Orange council opens push for 1¢ sales‑tax option but delays final vote for fuller package

The Orange City Council on April 28 opened a months‑long discussion about placing a 1¢ transactions‑and‑use tax on the Nov. 3 ballot after staff described the city’s projected structural shortfall.

City staff told the council that, under current projections, the city faces a multi‑million dollar operating gap and that a 1¢ local tax could generate roughly $37 million a year under conservative assumptions. Jack (staff presenter) said the measure would be accompanied by an independent citizens’ oversight committee and a community investment plan identifying likely priorities such as public‑safety technology, safe‑routes‑to‑school work and deferred vehicle and infrastructure needs.

The proposal drew both urgent support and calls for more analysis. Reggie Mundicus, a resident who urged placing revenue options before voters, told the council, “I support the sales tax measure because we need money… It’s the one thing we can do that will get us the most bang for the buck.” Several council members, including Councilmember Demetrio, said they were prepared to put a measure to voters but asked staff to return with a consolidated ‘menu’ of options that could include lodging and other revenue updates.

Opponents and some colleagues said the timing and scope need more work. Councilmember Gillinghammer said he wanted a deeper budget review before sending a measure to the ballot and asked for comparisons to other cities’ approaches. Councilmember Barrios asked for the poll crosstabs and urged staff to assemble community outreach materials before any final vote.

Council direction and next steps: the council did not place a tax measure on the ballot at the meeting. Members agreed to continue the full election and revenue discussion at a May 12 session that staff has scheduled to include additional revenue options, charter questions and detailed revenue assumptions. Staff said it will prepare outreach and education materials and provided an initial cost estimate: the city used a similar public‑education contract last cycle for about $98,500, including video, mail and targeted outreach.

The May 12 meeting will include refined revenue projections and comparisons, the proposed oversight committee structure, and options such as transient‑occupancy or business‑license changes for council consideration. If the council ultimately votes to place a tax on the ballot, state law requires five of seven councilmembers to approve sending a tax measure to voters, and the city attorney will produce impartial ballot language.