revenue projections were developed using FY26 year-end estimates and current trends across the City's major revenue categories, including property tax, sales tax, fees for services, licenses and permits, transient occupancy tax, and other local revenues. While several revenue categories are projected to increase in FY27, total operating revenues are projected to remain relatively consistent with FY25 actual revenues and slightly below FY26 estimated revenues.

Including transfers-in of $15.0 million, total FY27 General Fund revenues are projected at approximately $170.7 million.

FY27 General Fund Expenditures
The General Fund operating expenditures, including debt service, for FY27 is almost $160.1 million, a decrease of $1.2 million from the preliminary budget and a decrease of almost $1.6 million (-1%) from the FY26 year-end estimates. The operating expenditure reflects the continued focus on City of Orange Printed on 6/4/2026Page 6 of 19
powered by Legistar™
1281
Item #: 9.1. 6/9/2026 File #: 26-0356
maintaining service levels while holding costs steady.

Based on City Council direction, the FY27 budget was created through a zero-based budget process.

All departments provided documentation and descriptions of all non-personnel expenditure requests.

Budget meetings were held between the departments and City Manager and Director of Finance to discuss the requests and necessity of the expenditure.

Provided below are the budget assumptions impacting the FY27 Operating Budget for the General Fund expenditures as presented at the preliminary budget meeting, except for salaries & benefits:
· Salaries & Benefits: The FY27 Preliminary Budget for salaries and benefits is $108.6 million, an increase of just over $4.6 million (4.5%) above the FY26 year-end estimates. The increase reflects the revised staffing assumptions as well as the transfer of five firefighter positions previously charged to the EMT Fund (Fund 225) back to the General Fund. As presented during the FY27 Budget Study Session, the FY27 salaries and benefits budget includes annual step increases and a proposed 3% salary adjustment for all City employees, fully funds projected overtime costs based on recent historical trends, and incorporates approved position changes, including the elimination of 43.55 FTEs, maintaining 12 frozen positions, and adding

18.75 FTEs in FY27. Although the budget includes significant position reductions, salaries and benefits continue to increase year-over-year primarily due to negotiated compensation adjustments and the City’s transition to fully funding projected overtime costs rather than relying on vacancy savings.

The City Council expressed concern regarding the absence of vacancy savings in the FY27 budget. In response, staff conducted a review of unspent salary budgets over the last four fiscal years.

Based on this analysis, staff identified four departments, Community Development, Library, Police, and Public Works, that have consistently carried unspent salary budgets of 3% or more. As a result, staff applied a 3% vacancy savings reduction to the salary budgets of these departments, resulting in a reduction of approximately $1.2 million. The vacancy savings does not reduce authorized positions or FTEs. It is a budgeting assumption based on the expectation that some positions will remain vacant for a portion of the year due to normal turnover, retirements, promotions, recruitment timelines, and onboarding periods.

FY25 Actuals: $104,364,884
FY26 Year-end Estimate: $103,947,889
FY27 Budget: $108,599,700
Increase/Decrease to YE: +$4,651,811 or +4.5%
· Professional/Other Services: The proposed FY27 budget for contractual services is approximately $7.5 million. This reflects a net decrease of over $2.6 million (-25.9%) compared to the year-end estimates. This expenditure category includes $125,000 to support enhancements within the City’s Economic Development Division, $250,000 for year-round aquatics services, $498,000 for the Old Towne paid parking program, and $100,000 for on-call building inspection services.

FY25 Actuals: $6,141,942
FY26 Year-end Estimate: $10,083,247
FY27 Budget: $7,473,200
City of Orange Printed on 6/4/2026Page 7 of 19
powered by Legistar™
1282
Item #: 9.1. 6/9/2026 File #: 26-0356
Increase/Decrease to YE: -$2,610,047 or -25.9%
· Materials and Supplies: The proposed FY27 budget for materials and supplies is almost $4.7 million and reflects a nominal increase of about $28,000 (0.6%) compared to the year-end estimates.

FY25 Actuals: $4,851,803
FY26 Year-end Estimate: $4,702,718
FY27 Budget: $4,731,000
Increase/Decrease to YE: +$28,282 or +0.6%
· Miscellaneous Expenditures: The FY27 budget for miscellaneous expenditures totals approximately $3.9 million, representing an increase of $676,000 (21.0%) compared to the FY26 year-end estimate. This expenditure category includes costs associated with North SPA services, election services, employee education incentives pursuant to labor agreements, mileage reimbursements, dues and memberships, training and conferences, and other miscellaneous operating expenses. The increase in FY27 is primarily attributable to anticipated election-related costs and increased General Fund contributions for North SPA services.

FY25 Actuals: $961,597
FY26 Year-end Estimate: $3,217,645
FY27 Budget: $3,894,200
Increase/Decrease to YE: +$676,655 or +21.0%
· Internal Service Costs/Allocations: Internal service costs are projected to total approximately $3.7 million, a decrease of approximately $5.1 million (-57.9%) from year-end estimates. Figures have been refined using the Cost Allocation Plan model and FY26 Year End Estimates. The FY27 Budget reflects a revised methodology that excludes Internal Service Charges charged to and from the General Fund; as a result, both expenditure and revenue projections are lower compared to the FY26 Year-End Estimate FY25 Actuals: $14,029,588
FY26 Year-end Estimate: $8,866,258
FY27 Budget: $3,733,900
Increase/Decrease to YE: -$5,132,358 or -57.9%
· Transfers to Internal Service Funds: The FY27 Budget includes a transfer of approximately $9.5 million to the Employee Accrued Liability Fund, this is an increase of almost $8.1 million (556.5%). The Employee Accrued Liability Fund is estimated to close FY26 with a deficit of approximately $5.6 million. The transfer is necessary to support the projected accrued leave payouts and unfunded liability during the year.

FY25 Actuals: $487,680
FY26 Year-end Estimate: $1,455,252
FY27 Preliminary Budget: $9,554,500
Increase/Decrease to YE: +$8,099,248 or +556.5%
Table 3: General Fund Expenditures
Expenditure Category FY25 Actual FY26 YE
Estimate
FY27 Adopted Variance
to FY25
Actual
Variance
to FY26
Estimate
Salaries and Benefits $104,364,884 $103,947,889 $108,599,700 4.1% 4.5% Repair/Maintenance
6,865,145 9,594,564 10,037,200

46.2% 4.6%
Professional/Other
Services 6,141,942 10,083,247 7,473,200

21.7% -25.9%
Internal Service Charges
14,029,588 8,866,258 3,733,900
-73.4% -57.9%
Materials and Supplies
4,851,803 4,702,718 4,731,000
-2.5% 0.6%
Utility Charges
3,321,196 3,534,948 3,605,500

8.6% 2.0%
Capital Outlay
1,006,636 146,212 74,500
-92.6% -49.0%
Miscellaneous
961,597 3,217,645 3,894,200
305.0% 21.0%
Debt Services
17,377,333 17,519,111 17,908,400

3.1% 2.2%
Total Operating
Expenditures 158,920,124
161,612,591 160,057,600 0.7% -1.0%
Transfers Out
487,680 1,455,252 9,554,500
1859.2% 556.6%
TOTAL EXPENDITURES $159,407,804 $163,067,843 $169,612,100 6.4% 4.0% City of Orange Printed on 6/4/2026Page 8 of 19
powered by Legistar™
1283
Item #: 9.1. 6/9/2026 File #: 26-0356
Expenditure Category FY25 Actual FY26 YE
Estimate
FY27 Adopted Variance
to FY25
Actual
Variance
to FY26
Estimate
Salaries and Benefits $104,364,884 $103,947,889 $108,599,700 4.1% 4.5% Repair/Maintenance
6,865,145 9,594,564 10,037,200

46.2% 4.6%
Professional/Other
Services 6,141,942 10,083,247 7,473,200

21.7% -25.9%
Internal Service Charges
14,029,588 8,866,258 3,733,900
-73.4% -57.9%
Materials and Supplies
4,851,803 4,702,718 4,731,000
-2.5% 0.6%
Utility Charges
3,321,196 3,534,948 3,605,500

8.6% 2.0%
Capital Outlay
1,006,636 146,212 74,500
-92.6% -49.0%
Miscellaneous
961,597 3,217,645 3,894,200
305.0% 21.0%
Debt Services
17,377,333 17,519,111 17,908,400

3.1% 2.2%
Total Operating
Expenditures 158,920,124
161,612,591 160,057,600 0.7% -1.0%
Transfers Out
487,680 1,455,252 9,554,500
1859.2% 556.6%
TOTAL EXPENDITURES $159,407,804 $163,067,843 $169,612,100 6.4% 4.0% In summary, FY27 General Fund expenditures, including transfers, are projected at approximately $169.6 million, which is consistent with the FY27 Preliminary Budget presented at the last month, with the exception of incorporating a vacancy rate adjustment within the Salaries and Benefits category. Expenditure projections reflect anticipated personnel costs, operational and maintenance needs, debt service obligations, and planned transfers.

Total FY27 General Fund expenditures represent an increase of approximately $6.5 million, or 4.0%, compared to FY26 estimated expenditures. The majority of this increase is attributable to the planned transfer for employee accrued liabilities.

FY27 General Fund - Fund Balance
Based on the FY26 Year-End Estimates, the FY27 beginning fund balance is projected to be approximately $27.8 million, of which approximately $1.9 million is undesignated fund balance. The FY27 Adopted Budget projects an operating deficit of $4.4 million, reflecting the difference between total revenues of $155.7 million and total expenditures of $160.1 million. However, the General Fund also includes a planned $15.0 million transfer-in and a $9.6 million transfer-out, resulting in a projected net surplus of approximately $1.1 million and an estimated ending fund balance of $28.9 million.

The Fiscal Management Policies adopted by the City Council on August 12, 2025, recommend City of Orange Printed on 6/4/2026Page 9 of 19
powered by Legistar™
1284
Item #: 9.1. 6/9/2026 File #: 26-0356
The Fiscal Management Policies adopted by the City Council on August 12, 2025, recommend maintaining a catastrophic reserve equal to 20% of General Fund operating expenditures. While the FY27 Preliminary Budget recommended reducing the reserve to 18% due to projected fiscal challenges, subsequent vacancy rate adjustments within the Salaries and Benefits expenditure category improved the General Fund's projected financial position. As a result, the FY27 Adopted Budget includes a catastrophic reserve at the full 20% policy target, resulting in a reserve balance of approximately $28.4 million.

After accounting for the catastrophic reserve, the General Fund is projected to end FY27 with an undesignated ending fund balance of approximately $476,000. Although the FY27 budget is balanced through transfers and other available resources, the General Fund continues to face a structural operating imbalance, as operating expenditures exceed operating revenues by approximately $4.4 million.

The table below summarizes the FY27 Adopted General Fund budget, estimated ending fund balance, catastrophic reserve, and undesignated ending fund balance.

Table 4: General Fund Balance
FY26 YE Estimate FY27 Adopted Variance to
FY26
Estimate
Operating Revenues $157,868,578 $155,678,600 -1.4%
Total Revenues 157,868,578 155,678,600 -1.4% Operating Expenditures 144,093,480 142,149,200 -1.3% Debt Service 17,519,111 17,908,400 2.2% Total Expenditures 161,612,591 160,057,600 -1.0% Operating Surplus/Deficit -3,744,013 -4,379,000 17.0% Transfers-In 4,485,252 15,000,000 234.4% Transfers-Out 1,455,252 9,554,500 556.6% Projected Net
Surplus/Deficit
-714,013 1,066,500 -249.4%
Estimated Beginning Fund
Balance - 7/1
28,553,772 27,839,759 -2.5%
Estimated Ending Fund
Balance - 6/30
27,839,759 28,906,259 3.8%
Catastrophic Reserve 25,936,826 28,429,840 9.6% Undesignated Ending Fund
Balance - 6/30
$1,902,932 $476,419 -75.0%
FY27 Budget for Other Funds
Special Revenue Funds (200 - 400 Series):

There are no changes to the Special Revenue Funds. The FY27 Budget for Special Revenue Funds are used to account for revenues that are legally restricted or committed to expenditures for specific purposes. These funds support a variety of City programs and services that are financed through dedicated revenue sources such as grants, state and federal funding, development-related fees, City of Orange Printed on 6/4/2026Page 10 of 19
powered by Legistar™
1285
Item #: 9.1. 6/9/2026 File #: 26-0356
dedicated revenue sources such as grants, state and federal funding, development-related fees, public safety revenues, and other restricted resources. Unlike the General Fund, Special Revenue Funds may only be used for their designated purposes and are subject to specific legal, regulatory, or policy requirements governing their use. The City’s Special Revenue Funds support programs including transportation improvements, public safety initiatives, community development activities, housing programs, and other operational and capital needs. As external funding sources and economic conditions fluctuate, the City continues to closely monitor revenues and expenditures within these funds to ensure ongoing compliance, maintain service levels, and support long-term program sustainability.

Table 5: Fund Balance - Special Revenue Funds
EMT
Program
(225)
Measure M2
(263)
Other
Transportation
Funds
(270-274)
Citywide
TSIP (287)
Revenues $5,353,600 $4,335,500 $7,474,000 $304,000
Transfers-In
- -
-
-
Total Revenues
5,353,600 4,335,500
7,474,000
304,000
Expenditures
5,575,900 4,205,600
7,801,300
1,695,900
Transfers-Out
3,500,000 -
-
-
Total Expenditures
9,075,900 4,205,600
7,801,300
1,695,900
Projected Surplus/Deficit -3,722,300
129,900
-327,300 -1,391,900
Estimated Beginning Fund
Balance - 7/1/26 4,176,378 6,919,471
6,764,540
3,662,662
Projected Ending Fund
Balance - 6/30/27
$454,078 $7,049,371 $6,437,240 $2,270,762
Capital Improvement Funds (500 Series):

The only change to the Capital Improvement Funds from the Preliminary Budget is the reduction in transfers to the General Fund. The FY27 Capital Improvement Program totals just over $33.2 million, across 17 different funding sources. In addition, the FY27 Adopted Budget includes an $8.5 million transfer-out from the Capital Improvement Program Fund to the General Fund, which is $500,000 lower than the FY27 Preliminary Budget. Following City Council feedback regarding the inclusion of vacancy savings assumptions in the General Fund budget, staff incorporated a vacancy factor within select department salary budgets, reducing the projected General Fund operating deficit. As a result, less one-time funding was needed from the CIP Fund, allowing the City to preserve an additional $500,000 in capital resources for future infrastructure and capital improvement projects. The City of Orange Printed on 6/4/2026Page 11 of 19
powered by Legistar™
1286
Item #: 9.1. 6/9/2026 File #: 26-0356
following table reflects fund balances for the major capital funds.

Table 6: Fund Balance - Capital Improvement Funds
Capital
Project
Fund (500)
Park Funds
(510-12)
Fire
Facilities
Fund (560)
Police
Facilities
Fund (570)
Library
Facilities
Fund (580)
Revenues $3,585,000 $383,100 $22,800 $21,500 $17,800 Transfers-In
- - - - -
Total Revenues
3,585,000 383,100 22,800 21,500 17,800
Expenditures
5,140,400 2,870,000 600,000 615,000 326,900
Transfers-Out
8,500,000 - - - -
Total Expenditures 13,640,500
2,870,000 600,000 615,000 326,900
Projected
Surplus/Deficit
-10,055,500 -2,486,900 -577,200 -593,500 -309,100
Estimated Beginning
Fund Balance - 7/1/26 12,013,635 8,462,380 703,983 724,052 468,497 Projected Ending Fund
Balance - 6/30/27
$1,958,135 $5,975,480 $126,783 $130,552 $159,397
Internal Service Funds (700 Series):

There are no changes to Internal Service Funds for FY27 Budget. Internal Service Funds are used to account for the financing of goods and services provided by one department or agency to other departments or agencies on a cost reimbursement basis. Allocations to the City’sInternal Service Funds (ISFs), from the General Fund and other operating funds, including Enterprise Funds and eligible Special Revenue Funds, support operating costs related to accrued liability, workers compensation, and general liability insurance.

Historically, these ISFs were intentionally underfunded to minimize impacts to the General Fund, with the expectation that any year-end surpluses would be used to supplement shortfalls through transfers. However, as the City has continued to face budgetary constraints, fewer surplus funds have been available, resulting in continued underfunding of these ISFs and the deferral of necessary capital replacements and other long-term obligations.

It should also be noted that the ISFs for the City’sInformation Technology and Fleet divisions were consolidated into the General Fund in FY25. As a result, the associated operational costs associated with those services continue to be reflected comprehensively within the General Fund.

Table 8: Fund Balance - Internal Service Funds
Equipment
Replacement
(720)
Worker's
Comp (730)
General
Liability (731)
Accrued
Liability (760)
IT Capital
(790)
Revenues $244,200 $6,239,400 $4,887,600 $3,613,000 $446,800 Transfers-In
- - - 9,554,500 -
Total Revenues
244,200 6,239,400 4,887,600 13,167,500
446,800
Expenditures
2,795,000 5,344,700 6,144,400 10,618,200 1,116,000
Transfers-Out
- - - - 3,000,000
Total Expenditures
2,795,000 5,344,700 6,144,400 10,618,200 4,116,000
Projected
Surplus/Deficit
-2,550,800
894,700
-1,256,800
2,549,300
-
$3,669,200
Estimated Beginning
Fund Balance - 7/1/26 3,052,486
-12,755,459 -12,302 -5,606,386
7,181,367
Projected Ending
Fund Balance -
6/30/27
$501,686 -$11,860,759 -$1,269,102 -$3,057,086 $3,512,167 City of Orange Printed on 6/4/2026Page 12 of 19
powered by Legistar™
1287
Item #: 9.1. 6/9/2026 File #: 26-0356
Equipment
Replacement
(720)
Worker's
Comp (730)
General
Liability (731)
Accrued
Liability (760)
IT Capital
(790)
Revenues $244,200 $6,239,400 $4,887,600 $3,613,000 $446,800 Transfers-In
- - - 9,554,500 -
Total Revenues
244,200 6,239,400 4,887,600 13,167,500
446,800
Expenditures
2,795,000 5,344,700 6,144,400 10,618,200 1,116,000
Transfers-Out
- - - - 3,000,000
Total Expenditures
2,795,000 5,344,700 6,144,400 10,618,200 4,116,000
Projected
Surplus/Deficit
-2,550,800
894,700
-1,256,800
2,549,300
-
$3,669,200
Estimated Beginning
Fund Balance - 7/1/26 3,052,486
-12,755,459 -12,302 -5,606,386
7,181,367
Projected Ending
Fund Balance -
6/30/27
$501,686 -$11,860,759 -$1,269,102 -$3,057,086 $3,512,167 Enterprise Funds (600 Series):

There are no changes to the FY 27 Enterprise Funds Budget. Enterprise Funds are used to account for services provided to the public on a fee-for-service basis, where the costs of operations, capital improvements, and debt obligations are primarily recovered through user charges. The City’sWater and Sewer Enterprise Funds support the operation, maintenance, and long-term sustainability of critical utility infrastructure, including water production, distribution, and wastewater collection systems.

In FY27, the City is proposing approximately $6.5 million in water infrastructure improvements to support system reliability, increase groundwater production capacity, and replace aging infrastructure throughout the water system. Additionally, approximately $3.5 million is proposed for sewer system improvements to continue the replacement and rehabilitation of aging sewer pipelines and related infrastructure throughout the City. These investments are intended to address aging infrastructure, reduce ongoing maintenance demands, improve operational efficiency, and ensure the City can continue to meet service and regulatory requirements while maintaining reliable utility services for residents and businesses.

The table below provides a high-level overview of the City’sEnterprise funds, reflecting projected revenues, expenditures for operating and capital expenses, and fund balances.

City of Orange Printed on 6/4/2026Page 13 of 19
powered by Legistar™
1288
Item #: 9.1. 6/9/2026 File #: 26-0356
Table 7: Fund Balance - Enterprise Funds
Water (600) Sewer (601)
Revenues $45,584,600 $9,486,700
Transfers-In
-
-
Total Revenues
45,584,600
9,486,700
Proposed Expenditures
49,920,000
9,248,600
Proposed Transfers-Out
-
-
Total Expenditures
49,920,000
9,248,600
Projected Surplus/Deficit -4,335,400 238,100 Estimated Beginning Fund Balance - 7/1/26
6,057,236
4,917,562
Projected Ending Fund Balance - 6/30/27 $1,721,836 $5,155,662 Appropriations Limit (Gann Limit)
Article XIII B of the California Constitution requires local governments to annually calculate an appropriations limit, commonly referred to as the Gann Limit. The appropriations limit establishes a constitutional cap on the amount of tax proceeds that may be appropriated each fiscal year and is adjusted annually based on the population growth factor and changes in California per capita personal income.

