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City posts Grant Thornton report; council creates Chapman liaison committee to pursue recommendations
Summary
City staff posted the full Grant Thornton financial review and said they will meet with the firm; public speakers warned the city is 'on the path to bankruptcy' and the council unanimously formed a Chapman University liaison committee to pursue partnerships and implementation.
City staff told the City of Orange council on Aug. 26 that the full Grant Thornton study of city finances has been posted online and is under staff review. City Manager Jared Hildenbrand said he has scheduled a meeting with Grant Thornton next week to assess the report's completeness and accuracy.
Public commenters including Reggie Munikus warned that earlier finance briefings and the Grant Thornton findings indicate the city is "on the path to bankruptcy" unless revenue and burn-rate decisions are addressed. Munikus said the focus should be on revenue generation and an accurate accounting of the city's burn rate and reserves.
In response to the report and staff recommendations, Mayor Dan Slater moved — and the council seconded — to create a Chapman University liaison committee to help implement recommendations, pursue partnerships and solicit applications from Chapman students for civic roles such as the investment advisory committee. The council unanimously approved the motion; the mayor proposed members including Council Members Demetriou and Tavares, with Slater as a participant and Council Member Barrios named as an alternate.
Council members and staff discussed several of Grant Thornton's items during the meeting, and staff noted the report's top recommendations being discussed elsewhere in the agenda: a 12% across-the-board reduction in certain expenditures, a recommendation not to fill 79 vacant positions as written, and consideration of a 1% sales tax measure among other options. City staff said they are examining the assumptions in phase 1 of the report and will return with a more detailed, amended presentation and options for council review.
Staff also noted progress on complementary efforts: outreach to Chapman University for internship and liaison opportunities, an expanded online permit system, and phase completions of the city's enterprise financial system.
Council directed staff to expedite follow-up reports and to engage local partners as part of implementing recommended fiscal actions.
