TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
title
Fiscal Year 2025-26 General Fund First Quarter Report.
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2. SUMMARY
A presentation providing a first quarter budget update for Fiscal Year 2025-26, focusing on the General Fund.
3. RECOMMENDED ACTION
recommendation
Receive and file.
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4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
2. Enhance Economic Development and Achieve Fiscal Sustainability.
6. DISCUSSION AND BACKGROUND
General Fund Revenues
For the first quarter (Q1) of Fiscal Year 2026 (FY26), the City of Orange recorded total revenues of $12.3 million, a decrease of approximately $392,000 (-3%) compared to the same period in FY25. While several key revenue sources demonstrated growth, timing for the transfer from the Capital Projects Fund to the General Fund resulted in an overall decrease. Not considering Transfers In, revenues increased by approximately $470,000 (29%) compared to the same period in FY25 as shown in the Table 1.
Table 1: General Fund Revenues - Year-over-Year Comparison
* Sales Tax: Revenues from sales tax rose by $457,000, or 9%, reaching almost $5.8 million. Continued consumer spending strength and steady local economic activity supported this increase.
* Transient Occupancy Tax (TOT): Hotel and short-term lodging revenues grew by $134,000, or 11%, reflecting improved occupancy levels and higher average daily rates compared to the prior year.
* Fine and Forfeitures: Declines by $219,000, or 71%, largely due to reduced citation activity and collection timing.
* Intergovernmental Revenues: Increased sharply by $273,608 (83%), driven by higher reimbursements and grant receipts during the quarter.
* Licenses & Permits: Decreased by $504,240, or 25%, reflecting a slowdown in building activity and fewer large permit issuances compared to the prior year.
* Other Revenues: Rose by $223,169, or 43%, driven by miscel...
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