The City calculates its annual appropriations limit using the adjustment factors published by the California Department of Finance. Consistent with State guidance, the City utilizes the greater of the annual population change for the City of Orange or Orange County as the population factor. This factor is multiplied by the California per capita personal income factor to determine the annual adjustment to the City's appropriations limit.

During preparation of the FY27 appropriations limit calculation, staff identified an error in the population growth factor used in the FY21 and FY22 appropriations limit calculations, which resulted in the City's appropriations limits being understated. The prior-year appropriations limits were corrected and used as the basis for calculating the FY27 appropriations limit. The correction did not result in the City exceeding its appropriations limit in any prior fiscal year and has no impact on previously adopted budgets or financial statements.

Based on the adjustment factors published by the California Department of Finance, the City's FY27 appropriations limit is calculated at approximately $268.0 million. Appropriations subject to limitation, which are primarily financed by proceeds of taxes, are estimated at approximately $132.6 million, representing 49.4% of the City's appropriations limit. Accordingly, the City remains well below its constitutional spending limitation for FY27, with available appropriations capacity of approximately City of Orange Printed on 6/4/2026Page 14 of 19
powered by Legistar™
1289
Item #: 9.1. 6/9/2026 File #: 26-0356
$135.4 million.

Financial Model
The Financial Management Policy requires a long-range financial forecast to accompany budget adoption. The forecast serves as a planning tool to support long-term financial policies, operational decision-making, and fiscal sustainability strategies. It also helps evaluate the effectiveness of current policies and financial strategies while identifying when adjustments may be necessary to address future fiscal challenges. Staff prepared two five-year financial forecasts (FY27 Models) using the FY27 Budget as the baseline. Model 1, a baseline model, were developed using a combination of historical trend analysis, recent actual performance, current economic conditions, inflationary trends, and available market indicators. Historical growth trends over multiple time periods were evaluated to balance recent performance with long-term economic cycles.

To better evaluate long-term pension-related risks and forecast sensitivity, staff developed a second forecasting scenario using modified CalPERS assumptions, Model 2.

FY27 Model 1
Revenue Assumptions
Sales Tax:

While the City’shistorical five-year average sales tax growth is approximately 0.7%, the forecast assumes gradual growth beginning at 0.7% in FY28 and increasing incrementally to 2.5% by FY32.

This approach balances historical performance with long-term inflationary expectations, anticipated economic stabilization, and projected taxable sales activity. The assumption is intended to reflect normalized long-term economic conditions rather than recent post-pandemic volatility.

Property Tax:

Property tax has historically been one of the City’smore stable major revenue sources, with historical growth averaging between 4.1% and 5.3% over the past 10 years. The model assumes annual growth of 4.9%, consistent with the City’s 10-year historical average.

Transient Occupancy Tax (TOT):

Unlike property tax, TOT revenues are more sensitive to market conditions, tourism activity, and economic fluctuations. Historical growth ranges from approximately 3.7% based on the five-year average to 12.3% using the 10-year average. Given the economic sensitivity of this revenue source, the model utilizes the more conservative five-year average growth assumption of 3.7%.

Fees and Fines:

These revenues have historically demonstrated moderate stability, with growth trends ranging from

3.7% to 6.4%. Considering recent Council-approved fee adjustments and the implementation of new fines, the model assumes annual growth of 4%.

Other Revenues:

This category includes investment earnings, donations, leases, rents, and miscellaneous revenues, which can fluctuate significantly from year to year. Due to the volatility of these revenues, the model assumes a conservative 2% annual increase based on recent historical trends.

City of Orange Printed on 6/4/2026Page 15 of 19
powered by Legistar™
1290
Item #: 9.1. 6/9/2026 File #: 26-0356
Internal Service Revenues:

This category reflects cost allocation charges to Special Revenue and Enterprise Funds. The City’s recently updated cost allocation study prepared by Matrix Consulting Group recommends annual CPI -based adjustments and a comprehensive update every five years. Consistent with that recommendation, the model assumes annual growth of 3%.

Actual results may vary depending on broader economic conditions, consumer spending patterns, inflationary trends, and regional economic performance.

Expenditure Assumptions
Salaries and Benefits:

Historical growth averages for salaries and benefits are approximately 3.1% over 10 years and 3.3% over 15 years, which are generally consistent with the current March 2026 CPI-U of 3.3%. More recent three- and five-year averages are significantly lower at approximately 0.7%, reflecting the City’s efforts to control personnel costs during periods of structural fiscal imbalance. The model assumes annual growth of 3% to align with long-term inflationary expectations and anticipated labor cost pressures.

Vacancy savings: As mentioned in the FY27 budget assumptions, The FY27 Model has been updated to include a vacancy savings for four departments, Community Development, Library, Police, and Public Works. These departments have consistently carried an average unspent salary budgets of 3% or more over the last four fiscal years. As a result, staff applied a 3% vacancy savings reduction to the salary budgets of these departments, resulting in a reduction of approximately $1.2 million. The vacancy savings does not reduce authorized positions or FTEs. It is a budgeting assumption based on the expectation that some positions will remain vacant for a portion of the year due to normal turnover, retirements, promotions, recruitment timelines, and onboarding periods.

Operating Non-Personnel Expenses:

This category includes contracted services, maintenance, supplies, utilities, and other operating costs. Historical growth has fluctuated significantly due to inflationary pressures and operational needs. Although historical growth rates exceeded inflation in certain years due to one-time operational needs and elevated inflationary pressures, the model assumes a normalized annual increase of 3%, consistent with anticipated CPI trends and ongoing expenditure management efforts.

Internal Service Costs:

Similar to Internal Service Revenues, these costs are based on the City’supdated cost allocation study prepared by Matrix Consulting Group. The model assumes annual CPI-based increases of 3%.

Leave Payouts:

Under various Memoranda of Understanding (MOUs), the City is obligated to provide annual payouts for certain accrued leave balances. Annual leave payout obligations are estimated at approximately $6 million. The existing cost allocation model recovers approximately $3 million annually, requiring an estimated additional General Fund contribution of approximately $3 million, which is included in the forecast.

Unfunded Accrued Liability (UAL):

The UAL represents the City’s annual required contribution to CalPERS for unfunded pension City of Orange Printed on 6/4/2026Page 16 of 19
powered by Legistar™
1291
Item #: 9.1. 6/9/2026 File #: 26-0356
The UAL represents the City’s annual required contribution to CalPERS for unfunded pension obligations. One modeled scenario assumes FY26 investment returns of approximately 12%, resulting in projected UAL payments decreasing to approximately $5.2 million in FY28 and no projected payments in subsequent years. While this scenario is mathematically possible under current modeling assumptions, it presents a significant forecasting risk and may not be sustainable over the long term.

Workers’ Compensation:

The Workers’ Compensation Fund is projected to end FY27 with an estimated fund balance of approximately $12 million. Staff recommends an ongoing annual contribution of $1 million to support long-term fund stability and offset projected operating deficits.

General Liability:

The General Liability Fund is projected to end FY27 with a negative fund balance of approximately $1.3 million and is currently experiencing annual operating deficits of approximately $1.3 million. To stabilize the fund and support ongoing operational needs, the model includes an annual contribution of $1.5 million.

Capital Projects Fund:

The City is required to maintain an annual Maintenance of Effort (MOE) contribution of approximately $4.3 million to remain eligible for Measure M2 grant funding. The model includes an annual contribution of $2 million toward meeting this long-term funding requirement.

Based on these assumptions, Model 1 projects an operating deficit of approximately $16.5 million in FY28, improving to approximately $6.9 million by FY32. As a result, the General Fund balance is projected to decline to approximately $12.4 million in FY28 and be fully depleted by FY30.

While the model incorporates a balanced approach using historical trends, current economic conditions, and inflationary assumptions, it is important to recognize that the assumption of substantially reduced UAL payments beyond FY28 represents a significant forecasting risk. Changes in CalPERS actuarial assumptions, investment performance, or discount rate policies could result in higher future pension costs and further impact the City's long-term financial outlook.

FY27 Model 2
Model 2 reflects a sensitivity scenario in which CalPERS exercises its Funding Risk Mitigation Policy, similar to the 2021 reduction in the discount rate following strong investment performance. All other revenue and expenditure assumptions remained consistent with Model 1.

CalPERS currently maintains a Funding Risk Mitigation Policy that allows for future reductions to the discount rate when investment returns materially exceed assumptions over multiple years. Given recent strong investment performance, there is a reasonable possibility that CalPERS could reduce the discount rate in future valuation cycles. Although strong investment performance may improve funded status, a lower discount rate also increases the present value of future pension obligations, which can increase annual employer contribution requirements.

To evaluate this potential risk, staff prepared a second scenario reducing the CalPERS discount rate assumption from 6.8% to 6.6%. Under this scenario, projected UAL payments nearly doubled to just over $10 million in FY28 and added an additional estimated payment of approximately $6.6 million in City of Orange Printed on 6/4/2026Page 17 of 19
powered by Legistar™
1292
Item #: 9.1. 6/9/2026 File #: 26-0356
FY29.

Under this alternative scenario, the projected operating deficit increases to approximately $21.3 million in FY28 before improving to approximately $6.9 million by FY32, consistent with Model 1. The General Fund balance is projected to decline to approximately $7.6 million in FY28 and be fully depleted by FY29.

Long-range financial forecasting is inherently sensitive to changes in economic conditions, inflation, labor negotiations, CalPERS actuarial assumptions, investment performance, and future policy decisions. Actual results will vary and should be reevaluated annually as part of the budget development process.

Conclusion
Both forecasting scenarios demonstrate the ongoing structural fiscal challenges facing the City. The forecasts demonstrate that, absent structural changes, expenditure growth is projected to continue outpacing recurring revenue growth over the long term. While economic conditions, investment performance, and inflationary trends may improve certain financial indicators over time, the City continues to face long-term expenditure pressures, particularly related to pension obligations, liability costs, and operational sustainability. As a result, the City will likely need to evaluate a combination of ongoing expenditure reductions, operational and organizational efficiencies, long-term financial planning strategies, and potential revenue enhancements to achieve long-term fiscal sustainability.

Unfunded Requests and Future Considerations
Due to limited ongoing revenues, several priority needs were not included in the FY27 Preliminary Budget and remain subject to future Council consideration if additional recurring resources become available, with priority given to those that support public safety, regulatory compliance, and core service delivery. The following items are identified:

Operating Budget
· Restore negative fund balance in the ISFs.
· Restore public safety positions.
· Address deferred maintenance.
· Expansion of Fire Prevention staffing model to address increased inspection, plan review, and compliance workload.
· Restore community programs and events.
· Implementation of a body-worn camera program for the Code Enforcement Division to enhance transparency, accountability, and staff safety. · Restoration of the Historic Preservation Planner position to support planning, development review, and preservation efforts.
· Additional administrative support within the City Manager’s Office, City Clerk’s Office, and Finance Department to address increasing operational demands and workload.

Deferred Capital Projects
· Facilities Condition Assessment
· City Hall Roof Replacement
· Fire Station 7 - Roof Replacement
City of Orange Printed on 6/4/2026Page 18 of 19
powered by Legistar™
1293
Item #: 9.1. 6/9/2026 File #: 26-0356
· Fire Station 8 - Exterior Paint and Roof Replacement
· Main Library Gutter Replacement
· Community Services Building Roof Replacement
· City Hall Landscape Renovation
· City Hall - Elastomeric Coating Renewal
Conclusion
The FY27 Operating and Capital Budget reflects the significant fiscal challenges facing the City while prioritizing public safety and maintaining a standard level of service for the residents and businesses of Orange. The budget includes substantial balancing measures, operational adjustments, and the strategic use of available resources to address ongoing structural budget pressures and support core City operations. However, limited financial resources continue to constrain the City’s ability to address deferred maintenance, restore service reductions, and meet increasing operational demands and community expectations. While the FY27 Budget provides a responsible financial plan for the coming year, long-term fiscal sustainability will require continued evaluation of expenditures, service levels, organizational efficiencies, and revenue strategies. Tonight, staff is seeking the City Council’s adoption of the FY27 Operating and Capital Budget for all funds.

7. ATTACHMENTS
· Attachment 1 Resolution No. 11702
· Attachment 2 Resolution No. 11699
· Attachment 3 Resolution No. 11700
· Attachment 4 Schedule of Changes in Fund Balance
· Attachment 5 Schedule of Revenues and Expenditures
· Attachment 6 Recommended Staffing Changes
· Attachment 7 Schedule of Positions by Department
· Attachment 8 FY27 Budget Reductions and Balancing Measures · Attachment 9 Five-Year Capital Improvement Plan
· Attachment 10 Fund Description
· Attachment 11 FY27 Financial Model
City of Orange Printed on 6/4/2026Page 19 of 19
powered by Legistar™
1294
Agenda Item
Orange City Council
Item #: 9.1. 6/9/2026 File #: 26-0356
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Fiscal Year 2026-2027 City of Orange Operating Budget and Five-Year Capital Improvement Program

3. RECOMMENDED ACTION
The following action items are recommended to adopt the Fiscal Year 2026-2027 Budget, effective July 1, 2026:

1. Adopt Resolution No. 11702. A Resolution of the City Council of the City of Orange adopting said City’sBudget for the Fiscal Year 2026-27 and authorizing transfer of funds within and between appropriations, transfer of funds between funds, and additional appropriations. a. Total revenues of $292.4 million and total expenditures of $315.7 million, including transfers.
b. General Fund revenues totaling $170.7 million and expenditures totaling $169.6 million; c. Staffing for Fiscal Year 2026-2027 at 708.7 budgeted FTEs; and d. Five-Year Capital Improvement Program.

2. Adopt Resolution No. 11699. A Resolution of the City Council of the City of Orange adopting the appropriations limit for the Fiscal Year 2026-2027.

3. Adopt Resolution No. 11700. A Resolution of the City Council of the City of Orange amending Resolution No. 11668 between the City of Orange and the Orange Municipal Employees’ Association.

The total General Fund revenues are $170.7 million, and expenditures are $169.6 million, including City of Orange Printed on 6/4/2026Page 1 of 19
powered by Legistar™
1295
Item #: 9.1. 6/9/2026 File #: 26-0356
transfers.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.

6. DISCUSSION AND BACKGROUND
Background:

Details of these adjustments are noted in the discussion of the staff report.

Discussion:

Fiscal Year 2025-26 (FY26) General Fund Year-End Estimates There are no changes to the FY26 Year-end Estimates as presented last month. The FY26 General Fund revenues are estimated at $157.4 million. Revenue estimates are based on FY26 trends in property transfer tax, fees for services, fines, plan check fees, construction inspection fees, building City of Orange Printed on 6/4/2026Page 2 of 19
powered by Legistar™
1296
Item #: 9.1. 6/9/2026 File #: 26-0356
permit revenues, and miscellaneous revenues.

Provided below is a summary of the assumptions used for the FY27 General Fund revenues as presented at the preliminary budget meeting.
· Property Tax: The City’slargest source of General Fund revenues is proposed to be $61.7 million in FY27, an increase of approximately $1.9 million (3.1%) over the FY26 year-end estimates. The increase reflects revised year-end revenue estimates and signs of a strengthening housing market driven by slightly lower interest rates and rising rental costs, which have contributed to increased home sales activity. While Proposition 13 generally limits annual assessed value increases to 2% on existing properties, additional growth occurs when properties change ownership and are reassessed at current market value. The housing market is expected to remain stable in FY27, supporting continued modest growth in property tax City of Orange Printed on 6/4/2026Page 3 of 19
powered by Legistar™
1297
Item #: 9.1. 6/9/2026 File #: 26-0356
is expected to remain stable in FY27, supporting continued modest growth in property tax revenues.

FY25 Actuals: $6,602,124
FY26 Year-end Estimate: $7,647,596
FY27 Budget: $7,953,100
Increase/Decrease to YE: +$305,504 or +4.0%
· Internal Service Charges: Internal Service Charges are projected to be approximately $4.8 million, an decrease of $5.2 million (-52.1%) from the FY26 year-end estimates. The decrease in Internal Service Charges reflects a revised methodology that excludes Internal Service Charges charged to and from the General Fund; as a result, both expenditure and revenue projections are lower compared to the FY26 Year-End Estimate. This does not reflect any City of Orange Printed on 6/4/2026Page 4 of 19
powered by Legistar™
1298
Item #: 9.1. 6/9/2026 File #: 26-0356
projections are lower compared to the FY26 Year-End Estimate. This does not reflect any reduction in services but rather an accounting change.

4.6% 0.5%
Internal Service
Charges 15,474,265 10,077,495 4,830,500
-68.8% -52.1%
Fees for Services
6,602,124 7,647,596 7,953,100

20.5% 4.0%
Licenses and Permits
6,667,071 7,645,141 7,835,100

17.5% 2.5%
TOT
6,150,976 6,100,192 6,198,100

0.8% 1.6%
Miscellaneous
Revenue 1,620,906 3,995,136 4,177,800
157.7% 4.6%
Use of Property
3,730,340 3,922,905 3,929,100

5.3% 0.2%
Franchises
2,753,299 3,078,880 3,057,300

11.0% -0.7%
Fines and Forfeitures
2,636,075 2,426,324 2,897,600

9.9% 19.4%
Revenue from other
Agencies 2,501,399 1,816,924 1,505,100
-39.8% -17.2%
Total Operating
Revenues 155,138,022 157,868,578 155,678,600

0.3% -1.4%
Transfers-In
3,250,000 4,485,252 15,000,000
361.5% 234.4%
TOTAL REVENUES $158,388,022 $162,353,830 $170,678,600 7.8% 5.1% City of Orange Printed on 6/4/2026Page 5 of 19
powered by Legistar™
1299
Item #: 9.1. 6/9/2026 File #: 26-0356
Revenue Category FY25 Actual FY26 YE
Estimate
FY27 Adopted Variance
to FY25
Actual
Variance
to FY26
Estimate
Property Tax $57,658,841 $59,822,181 $61,700,600 7.0% 3.1% Sales Tax
49,342,726 51,335,804 51,594,300

4.6% 0.5%
Internal Service
Charges 15,474,265 10,077,495 4,830,500
-68.8% -52.1%
Fees for Services
6,602,124 7,647,596 7,953,100

20.5% 4.0%
Licenses and Permits
6,667,071 7,645,141 7,835,100

17.5% 2.5%
TOT
6,150,976 6,100,192 6,198,100

0.8% 1.6%
Miscellaneous
Revenue 1,620,906 3,995,136 4,177,800
157.7% 4.6%
Use of Property
3,730,340 3,922,905 3,929,100

5.3% 0.2%
Franchises
2,753,299 3,078,880 3,057,300

11.0% -0.7%
Fines and Forfeitures
2,636,075 2,426,324 2,897,600

9.9% 19.4%
Revenue from other
Agencies 2,501,399 1,816,924 1,505,100
-39.8% -17.2%
Total Operating
Revenues 155,138,022 157,868,578 155,678,600

Including transfers-in of $15.0 million, total FY27 General Fund revenues are projected at approximately $170.7 million.

FY27 General Fund Expenditures
The General Fund operating expenditures, including debt service, for FY27 is almost $160.1 million, a decrease of $1.2 million from the preliminary budget and a decrease of almost $1.6 million (-1%) from the FY26 year-end estimates. The operating expenditure reflects the continued focus on City of Orange Printed on 6/4/2026Page 6 of 19
powered by Legistar™
1300
Item #: 9.1. 6/9/2026 File #: 26-0356
maintaining service levels while holding costs steady.

Based on City Council direction, the FY27 budget was created through a zero-based budget process.

All departments provided documentation and descriptions of all non-personnel expenditure requests.

Budget meetings were held between the departments and City Manager and Director of Finance to discuss the requests and necessity of the expenditure.

The City Council expressed concern regarding the absence of vacancy savings in the FY27 budget. In response, staff conducted a review of unspent salary budgets over the last four fiscal years.

FY25 Actuals: $6,141,942
FY26 Year-end Estimate: $10,083,247
FY27 Budget: $7,473,200
City of Orange Printed on 6/4/2026Page 7 of 19
powered by Legistar™
1301
Item #: 9.1. 6/9/2026 File #: 26-0356
Increase/Decrease to YE: -$2,610,047 or -25.9%
· Materials and Supplies: The proposed FY27 budget for materials and supplies is almost $4.7 million and reflects a nominal increase of about $28,000 (0.6%) compared to the year-end estimates.

