September 8, 2026
City Council Meeting
PowerPoint Presentation
CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY 13-YEAR
PRELIMINARY FINANCIAL SUSTAINABILITY
& INVESTMENT STRATEGY
Confirm the Priorities. Preserve the Flexibility.
Initial City Council Review
A long-term framework to implement Rebuild Orange through stronger finances, services, infrastructure and economic vitality — with annual Council oversight.
1 CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY
FINANCIAL SCALE
The Opportunity — Not a Spending Target
The model establishes scale. It does not pre-appropriate 13 years of expenditures. ≈$40M
Initial annual revenue
Measures I + J planning estimate
13 Years
Measure I period
Temporary revenue period
≈$584M
Illustrative revenue forecast
Over 13 full fiscal years
1 Year
Annual decision
Council appropriates annually
THE REVENUE FORECAST IS NOT A 13-YEAR APPROPRIATION.
Plan 13 years out without pretending we can predict 13 years perfectly. 2 CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY
DIRECTION REQUESTED
Are These the Right Four Priorities?
Organizing the commitments in Rebuild Orange into four long-term priorities. 1 Strengthen Orange’s Finances Reserves • liabilities • long-term stability 2 Preserve Public Safety & Enhance City
Services
Public safety • essential services • organizational capacity 3 Repair & Invest in Community Infrastructure Maintain • renew • modernize • beautify 4 Grow Orange’s Economy Strengthen the revenue base beyond temporary funding Rebuild Orange establishes the commitments. This Strategy provides the long-term framework for carrying them out. 3 CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY
CURRENT MODEL
Numbers Behind the Strategy
Illustrative planning assumptions by priority — refined through future budgets. $65M
General Fund reserves
Current 13-year planning assumption
$39M
Pension stabilization
Current 13-year planning assumption
$28M
OPEB
Current 13-year planning assumption
$137M
Public Safety & City Services
Current 13-year planning assumption
$135M
Community Infrastructure
Current 13-year planning assumption
$14M
Economic Vitality
Current 13-year planning assumption
The model tests feasibility. Rebuild Orange and the four priorities provide the policy direction. 4 CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY PRIORITY 1
Strengthening Orange’s Balance Sheet
Different tools for different financial risks.
General Fund Reserves 50% operating budget target $5M/yr planning assumption; consistent saving + earnings Pension Liability Management Actively manage UAL + funded status Up to $3M/yr; annual review determines use OPEB Move toward 100% funded $28M model; build invested assets to help offset future costs Workers’ Compensation Restore a -$12.7M projected fund balance $3M/yr first 4 years, then $1M/yr Accrued Liability Restore a -$5.6M projected fund balance $2M/yr planning assumption General Liability Restore financial health $1.5M/yr; address claims and current operating imbalance Use the 13-year opportunity to strengthen the balance sheet — not simply balance 13 annual budgets. 5 PRIORITY 2
Preserve Public Safety & Enhance City Services
Protect the services residents rely on every day.
Police Staffing • equipment • technology Invest based on service demands and annual budget priorities
Fire & EMS Emergency response capacity Evaluate staffing, deployment, equipment and response needs annually
Emergency
Preparedness Readiness and resilience Maintain capacity to respond when Orange needs it most
City Services Libraries • recreation •
neighborhood services
Enhance and expand services as sustainable
capacity allows
People Recruitment • retention •
workforce capacity
Align staffing with workload, performance and
community needs
Technology &
Operations
Modernize how services are
delivered
Use technology and process improvements to
improve service and efficiency
Establish the service priority now. Determine the appropriate investment through each annual budget. 6 PRIORITY 3
Repair & Invest in Community Infrastructure
Use the 13-year period to address deferred needs and make lasting improvements.
Streets & Sidewalks Repair and preventive
maintenance Prioritize condition, safety and lifecycle value Parks & Playgrounds Renew community assets Use the Parks Master Plan and condition data to guide investment
Fire Stations &
Facilities Address aging City buildings Use the Facility Condition Assessment to sequence needs
Streetlights & Traffic Maintain critical public
infrastructure
Invest based on condition, safety and operational
need
Neighborhoods Landscaping • medians • trees •
public realm Maintain and beautify Orange as resources allow Technology & Assets Modernize systems and replace
aging assets
Coordinate replacement schedules with readiness
and capacity
Invest based on condition, need, project readiness and available resources — not a project list frozen in 2026.
7 PRIORITY 4
Grow Orange’s Economy
Build the permanent economic base Orange will need when temporary revenue expires.
Economic
Development
Strengthen City capacity and
focus
Sustained attention to business attraction,
retention and expansion
Major Opportunities Commercial corridors • key sites
• partnerships
Position Orange to capture investment and
redevelopment opportunities
Development
Environment Clearer • faster • coordinated Improve the experience for businesses, investors and applicants
Business Growth Retail • hotels • small business •
employers
Expand economic activity and the City’s underlying
tax base
Long-Term Vision Citywide development strategy Economic development requires a multi-year pipeline and consistent direction
Year 14 Replace temporary capacity with
permanent growth
Enter the post-Measure I period with a stronger
ongoing revenue base
Measure I is temporary. Economic development takes time. Use the 13-year runway to build lasting economic capacity.
8 CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY YEAR 13 TEST
Will Orange Be in a Better Position?
That is the objective across all four priorities.
✓ Stronger Finances Stronger reserves • better-funded liabilities • greater resilience ✓ Reliable & Enhanced Services Public safety and City services supported by sustainable capacity ✓ Better Community Infrastructure Reduced deferred needs • renewed assets • lasting improvements ✓ Stronger Local Economy Broader ongoing revenue base positioned for the Measure I sunset ✓ Year 14 Readiness A stronger City positioned to operate after temporary revenue expires The goal is to leave Orange financially stronger, better maintained, better served and better positioned for Year 14.
9 CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY
ANNUAL PROCESS
Plan 13 Years. Decide One Year at a Time.
Long-term direction with annual Council control.
13-YEAR
STRATEGY
Sets priorities + outcomes
→
ANNUAL
REVIEW
Updates facts + needs
→
COUNCIL
BUDGET
Authorizes investments
Annual review considers:
Actual revenue • reserves • pension & OPEB • asset conditions • service needs • project readiness • organizational capacity As information improves, the allocations should change. 1 0
CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY
FRAMEWORK
What Stays Consistent — What Remains Fluid
The commitments stay consistent. Annual implementation remains flexible.
STAYS CONSISTENT
✓ Rebuild Orange commitments
✓ Four long-term priorities
✓ Financial discipline + accountability
✓ Measurable outcomes + annual review
✓ Plan for the Measure I sunset
REMAINS FLUID
• Individual projects
• Annual funding levels
• Timing & sequencing
• Funding mechanisms
• Unallocated capacity
The projects can change. The discipline and direction do not. 1 1
CITY OF ORANGE | 13-YEAR FINANCIAL SUSTAINABILITY & INVESTMENT STRATEGY
COUNCIL DIRECTION
Confirm the Framework
Confirm the destination tonight. Refine the path annually. 1 Do these four priorities appropriately carry out Rebuild Orange? 2 Are these the right long-term financial objectives?
3 What are we missing — or where should emphasis change? 4 CONFIRM THE PRIORITIES. PRESERVE THE FLEXIBILITY .
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