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Orange council directs staff to study 1% sales tax as budget gap persists
Summary
Facing a structural budget shortfall, the City of Orange council received the midyear budget report, approved a $1.8 million appropriation for housing/building programs, and directed staff to study a potential 1% local transactions (sales) tax and other revenue measures to close ongoing deficits.
Mayor Dan Slater presided over a March 24 City Council meeting where council members received the fiscal year 2026 midyear report and directed staff to study a possible 1% local transactions (sales) tax as part of a broader package of revenue options.
The midyear presentation showed operating revenues for FY26 of about $153.8 million against estimated expenditures of about $158.9 million, producing an operating deficit the city estimated at roughly $5.1 million before transfers and a net deficit after transfers of about $2.1 million. Staff told the council the FY27 proposed budget projects roughly $153.7 million in operating revenues and $161.1 million in expenditures including debt service, yielding an estimated FY27 operating deficit of about $7.4 million before one‑time transfers.
The budget presentation — prepared with a 0‑based approach — detailed a set of balancing steps that include eliminating…
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