Orange County manager recommends 2.95¢ tax hike over revenue neutral as revaluation boosts tax base

At a May 22 budget work session, Orange County staff presented the manager's recommended budget, which includes a proposed tax-rate increase of 2.95 cents over the revenue-neutral rate following a countywide revaluation that drove the tax base higher.

Travis, county budget staff, told commissioners that the county's tax base climbed to about $33 billion after the revaluation. “The manager's recommended budget does include a recommended tax increase of 2.95¢ over revenue neutral,” Travis said during the presentation. Staff showed historical tax-base charts and projected revenue impacts of the revaluation.

The recommended budget includes a 2 percent across-the-board pay increase for county employees, which staff estimated would cost about $1.8 million. The county also plans to absorb increased retirement contributions (about $145,000) and higher health-insurance costs (about $1.3 million) without changing employee health-plan rates. The manager's presentation kept the county's sales-tax projection flat for the coming year amid economic uncertainty.

Staff highlighted several program-level changes: juvenile-detention costs have fallen substantially, with year-to-date juvenile-stay payments around $26,850 compared with $184,500 in the prior comparable period; the Community Care and Diversion Response Team's clinical coordinator position is moved to opioid-settlement funding; and Alliance-contracted health services and other human-services positions and contracts were summarized.

The county also reviewed opioid-settlement funding, which staff said would total roughly $13 million over an 18-year schedule, with about $1.9 million expected this fiscal year. “The county is expected to receive a little over almost $13,000,000 over an 18 year period. This coming year, we'll get about $1.9 million,” Travis said, and presenters showed how prior awards and previously approved projects factor into multiyear planning.

Commissioners used the session to clarify program details and the budget schedule. Chair Bedford told colleagues that budget amendments are due next Wednesday and noted the board's intent-to-adopt and public-hearing schedule, so any proposals should be posted promptly for public review. Several commissioners asked for more detail on specific departmental items, including the aging department's takeaway-meal program (proposed to end Aug. 31), library and housing allocations, and planned capital improvements.

No formal votes occurred at the work session; staff will incorporate any approved amendments into the tentative budget and return to the board for the advertised public hearing and subsequent adoption steps.