46.2% 4.6%
Professional/Other
Services 6,141,942 10,083,247 7,473,200

21.7% -25.9%
Internal Service Charges
14,029,588 8,866,258 3,733,900
-73.4% -57.9%
Materials and Supplies
4,851,803 4,702,718 4,731,000
-2.5% 0.6%
Utility Charges
3,321,196 3,534,948 3,605,500

8.6% 2.0%
Capital Outlay
1,006,636 146,212 74,500
-92.6% -49.0%
Miscellaneous
961,597 3,217,645 3,894,200
305.0% 21.0%
Debt Services
17,377,333 17,519,111 17,908,400

3.1% 2.2%
Total Operating
Expenditures 158,920,124
161,612,591 160,057,600 0.7% -1.0%
Transfers Out
487,680 1,455,252 9,554,500
1859.2% 556.6%
TOTAL EXPENDITURES $159,407,804 $163,067,843 $169,612,100 6.4% 4.0% City of Orange Printed on 6/4/2026Page 8 of 19
powered by Legistar™
1302
Item #: 9.1. 6/9/2026 File #: 26-0356
Expenditure Category FY25 Actual FY26 YE
Estimate
FY27 Adopted Variance
to FY25
Actual
Variance
to FY26
Estimate
Salaries and Benefits $104,364,884 $103,947,889 $108,599,700 4.1% 4.5% Repair/Maintenance
6,865,145 9,594,564 10,037,200

46.2% 4.6%
Professional/Other
Services 6,141,942 10,083,247 7,473,200

21.7% -25.9%
Internal Service Charges
14,029,588 8,866,258 3,733,900
-73.4% -57.9%
Materials and Supplies
4,851,803 4,702,718 4,731,000
-2.5% 0.6%
Utility Charges
3,321,196 3,534,948 3,605,500

8.6% 2.0%
Capital Outlay
1,006,636 146,212 74,500
-92.6% -49.0%
Miscellaneous
961,597 3,217,645 3,894,200
305.0% 21.0%
Debt Services
17,377,333 17,519,111 17,908,400

3.1% 2.2%
Total Operating
Expenditures 158,920,124
161,612,591 160,057,600 0.7% -1.0%
Transfers Out
487,680 1,455,252 9,554,500
1859.2% 556.6%
TOTAL EXPENDITURES $159,407,804 $163,067,843 $169,612,100 6.4% 4.0% In summary, FY27 General Fund expenditures, including transfers, are projected at approximately $169.6 million, which is consistent with the FY27 Preliminary Budget presented at the last month, with the exception of incorporating a vacancy rate adjustment within the Salaries and Benefits category. Expenditure projections reflect anticipated personnel costs, operational and maintenance needs, debt service obligations, and planned transfers.

The Fiscal Management Policies adopted by the City Council on August 12, 2025, recommend City of Orange Printed on 6/4/2026Page 9 of 19
powered by Legistar™
1303
Item #: 9.1. 6/9/2026 File #: 26-0356
The Fiscal Management Policies adopted by the City Council on August 12, 2025, recommend maintaining a catastrophic reserve equal to 20% of General Fund operating expenditures. While the FY27 Preliminary Budget recommended reducing the reserve to 18% due to projected fiscal challenges, subsequent vacancy rate adjustments within the Salaries and Benefits expenditure category improved the General Fund's projected financial position. As a result, the FY27 Adopted Budget includes a catastrophic reserve at the full 20% policy target, resulting in a reserve balance of approximately $28.4 million.

The table below summarizes the FY27 Adopted General Fund budget, estimated ending fund balance, catastrophic reserve, and undesignated ending fund balance.

There are no changes to the Special Revenue Funds. The FY27 Budget for Special Revenue Funds are used to account for revenues that are legally restricted or committed to expenditures for specific purposes. These funds support a variety of City programs and services that are financed through dedicated revenue sources such as grants, state and federal funding, development-related fees, City of Orange Printed on 6/4/2026Page 10 of 19
powered by Legistar™
1304
Item #: 9.1. 6/9/2026 File #: 26-0356
dedicated revenue sources such as grants, state and federal funding, development-related fees, public safety revenues, and other restricted resources. Unlike the General Fund, Special Revenue Funds may only be used for their designated purposes and are subject to specific legal, regulatory, or policy requirements governing their use. The City’s Special Revenue Funds support programs including transportation improvements, public safety initiatives, community development activities, housing programs, and other operational and capital needs. As external funding sources and economic conditions fluctuate, the City continues to closely monitor revenues and expenditures within these funds to ensure ongoing compliance, maintain service levels, and support long-term program sustainability.

The only change to the Capital Improvement Funds from the Preliminary Budget is the reduction in transfers to the General Fund. The FY27 Capital Improvement Program totals just over $33.2 million, across 17 different funding sources. In addition, the FY27 Adopted Budget includes an $8.5 million transfer-out from the Capital Improvement Program Fund to the General Fund, which is $500,000 lower than the FY27 Preliminary Budget. Following City Council feedback regarding the inclusion of vacancy savings assumptions in the General Fund budget, staff incorporated a vacancy factor within select department salary budgets, reducing the projected General Fund operating deficit. As a result, less one-time funding was needed from the CIP Fund, allowing the City to preserve an additional $500,000 in capital resources for future infrastructure and capital improvement projects. The City of Orange Printed on 6/4/2026Page 11 of 19
powered by Legistar™
1305
Item #: 9.1. 6/9/2026 File #: 26-0356
following table reflects fund balances for the major capital funds.

Table 8: Fund Balance - Internal Service Funds
Equipment
Replacement
(720)
Worker's
Comp (730)
General
Liability (731)
Accrued
Liability (760)
IT Capital
(790)
Revenues $244,200 $6,239,400 $4,887,600 $3,613,000 $446,800 Transfers-In
- - - 9,554,500 -
Total Revenues
244,200 6,239,400 4,887,600 13,167,500
446,800
Expenditures
2,795,000 5,344,700 6,144,400 10,618,200 1,116,000
Transfers-Out
- - - - 3,000,000
Total Expenditures
2,795,000 5,344,700 6,144,400 10,618,200 4,116,000
Projected
Surplus/Deficit
-2,550,800
894,700
-1,256,800
2,549,300
-
$3,669,200
Estimated Beginning
Fund Balance - 7/1/26 3,052,486
-12,755,459 -12,302 -5,606,386
7,181,367
Projected Ending
Fund Balance -
6/30/27
$501,686 -$11,860,759 -$1,269,102 -$3,057,086 $3,512,167 City of Orange Printed on 6/4/2026Page 12 of 19
powered by Legistar™
1306
Item #: 9.1. 6/9/2026 File #: 26-0356
Equipment
Replacement
(720)
Worker's
Comp (730)
General
Liability (731)
Accrued
Liability (760)
IT Capital
(790)
Revenues $244,200 $6,239,400 $4,887,600 $3,613,000 $446,800 Transfers-In
- - - 9,554,500 -
Total Revenues
244,200 6,239,400 4,887,600 13,167,500
446,800
Expenditures
2,795,000 5,344,700 6,144,400 10,618,200 1,116,000
Transfers-Out
- - - - 3,000,000
Total Expenditures
2,795,000 5,344,700 6,144,400 10,618,200 4,116,000
Projected
Surplus/Deficit
-2,550,800
894,700
-1,256,800
2,549,300
-
$3,669,200
Estimated Beginning
Fund Balance - 7/1/26 3,052,486
-12,755,459 -12,302 -5,606,386
7,181,367
Projected Ending
Fund Balance -
6/30/27
$501,686 -$11,860,759 -$1,269,102 -$3,057,086 $3,512,167 Enterprise Funds (600 Series):

The table below provides a high-level overview of the City’sEnterprise funds, reflecting projected revenues, expenditures for operating and capital expenses, and fund balances.

City of Orange Printed on 6/4/2026Page 13 of 19
powered by Legistar™
1307
Item #: 9.1. 6/9/2026 File #: 26-0356
Table 7: Fund Balance - Enterprise Funds
Water (600) Sewer (601)
Revenues $45,584,600 $9,486,700
Transfers-In
-
-
Total Revenues
45,584,600
9,486,700
Proposed Expenditures
49,920,000
9,248,600
Proposed Transfers-Out
-
-
Total Expenditures
49,920,000
9,248,600
Projected Surplus/Deficit -4,335,400 238,100 Estimated Beginning Fund Balance - 7/1/26
6,057,236
4,917,562
Projected Ending Fund Balance - 6/30/27 $1,721,836 $5,155,662 Appropriations Limit (Gann Limit)
Article XIII B of the California Constitution requires local governments to annually calculate an appropriations limit, commonly referred to as the Gann Limit. The appropriations limit establishes a constitutional cap on the amount of tax proceeds that may be appropriated each fiscal year and is adjusted annually based on the population growth factor and changes in California per capita personal income.

Based on the adjustment factors published by the California Department of Finance, the City's FY27 appropriations limit is calculated at approximately $268.0 million. Appropriations subject to limitation, which are primarily financed by proceeds of taxes, are estimated at approximately $132.6 million, representing 49.4% of the City's appropriations limit. Accordingly, the City remains well below its constitutional spending limitation for FY27, with available appropriations capacity of approximately City of Orange Printed on 6/4/2026Page 14 of 19
powered by Legistar™
1308
Item #: 9.1. 6/9/2026 File #: 26-0356
$135.4 million.

To better evaluate long-term pension-related risks and forecast sensitivity, staff developed a second forecasting scenario using modified CalPERS assumptions, Model 2.

FY27 Model 1
Revenue Assumptions
Sales Tax:

While the City’shistorical five-year average sales tax growth is approximately 0.7%, the forecast assumes gradual growth beginning at 0.7% in FY28 and increasing incrementally to 2.5% by FY32.

Property Tax:

Transient Occupancy Tax (TOT):

Fees and Fines:

These revenues have historically demonstrated moderate stability, with growth trends ranging from

3.7% to 6.4%. Considering recent Council-approved fee adjustments and the implementation of new fines, the model assumes annual growth of 4%.

Other Revenues:

City of Orange Printed on 6/4/2026Page 15 of 19
powered by Legistar™
1309
Item #: 9.1. 6/9/2026 File #: 26-0356
Internal Service Revenues:

Actual results may vary depending on broader economic conditions, consumer spending patterns, inflationary trends, and regional economic performance.

Expenditure Assumptions
Salaries and Benefits:

Operating Non-Personnel Expenses:

Internal Service Costs:

Similar to Internal Service Revenues, these costs are based on the City’supdated cost allocation study prepared by Matrix Consulting Group. The model assumes annual CPI-based increases of 3%.

Leave Payouts:

Unfunded Accrued Liability (UAL):

The UAL represents the City’s annual required contribution to CalPERS for unfunded pension City of Orange Printed on 6/4/2026Page 16 of 19
powered by Legistar™
1310
Item #: 9.1. 6/9/2026 File #: 26-0356
The UAL represents the City’s annual required contribution to CalPERS for unfunded pension obligations. One modeled scenario assumes FY26 investment returns of approximately 12%, resulting in projected UAL payments decreasing to approximately $5.2 million in FY28 and no projected payments in subsequent years. While this scenario is mathematically possible under current modeling assumptions, it presents a significant forecasting risk and may not be sustainable over the long term.

Workers’ Compensation:

General Liability:

Capital Projects Fund:

Deferred Capital Projects
· Facilities Condition Assessment
· City Hall Roof Replacement
· Fire Station 7 - Roof Replacement
City of Orange Printed on 6/4/2026Page 18 of 19
powered by Legistar™
1312
Item #: 9.1. 6/9/2026 File #: 26-0356
· Fire Station 8 - Exterior Paint and Roof Replacement
· Main Library Gutter Replacement
· Community Services Building Roof Replacement
· City Hall Landscape Renovation
· City Hall - Elastomeric Coating Renewal
Conclusion
The FY27 Operating and Capital Budget reflects the significant fiscal challenges facing the City while prioritizing public safety and maintaining a standard level of service for the residents and businesses of Orange. The budget includes substantial balancing measures, operational adjustments, and the strategic use of available resources to address ongoing structural budget pressures and support core City operations. However, limited financial resources continue to constrain the City’s ability to address deferred maintenance, restore service reductions, and meet increasing operational demands and community expectations. While the FY27 Budget provides a responsible financial plan for the coming year, long-term fiscal sustainability will require continued evaluation of expenditures, service levels, organizational efficiencies, and revenue strategies. Tonight, staff is seeking the City Council’s adoption of the FY27 Operating and Capital Budget for all funds.

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE ADOPTING SAID
CITY’S BUDGET FOR THE FISCAL YEAR 2026-
27 AND AUTHORIZING TRANSFER OF FUNDS

WITHIN AND BETWEEN APPROPRIATIONS,

TRANSFER OF FUNDS BETWEEN FUNDS, AND
ADDITIONAL APPROPRIATIONS.

BE IT RESOLVED by the City Council of the City of Orange, California, as follows:

SECTION I. Adoption of Budget

The City of Orange budget for the Fiscal Year 2026-27, as amended by the City Council and on file in the office of the City Clerk, is hereby adopted as the budget for the City of Orange for the Fiscal Year 2026-27. Appropriations for the Annual Budget are set forth in the Schedule of Operating Expenditures by Fund. Appropriations existing as of June 30, 2026, for CIP projects will be carried over to the 2026-27 fiscal year except for those projects which are completed, as determined by the City Manager, before the end of the 2025-26 fiscal year.

SECTION II. Transfer of Funds Within and Between Appropriations

A. The City Manager, or designee, may approve budget transfers within the same fund to meet operational needs. Department Heads may initiate transfers between non -salary object classifications or programs within their departmental appropriations subject to approval by the Finance Director. Transfers affecting salary and benefit appropriations shall require approval of the City Manager or designee.

B. Transfers between different capital projects shall require approval by the City Council.

SECTION III. Transfers of Funds Between Funds

Transfers between funds identified in the adopted budget, including those reflected in the Schedule of Transfers, are authorized and shall be made as operationally necessary. Any transfer of funds between separate funds not specifically authorized by the a dopted budget shall require approval by the City Council.

SECTION IV. Additional Appropriations

The budget may be amended to add, change, or delete appropriations only upon approval by the City Council.

ATTACHMENT 1
1314
2 ADOPTED this 9th day of June 2026.

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney, City of Orange

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

1315
RESOLUTION NO. 11699

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE ADOPTING THE

APPROPRIATIONS LIMIT FOR THE FISCAL
YEAR 2026-27.

WHEREAS, the voters of California on November 6, 1979, added Article XIIIB to the State Constitution placing various limitations on the appropriations of the state and local governments; and

WHEREAS, Article XIIIB was amended by Proposition 111 and SB88 to provide for the calculation of the appropriations limit for Fiscal Years beginning with 1990-91 using, at the City's election, the City's own population growth or the population growth of the County, and the growth in California per capita income or the growth in non -residential assessed valuation due to new construction; and

WHEREAS, data necessary to calculate the growth in the non -residential assessed value was not available from the County Assessor and the City may need to adjust the limit on appropriations once the data is available; and

WHEREAS, the information and the elections made as set forth above are necessary for making these adjustments and are attached as Exhibit "A"; and

WHEREAS, the City of Orange, to the best of its knowledge, has complied with all the provisions of Article XIIIB in determining the appropriation limit for Fiscal Year 2026-27.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the Appropriations Limit in Fiscal Year 2026 -27 shall be $268,231,908 and the City’s appropriations subject to limitation are $132,596,864 .

ADOPTED this day of , 2026.

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

1316
2 APPROVED AS TO FORM:

Nathalie Adourian, City Attorney, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

1317

EXHIBIT "A"

2026-27 APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB

2026-27 APPROPRIATION LIMIT IS CALCULATED AS FOLLOWS:

The following information was provided by the State Department of Finance in order to calculate the Appropriation Limit for 2026-27:

21-22 22-23 23-24 24-25 25-26 26-27
POPULATION GROWTH 0.9916 1.0010 1.0066 1.0031 1.0095 0.9963 CHANGE IN PER CAPITA INCOME 1.0573 1.0755 1.0444 1.0362 1.0644 1.0495 TOTAL ADJUSTMENT 1.0484 1.0766 1.0513 1.0394 1.0745 1.0456 LAST YEAR'S LIMIT 194,112,617 203,507,668 219,096,355 230,335,998 239,411,236 257,247,373 CURRENT YEAR'S LIMIT 203,507,668 219,096,355 230,335,998 239,411,236 257,247,373 268,977,853 OTHER ADJUSTMENTS:

ASSUMED RESPONSIBILITY:

BOOKING FEES - - - - - -

PROP TAX ADMIN CHG - - - - - - ADJ. CURRENT YR. LIMIT 203,507,668 219,096,355 230,335,998 239,411,236 257,247,373 268,977,853 Greater of
City County City County Population
Fiscal Year Date Population Population Growth Growth Changes 21-22 01-01-20 139,504 3,180,440
01-01-21 137,366 3,153,718 -1.53% -0.84% -0.84% 22-23 01-01-21 137,534 3,168,941
01-01-22 137,676 3,161,604 0.10% -0.23% 0.10% 23-24 01-01-22 138,155 3,151,305
01-01-23 139,063 3,136,922 0.66% -0.46% 0.66% 24-25 01-01-23 138,842 3,140,716
01-01-24 138,621 3,150,493 -0.16% 0.31% 0.31% 25-26 01-01-24 138,403 3,169,873
01-01-25 139,724 3,175,233 0.95% 0.17% 0.95% 26-27 01-01-25 141,825 3,175,332
01-01-26 141,063 3,163,509 -0.54% -0.37% -0.37% 1318

EXHIBIT "A"

2026-27 APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB (Continued)

Percentage Changes in Per Capita Personal Income:

Per Capita Income Converted to a Ratio:

1319

RESOLUTION NO. 11700

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING RESOLUTION NO.
11668 BETWEEN THE CITY OF ORANGE AND THE
ORANGE MUNICIPAL EMPLOYEES’ ASSOCIATION

WHEREAS, the City of Orange, hereinafter referred to as “City,” and the Orange Municipal Employees’ Association, hereinafter referred to as “OMEA” has an existing labor contract in effect through June 30, 2027; and

WHEREAS, the Code Compliance Technician classification is being proposed by City staff effective June 28, 2026; and

WHEREAS, the classification of Code Compliance Technician must be established with a commensurate salary range within the OMEA MOU; and

WHEREAS, the new salary range for this classification must be authorized by the City Council and published by the City in order for the salary range to be considered pension-reportable, pursuant to CalPERS law.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the attached updated OMEA salary table is amended effective June 28, 2026, with the new classification of Code Compliance Technician incorporated by reference as Appendix A.

ADOPTED this 9th day of June 2026.

