The City of Orange is currently grappling with significant budget challenges, prompting the City Council to consider a 1% sales tax increase aimed at bolstering the city’s general fund. However, council members have yet to reach a consensus on the duration of this proposed tax hike, leading to repeated delays in advancing the measure.
In a recent meeting, Mayor Dan Slater advocated for a 10-year term for the tax increase, expressing concerns that a longer duration might not be well-received by voters. Councilwoman Kathy Tavoularis supported this stance, emphasizing that a defined term would compel future councils to focus on economic development. Conversely, Councilwoman Arianna Barrios proposed an indefinite term, suggesting that the tax remain in place until voters decide otherwise. This proposal, however, did not garner sufficient support.
The urgency of addressing the city’s financial situation is underscored by a 2025 report from city-hired consultants, which warned that Orange could face bankruptcy as early as 2029 if corrective measures are not implemented. The consultants recommended a 1% sales tax increase as a short-term solution to mitigate the projected budget deficit.
Despite the pressing need, the council’s inability to agree on the specifics of the tax measure has led to frustration among its members. Councilman Jon Dumitru expressed his concerns, stating, “I’m very confused by the fact that everybody agrees that for the last year or two years we’re struggling… but we’re back at indecision and inaction.”
As the council continues to deliberate, the deadline to place the sales tax measure on the November ballot is fast approaching. The outcome of these discussions will have significant implications for the city’s financial stability and its ability to maintain essential services for residents.