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Orange council adopts FY26 budget, trims CIP and delays select projects
Summary
City Council approved the fiscal year 2026 budget after discussions on deficit mitigation and project prioritization; members removed a $650,000 Metrolink fence project and included $31.3 million in reductions while maintaining public-safety priorities.
The City of Orange City Council on an evening meeting adopted the fiscal year 2026 budget and five-year capital improvement program after debate over priorities and several amendments.
City finance staff presented a proposed $280.1 million citywide spending plan and projected revenues of about $253.5 million across all funds, leaving a general-fund operating deficit of roughly $2.6 million for FY26. Staff said the package includes $31.3 million in budget-reduction measures, including $17.3 million in general-fund reductions achieved through position eliminations and freezes, reduced part-time hours, and cuts to planned capital projects.
Council members stressed preserving core services. Michelle Preston, the budget presenter, said public-safety accounts for a majority of general-fund spending and that reductions were calibrated to keep 9-1-1 response, firefighting, paramedic services and police patrols intact. The council debated shifting or pausing capital projects to reduce near-term operating pressure; Council Member Tavares successfully sought removing a roughly $650,000 Metrolink fence project from the CIP to help the city approach a more balanced budget.
Council adopted Resolution No. 11,620 (budget) with that amendment and simultaneously approved Resolution Nos. 11,622 and 11,621 (appropriations limit and CIP submittal) by unanimous votes. Council asked staff to return in July with follow-up options for reallocating specific CIP funds or seeking grants for projects such as netting at select parks. Staff noted some grant-dependent projects cannot be postponed without jeopardizing matching funds.
The budget documents show general-fund operating revenues of about $147 million and proposed expenditures near $149.6 million, with the city relying on one-time transfers and reserves to limit the near-term deficit. Council members requested additional follow-up on revenue items that may materialize after county distributions and a fee study scheduled for August that could generate new revenue.
The council adopted the budget and related resolutions and directed staff to return with more details on targeted reallocations and revenue opportunities.