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney, City of Orange
1320
2 STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

1321

APPENDIX A
ORANGE MUNICIPAL EMPLOYEES’ ASSOCIATION

ANNUAL SALARY RANGES
EFFECTIVE JUNE 28, 2026

3.0% Cost of Living Adjustment

CLASSIFICATION A/1 B/2 C/3 D/4 E/5 F/6
ACCOUNTANT $78,350 $82,355 $86,545 $90,957 $95,605 $100,474 ADMINISTRATIVE ASSISTANT $60,453 $63,543 $66,781 $70,180 $73,764 $77,522 ADMINISTRATIVE SPECIALIST $59,847 $62,900 $97,014 $69,488 $73,023 $76,756 ASSISTANT ENGINEER $90,537 $95,172 $100,005 $105,109 $110,474 $116,110 ASSISTANT PLANNER $73,431 $77,176 $81,119 $85,247 $89,598 $94,171 ASSOCIATE CIVIL ENGINEER $101,550 $106,741 $112,155 $117,890 $123,909 $130,213 ASSOCIATE ENGINEER $101,550 $106,741 $112,155 $117,890 $123,909 $130,213 ASSOCIATE PLANNER $87,435 $91,909 $96,581 $101,513 $106,692 $112,118 BUILDING INSPECTOR $73,802 $77,559 $81,527 $85,667 $90,043 $94,641 BUSINESS LICENSE INSPECTOR $69,513 $73,060 $76,780 $80,698 $84,814 $89,140 BUYER $72,343 $76,039 $79,907 $83,986 $88,275 $92,762
CODE COMPLIANCE OFFICER $71,626 $75,272 $79,116 $83,146 $87,385 $91,847 CODE COMPLIANCE TECHNICIAN* $60,453 $63,543 $66,781 $70,180 $73,764 $77,522

COMBINATION BUILDING
INSPECTOR $77,571 $81,527 $85,692 $90,055 $94,653 $99,486 CONSTRUCTION INSPECTOR I $67,127 $70,551 $74,148 $77,930 $81,910 $86,087 CONSTRUCTION INSPECTOR II $74,172 $77,955 $81,934 $86,100 $90,500 $95,110 CONTRACT ADMINISTRATOR $90,537 $95,172 $100,005 $105,109 $110,474 $116,110 ENGINEERING TECHNICIAN I $63,543 $66,781 $101,092 $73,777 $77,534 $81,489 ENGINEERING TECHNICIAN II $70,205 $73,789 $77,547 $81,514 $85,655 $90,030

ENVIRONMENTAL COMPLNCE
SPECLST $71,626 $75,272 $79,116 $83,146 $87,385 $91,847 ENVIRONMENTAL SCIENTIST $101,550 $106,741 $112,155 $117,890 $123,909 $130,213 FINANCE ASSISTANT $64,507 $67,795 $71,255 $74,889 $78,708 $82,713 FINANCE CLERK $54,174 $56,930 $59,835 $62,888 $66,101 $69,463 GIS ANALYST $101,550 $106,741 $112,155 $117,890 $123,909 $130,213 HOUSING SPECIALIST $71,626 $75,272 $79,116 $83,146 $87,385 $91,847 HUMAN RESOURCES TECHNICIAN $62,912 $66,126 $69,500 $73,035 $76,768 $80,674 LEAD BUSINESS LICENSE INSPECTR $73,060 $76,793 $80,711 $84,827 $89,153 $93,701 LEAD FINANCE CLERK $73,060 $76,793 $80,711 $84,827 $89,153 $93,701 LIBRARIAN I $65,471 $68,820 $72,318 $76,014 $79,883 $83,961 LIBRARIAN II $72,343 $76,039 $79,907 $83,986 $88,275 $92,762 LIBRARIAN III $79,932 $83,999 $88,300 $92,799 $97,520 $102,501 LIBRARY ASSISTANT $53,630 $56,374 $59,241 $62,270 $65,446 $68,783 LIBRARY CLERK $42,642 $44,817 $47,092 $49,502 $52,023 $54,668 LIBRARY LITERACY COORDINATOR $65,471 $68,820 $72,318 $76,014 $79,883 $83,961 LIBRARY PAGE $36,895 $38,786 $40,751 $42,840 $45,015 $47,314 LIBRARY SUPPORT SERVICES ASST $53,630 $56,374 $59,241 $62,270 $65,446 $68,783 LIBRARY TECHNOLOGY ASSISTANT $53,630 $56,374 $59,241 $62,270 $65,446 $68,783 1322

APPENDIX A (CONTINUED)
ORANGE MUNICIPAL EMPLOYEES’ ASSOCIATION

ANNUAL SALARY RANGES

CLASSIFICATION A/1 B/2 C/3 D/4 E/5 F/6

LIBRARY TECHNOLOGY
COORDINATOR $72,343 $76,039 $79,907 $83,986 $88,275 $92,762 LIBRARY TECHNOLOGY SPECIALIST $65,471 $68,820 $72,318 $76,014 $79,883 $83,961

LIBRARY VOLUNTEER
COORDINATOR $60,453 $63,543 $66,781 $70,180 $73,764 $77,522 OFFICE ASSISTANT $47,116 $49,514 $52,036 $54,693 $57,474 $60,403 PAYROLL TECHNICIAN $73,060 $76,793 $80,711 $84,827 $89,153 $93,701 PERMIT TECHNICIAN $60,453 $63,543 $66,781 $70,180 $73,764 $77,522 PLAN CHECK ENGINEER $90,537 $95,172 $100,005 $105,109 $110,474 $116,110 PLANNING TECHNICIAN $63,234 $66,447 $69,846 $73,406 $77,151 $81,082 PROJECT ENGINEER $95,172 $100,042 $105,122 $110,498 $116,135 $122,043 REC SERVICES COORDINATOR $65,805 $69,154 $72,689 $76,397 $80,291 $84,382 SENIOR CODE COMPLIANCE OFFICER $79,141 $83,170 $87,422 $91,872 $96,556 $101,488 SENIOR FINANCE CLERK $59,847 $62,900 $66,114 $69,488 $73,023 $76,756 SENIOR LIBRARY CLERK $49,514 $52,048 $54,705 $57,486 $88,226 $63,506 SENIOR OFFICE ASSISTANT $52,060 $54,705 $57,499 $60,440 $63,506 $66,756 SENIOR PERMIT TECHNICIAN $66,793 $70,205 $73,777 $77,547 $81,502 $85,655 SR COMBINATION BUILDING INSPCT $85,717 $90,092 $94,665 $99,498 $104,578 $109,905 SR TRAFFIC SIGNAL TECHNICIAN $85,717 $90,092 $94,665 $99,498 $104,578 $109,905 STOCK CLERK $49,279 $51,788 $54,433 $57,202 $60,119 $63,184

TRAFFIC MGMT CENTER
TECHNICIAN $85,717 $90,092 $94,665 $99,498 $104,578 $109,905 TRAFFIC SIGNAL TECHNICIAN I $63,543 $66,781 $70,192 $73,777 $77,534 $81,489 TRAFFIC SIGNAL TECHNICIAN II $70,205 $73,789 $77,547 $81,514 $85,655 $90,030 TRANSPORTATION ANALYST $101,550 $106,741 $112,155 $117,890 $123,909 $130,213

WAREHOUSE/INVENTORY
SPECIALIST $65,805 $69,154 $72,689 $76,397 $80,291 $84,382

*Note: The classification of Code Compliance Technician is established effective June 28, 2026 pursuant to City Council FY27 budget adoption.

1323
Estimated Projected
Fund No Fund Balance Total Total Fund Balance
General Funds Funds 7/1/2026 Revenues Transfers In Revenue Expenditures Transfers Out Expenditure 6/30/2027 100 General Fund 27,839,759 155,678,800 15,000,000 170,678,800 160,057,600 9,554,500 169,612,100 28,906,459 105 Reimbursable 1,026,414 0 0 0 0 0 0 1,026,414
Total General Funds 28,866,173 155,678,800 15,000,000 170,678,800 160,057,600 9,554,500 169,612,100 29,932,873 Special
Revenue
Funds
200 PEG Program 169,501 323,500 0 323,500 254,800 0 254,800 238,201 201 CASP 507,672 80,000 0 80,000 0 0 0 587,672
210 Building Records and Planning Doc. 1,646,587 494,000 0 494,000 1,028,900 0 1,028,900 1,111,687 225 EMT Program 4,176,378 5,353,600 0 5,353,600 5,575,900 3,500,000 9,075,900 454,078 226 Opioid Settlement 163,609 46,200 0 46,200 0 0 0 209,809 231 Affordable Housing 4,936,522 99,500 0 99,500 0 0 0 5,036,022 232 Low/Moderate Income Hsng Asset 28,124,555 475,900 0 475,900 404,400 0 404,400 28,196,055 245 Air Pollution Reduction (AQMD) 371,485 177,400 0 177,400 68,900 0 68,900 479,985 250 O.C.P.T. 245,132 27,200 0 27,200 12,200 0 12,200 260,132 263 Measure M2 6,738,821 4,335,500 0 4,335,500 4,205,600 0 4,205,600 6,868,721 270 Special Gas Tax Maint 1,663,301 3,818,800 0 3,818,800 4,301,300 0 4,301,300 1,180,801 274 RMRA 5,101,239 3,655,200 0 3,655,200 3,500,000 0 3,500,000 5,256,439 287 Citywide TSIP 3,662,662 304,000 0 304,000 1,695,900 0 1,695,900 2,270,762 291 Santiago LMD 1,201,416 992,100 0 992,100 958,300 0 958,300 1,235,216 293 Sycamore Cross LMD 139,079 51,300 0 51,300 54,700 0 54,700 135,679 294 Del Rio LMD 350,929 96,700 0 96,700 84,700 0 84,700 362,929 310 CDBG 594,752 1,164,200 0 1,164,200 1,067,500 0 1,067,500 691,452 316 Federal Rental Rehab 173,210 5,900 0 5,900 0 0 0 179,110 317 HOME Grant 7,061,604 962,400 0 962,400 1,137,500 0 1,137,500 6,886,504 353 Federal Police Grants -9,575 12,300 0 12,300 1,300 0 1,300 1,425 355 Asset Seizure-Federal 1,736,993 256,200 0 256,200 294,800 0 294,800 1,698,393 358 Asset Seizure-RNSP Federal 258,130 117,600 0 117,600 0 0 0 375,730 359 Asset Seizure-RNSP Treasury 5,872 1,400 0 1,400 200 0 200 7,072 360 Asset Seizure-Treasury 1,114,848 354,200 0 354,200 77,600 0 77,600 1,391,448 399 Other Federal Grants -4,368 0 0 0 0 0 0 -4,368
400 Proposition 172 1,688,684 1,345,600 0 1,345,600 1,162,600 0 1,162,600 1,871,684 412 SB2 Building Home & Jobs Act -3,085,946 1,446,200 0 1,446,200 5,800 0 5,800 -1,645,546 420 CA Parklands 146,787 5,000 0 5,000 0 0 0 151,787
450 Traffic Safety Grant 1,034,962 188,200 0 188,200 82,400 0 82,400 1,140,762 454 AB3229-COPS/State 1,057,458 457,400 0 457,400 497,800 0 497,800 1,017,058 456 Asset Seizure-State 85% 177,610 17,600 0 17,600 20,600 0 20,600 174,610 457 Asset Seizure-State 15% 246,021 8,400 0 8,400 200 0 200 254,221 Total Special Revenue Funds 71,395,929 26,673,500 0 26,673,500 26,493,900 3,500,000 29,993,900 68,075,529 Capital
Project Funds
500 Capital Projects 12,013,635 3,585,000 0 3,585,000 5,140,500 8,500,000 13,640,500 1,958,135 510 Park Acquisition 7,651,835 220,100 0 220,100 2,370,000 0 2,370,000 5,501,935 511 Park Acq (Quimby) 49,710 18,700 0 18,700 0 0 0 68,410 512 El Modena Park Facilities 760,835 144,300 0 144,300 500,000 0 500,000 405,135 540 Old Town Parking 14,667 5,200 0 5,200 15,500 0 15,500 4,367 550 Reimbursable Capital -5,393,860 5,300,000 0 5,300,000 7,850,000 0 7,850,000 -7,943,860 551 County Park Grants 2,730 0 0 0 0 0 0 2,730
555 Parking In Lieu 48,245 2,400 0 2,400 0 0 0 50,645
560 Fire Facilities Fees 703,983 22,800 0 22,800 600,000 0 600,000 126,783 570 Police Facilities Fees 724,052 21,500 0 21,500 615,000 0 615,000 130,552 580 Library Facilities Fees 468,497 17,900 0 17,900 326,900 0 326,900 159,497 877 Serrano 91-2 1,948,768 2,177,200 0 2,177,200 8,500 0 8,500 4,117,468 878 Del Rio CFD #06-1 3,535,344 1,642,200 0 1,642,200 10,500 0 10,500 5,167,044 902 Capital Bond Proceeds 1,630,568 1,801,100 0 1,801,100 1,973,200 0 1,973,200 1,458,468 950 City Trf: Tustin Project Taxable 1,173,473 33,100 0 33,100 0 0 0 1,206,573 Total Capital Project Funds 25,332,483 14,991,500 0 14,991,500 19,410,100 8,500,000 27,910,100 12,413,883 TOTAL GOVERNMENTAL FUNDS 125,594,584 197,343,800 15,000,000 212,343,800 205,961,600 21,554,500 227,516,100 110,422,284 Internal
Service Funds
720 Equipment Replacement 3,052,486 244,200 0 244,200 2,795,000 0 2,795,000 501,686 730 Worker's Compensation -12,755,459 6,239,400 0 6,239,400 5,344,700 0 5,344,700 -11,860,759 731 Liability -12,302 4,887,600 0 4,887,600 6,144,400 0 6,144,400 -1,269,102 760 Emp Accrued Liability -5,606,386 3,613,000 9,554,500 13,167,500 10,618,200 0 10,618,200 -3,057,086 790 Computer Replacement 7,181,367 446,800 0 446,800 1,116,000 3,000,000 4,116,000 3,512,167 Total Internal Service Funds -8,140,294 15,431,000 9,554,500 24,985,500 26,018,300 3,000,000 29,018,300 -12,173,094 Enterprise
Funds
600 Water Fund 6,057,236 45,584,600 0 45,584,600 49,920,000 0 49,920,000 1,721,836 601 Sanitation (Sewer) Fund 4,917,562 9,486,700 0 9,486,700 9,248,600 0 9,248,600 5,155,662 Total Enterprise Funds 10,974,798 55,071,300 0 55,071,300 59,168,600 0 59,168,600 6,877,498 TOTAL OF ALL CITY'S FUNDS 128,429,088 267,846,100 24,554,500 292,400,600 291,148,500 24,554,500 315,703,000 105,126,688 City of Orange
Fiscal Year 2026-2027
Schedule of Changes in Fund Balance
ATTACHMENT 4
1324
FY 27 Budget
Actual Actual Estimate Budget
2023-24 2024-25 2025-26 2026-27

GENERAL FUND
Salaries and Benefits 101,895,187 104,364,882 103,947,888 108,599,700 Contractual Services 4,384,946 6,141,942 10,083,247 7,473,200 Miscellaneous Expenses 4,115,297 961,597 3,217,645 3,894,200 Materials and Supplies 4,649,079 4,851,803 4,702,718 4,731,000 Repair/Maintenance 7,487,356 6,865,145 9,594,564 10,037,200 Utility Charges 3,006,642 3,321,196 3,534,948 3,605,500 Debt Service 17,385,681 17,377,333 17,519,111 17,908,400 Capital Outlay 192,773 1,006,636 146,212 74,500 Internal Service Costs 8,678,355 14,029,588 8,866,258 3,733,900 Transfers - 487,680 1,455,252 9,554,500 Reimbursable Expenses - 1,713,477 1,997,773 - Total General Fund 151,795,316 161,121,279 165,065,616 169,612,100

SPECIAL REVENUE FUNDS
Salaries and Benefits 5,724,544 5,749,245 5,275,741 6,553,000 Contractual Services 1,411,036 1,854,991 3,326,513 1,392,100 Miscellaneous Expenses (16,214,721) 2,406,336 3,078,823 890,000 Materials and Supplies 933,497 1,022,682 1,522,065 2,180,600 Repair/Maintenance 1,162,942 998,861 1,453,258 1,256,200 Utility Charges 305,830 297,870 344,138 327,100 Debt Service 648,859 649,024 649,024 4,389,500 Capital Improvements 10,187,477 4,540,597 14,824,387 10,786,500 Internal Service Costs 2,454,510 2,482,822 2,300,044 2,218,900 Transfers 129,049 - - - Total Special Revenue Funds 6,743,023 20,002,428 32,773,993 29,993,900

CAPITAL PROJECTS FUNDS
Salaries and Benefits 80,568 65,157 67,731 - Contractual Services 132,189 60,773 99,149 19,000 Miscellaneous Expenditures 277,180 274,877 608,454 300,000 Internal Service Costs - - 139,725 10,800 Debt Service 5,708,540 3,517,341 - 1,715,100 Repair/Maintenance 8,235 11,314 40,230 80,200 Capital Improvements 11,542,434 7,724,581 17,887,423 17,285,000 Transfers Out 5,810,270 3,000,000 3,000,000 8,500,000 Total Capital Projects Funds 23,559,416 14,654,043 21,842,712 27,910,100

INTERNAL SERVICE FUNDS
Salaries and Benefits 2,016,163 8,992,829 14,173,643 11,120,200 Contractual Services 274,726 196,483 768,094 669,200 Miscellaneous Expenses 7,130,643 11,573,821 9,721,101 10,008,600 Materials and Supplies 65,373 63,803 63,982 82,800 Debt Service 661,821 690,558 - - Capital Outlay 3,418,345 3,673,265 7,923,836 3,845,300 Internal Service Costs 350,918 691,823 482,992 290,900 Utility Charges 1,202 1,421 1,196 1,300 Transfers - - 930,000 3,000,000 Total Internal Service Funds 13,919,191 25,884,003 34,064,844 29,018,300 City of Orange
Fiscal Year 2026-2027
Schedule of Expenditures by Fund Type and Category
1325
FY 27 Budget
Actual Actual Estimate Budget
2023-24 2024-25 2025-26 2026-27
City of Orange
Fiscal Year 2026-2027
Schedule of Expenditures by Fund Type and Category

ENTERPRISE FUNDS
Salaries and Benefits 10,847,239 10,405,129 8,437,361 10,179,600 Contractual Services 692,714 785,512 791,459 828,500 Miscellaneous Expenses 343,836 5,174,887 1,965,353 219,300 Materials and Supplies 18,549,399 25,207,389 29,765,465 26,136,200 Repair/Maintenance 2,238,864 2,005,507 3,130,763 2,918,900 Utility Charges 3,208,479 3,478,111 3,045,104 4,154,300 Debt Service 644,512 678,382 1,301,891 1,333,400 Capital Improvements 7,093,395 9,743,428 21,106,671 10,220,300 Internal Service Costs 3,681,674 5,896,620 3,667,712 3,178,100 Transfers - - - - Total Enterprise Funds 47,300,112 63,374,965 73,211,779 59,168,600 GRAND TOTAL 243,317,058 285,036,718 326,958,944 315,703,000 1326
Current Position New Position Department Fund FTE Fiscal Impact Request Administrative Assistant City Clerk 100 -1.00 (92,100) Eliminate Assistant City Manager City Manager 100 -1.00 (340,400) Eliminate Management Intern City Manager 100 -0.50 (22,700) Eliminate Executive Assistant Community Services 100 -1.00 (114,500) Eliminate Administrative Specialist Community Services 100 -1.00 (91,400) Eliminate Recreation Services Coordinator Community Services 100 -1.00 (99,100) Eliminate Recreation Services Coordinator Community Services 100 -1.00 (99,100) Eliminate All positions under activities 7014 Aquatic Community Services 100 -6.50 (318,500) Eliminate Rec Services Leader I Community Services 100 -4.00 (194,100) Eliminate Rec Services Leader II Community Services 100 -3.00 (136,500) Eliminate Rec Services Leader III Community Services 100 -0.50 (12,400) Eliminate Rec Services Specialist Community Services 100 -1.50 (76,500) Eliminate Assistant Recreation Coordinator Community Services 100 -0.75 (72,900) Eliminate Budget Manager Finance 100 -1.00 (166,300) Eliminate Finance Supervisor Finance 100/600 -1.00 (163,100) Eliminate Finance Clerk Finance 100 -1.00 (77,300) Eliminate Purchasing Officer Finance 100 -1.00 (186,400) Eliminate Senior Administrative Analyst Information Technology 100 -1.00 (147,000) Eliminate IT Specialist Information Technology 100 -1.00 (115,400) Eliminate Senior Library Manager Library Services 100 -1.00 (166,500) Eliminate Librarian I Library Services 100 -1.00 (98,700) Eliminate Library Pages Library Services 100 -2.00 (78,400) Eliminate Parking Control Officer I Police 100 -3.80 (169,600) Eliminate Police Record Clerk Police 100 -1.00 (90,100) Eliminate Senior Police Clerk Police 100 -1.00 (97,700) Eliminate Administrative Assistant Public Works 100/220/600 -1.00 (86,700) Eliminate Assistant Public Work Director Public Works 100/220/600 -1.00 (221,400) Eliminate Associate Civil Engineer Public Works 100 -1.00 (145,700) Eliminate Manager Transportation Services/City Traffic
Engineer Public Works 100/270 -1.00 (216,500) Eliminate Library Services Director Library Services 100 -1.00 (244,700) Eliminate - merged with CS Historic Preservation Planner Community Development 100 -1.00 (153,900) Frozen Maintenance Worker Police 100 -1.00 (78,200) Frozen Police Sergeant Police 100 -1.00 (234,800) Frozen Police Officer Police 100 -4.00 (683,200) Frozen Police Officer Police 100 -5.00 (854,000) Frozen Human Resources Analyst II Risk Management Analyst City Attorney 100 0.00 - Title change - no fiscal impact Fiscal Year 2026-27
Schedule of Position Changes
City of Orange
ATTACHMENT 6
1327
Current Position New Position Department Fund FTE Fiscal Impact Request Fiscal Year 2026-27
Schedule of Position Changes
Administrative Services Director Community & Library Services Director Community Services 100 0.00 - Title change - no fiscal impact Permit Technician Code Compliance Technician Community Development 100 0.00 - Title change - no fiscal impact Deputy City Clerk Assistant City Clerk Services Director City Clerk 100 0.00 24,700 Reclass existing position Recreation Services Supervisor Deputy City Clerk City Clerk 100 0.00 24,100 Reclass existing position Sr Assistant to the City Manager Deputy City Manager City Manager 100 0.00 33,800 Reclass existing position Plan Check Engineer Sr Plan Check Engineer Community Development 100 0.00 129,900 Reclass 2 Plan Check Engineer to Senior
Plan Check Engineer
Senior Plan Check Engineer Principal Plan Check Engineer Community Development 100 0.00 37,200 Reclass Sr Plan Check Engineer to Principal
Plan Check Engingeer
Stock Clerk Finance Clerk Finance 100 0.00 7,400 Reclass existing position Accounting Manager Controller Finance 100 0.00 15,300 Reclass existing position Administrative Analyst II Sr Administrative Analyst Fire 100 0.00 12,400 Reclass existing position Librarian III Librarian II Library Services 100 0.00 (29,200) Fill at a lower position Homeless Outreach Specialist Crime Prevention Specialist Police 100 0.00 40,700 Reclass existing position Public Works Administrator Senior Administrative Analyst Public Works 100/220/600 0.00 (163,400) Reclass existing position 189-001
(benefitted)
Public Works Administrator Senior Administrative Analyst Public Works 600 0.00 147,000 Reclass existing position 189-001
(benefitted)
PT Management Intern Finance 100 0.75 45,000
New - 2 PT 19-hour non-benefited
Management Intern
Ambulance Operator Fire 225 18.00 810,000 New positions - enhancement to AO program 1328
Department 2023A 2024A 2025A 2026A 2027 Change
CITY COUNCIL 7.000 7.000 7.000 7.000 7.000 0.0% CITY MANAGER 6.625 9.000 8.000 7.000 5.000 -28.6% CITY ATTORNEY 8.000 8.000 8.000 8.000 7.000 -12.5% CITY CLERK 5.000 8.000 7.500 7.500 7.500 0.0% CITY TREASURER 1.000 1.000 1.000 1.000 1.000 0.0% FINANCE 32.500 32.750 31.250 31.250 28.000 -10.4% HUMAN RESOURCES 10.000 10.000 10.000 10.000 10.000 0.0% INFORMATION TECHNOLOGY 8.000 8.000 8.000 8.000 7.000 -12.5% LIBRARY SERVICES 40.950 40.950 40.525 40.525 32.400 -20.0% FIRE 141.789 141.789 143.039 142.000 160.000 12.7% POLICE 270.639 267.789 258.667 255.667 237.867 -7.0% PUBLIC WORKS 144.950 134.000 133.950 132.950 132.950 0.0% COMMUNITY DEVELOPMENT 24.000 39.000 39.500 40.500 39.500 -2.5% COMMUNITY SERVICES 64.550 63.950 62.950 62.950 42.450 -32.6% TOTAL FTE 765.003 771.228 759.381 754.342 717.667 -4.9% Total Elected 9.000 9.000 9.000 9.000 9.000 0.0% Total Revised FTE 756.003 762.228 750.381 745.342 708.667 -4.9% City of Orange
Fiscal Year 2026-2027
Schedule of Positions
ATTACHMENT 7
1329

