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Orange council adopts 2025-26 budget after heated debate over tax rate and reserves
Summary
The City of Orange council approved the fiscal 2025-26 budget that raises property tax revenue $89,029 (0.93%), while debate continued over a proposed 0.867 tax rate, use of a $20.44 million projected cash balance and legal limits on funding budgets from reserves.
The City of Orange City Council approved the fiscal year 2025-26 budget on Tuesday after extended debate over tax rates, reserves and legal constraints.
The measure before the council acknowledged the budget would raise $89,029 in property tax revenue—about a 0.93% increase from last year—according to the motion presented during the meeting. Council members discussed two competing approaches: adopting a tax rate sufficient to support the proposed expenditures or maintaining last year’s rate and using reserves to cover the shortfall.
Council members and staff pressed why the proposed tax rate supports the budget. The council was presented with a proposed total tax rate of 0.867, which staff said “supports the budget.” Some council members urged keeping the rate at last year’s 0.797 and…
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