TO: Honorable Mayor and Members of the City Council
FROM: Jarad Hildenbrand, City Manager
1. SUBJECT
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Review and discuss draft resolutions and ordinance documents relating to a proposed 1? Sales Tax Measure, Transient Occupancy Tax Measure, and The Contract with Orange
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2. SUMMARY
On May 12, 2026, the Orange City Council evaluated several revenue measures. After hearing public input and discussing each revenue option, the City Council directed City staff to bring back the necessary documents for a 1? Sales Tax Measure and a Transient Occupancy Tax Measure. Additionally, the City Council directed staff to develop The Contract with Orange, a formal declaration that memorializes and reaffirms the City's commitment to prudent financial practices. The purpose of this item is to review the draft documents and provide direction to City staff.
3. RECOMMENDED ACTION
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1. Review and discuss the draft resolutions and ordinances for the proposed 1? Sales Tax Measure and Transient Occupancy Tax Measure.
2. Provide direction to staff.
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4. FISCAL IMPACT
None. However, the estimated annual revenue for a 1? sales tax measure is $37 million and each 1% increase to the transient occupancy tax is estimated to generate an additional $600,000 annually.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.
6. DISCUSSION AND BACKGROUND
Over the past several years, the City has implemented operational efficiencies, evaluated service delivery models, reduced expenditures where feasible, and proactively addressed long-term liabilities. Despite these efforts, long-term fiscal pressures remain. As the City of Orange continues to evaluate long-term fiscal sustainability challenges caused by increasing costs for labor, materials, contractual services, and infrastructure needs, the City Council considered several revenue measures at the May 12, 2026, City Council meeting. These revenue measures included:
* Sale...
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