Table 1: FY 27 General Fund Budget Balancing Measures - Reductions Measure Amount Deferred/ Reduced
Eliminating Positions $4,141,700
Freezing Positions 2,004,100
Total $6,145,800

Table 2: FY 27 General Fund Budget Balancing Measures – Transfers to General Fund Fund Transfer to GF
225 EMT Program $3,500,000
500 Capital Projects 8,500,000
790 IT Capital 3,000,000
Total $15,000,000

Table 3: FY 27 Deferred and/or Discontinued Projects
Project/Effort Fund
Amount
Deferred/
Reduced
Notes
Facilities Condition Assessment Capital Projects
Fund (500) $100,000 Deferred
City Hall Roof Replacement Capital Projects
Fund (500) 1,350,000 Deferred
Fire Station 7 – Roof
Underlayment Replacement
Capital Projects
Fund (500) 285,000 Deferred
Fire Station 8 – Exterior Paint and
Roof Replacement
Capital Projects
Fund (500) 285,000 Deferred
Main Library Gutter Replacement Capital Projects
Fund (500) 200,000 Deferred

Community Services Building
Roof Replacement
Capital Projects
Fund (500) 350,000 Deferred
City Hall Landscape Renovation Capital Projects
Fund (500) 310,000 Deferred
City Hall – Elastomeric Coating
Renewal
Capital Projects
Fund (500) 200,000 Deferred
Total Deferred Projects $ 3,080,000

ATTACHMENT 8
1330
FY27 Budget

Page 1 ends

Fund 210

General Plan Update - Revenues and expenditures related to the management of building records and planning documents are accounted for in this fund.

Source of Revenue:

1. Technology Fee – This fee is charged at 0.13% of valuation of each building project, and a flat rate for each mechanical, electrical, and plumbing building permit. Funds are utilized to cover the cost of software, services, labor, and equipment used for t he storage, management, and retrieval of records and information.

2. General Plan Amendment Update Surcharge – The surcharge is assessed at 0.05% of valuation of each building project. Funds are collected to be utilized for updating the general plan.

3. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

Restrictions on Revenue – Funds are required by administrative action to be spent only on management of building records and planning documents.

Fund 263

Renewed Measure M (M2) Traffic Improvement - The receipt and disbursement of funds received pursuant to Renewed Measured M (M2), are accounted for in this fund. Measure M was originally approved by Orange County voters in November 1990. It was a 20 -year program (1991-2011) for local transportation improvements funded by a ½ cent sales tax. Voters renewed the ½ cent sales tax in November 2006 for another 30 years (2011-2041). Projects and programs associated with M2 funding include improvements to the Oran ge County freeway system, streets & road networks throughout the County, additional expansion of the Metrolink system, and the cleanup of roadway storm water runoff.

Source of Revenue:

1. Measure M (M2) Tax – The City receives funding from Orange County Transportation Authority (OCTA). The allocations are distributed by OCTA under a formula that accounts for population, street mileage, and amount of sales tax collected in the City.

2. Other Grant – M2 includes funding to support the growing transportation needs of seniors and persons with disabilities through the Senior Mobility Program (SMP). OCTA distributes funding based on the proportion of 60+ residents in the City relative to total county senior population reported by the U.S. Census Bureau.

3. Rents and Concessions - Rental revenue for the property on 292 N. Main Street. This property was purchased with Measure M funds for future Main Street widening project.

4. Plans and Specification Charges – Charges for bids related to street improvement projects.

5. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

ATTACHMENT 10
1331
FY27 Budget

Page 2 ends

Restrictions on Revenue – Pursuant to the Renewed Measure M Transportation Ordinance No. 3, M2 funds must be used only for transportation purposes and expended within 3 years of receipt. They should not be used to supplant developer funding for transportation projects. M2 interest proceeds must be spent on transportation activities consistent with M2 eligible activities per the M2 Ordinance.

Fund 270

Gas Tax - The receipt and disbursement of gas tax funds used for maintenance and construction of city streets and roads are accounted for in these funds.

Source of Revenue:

1. State Gas Tax – Gas tax revenue from the State apportioned based on population according to Street and Highway Code Section 2103, 2105, 2106, 2107, and 2107.5. The City also receives loan repayments from the state for previous borrowing from public transportation funds. This funding is allocated on a per capita basis over three fiscal years:
17-18, 18-19, and 19-20.

2. Rents and Concessions - Rental revenue for the three properties on La Veta Avenue that were purchased with gas tax funds.

3. Expense Reimbursements – Reimbursements for damage to City property.

4. Interest on Investments – Interest earnings are allocated monthly based on cash balance of these funds at the end of the month.

Restrictions on Revenue – Use of gas tax revenues is restricted by Article XIX of the California State Constitution and by Streets and Highways Code Section 2101. Funds must be expended for the research, planning, construction, improvement, maintenance, and operation of local public streets, highways, and exclusive public mass transit guideways.

Fund 274

Road Maintenance Rehabilitation Account (RMRA) – Road Repair and Accountability Act of 2017 (Senate Bill 1) authorizes the State to allocate gas tax funds under Street and Highway Code Section 2031 through the Road Maintenance and Rehabilitation Account (R MRA). The receipt and disbursement of funds from the RMRA and used for maintenance and construction of city streets and roads are accounted for in this fund.

Source of Revenue:

1. State Gas Tax – SB1 increases per gallon fuel excise tax, diesel fuel sales tax, and vehicle registration fee. The State apportions gas tax revenue to the City based on population.

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

Restrictions on Revenue – Use of gas tax revenues is restricted by Streets and Highways Code Section 2030 for road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system. The City is required to sustain a maintenance of effort (MOE) for the receipt of RMRA funds by spending at least the average of FY 09-10 through FY 11-12 general fund expenditures for street, road, and highway purposes. 1332
FY27 Budget

Page 3 ends

Fund 287

Transportation System Improvement Program ( TSIP) - Development impact fees collected for improving the transportation system are accounted for in these funds. A separate fund has been established for each specific geographic area for which the fees are collected and used for the transportation system.

Source of Revenue:

1. TSIP Fees – Fees are collected at building permit issuance according to the fee rates for projects, facilities or uses identified for specific TSIP areas.

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of these funds at the end of the month.

Restrictions on Revenue – Development impact fees are governed by the Mitigation Fee Act (Government Code Section 66000 et. seq.) for development related capital facilities. Fee revenues can be expended only for transportation improvements in the specific areas from which the fees are collected. Pursuant to Government Code Sections 66001 (d) and (e), all unexpended or uncommitted fees which have been on deposit over five years are subject to refunds to the current owners of the development projects for which the fees were paid.

Fund 310

Community Development Block Grant (CDBG - Grant funds are awarded by the U.S. Department of Housing and Urban Development ( HUD) to assist cities and counties in developing programs and projects which benefit low and moderate income residents. The receipt and disbursement of funds for the CDBG. programs are accounted for in these funds.

Source of Revenue:

1. Federal HUD Grants – The City receives CDBG funds from HUD, which determines the amount of each grant by using a formula based on community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas.

2. Principal Repayments/Principal & Revenue Abatements – Deferred loan repayments received from residents in the City to pay off their loans on housing funded by the CDBG. program.

3. Interest on Deferred Loans – Interests received from the deferred loans noted above.

4. Interest on Investments – Interest earnings are allocated monthly based on cash balance of these funds at the end of the month.

Restrictions on Revenue – Funds can only be disbursed to provide programs and projects for low and moderate income Orange residents. Timely expenditure requirement of grant funds is governed by the Code of Federal Regulations (CFR) Title 24, Section 570.902. The amount of undisbursed grant funds on hand cannot be more than 1.5 times the annual allocation for the current program year at 60 days prior to the end of the program year. HUD can withhold future grants until the unexpended funds are reduced to the required level.

1333
FY27 Budget

Page 4 ends

Fund 454

Grants received from the federal and state governments and disbursement of the funding for law enforcement purposes are accounted for in these funds.

Source of Revenue:

1. State Grants – The City receives the Citizens Option for Public Safety/Supplemental Law Enforcement Services Account (COPS/SLESA) funding allocated from the county based on population.

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

Restrictions on Revenue – Pursuant to Government Code Section 30062, funds from the COPS program must be expended exclusively to support front line law enforcement services.

Fund 500

Capital Projects - Capital projects funded with General Fund revenues and a loan to Special Revenue Fund for a capital project are accounted for in this fund.

Source of Revenue:

1. General Fund contributions, as authorized by City Council.

2. Interfund Loans – Interest received from a loan to Fund 120 Proposition 172 for the purchase of 800 MHz radio system.

Restrictions on Revenue – Funds are required by administrative action to be spent only on major capital projects other than those financed by Internal Service, Proprietary or Redevelopment (Successor) Funds.

Fund 510

Park Acquisition & Development - Park development fees collected to fund the acquisition, construction, and renovation of park facilities are accounted for in these funds.

Source of Revenue:

1. Park Acquisition Fees – The City is divided into two districts, using Newport Avenue as the east/west dividing line. Fees are collected at the issuance of building permits to finance the cost of park facilities and improvements for new residential development.

Park acquisition (infill) fees in fund 510 apply to newly created housing units that are not a part of a new subdivision.

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of these funds at the end of the month.

Restrictions on Revenue – Park fees in fund 510 are governed by the Mitigation Fee Act (Government Code Section 66000 et. seq.) to fund the need for additional park development based on the impact of the development. The unexpended or uncommitted fees over five years after they were deposited in fund 510 need to be refunded to the current owners of the 1334
FY27 Budget

Page 5 ends

development projects for which the fees were paid according to Government Code Sections 66001 (d) and (e).

Fund 512

El Modena Park Facility – Rental fees collected from the El Modena cell towers are used to fund the development and improvement of City park and recreational facilities.

Source of Revenue:

1. Cell Phone Tower Rent Revenue – Lease revenue for the cell towers located in the park.

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

Restrictions on Revenue – Funds are required by administrative action to be disbursed only on the development and improvement of park and recreational facilities in the City.

Fund 550
Reimbursable Capital Projects - Projects for which the City is the lead agency and for which funding is provided by a grant or through another agency are accounted for in this fund.

Source of Revenue:

1. Grants – Grant funding received from Federal, County, State or other public agencies.

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

Restrictions on Revenue – Funds are restricted to be expended only on the reimbursable capital projects and are required to stay in compliance with the requirements per the grant/contract agreements.

Fund 560

Fire Facility Fees – Development impact fees collected for the purpose of constructing or improving fire facilities are accounted for in this fund.

Source of Revenue:

1. Fire Facilities and Equipment Fees – Fees are paid at the issuance of building permits to fund the fire facility needs created by new development based on types of land use.

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

Restrictions on Revenue – The funds can be used only for the purpose of acquiring, developing, maintaining and improving the fire protection services, compliant with the Government Code Sections 66000 through 66009 of the Mitigation Fee Act. Fees collected are restricted to be spent or committed within 5 years, or be subject to reimbursement pursuant to Government Code Sections 66001 (d) and (e).

Fund 570

1335
FY27 Budget

Page 6 ends

Police Facility Fees - Development impact fees collected for the purpose of constructing or improving police facilities are accounted for in this fund.

Source of Revenue:

1. Police Facility Fees – Fees are collected at building permit issuance for the construction and improvement of police facilities attributable to new residential and non -residential development projects.

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

Restrictions on Revenue – The funds are restricted by Section 66000 et seq. of the Government Code (the Mitigation Act) to be disbursed only on new Police facilities or expansion of current facilities to serve new development. Fees collected are required to be spent or committed within 5 years, or be subject to reimbursement pursuant to Government Code Sections 66001 (d) and (e).

Fund 580

Library Facility Fees – Development impact fees collected for the purpose of constructing or improving library facilities are accounted for in this fund.

Source of Revenue:

1. Library Impact Fees – Fees are collected at the issuance of building permits for the need of new library facilities and other capital acquisition costs required by new residential development projects only. Fees are calculated based on density classificati on (dwelling units/gross acre).

2. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

Restrictions on Revenue – Impact fee revenue must be spent on new library facilities or expansion of current facilities for new residential development in accordance with the Mitigation Fee Act (commencing with Section 66000 of the Government Code). All un expended or uncommitted fees which have been on deposit over five years are subject to refunds to the current owners of the development projects for which the fees were paid.

Fund 600
Water Utility Operations – Revenues and expenses related to the operation and improvements of the water utility operation are accounted for in this fund.

Source of Revenue:

1. Water Services – Water consumption charge and service capacity charge are collected from customers.

2. Elevation Pumping Charge – This fee is charged to the residents living in higher elevations to recover a portion of the cost of pumping water to elevated zones.

3. Water Fire Service Charge – Customers with a private fire service connection are charged for water system fire flow capacity and maintenance.

1336
FY27 Budget

Page 7 ends

4. Water Sales – Agricultural, Construction, and Materials – Revenue received for water consumption from nurseries (agricultural), construction water usage, and materials used for new service installations.

5. Water Frontage Charges – Fees are collected for water main connections.

6. Water Connection Fees – This fee is charged for water connection in new development.

7. Development Related Services – Revenue received related to project review, plan check and/or inspection of a developing/redeveloping property on water services requested by a customer.

8. Establishment Fee – This fee is assessed for initiating water services.

9. Plan Check Fees – Plan check and inspection fees for small scale projects.

10. Rental of Construction Meters – Rental revenue for construction meters.

11. Other Water Fees – Fees are charged to recover labor and material costs for new service installations.

12. Water Delinquent Penalty – Penalty charge on unpaid balance for services rendered.

13. Water Penalties – Penalty fee for water reconnection.

14. Cell Phone Tower Rent – Lease revenue for a portion of water facility property to allow a telecommunication company to gain access to a wireless facility.

15. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.

16. Other Revenue – Includes expense reimbursements, damage to City property, and bids from contractors.

Restrictions on Revenue – Revenues generated in the Water fund are to be used to fund the maintenance and operation of the City’s water system as governed by Proposition 218.

Fund 601

Sewer - Sewer development fees collected to fund the construction of sewer mains needed as a result of new development are accounted for in this fund.

Source of Revenue:

1. Sewer Capital – Sewer infrastructure fees are collected to fund sewer replacement and rehabilitation through City identified capital projects that are necessary to replace and upgrade the sewer system.

2. Frontage Charges – Charges for sewer connection at the frontage of new developments.

3. Interest on Investments – Interest earnings are allocated monthly based on cash balance of this fund at the end of the month.
1337
FY27 Budget

Page 8 ends

Restrictions on Revenue - Proposition 218 in the California Constitution Article 13D states that revenues derived by the charge cannot be used for any other purpose other than that for which the charge was imposed for sewer capital. Other funds are restri cted by administrative action to be utilized only for sewer construction.

Fund 790

Computer Replacement - Purchases of computer equipment are accounted for in this fund.

Source of revenue:

1. Charges to Budgeted Funds - An allocation is made to all non-general fund programs.

Transfers from the general fund to the internal service funds are made to fund the operations when appropriate.

Restrictions on Revenue - Revenues in the internal service funds are restricted by administrative action to cover only expenditures for these funds.

Fund 954

City Transfer of Bond Funds from Former Redevelopment Agency – The proceeds from the issuance of tax -exempt bonds or notes pledged by tax increment revenues of the combined project area are accounted for in these funds.

Source of revenue:

1. Interest on Investments – Interest earnings are allocated monthly based on the remaining cash balance of these funds at the end of the month.

Restrictions on Revenue – Funds can be utilized only for capital expenditures restricted to “public purpose” activities as defined by California Redevelopment Law.

