The Brief

Orange City Council Delays Sales Tax Measure Amid Budget Crisis

Facing a projected $20 million deficit, Orange City Council postpones a proposed sales tax increase to explore alternative revenue options.

In a pivotal meeting on April 28, 2026, the Orange City Council addressed the city's escalating financial crisis, marked by a projected $20 million operating deficit for the upcoming fiscal year. The council deliberated on a proposed 1% sales tax increase, a measure projected to generate approximately $37 million annually. However, after extensive discussion, the council decided to postpone placing the sales tax measure on the November 3, 2026, ballot. Councilmember Ana Gutierrez emphasized the urgency of the situation, stating, "We all know what we need to do to help ourselves, but we also know that the sales tax [ballot measure] is not enough." She expressed concern over the delay, remarking, "Time is of the essence. I would have really liked to have had this discussion months ago. I don’t know why we waited so long." Councilmember Kathy Tavoularis advocated for a broader exploration of revenue-generating options beyond the sales tax increase. She suggested considering the city's transition to a charter city, raising hotel bed taxes, and permitting legal retail cannabis to diversify revenue streams. Tavoularis noted, "I was under the assumption that we were going to bring up all remedies at one time. I’m not comfortable taking a position tonight if we’re not having everything else discussed." Mayor Dan Slater supported initiating the conversation on the sales tax increase, even if it wasn't placed on the ballot immediately. He acknowledged the city's dire financial situation, stating, "We’re facing real financial … challenges. Our costs are rising, infrastructure is aging and the demands on our public safety and our city services continue to grow." The council's decision to delay the sales tax measure reflects a cautious approach to addressing the city's budgetary shortfall. The council plans to reconvene on May 12, 2026, to further discuss and potentially place the sales tax measure on the ballot, alongside other revenue-enhancing strategies. This decision underscores the council's commitment to exploring comprehensive solutions to stabilize the city's finances and ensure the continued provision of essential services to the community.

ℹ️ Researched and summarized from public reporting. Check the sources below.

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