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City council approves sole‑source engagement with Grant Thornton for $100,000 budget risk review
Summary
The City of Orange authorized staff to pursue a sole‑source agreement with Grant Thornton to perform an eight‑week budget risk and economic opportunities review, a focused alternative the firm said would cost about $100,000 and aim to identify revenue and expense actions to restore long‑term fiscal balance.
The City Council voted unanimously to direct staff to pursue a sole‑source agreement with Grant Thornton for a budget risk and economic opportunities advisory engagement.
Grant Thornton representatives told the council they reviewed several options — a traditional financial statement audit (already in place), a full citywide organizational audit (estimated $300,000–$350,000) and a forensic investigation (starting around $500,000 to over $1 million). They recommended instead a targeted budget risk assessment designed to pinpoint revenue opportunities, identify expenditure reductions and stress‑test the city’s budget. A presenter described the approach as “a sprint” and estimated the engagement’s cost in the “$100,000 ballpark.”
Council members pressed staff and the presenters on timing, scope and how the review would interact with existing audits and inquiries into the city’s fiscal shortfall. Several members emphasized the need for objective third‑party validation to restore public trust and to provide both short‑term fixes and longer‑term structural recommendations. Council Member Barrios moved for the sole‑source approach; the motion passed unanimously.
Grant Thornton said the work would include an initial understanding of current budgets and statements, a stress test scenario for revenue declines, ideation on revenue and cost options, and a final plan with communication recommendations. According to their presentation, deliverables would include a final report, a communication plan for public messaging and status meetings to update council as the sprint progressed.
The council’s decision authorizes staff to negotiate either a sole‑source contract with Grant Thornton or to develop a request for proposals based on the firm’s initial work, with the stated goal of quickly identifying steps to improve fiscal stability and fund reserves.