1338
CITY OF ORANGE MODEL 1
FISCAL YEAR 2026-2027 FINANCIAL MODEL (FY27 MODEL)

REVENUES, EXPENDITURES & NET OPERATING RESULTS
2026E 2027B 2028F 2029F 2030F 2031F 2032F

REVENUES & SOURCES
01 - SALES TAX 51,335,804 51,594,300 51,955,500 52,475,100 53,262,200 54,327,400 55,685,600 GROWTH RATE 4.0% 0.5% 0.7% 1.0% 1.5% 2.0% 2.5%
02 - PROPERTY TAX 59,822,181 61,700,800 64,724,100 67,895,600 71,222,500 74,712,400 78,373,300 GROWTH RATE 3.8% 3.1% 4.9% 4.9% 4.9% 4.9% 4.9%
03 - TRANSIENT OCCUPANCY TAX 6,100,192 6,198,100 6,427,400 6,665,200 6,911,800 7,167,500 7,432,700 GROWTH RATE -0.8% 1.6% 3.7% 3.7% 3.7% 3.7% 3.7%
04 - FEES & FINES 15,292,737 15,788,200 16,419,700 17,076,500 17,759,600 18,470,000 19,208,800 GROWTH RATE 15.2% 3.2% 4.0% 4.0% 4.0% 4.0% 4.0%
05 - OTHER REVENUES 15,240,169 15,566,900 15,872,200 16,183,500 16,500,900 16,824,600 17,154,600 GROWTH RATE 15.1% 2.1% 2.0% 2.0% 2.0% 2.0% 2.0%
06 - INTER-FUND REVENUE 10,077,495 4,830,500 4,975,400 5,124,700 5,278,400 5,436,800 5,599,900 GROWTH RATE -34.9% -52.1% 3.0% 3.0% 3.0% 3.0% 3.0%
TOTAL REVENUES 157,868,578 155,678,800 160,374,300 165,420,600 170,935,400 176,938,700 183,454,900 % ANNUAL CHANGE 1.8% -1.4% 3.0% 3.1% 3.3% 3.5% 3.7%

EXPENDITURES & USES
01 - SALARIES 76,448,957 78,722,600 81,084,300 83,516,800 86,022,300 88,603,000 91,261,100 GROWTH RATE -0.2% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
02 - BENEFITS 27,498,932 29,877,200 30,773,500 31,696,700 32,647,600 33,627,000 34,635,800 GROWTH RATE -0.8% 8.6% 3.0% 3.0% 3.0% 3.0% 3.0%
03 - OPERATING EXPENSE 31,279,334 29,815,600 30,710,100 31,631,400 32,580,300 33,557,700 34,564,400 GROWTH RATE 35.1% -4.7% 3.0% 3.0% 3.0% 3.0% 3.0%
04 - INTERNAL SERVICE COSTS 8,866,258 3,733,900 3,845,900 3,961,300 4,080,100 4,202,500 4,328,600 GROWTH RATE -36.8% -57.9% 3.0% 3.0% 3.0% 3.0% 3.0%
05 - DEBT SERVICES 17,519,111 17,908,400 17,908,400 17,908,400 17,908,400 17,908,400 17,908,400 GROWTH RATE 0.8% 2.2%
TOTAL EXPENDITURES, BY ACCOUNT GROUP 161,612,592 160,057,700 164,322,200 168,714,600 173,238,700 177,898,600 182,698,300 % ANNUAL CHANGE 1.7% -1.0% 2.7% 2.7% 2.7% 2.7% 2.7%
NET OVER/(UNDER) BEFORE TRANSFERS (3,744,014) (4,378,900) (3,947,900) (3,294,000) (2,303,300) (959,900) 756,600 % ANNUAL REVENUES & SOURCES -2.4% -2.8% -2.5% -2.0% -1.3% -0.5% 0.4% 01-TRANSFERS-IN 4,485,252 15,000,000 - - - - - 02-TRANSFERS-OUT LEAVE PAYOUTS 1,455,252 2,755,100 2,837,800 2,922,900 3,010,600 3,100,900 3,193,900 03-TRANSFERS-OUT UAL - 6,799,400 5,185,300 - - - - 04-TRANSFERS-OUT WORKER'S COMP - - 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 ATTACHMENT 11
1339
CITY OF ORANGE MODEL 1
FISCAL YEAR 2026-2027 FINANCIAL MODEL (FY27 MODEL)

REVENUES, EXPENDITURES & NET OPERATING RESULTS
2026E 2027B 2028F 2029F 2030F 2031F 2032F
05-TRANSFERS-OUT GENERAL LIABILITIES - - 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 08-TRANSFERS-OUT CIP - - 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 NET OVER/(UNDER) AFTER TRANSFERS (714,014) 1,066,600 (16,471,000) (10,716,900) (9,813,900) (8,560,800) (6,937,300) FUND BALANCE-BEGINNING 28,553,771 27,839,757 28,906,357 12,435,357 1,718,457 (8,095,443) (16,656,243) FUND BALANCE-END 27,839,757 28,906,357 12,435,357 1,718,457 (8,095,443) (16,656,243) (23,593,543) RESERVED (GF ONLY) 25,936,827 28,429,860 12,435,357 - - - - UNRESERVED (GF ONLY) 1,902,930 476,497 - - - - - 1340
CITY OF ORANGE MODEL 2
FISCAL YEAR 2026-2027 FINANCIAL MODEL (FY27 MODEL)

REVENUES, EXPENDITURES & NET OPERATING RESULTS
2026E 2027B 2028F 2029F 2030F 2031F 2032F

EXPENDITURES & USES
01 - SALARIES 76,448,957 78,722,600 81,084,300 83,516,800 86,022,300 88,603,000 91,261,100 GROWTH RATE -0.2% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
02 - BENEFITS 27,498,932 29,877,200 30,773,500 31,696,700 32,647,600 33,627,000 34,635,800 GROWTH RATE -0.8% 8.6% 3.0% 3.0% 3.0% 3.0% 3.0%
03 - OPERATING EXPENSE 31,279,334 29,815,600 30,710,100 31,631,400 32,580,300 33,557,700 34,564,400 GROWTH RATE 35.1% -4.7% 3.0% 3.0% 3.0% 3.0% 3.0%
04 - INTERNAL SERVICE COSTS 8,866,258 3,733,900 3,845,900 3,961,300 4,080,100 4,202,500 4,328,600 GROWTH RATE -36.8% -57.9% 3.0% 3.0% 3.0% 3.0% 3.0%
05 - DEBT SERVICES 17,519,111 17,908,400 17,908,400 17,908,400 17,908,400 17,908,400 17,908,400 GROWTH RATE 0.8% 2.2%
TOTAL EXPENDITURES, BY ACCOUNT GROUP 161,612,592 160,057,700 164,322,200 168,714,600 173,238,700 177,898,600 182,698,300 % ANNUAL CHANGE 1.7% -1.0% 2.7% 2.7% 2.7% 2.7% 2.7%
NET OVER/(UNDER) BEFORE TRANSFERS (3,744,014) (4,378,900) (3,947,900) (3,294,000) (2,303,300) (959,900) 756,600 % ANNUAL REVENUES & SOURCES -2.4% -2.8% -2.5% -2.0% -1.3% -0.5% 0.4% 01-TRANSFERS-IN 4,485,252 15,000,000 - - - - - 02-TRANSFERS-OUT LEAVE PAYOUTS 1,455,252 2,755,100 2,837,800 2,922,900 3,010,600 3,100,900 3,193,900 03-TRANSFERS-OUT UAL - 6,799,400 10,054,400 6,558,800 - - - 1341
CITY OF ORANGE MODEL 2
FISCAL YEAR 2026-2027 FINANCIAL MODEL (FY27 MODEL)

REVENUES, EXPENDITURES & NET OPERATING RESULTS
2026E 2027B 2028F 2029F 2030F 2031F 2032F
04-TRANSFERS-OUT WORKER'S COMP - - 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 05-TRANSFERS-OUT GENERAL LIABILITIES - - 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 08-TRANSFERS-OUT CIP - - 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 NET OVER/(UNDER) AFTER TRANSFERS (714,014) 1,066,600 (21,340,100) (17,275,700) (9,813,900) (8,560,800) (6,937,300) FUND BALANCE-BEGINNING 28,553,771 27,839,757 28,906,357 7,566,257 (9,709,443) (19,523,343) (28,084,143) FUND BALANCE-END 27,839,757 28,906,357 7,566,257 (9,709,443) (19,523,343) (28,084,143) (35,021,443) RESERVED (GF ONLY) 25,936,827 28,429,860 7,566,257 - - - - UNRESERVED (GF ONLY) 1,902,930 476,497 - - - - - 1342
Agenda Item
Orange City Council
Item #: 9.2. 6/9/2026 File #: 26-0352
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
Resolutions declaring certain real properties of the City of Orange and formerly the Successor Agency to the Orange Redevelopment Agency as Surplus Land and Exempt Surplus Land pursuant to the California Surplus Land Act (Government Code Sections 54220 et seq.)

2. SUMMARY
Resolution Nos. 11697 and 11698 declare certain real properties of the City of Orange and formerly the Successor Agency to the former Orange Redevelopment Agency as Surplus Land and Exempt Surplus Land pursuant to the California Surplus Land Act (Government Code Section 54220 et seq.).

The properties are located on the 100 Block of South Grand Street, 300 Block of East Almond Avenue, 100 Block of North Cypress Street, and 200 Block of East Chapman Avenue in the Old Towne Historic District. The subject properties are developed with surface parking, residential structures, offices, and a former Fire Station building.

3. RECOMMENDED ACTION

1. Adopt Resolution No. 11697. A Resolution of the City Council of the City of Orange declaring certain real properties to be exempt surplus land pursuant to the Small Parcel Exemption of the Surplus Land Act (Government Code Section 54221(f)(1)(B)), making findings in support thereof, and authorizing the City Manager to take all actions necessary to effect the disposition of such properties.

2. Adopt Resolution No. 11698. A Resolution of the City Council of the City of Orange declaring certain real properties to be surplus land pursuant to the Surplus Land Act (Government Code Section 54221(b)), making findings in support thereof, directing staff to comply with the notice and negotiation requirements of the Surplus Land Act, and authorizing the City Manager to take all actions necessary to effect the disposition of such properties.

3. Authorize the City Manager, or designee, to take all actions necessary to effectuate the disposition of the subject properties consistent with the resolutions, the Surplus Land Act and HCD Guidelines, the Long Range Property Management Plan and Dissolution Act (to the extent applicable), and other applicable law, including transmitting all required findings, notices, and documentation to the California Department of Housing and Community Development through the Surplus Land Portal.

4. FISCAL IMPACT
City of Orange Printed on 6/4/2026Page 1 of 7
powered by Legistar™
1343
Item #: 9.2. 6/9/2026 File #: 26-0352
None.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.

6. DISCUSSION AND BACKGROUND
In 2011 and 2012, the Legislature enacted Assembly Bill X1 26 (Chapter 5, Statutes of 2011), as amended by Assembly Bill 1484 (Chapter 26, Statutes of 2012) and Senate Bill 107 (Chapter 325, Statutes of 2015) (collectively, the “Dissolution Act”), which dissolved the State’s redevelopment agencies. The City Council of the City of Orange, acting as the governing body of the Successor Agency to the former Orange Redevelopment Agency (“Successor Agency” or “ORSA”),assumed responsibility for winding down the affairs of the former Orange Redevelopment Agency.

Pursuant to Health and Safety Code Section 34191.5, the Successor Agency prepared, and on December 7, 2015 the Oversight Board approved, a Long Range Property Management Plan (“LRPMP”), which addresses the disposition and use of the real properties of the former Redevelopment Agency. The Department of Finance approved the LRPMP by determination letter dated December 22, 2015. The LRPMP identifies properties retained for governmental use, properties to be transferred for future development, properties to be sold, and properties retained to fulfill enforceable obligations.

Several of the subject parcels are identified in the LRPMP and have been transferred to the City for disposition consistent with the redevelopment plans, implementation plans, and community plans adopted for the Project Areas; the remaining parcels are held by the City in fee simple and are not subject to the LRPMP, as reflected in the matrix below. For the parcels as to which the governmental purpose for which they were acquired or held has been fulfilled, completed, or is no longer applicable, the City may pursue new strategic land use decisions following the surplus declaration, subject in each case to compliance with the applicable requirements of the Surplus Land Act.

Surplus Land Act Framework
Assembly Bill 1486 (Chapter 664, Statutes of 2019), and subsequent amendments through Senate Bill 747 (Chapter 786, Statutes of 2023) and Assembly Bill 480 (Chapter 787, Statutes of 2023), substantially amended the California Surplus Land Act (Government Code Sections 54220 through 54234) (the “SLA”).The SLA governs the process by which a local agency disposes of land it owns in fee simple and that is no longer necessary for the agency’s use.

Government Code Section 54221(b)(1) requires the local agency’sgoverning body to take formal action at a regular public meeting declaring that the land is either “surplus land” or “exempt surplus land,” as supported by written findings, before the agency may dispose of the land.

Government Code Section 54221(f)(1) sets forth the categories of property that qualify as “exempt surplus land.” Subparagraph (B) of that paragraph (the “Small Parcel Exemption”) exempts surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.

When property qualifies as exempt surplus land, the noticing and good-faith negotiation requirements of Government Code Section 54222 generally do not apply (Government Code Section 54222.3), although the local agency must provide written findings to the Department of Housing and Community Development (“HCD”)through the Surplus Land Portal demonstrating that the exemption applies. As an important exception, Government Code Section 54221(f)(2) provides that, City of Orange Printed on 6/4/2026Page 2 of 7
powered by Legistar™
1344
Item #: 9.2. 6/9/2026 File #: 26-0352
applies. As an important exception, Government Code Section 54221(f)(2) provides that, notwithstanding an otherwise-available exemption, land that is listed on (or determined eligible for listing on) the National Register of Historic Places, located in the coastal zone, adjacent to a historical unit of the State Parks System, or within the Lake Tahoe region is not relieved of the requirement to issue a notice of availability for open-space purposes under Section 54222(b). Accordingly, the Old Towne-contributing parcels in this report (Assets 1, 4, and 5) remain subject to that open-space noticing requirement even though they otherwise qualify under the small parcel exemption.

Fulfillment of Governmental Use
Those subject parcels that were acquired by the former Orange Redevelopment Agency were acquired to assemble sites for, or in furtherance of, the redevelopment objectives of the Southwest Project Area, including the elimination of blight, the assembly of developable sites, and right-of-way and infrastructure improvements. With the completion of those underlying public improvements, the dissolution of the former Redevelopment Agency, and the approval of the LRPMP, the original governmental purpose for which each such parcel was acquired has been fulfilled or is no longer applicable. Except as otherwise noted in this report for parcels presently in active governmental use or occupied by residential tenants (which the City will address through the full Surplus Land Act process before any disposition), the parcels are not being used, and are not planned to be used pursuant to any written plan adopted by the City Council, for utility sites, watershed property, conservation, demonstration or educational purposes related to greenhouse gas emissions, buffer sites near sensitive governmental uses, or any other use that would constitute an “agency’suse” under Government Code Section 54221(c).

Subject Properties
Based upon the LRPMP and the revised SLA definitions, staff has identified the eleven parcels listed in the table below, together with the Surplus Land Act treatment applicable to each. The surplus declaration provides the City with the necessary legal framework to actively pursue the highest and best use of these City-owned assets. Assets 1-5 are recommended for declaration as Exempt Surplus Land (under the small parcel exemption, and, for the Old Towne-contributing parcels, subject to the historic noticing requirement), and Assets 6-11 are recommended for declaration as Surplus Land subject to full compliance with the Surplus Land Act:

Asse
t #
Property Address /
Description
Assessor
Parcel No.

Approx. Size
(sq. ft.)
Constraints Surplus Land
Act
Requirements
1 307 E Chapman
Avenue (Royer
Mansion)
039-253-23 18,312.46 SF Historic Property
Contributing to
District (LRPMP
Govt Use)
SLA Exempt
(Historic
Property
Requirements)
2 318 E Almond Ave. 390-393-12 5,999.71 SF Existing Surface Parking Lot (Non
LRPMP Site)
SLA Exempt
(Small Lot
Exemption)
3 326 E Almond Ave. 390-393-11 6,000.27 SF Existing Surface Parking Lot
(Non LRPMP Site)
SLA Exempt
(Small Lot
Exemption)
4 177 N Cypress St. 039-172-03 4,646.29 SF Historic Property Contributing to
District (Non
LRPMP Site)
SLA Exempt
(Historic
Property
Requirements)
5 171 N Cypress St. 039-172-04 7,260.10 SF Historic Property Contributing to
District
SLA Exempt
(Historic
Property
Requirements)
6 124-142 S Grand St. 390-382-07 7,841 SF 6 Existing
Extremely Low-
Income Tenants
(LRPMP Govt.

Use)
Full SLA
Compliance
Req.
7 148 S Grand St. 390-382-08 7,841.32 SF Existing Surface Parking Lot (Non
LRPMP Site)
Full SLA
Compliance
Req.
8 154 S Grand St. 390-382-09 7,841.31 SF Existing Surface Parking Lot (Non
LRPMP Site)
Full SLA
Compliance
Req.
9 230 E Chapman 390-382-05 16,123.72 SF Existing
Governmental
Use Facility
(Non LRPMP Site)
Full SLA
Compliance
Req.
10 S. Grand St. 390-382-14 15,013.97 SF Existing Surface Parking Lot (Non
LRPMP Site)
Full SLA
Compliance
Req.
11 176 S Grand St. 390-382-11 33,668.32 SF Existing Former Govt. Use Facility
(Non LRPMP Site)
Full SLA
Compliance
Req.

City of Orange Printed on 6/4/2026Page 3 of 7
powered by Legistar™
1345
Item #: 9.2. 6/9/2026 File #: 26-0352
Asse
t #
Property Address /
Description
Assessor
Parcel No.

Findings Supporting the Small Parcel Exemption
With respect to each parcel recommended for declaration as Exempt Surplus Land under the Small Parcel Exemption (Assets 1-5), staff has determined, and recommends that the City Council find:
• Each parcel is less than one-half acre (21,780 square feet) in area; • No parcel is contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes;
• Each parcel, if identified in the LRPMP, has had the governmental use for which it was originally acquired fulfilled or is no longer applicable; • Each parcel is not necessary for the City’suse as that term is defined in Government Code Section 54221(c), and is not held by the City for the purpose of exchange; and • Disposition of each parcel as Exempt Surplus Land is consistent with the LRPMP and with the Citywide Strategic Plan.

City of Orange Printed on 6/4/2026Page 4 of 7
powered by Legistar™
1346
Item #: 9.2. 6/9/2026 File #: 26-0352
Royer Mansion (307 East Chapman Avenue)
The Royer Mansion (307 E. Chapman Avenue) was acquired by the former Orange Redevelopment Agency in 2006 for governmental purposes consistent with the adopted Redevelopment Plan and California Community Redevelopment Law, including the long-range planning and consideration of future civic center and public library facilities, and ultimately assessing the alleviation of environmental deficiencies within the Project Area. The City’sreservation of this strategically located parcel adjacent to the Civic Center has met this goal. The Property has been continuously held in public ownership since acquisition and has been administered in furtherance of those purposes. The finding is that the governmental purposes for which the Property was acquired has been fulfilled. The parcel is a contributor to the Old Towne Orange Historic District, listed on the National Register of Historic Places on July 11, 1997 (NRHP Ref. No. 97000617).

The Property otherwise qualifies for the Small Parcel Exemption set forth in Government Code Section 54221(f)(1)(B). However, because the Property is a contributing resource within the Old Towne Orange National Register Historic District, Government Code Section 54221(f)(2) requires compliance with the open-space Notice of Availability provisions of Government Code Section 54222 (b) notwithstanding the otherwise applicable exemption. Accordingly, staff recommends that the resolution acknowledge the historic status of the Property and direct staff to complete the required open-space noticing process prior to disposition.

Prior to disposition, the City must (1) issue an NOA for open-space purposes to the park and recreation departments of the City of Orange and the County of Orange, any regional park authority with jurisdiction in the area, and the California Natural Resources Agency, holding the land available for a minimum 60-day response period; (2) submit the declaration and supporting documentation to the California Department of Housing and Community Development through the Surplus Land Portal for its review (HCD has up to 30 days to act before the City may proceed); and (3) complete appropriate review under CEQA, recognizing that any subsequent conveyance or physical alteration constitutes a project with potential impacts on a historical resource under Public Resources Code § 21084.1 and CEQA Guidelines § 15064.5.

Small Surface Parking Lot (318-326 E Almond Ave)
The small surface parcels at 318 and 326 East Almond Avenue comprise the south side of Almond Avenue mid-block between South Center Street and South Grand Street and are located approximately one block south of the Orange Civic Center. The assembled site is improved as a small surface parking lot with asphalt paving, striped stalls including ADA-accessible space(s), wheel stops, drainage improvements, perimeter lighting, signage, and street frontage. Although the site is presently used for public parking, that incidental parking use does not constitute a retained “agency’s use” under Government Code Section 54221(c), and the site is no longer necessary for the City’s use; the City does not intend to retain it for parking pursuant to any adopted written plan.

North Cypress Homes (171 & 177 N Cypress Street)
The subject properties at 171 and 177 N. Cypress Street are two adjacent City-owned single-family residences located in the heart of Old Towne Orange, both constructed in 1917 during the city's early citrus-era buildout. The property at 171 N. Cypress Street is a 938-square-foot, two-bedroom dwelling on a 7,260-square-foot lot (APN 039-172-04), while the adjoining 177 N. Cypress Street is an 802-square-foot, two-bedroom residence on a 4,646-square-foot lot (APN 039-172-03). Given their 1917 construction date and intact early-20th-century character, both structures are contributing resources subject to the City's Historic Preservation Design Standards for Old Towne, including the City of Orange Printed on 6/4/2026Page 5 of 7
powered by Legistar™
1347
Item #: 9.2. 6/9/2026 File #: 26-0352
resources subject to the City's Historic Preservation Design Standards for Old Towne, including the requirement for a Certificate of Appropriateness for any exterior alteration, relocation, or demolition.

As contributing resources within the Old Towne Orange National Register Historic District, the properties qualify as Exempt Surplus Land under the small parcel exemption but remain subject to the historic open-space noticing requirement of Government Code Sections 54221(f)(2) and 54222 (b), and would be subject to the same open-space notice and 60-day availability period described above for the Royer Mansion.

Grand Street Block & E Chapman Site (120-176 Grand St & 230 E Chapman) The Grand Street properties (Sites 6-11) comprise six City- and Successor Agency-held parcels located along South Grand Street and East Chapman Avenue, reflecting a range of existing uses: an LRPMP-designated governmental-use residential parcel at 124-142 S. Grand Street (APN 390-382- 07) occupied by six existing extremely low-income tenants; three surface parking lots at 148 S.

Grand Street (390-382-08), 154 S. Grand Street (390-382-09), and S. Grand Street (390-382-14); an existing governmental-use facility at 230 E. Chapman (390-382-05); and a former governmental-use facility at 176 S. Grand Street (390-382-11). Except for the LRPMP-designated parcel, these are non- LRPMP sites. None of the six parcels contains a historic building or a contributing structure within the Old Towne Orange National Register Historic District, and accordingly none is subject to the historic- resource review (CEQA historical-resource analysis or Certificate of Appropriateness) that would otherwise attach to a contributing structure; however, this does not exempt the parcels from the Surplus Land Act, which applies regardless of historic status.

The City intends to pursue full compliance with the Surplus Land Act (Government Code § 54220- 54234) and HCD's Updated SLA Guidelines for all six parcels. Following a Council declaration of each parcel as surplus and not necessary for the City's use, the City will issue Notices of Availability to HCD via the Surplus Land Portal and to all statutorily required entities, observe the 60-day interest period and, if a qualifying letter of interest is received, conduct good-faith negotiations for the minimum 90-day period, and report all notices, negotiations, and any affordability restrictions to HCD for review prior to agreeing to disposition terms - with special attention to the tenant-protection and LRPMP considerations applicable to the occupied parcel at 124-142 S. Grand Street.

Next Steps
Following adoption of the proposed resolutions, staff will:
• Transmit the written findings and supporting documentation declaring which parcel to be Exempt and Non-Exempt Surplus Land to the California Department of Housing and Community Development for the file in accordance with HCD’s Surplus Land Act Guidelines; • Pursue appraisals and title reports to be commissioned for each parcel; • Initiate competitive disposition and or lease activities consistent with applicable law, including the marketing and sale or lease of parcels; and
• Return to the City Council for approval of any lease, purchase and or sale agreement(s) prior to conveyance in conformance with applicable laws and HCD standards.

Should a property be subject to net proceeds disbursement (upon findings from title reports and transfer history), at the time of disposition, within 30 days of the sale, the City will remit qualifying net unrestricted proceeds to the Orange County Auditor-Controller for distribution to the affected taxing City of Orange Printed on 6/4/2026Page 6 of 7
powered by Legistar™
1348
Item #: 9.2. 6/9/2026 File #: 26-0352
unrestricted proceeds to the Orange County Auditor-Controller for distribution to the affected taxing entities in accordance with the LRPMP and Health and Safety Code Section 34191.5(c)(2)(B).

Environmental Review
The declaration of the subject parcels as Exempt Surplus Land and as Surplus Land is not a “project” within the meaning of the California Environmental Quality Act (“CEQA”)(Public Resources Code Section 21000 et seq.) and the State CEQA Guidelines (14 Cal. Code Regs. Section 15000 et seq.) because each declaration is an administrative action that will not result in any direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines Sections 15060(c)(2)- 15060(c)(3), 15378). Any subsequent disposition or development of an individual parcel will be evaluated under CEQA at the appropriate time, including, for the Old Towne-contributing parcels, an analysis of effects on historical resources under CEQA Guidelines Section 15064.5. [

7. ATTACHMENTS
· Attachment 1 Resolution No.11697
· Attachment 2 Resolution No. 11698
· Attachment 3 Property Location Map
· Attachment 4 Excerpts of Long-Range Property Management Plan City of Orange Printed on 6/4/2026Page 7 of 7
powered by Legistar™
1349
Agenda Item
Orange City Council
Item #: 9.2. 6/9/2026 File #: 26-0352
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director

3. RECOMMENDED ACTION

4. FISCAL IMPACT
City of Orange Printed on 6/4/2026Page 1 of 7
powered by Legistar™
1350
Item #: 9.2. 6/9/2026 File #: 26-0352
None.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.

When property qualifies as exempt surplus land, the noticing and good-faith negotiation requirements of Government Code Section 54222 generally do not apply (Government Code Section 54222.3), although the local agency must provide written findings to the Department of Housing and Community Development (“HCD”)through the Surplus Land Portal demonstrating that the exemption applies. As an important exception, Government Code Section 54221(f)(2) provides that, City of Orange Printed on 6/4/2026Page 2 of 7
powered by Legistar™
1351
Item #: 9.2. 6/9/2026 File #: 26-0352
applies. As an important exception, Government Code Section 54221(f)(2) provides that, notwithstanding an otherwise-available exemption, land that is listed on (or determined eligible for listing on) the National Register of Historic Places, located in the coastal zone, adjacent to a historical unit of the State Parks System, or within the Lake Tahoe region is not relieved of the requirement to issue a notice of availability for open-space purposes under Section 54222(b). Accordingly, the Old Towne-contributing parcels in this report (Assets 1, 4, and 5) remain subject to that open-space noticing requirement even though they otherwise qualify under the small parcel exemption.

Asse
t #
Property Address /
Description
Assessor
Parcel No.

City of Orange Printed on 6/4/2026Page 3 of 7
powered by Legistar™
1352
Item #: 9.2. 6/9/2026 File #: 26-0352
Asse
t #
Property Address /
Description
Assessor
Parcel No.

City of Orange Printed on 6/4/2026Page 4 of 7
powered by Legistar™
1353
Item #: 9.2. 6/9/2026 File #: 26-0352
Royer Mansion (307 East Chapman Avenue)
The Royer Mansion (307 E. Chapman Avenue) was acquired by the former Orange Redevelopment Agency in 2006 for governmental purposes consistent with the adopted Redevelopment Plan and California Community Redevelopment Law, including the long-range planning and consideration of future civic center and public library facilities, and ultimately assessing the alleviation of environmental deficiencies within the Project Area. The City’sreservation of this strategically located parcel adjacent to the Civic Center has met this goal. The Property has been continuously held in public ownership since acquisition and has been administered in furtherance of those purposes. The finding is that the governmental purposes for which the Property was acquired has been fulfilled. The parcel is a contributor to the Old Towne Orange Historic District, listed on the National Register of Historic Places on July 11, 1997 (NRHP Ref. No. 97000617).

North Cypress Homes (171 & 177 N Cypress Street)
The subject properties at 171 and 177 N. Cypress Street are two adjacent City-owned single-family residences located in the heart of Old Towne Orange, both constructed in 1917 during the city's early citrus-era buildout. The property at 171 N. Cypress Street is a 938-square-foot, two-bedroom dwelling on a 7,260-square-foot lot (APN 039-172-04), while the adjoining 177 N. Cypress Street is an 802-square-foot, two-bedroom residence on a 4,646-square-foot lot (APN 039-172-03). Given their 1917 construction date and intact early-20th-century character, both structures are contributing resources subject to the City's Historic Preservation Design Standards for Old Towne, including the City of Orange Printed on 6/4/2026Page 5 of 7
powered by Legistar™
1354
Item #: 9.2. 6/9/2026 File #: 26-0352
resources subject to the City's Historic Preservation Design Standards for Old Towne, including the requirement for a Certificate of Appropriateness for any exterior alteration, relocation, or demolition.

Should a property be subject to net proceeds disbursement (upon findings from title reports and transfer history), at the time of disposition, within 30 days of the sale, the City will remit qualifying net unrestricted proceeds to the Orange County Auditor-Controller for distribution to the affected taxing City of Orange Printed on 6/4/2026Page 6 of 7
powered by Legistar™
1355
Item #: 9.2. 6/9/2026 File #: 26-0352
unrestricted proceeds to the Orange County Auditor-Controller for distribution to the affected taxing entities in accordance with the LRPMP and Health and Safety Code Section 34191.5(c)(2)(B).

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE, CALIFORNIA,

DECLARING CERTAIN REAL PROPERTIES TO

BE EXEMPT SURPLUS LAND PURSUANT TO

THE SMALL PARCEL EXEMPTION OF THE

SURPLUS LAND ACT (GOVERNMENT CODE
SECTION 54221(f)(1)(B)), MAKING FINDINGS IN

SUPPORT THEREOF, AND AUTHORIZING THE

CITY MANAGER TO TAKE ALL ACTIONS

NECESSARY TO EFFECT THE DISPOSITION OF

SUCH PROPERTIES

WHEREAS, the City of Orange (“City”) is a municipal corporation duly organized and existing under the laws of the State of California; and

WHEREAS, the City Council of the City of Orange (“City Council”), acting as the governing body of the Successor Agency to the former Orange Redevelopment Agency (“Successor Agency”), is responsible for winding down the affairs of the former Orange Redevelopment Agency in accordance with Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code (collectively, the “Dissolution Act”); and

WHEREAS, pursuant to Health and Safety Code Section 34191.5, the Successor Agency prepared a Long Range Property Management Plan (“LRPMP”) addressing the disposition and use of the real properties of the former Orange Redevelopment Agency, which LRPMP was approved by the Oversight Board on December 7, 2015 and approved by the California Department of Finance by determination letter dated December 22, 2015; and

WHEREAS, the LRPMP identifies certain real properties to be transferred to the City for disposition consistent with the redevelopment plans, implementation plans, and community plans adopted for the Project Areas of the former Orange Redevelopment Agency; and

WHEREAS, the California Surplus Land Act, Government Code Sections 54220 through 54234 (the “Surplus Land Act” or “SLA”), governs the disposition of land owned in fee simple by a local agency that is no longer necessary for the agency’s use; and

WHEREAS, Government Code Section 54221(b)(1) provides that, before a local agency may take any action to dispose of land owned in fee simple, the agency’s governing body must take formal action in a regular public meeting declaring the land to be either “surplus la nd” or “exempt surplus land,” as supported by written findings; and

WHEREAS, Government Code Section 54221(f)(1)(B) provides that surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open -space or low- and moderate-income housing purposes is “exempt sur plus land” (the “Small Parcel Exemption”); and
1357
2 WHEREAS, the properties identified in Exhibit A attached hereto and incorporated herein by this reference (collectively, the “Subject Properties”) are real properties identified in the LRPMP and held in fee simple by the City; and

WHEREAS, each of the Subject Properties is less than one -half acre in area, is not contiguous to any land owned by a state or local agency that is used for open -space or low- and moderate-income housing purposes, and therefore satisfies the criteria of the Small Pa rcel Exemption set forth in Government Code Section 54221(f)(1)(B); and

WHEREAS, even if the subject properties located at 171 N. Cypress Street (APN 039 - 172-04), 177 N. Cypress Street, and the Royer Mansion at 307 E. Chapman Avenue (APN 039 - 253-23), Orange, California, would otherwise qualify for an exemption from the standard Surplus Land Act process under Government Code section 54221, subdivision (f)(1), including the exemption for parcels less than one -half acre, the City Council finds that, notwithstanding paragraph (1) of subdivision (f) and pursuant to Government Code s ection 54221, subdivision (f)(2)(C), each of the subject properties is a contributing resource to the Old Towne Orange Historic District and is therefore listed on or eligible for listing on the National Register of Historic Places (NRHP Reference No. 97000617), such that the properties do not qualify as exempt surplus land for purposes of the open-space noticing requirement, and the City must, before disposing of the properties, send a written notice of availability for open-space purposes to the entities described in Government Code section 54222, subdivision (b) — namely the park and recreation departments of the City and the County of Orange, any regional park authority having jurisdiction within the area, and the California Natural Resources Agency — and hold the properties available for not less than sixty (60) days following that notice, in addition to submitting this declaration to the California Department of Housing and Community Development through the Surplus Land Portal for review; and

WHEREAS, any of the Subject Properties acquired by the former Orange Redevelopment Agency in furtherance of the goals and objectives of the redevelopment plans for the Northwest Project Area and the Southwest Project Area of the former Orange Redevelopment Agency, including the elimination of blight, site assembly, and supporting public improvements, and the governmental purpose for which each Subject Property was acquired has been fulfilled, completed, or is no longer applicable; and

WHEREAS, none of the Subject Properties is being used, or is planned to be used pursuant to a written plan adopted by the City Council, for any of the purposes constituting “agency’s use” under Government Code Section 54221(c), including without limitation utility sites, watershed property, land used for conservation purposes, land used for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, or buffer sites near sensitive governmental uses such as wastewater treatment plants; and

WHEREAS, declaration of the Subject Properties as Exempt Surplus Land is consistent with the LRPMP, the Dissolution Act, the Surplus Land Act, and the City’s Strategic Plan; and

WHEREAS, the City Council finds that the adoption of this Resolution is not a “project” within the meaning of the California Environmental Quality Act (“CEQA”) (Public Resources 1358
3 Code Section 21000 et seq.) and the State CEQA Guidelines (14 Cal. Code Regs. Section 15000 et seq.) because the declaration is an administrative action that will not result in any direct or reasonably foreseeable indirect physical change in the environment, and is therefore exempt under State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15378(b); any subsequent disposition or development of an individual Subject Property will be evaluated under CEQA at the appropriate time.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:

1. That the foregoing Recitals are true and correct and are incorporated herein by this reference as the findings of the City Council in support of this Resolution.

2. That the City Council hereby finds and determines that each of the Subject Properties identified in Exhibit A satisfies the criteria for “exempt surplus land” set forth in Government Code Section 54221(f)(1)(B), in that each Subject Property:

(a) is less than one-half acre (21,780 square feet) in area; and

(b) is not contiguous to any land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.

3. That t he City Council hereby further finds and determines that the original governmental use for which each Subject Property was acquired by the former Orange Redevelopment Agency has been fulfilled, completed, or is no longer applicable; that none of the Subject Properties is being used, or is planned to be used pursuant to a written plan adopted by the City Council, for any purpose constituting an “agency’s use” as defined in Government Code Section 54221(c); and that none of the Subject Properties is being retained for the sole purpose of investment or generation of revenue.

4. Each Subject Property identified in Exhibit A is hereby declared to be “exempt surplus land” pursuant to Government Code Section 54221(f)(1)(B). Pursuant to Government Code Section 54222.3, the notice and good-faith negotiation requirements of Government Code Section 54222 shall not apply to the disposition of the Subject Properties.

5. The City Manager, or the City Manager’s designee, is hereby authorized and directed to take any and all actions necessary or appropriate to effectuate the purpose and intent of this Resolution, including without limitation: (a) transmitting written finding s and supporting documentation regarding the Exempt Surplus Land declaration to the California Department of Housing and Community Development in accordance with the Surplus Land Act Guidelines; (b) commissioning appraisals of the Subject Properties; (c ) initiating disposition activities for the Subject Properties consistent with the LRPMP, the Dissolution Act, the Surplus Land Act, and other applicable law; and (d) executing such documents and instruments as may be necessary or convenient to carry out t his Resolution, subject to such approvals of the City Council as may be required by law.

1359
4 6. Net unrestricted proceeds from the disposition of any qualified subject properties that are former redevelopment agency sites shall be remitted to the Orange County Auditor-Controller for distribution to the affected taxing entities in accordance with the LRPMP and Health and Safety Code Section 34191.5(c)(2)(B), based on chain of title findings from a formal title report, provided that the City’s allocable share of such proceeds shall be deposited in the General Fund (100).

7. This Resolution shall take effect immediately upon its adoption.

ADOPTED this day of , 2026

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney, City of Orange

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

1360

EXHIBIT A

SUBJECT PROPERTIES
Property Address /
Description
Assessor Parcel No. Approx. Size (sq. ft.) Constraints
307 E Chapman Avenue
(Royer Mansion)

039-253-23 18,312.46 SF Historic Property
Contributing to
District (LRPMP Govt
Use)
318 E Almond Ave.

390-393-12 5,999.71 SF Existing Surface
Parking Lot
(Non LRPMP Site)
326 E Almond Ave.

390-393-11 6,000.27 SF Existing Surface
Parking Lot
(Non LRPMP Site)
177 N Cypress St. 039-172-03 4,646.29 SF Historic Property Contributing to
District (Non LRPMP
Site)
171 N Cypress St. 039-172-04 7,260.10 SF Historic Property Contributing to
District

1361
RESOLUTION NO. 11698

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE, DECLARING CERTAIN REAL

PROPERTIES TO BE SURPLUS LAND PURSUANT

TO THE SURPLUS LAND ACT (GOVERNMENT
CODE SECTION 54221(b)), MAKING FINDINGS IN

SUPPORT THEREOF, DIRECTING STAFF TO

COMPLY WITH THE NOTICE AND

NEGOTIATION REQUIREMENTS OF THE

SURPLUS LAND ACT, AND AUTHORIZING THE

CITY MANAGER TO TAKE ALL ACTIONS

NECESSARY TO EFFECT THE DISPOSITION OF

SUCH PROPERTIES

WHEREAS, the City of Orange (“City”) is a municipal corporation duly organized and existing under the laws of the State of California, and holds in fee simple the real properties identified in Exhibit A attached hereto and incorporated herein by this reference (collectively, the “Subject Properties”); and

WHEREAS, to the extent any Subject Property constitutes an asset of the former Orange Redevelopment Agency addressed in the Long Range Property Management Plan (“LRPMP”) approved by the Oversight Board and the California Department of Finance, the disposition of such property shall be undertaken consistent with the LRPMP and Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code (the “Dissolution Act”); and

WHEREAS, the City Council has determined that the original governmental purpose for which each Subject Property was acquired or held has been fulfilled, completed, or is no longer applicable, that none of the Subject Properties is being used, or is planned to be us ed pursuant to a written plan adopted by the City Council, for any purpose constituting an “agency’s use” as defined in Government Code Section 54221(c), and that the Subject Properties are no longer necessary for the City’s use; and

WHEREAS, the City Council has further determined that the Subject Properties do not satisfy the criteria for any exemption set forth in Government Code Section 54221(f)(1), including without limitation the small-parcel exemption under Section 54221(f)(1)(B), because, among other reasons, certain of the Subject Properties exceed one -half acre in area, certain of the Subject 1362
2 Properties are contiguous to land owned by the City and used for low - and moderate -income housing or open -space purposes, and certain of the Subject Properties are presently or were formerly improved with governmental use facilities or occupied by residential tenants; and

WHEREAS, the Subject Properties therefore constitute “surplus land” within the meaning of Government Code Section 54221(b) and must be disposed of in compliance with the full notice and good-faith negotiation requirements of the Surplus Land Act; and

WHEREAS, the property located at 124 -142 S Grand Street (APN 390 -382-07) is presently occupied by six (6) extremely-low-income residential tenants, and the City intends that any disposition of that property be undertaken in a manner consistent with applicable tenan t protection, notice, and relocation requirements, and in furtherance of the Surplus Land Act’s priority for the development and preservation of affordable housing; and

WHEREAS, pursuant to Government Code Section 54222, before disposing of the Subject Properties or participating in negotiations to dispose of the Subject Properties, the City must send a written notice of availability to all entities entitled to such notice, includ ing any local public entity within whose jurisdiction the Subject Properties are located and any housing sponsor that has notified the California Department of Housing and Community Development (“HCD”) of its interest in surplus land for the purpose of developing low- and moderate-income housing, and, as applicable, to the park and recreation departments of the City and the County of Orange, any regional park authority having jurisdiction in the area, and the California Natural Resources Agency for open-space purposes; and

WHEREAS, following the notice of availability, the Surplus Land Act requires that the Subject Properties remain available for a period of not less than sixty (60) days for entities to express interest, that the City engage in good-faith negotiations for a period of not less than ninety (90) days with any entity that expresses interest, and that, if the City and such entity are unable to agree on price and terms for a housing development that includes at least twenty -five percent (25%) affordable units, the City record a deed restriction requiring that, in the event ten (10) or more residential units are developed on the property, not less than fifteen percent (15%) of those units be made available at affordable housing cost; and

WHEREAS, the City must submit a description of the notices of availability sent, a summary of negotiations conducted, and a copy of any restrictions to be recorded against the Subject Properties to HCD for review through the Surplus Land Portal prior to agreeing to terms for disposition, all in accordance with the SLA and the Updated Surplus Land Act Guidelines published by HCD on August 1, 2024; and

WHEREAS, the City Council finds that the adoption of this Resolution is not a “project” within the meaning of the California Environmental Quality Act (“CEQA”) (Public Resources Code Section 21000 et seq.) and the State CEQA Guidelines (14 Cal. Code Regs. Section 1 5000 et seq.) because the declaration is an administrative action that will not result in any direct or reasonably foreseeable indirect physical change in the environment, and is therefore exempt under State CEQA Guidelines Sections 15060(c)(2), 1 5060(c)(3), and 15378(b); any subsequent disposition or development of an individual Subject Property will be evaluated under CEQA at the appropriate time.
1363
3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:

1. That the foregoing Recitals are true and correct and are incorporated herein by this reference as the findings of the City Council in support of this Resolution.

2. That the City Council hereby finds and determines that the original governmental use for which each Subject Property identified in Exhibit A was acquired or held has been fulfilled, completed, or is no longer applicable; that none of the Subject Properties is be ing used, or is planned to be used pursuant to a written plan adopted by the City Council, for any purpose constituting an “agency’s use” as defined in Government Code Section 54221(c); that none of the Subject Properties is being retained for the sole purpose of investment or generation of revenue; and that each Subject Property is no longer necessary for the City’s use.

3. That the City Council hereby further finds and determines that none of the Subject Properties qualifies as “exempt surplus land” under Government Code Section 54221(f)(1), and each Subject Property identified in Exhibit A is hereby declared to be “surplus land” pursuant to Government Code Section 54221(b), subject to the full notice and good -faith negotiation requirements of the Surplus Land Act.

4. Staff is hereby directed to comply with all applicable requirements of the Surplus Land Act prior to the disposition of any Subject Property, including without limitation: (a) sending a written notice of availability to all entities entitled to notice unde r Government Code Section 54222, including local public entities and housing sponsors registered with HCD, and, as applicable, to the park and recreation departments of the City and the County of Orange, any regional park authority having jurisdiction i n the area, and the California Natural Resources Agency; (b) holding each Subject Property available for not less than sixty (60) days following the notice of availability; (c) engaging in good -faith negotiations for not less than ninety (90) days with any entity that expresses interest; (d) recording the affordable -housing deed restriction described in the Recitals if and as required where the City and an interested entity are unable to agree on price and terms; and (e) submitting a description of the notices of availability, a summary of negotiations, and any restrictions to be recorded to HCD for review through the Surplus Land Portal prior to agreeing to terms for disposition.

5. With respect to the property located at 124 -142 S Grand Street (APN 390 -382-07), staff is further directed to undertake any disposition in compliance with all applicable federal, state, and local tenant protection, notice, and relocation requirements, to c oordinate with the existing residential tenants to minimize displacement to the extent feasible, and to prioritize the preservation and development of affordable housing consistent with the purposes of the Surplus Land Act.

6. The City Manager, or the City Manager’s designee, is hereby authorized and directed to take any and all actions necessary or appropriate to effectuate the purpose and intent of this Resolution, including without limitation: (a) issuing the notices of availability and transmitting all required documentation to HCD in accordance with the Surplus Land Act and the Surplus Land Act Guidelines; (b) commissioning appraisals of the Subject Properties; (c) initiating and 1364
4 conducting disposition and negotiation activities consistent with the Surplus Land Act, the LRPMP and Dissolution Act (to the extent applicable), and other applicable law; and (d) executing such documents and instruments as may be necessary or convenient to carry out this Resolution, subject to such approvals of the City Council as may be required by law.

7. To the extent any Subject Property is a former Orange Redevelopment Agency site, net unrestricted proceeds from the disposition of such property shall be remitted to the Orange County Auditor-Controller for distribution to the affected taxing entities in a ccordance with the LRPMP and Health and Safety Code Section 34191.5(c)(2)(B), based on chain of title findings from a formal title report, provided that the City’s allocable share of such proceeds shall be deposited in the General Fund (100).

8. This Resolution shall take effect immediately upon its adoption.

ADOPTED this day of , 2026

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney, City of Orange

1365
5 STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

1366
6 EXHIBIT A

SUBJECT PROPERTIES
All Subject Properties listed below are declared “surplus land” under Government Code Section 54221(b) and are subject to full compliance with the Surplus Land Act.

Property Address /
Description Assessor Parcel No. Approx. Size (sq. ft.) Constraints 124-142 S Grand St. 390-382-07 7,841 SF 6 Existing Extremely Low-Income Tenants
(LRPMP Govt. Use)
148 S Grand St. 390-382-08 7,841.32 SF Existing Surface Parking Lot (Non
LRPMP Site)
154 S Grand St. 390-382-09 7,841.31 SF Existing Surface Parking Lot (Non
LRPMP Site)
230 E Chapman 390-382-05 16,123.72 SF Existing
Governmental Use
Facility (Non LRPMP
Site)
S. Grand St. 390-382-14 15,013.97 SF Existing Surface
Parking Lot (Non
LRPMP Site)
176 S Grand St. 390-382-11 33,668.32 SF Existing Former Govt.

Use Facility (Non
LRPMP Site)

1367
Surplus Land Map
Surplus Sites For Declaration -
06/02/26
Properties Subject to Declaration
Grand Street - Subject to SLA
Royer Mansion - SLA Exempt
(Historic NOA Required)
Almond Parking Lots (SLA
Exempt)
Cypress Street Homes (SLA
Exempt) Historic
1368
SuccessorAgency to the Orange Redevelopment Agency
Long -Range Property Management Plan 126
Property No. 9 — 307 E. Chapman Avenue located at the northeast corner of E. Chapman Ave.

Grand St.

Description of the property and environmental setting:

A. Acquisition Information - Acquired October 24, 2006. The value of the property at the time of purchase was $2, 400,000.

B. Purpose of Acquisition — The property wasacquiredfor governmentaluseaspart of long -range planning for future Civic Center and library uses. There is a historic mansion and carriage house that are contributing structuresto the Old TowneHistoricDistrict. Theexistingstructureis currently usedasan office building. Based upon the Five -Year Implementation Plan, the property is one of five future community facilities sites within the Orange Civic Center. The site is anticipated to alleviate certain environmental deficiencies and to serve as a location for the development of public services and public facilities.

C. Parceldata —The property addressis307E. ChapmanAvenue, Orange, CA. Theassessor's parcelnumber is 039 - 253 -23. Thelot sizeis 18,261squarefeet or 0.42 acresandcurrently housesa single7, 500square foot office building. Current zoning is designated as Old Town Mixed Use -15.

D. Current Value - Estimate of the current value of the parcel is Zero. The site requires maintenance and upkeep but does not generate revenue and thus operates at a negative value.

E. Revenue Generated by the Property - Annual leaserevenuegeneratedfrom this site is approximately 90, 000. The annual property maintenance is listed as Item 110 in ROPS14 -15B. The lease revenue is reported on the CashBalance Form every six months as part of the ROPSprocess.

F. Environmental Contamination or Remediation - There is no known history of environmental contamination or remediation efforts at this site.
1369
Successor Agency to the Orange Redevelopment Agency
Long -Range Property Management Plan 127
G. Descriptionof the property's potential for transit - oriented development and the advancementof the planning objectives — Thereis no potential for transit - oriented developmentidentified in relationshipto this site. The site does meet the goalsand objectivesof the former redevelopmentplan includingthe Five -Year ImplementationPlan (both of which were consistentwith the City of OrangeComprehensive GeneralPlan) throughthestimulationofconstruction, financingof publicfacilities, eliminationof physical and economic blight, elimination of environmental deficiencies, land assembly and reconstruction / rehabilitation efforts.

H. Historyof previousdevelopmentproposalsandactivity - Thereis no historyof previousdevelopment proposalsor activity for this site other than as a part of long -range planningfor future CivicCenter expansion to the main Library.

Use /Disposition of Property
The SuccessorAgency intends to transfer the Property to the City of Orange to be dedicated for GovernmentalUse, specificallyfor future developmentof civic centerfacilities includingfuture library facilities. This project has been fully described in the Orange RedevelopmentAgency Five -Year Implementation Plan to support Roadwayand Infrastructure Improvement Program. The property is vacantand was acquiredfor redevelopmentpurposesto providefor future publicimprovements. The OrangeMergedand AmendedRedevelopmentPlanfurther describedredevelopmentpurposesfor proposedpublicinfrastructureprojectsto includefuture civiccenterexpansionand future library facilities.
4 i v'
1370
Successor Agency to the Orange Redevelopment Agency
Long -Range Property Management Plan 128
Property No. 10 —124 - 142 S. Grand Street between Almond Ave. and ChapmanAve.

Description of the property and environmental setting:

A. Acquisition Information - Acquired September 10, 2007. The value of the property at the time of purchase was $1, 460,000.

B. Purpose of Acquisition - The property was acquired for governmental use as a site for future civic center expansion. Theproperty was purchasedto alleviatecertain environmentaldeficiencies, and to develop publicservicesandfacilities. Theacquisitionswould allowfor greaterflexibility in planningfor future land usesin and around CivicCenterarea. The site is improvedwith a two -story ten -unit apartmentcomplex originally constructed in 1958. This acquisition resulted in the City owning the entire west side of Grand Street between Chapman and Almond Avenues, near the Civic Center areas.

C. Parcel data — Theproperty addressis 124 -142 S. GrandStreet, Orange, CA. Theassessor's parcelnumber is 390 - 382 -07. The lot sizeis 7, 841squarefeet or 0.18 acres. The current zoningdesignationis Office Professional ( OP).

D. Current Value - Estimate of the current value of the parcel is Zero. The site requires monthly maintenance.

E. Revenue Generated by the Property — Annual leaserevenuesgeneratedfrom this site is approximately 70, 000. Theleaserevenueis reporton the CashBalanceFormeverysixmonthsaspartof the ROPS process.

F. Environmental Contamination or Remediation - A Phase I Environmental Assessment was to be completed by Converse Consultants before escrow closing in 2007. No additional information was identified.

G. Descriptionof the property's potential for transit- oriented developmentand the advancementof the planning objectives — Thereis no potential for transit- oriented developmentidentified in relationshipto this site. The site does meet the goalsand objectivesof the former redevelopmentplan includingthe five -year implementation (both of whichwere consistentwith the Cityof OrangeComprehensiveGeneral 1371
SuccessorAgency to the Orange Redevelopment Agency
Long -Range PropertyManagementPlan129
Plan) throughthe stimulationof construction, financingof publicfacilities, eliminationof physicaland economic blight, elimination of environmental deficiencies, land assembly and reconstruction / rehabilitation efforts.

H. Historyof previousdevelopmentproposalsandactivity - Thereis no historyof previousdevelopment proposalsor activityforthissiteotherthanasasiteforfutureciviccenterexpansion.

Use /Disposition of Property
TheSuccessorAgencyintendsto transferthe Propertyto the Cityof Orangeto be dedicatedfor GovernmentalUse, specificallyfor futurepublicparkingandfuture civiccenterpurposes. Thisproject hasbeenfullydescribedintheOrangeRedevelopmentAgencyFive -YearImplementationPlanto support Public Parking Lot Development in Old Towne. Upon funding availability, the property would be developedto supportfuture civiccenterexpansionandfuture publicparkingfacilities. Theoriginal Southwest RedevelopmentPlan and the OrangeMerged and Amended RedevelopmentPlanfurther described redevelopment purposes to include funding for various on -site parking improvements, including parking structures and future civic center expansion. titAV' r_ i
1372
Agenda Item
Orange City Council
Item #: 9.3. 6/9/2026 File #: 26-0341
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Pamela Coleman, City Clerk Services Director

1. SUBJECT
Brown Act Updates (SB 707) Presentation

2. SUMMARY
Senate Bill 707 updates teleconferencing and accessibility requirements under the Brown Act, including new provisions related to remote participation and public access to meetings. By July 1, 2026, legislative bodies must adopt policies addressing technology disruptions and defining reasonable efforts for outreach to encourage public participation, particularly among underrepresented and non-English speaking communities.

This item includes a presentation summarizing these updates and a proposed resolution determining reasonable efforts to encourage public participation.

3. RECOMMENDED ACTION

1. Receive and file presentation.

2. Determine “reasonable efforts” for outreach to encourage participation in City Council meetings under Government Code § 54953.4.

3. Consider adoption of Resolution No. 11703. A Resolution of the City Council determining reasonable efforts to encourage public participation in City Council meetings pursuant to Government Code § 54953.4.

4. FISCAL IMPACT
Implementation of SB 707 will result in both one-time and ongoing costs to support public meeting accessibility and remote participation requirements. Anticipated expenses include annual subscriptions for audio conferencing services, installation of public meeting posting boards, and procurement and installation of audiovisual equipment upgrades for the City Council Chamber.

Funding for these costs will be identified through the City’s budget process.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life

6. DISCUSSION AND BACKGROUND
Background
The Ralph M. Brown Act (Government Code § 54950 et seq.) establishes requirements for open meetings of local legislative bodies. SB 707 updates provisions related to teleconferencing, including requirements for remote participation, accessibility, and procedures for addressing disruptions to City of Orange Printed on 6/4/2026Page 1 of 3
powered by Legistar™
1373
Item #: 9.3. 6/9/2026 File #: 26-0341
requirements for remote participation, accessibility, and procedures for addressing disruptions to meeting access for City Council meetings.

The City Council is an “eligiblelegislative body”as defined in SB 707. Although the various standing boards, commissions, and committees of the City are each a “legislativebody”that is subject to the Brown Act, the new requirements that apply specifically to an “eligiblelegislative body”do not apply to the City’s various committees.

Among other requirements, SB 707 requires the City Council to adopt a technology disruption policy, which Council adopted on May 26, 2026; and to determine what constitutes reasonable efforts for outreach to encourage public participation in City Council meetings, particularly among underrepresented and non-English speaking communities. These policies must be adopted by July 1, 2026.

Reasonable Efforts for Outreach
Government Code § 54953.4 requires the City Council to determine and adopt what constitutes “reasonable efforts” to encourage participation in City Council meetings, particularly among underrepresented communities and non-English speaking communities.

The proposed resolution provides a proposed plan and framework for implementing such reasonable efforts to encourage public participation including:
· Bilingual (English/Spanish) social media posts announcing upcoming meetings and direct links to agendas
· Posting bilingual agendas at ALL libraries (currently the agenda is only posted at Main Library) · Include upcoming meeting dates and information, such as where to view agendas and how to subscribe to receive agenda notifications in the quarterly Our Orange digital publication · Bilingual utility bill inserts
· Emailing agenda information directly to the El Modena Resource Center, Friendly Center, and the Hub OC
The statute provides the City Council with broad discretion in defining these reasonable efforts and clarifies that failure to provide notice to any specific group does not create a basis for legal action.

The proposed policy is intended to provide flexibility while supporting expanded public awareness and participation.

Public Remote Participation
Effective July 1, 2026, eligible legislative bodies are required to provide members of the public with the ability to attend open and public meetings through either a two-way telephonic service or a two- way audiovisual platform. The legislation further requires that remote attendees be afforded the same opportunity to provide public comment as in-person attendees, including equivalent time limits. If a two-way audiovisual platform is utilized, a telephone call-in option must also be provided, and any available automatic captioning features must be activated. These requirements are intended to enhance public participation and accessibility while maintaining compliance with the Brown Act’s open meeting provisions.

City of Orange Printed on 6/4/2026Page 2 of 3
powered by Legistar™
1374
Item #: 9.3. 6/9/2026 File #: 26-0341
Teleconferencing Options
SB 707 establishes comprehensive statutory requirements governing remote participation in meetings subject to the Brown Act held by eligible legislative bodies. In addition to retaining the traditional teleconferencing provisions, the legislation expressly authorizes teleconferencing as a reasonable accommodation under the Americans with Disabilities Act (ADA) and permits a limited number of instances of remote participation based on “just cause.” Remote participation as an ADA accommodation must be provided when the applicable legal requirements are met and is not subject to any annual usage limitation. Whereas, participation based on “just cause” is limited to no more than five times per calendar year, subject to the statutory provisions governing the number of regular meetings held each month.

For purposes of the statute, “just cause” includes circumstances such as childcare or caregiving responsibilities; a contagious illness; a physical or mental condition that prevents in-person attendance; travel while conducting official City business; the need to care for an immunocompromised family member; a personal or family medical emergency; and military service obligations.

City Council Direction on Meeting Procedures
While SB 707 establishes baseline requirements, the City Council retains discretion over certain meeting procedures. The Council may provide direction to staff regarding meeting operations and related procedural matters, provided such direction is consistent with applicable law.

7. ATTACHMENTS
· Resolution No. 11703
City of Orange Printed on 6/4/2026Page 3 of 3
powered by Legistar™
1375
Agenda Item
Orange City Council
Item #: 9.3. 6/9/2026 File #: 26-0341
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Pamela Coleman, City Clerk Services Director

1. SUBJECT
Brown Act Updates (SB 707) Presentation

This item includes a presentation summarizing these updates and a proposed resolution determining reasonable efforts to encourage public participation.

3. RECOMMENDED ACTION

1. Receive and file presentation.

2. Determine “reasonable efforts” for outreach to encourage participation in City Council meetings under Government Code § 54953.4.

Funding for these costs will be identified through the City’s budget process.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life

6. DISCUSSION AND BACKGROUND
Background
The Ralph M. Brown Act (Government Code § 54950 et seq.) establishes requirements for open meetings of local legislative bodies. SB 707 updates provisions related to teleconferencing, including requirements for remote participation, accessibility, and procedures for addressing disruptions to City of Orange Printed on 6/4/2026Page 1 of 3
powered by Legistar™
1376
Item #: 9.3. 6/9/2026 File #: 26-0341
requirements for remote participation, accessibility, and procedures for addressing disruptions to meeting access for City Council meetings.

The proposed policy is intended to provide flexibility while supporting expanded public awareness and participation.

City of Orange Printed on 6/4/2026Page 2 of 3
powered by Legistar™
1377
Item #: 9.3. 6/9/2026 File #: 26-0341
Teleconferencing Options
SB 707 establishes comprehensive statutory requirements governing remote participation in meetings subject to the Brown Act held by eligible legislative bodies. In addition to retaining the traditional teleconferencing provisions, the legislation expressly authorizes teleconferencing as a reasonable accommodation under the Americans with Disabilities Act (ADA) and permits a limited number of instances of remote participation based on “just cause.” Remote participation as an ADA accommodation must be provided when the applicable legal requirements are met and is not subject to any annual usage limitation. Whereas, participation based on “just cause” is limited to no more than five times per calendar year, subject to the statutory provisions governing the number of regular meetings held each month.

7. ATTACHMENTS
· Resolution No. 11703
City of Orange Printed on 6/4/2026Page 3 of 3
powered by Legistar™
1378
RESOLUTION NO. 11703

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE DETERMINING REASONABLE

EFFORTS TO ENCOURAGE PUBLIC PARTICIPATION

IN CITY COUNCIL MEETINGS PURSUANT TO
GOVERNMENT CODE § 54953.4

WHEREAS, the Ralph M. Brown Act (Government Code § 54950 et seq.) establishes requirements for open and public meetings of local legislative bodies; and

WHEREAS, Senate Bill 707 (2025) amended the Brown Act to include additional requirements to encourage participation in public meetings, particularly among underrepresented communities and non-English-speaking communities; and

WHEREAS, Government Code § 54953.4(b)(3)(C) requires the City of Orange to determine and make reasonable efforts to invite groups that do not traditionally participate in public meetings to attend those meetings; and

WHEREAS, such reasonable efforts may include outreach to media organizations serving the jurisdiction, including those serving non -English-speaking communities, as well as civic, neighborhood, community-based, civil rights, and good government organizations; and

WHEREAS, Government Code § 54953.4(b)(3)(C)(ii) provides legislative bodies with broad discretion in determining appropriate reasonable efforts and clarifies that no action shall arise from failing to provide notice to any specific group; and

WHEREAS, the City of Orange is committed to promoting transparency, accessibility, and broad public participation in its public meetings; and

WHEREAS, the City of Orange currently uses a variety of communication methods to inform the public of meetings and opportunities to participate; and

WHEREAS, the activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Orange that it determines the following to constitute reasonable efforts to encourage participation in City Council meetings pursuant to Government Code § 54953.4(b)(3)(C):

1. Media Outreach. Proactively include media organizations serving the City of Orange, including non-English-language newspapers and publications, in the distribution of City Council meeting agendas, notices, or other meeting-related information, as appropriate.

1379
2 2. Electronic Access and Agenda Subscriptions. Maintain opportunities for members of the public to subscribe to receive City Council agendas and related materials through the City’s website, and include instructions for accessing and subscribing to such materials on the City’s website.

3. Multilingual Communication . Use multilingual communication methods , including translated agendas and multilingual social media posts (currently in Spanish), to increase awareness of meetings and participation opportunities , with additional languages incorporated as appropriate.

4. Community and Organizational Outreach . Provide meeting information through existing communication channels and partnerships with community -based organizations, neighborhood groups, civic or community organizations, including those serving non - English-speaking communities, as opportunities arise and are consistent with available resources.

5. Flexible and Evolving Methods . Use additional reasonable methods of o utreach as appropriate, including, but not limited to, the City’s website, email notifications, partnerships with community organizations, and other communication platforms that may develop over time.

BE IT FURTHER RESOLVED that these efforts are intended to provide a flexible framework for outreach and shall be implemented consistent with available resources and evolving communication practices.

ADOPTED this 9th day of June 2026.

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney,
City of Orange

1380
3 STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
1381

Orange City CouncilJune 9, 2026

Orange City Council
June 9, 2026