City of Orange

Paul Sitkoff
Business & Public Affairs Manager
230 East Chapman Ave.
Orange, CA 92866
Phone: (714) 288-2590


Subject :

The City of Orange FY 12-13 Budget, On-Time and In-Balance!
Contact :Paul Sitkoff    (714) 288-2590
ORANGE, Ca. –   On Tuesday, June 26, the City Council of Orange, CA, adopted the Fiscal Year 2012-2013 budget. This new budget brings the City's finances into balance a full year ahead of original projections, with revenues above expenditures, for the first time since the economic crisis rocked our economy five years ago.

Additionally, the budget does not raise City fees or taxes for residents or businesses in Orange. 

Reflective of the ongoing budget reduction measures, the newly adopted $88.5 million dollar budget, which takes effect on July 1, represents a 5.1% decrease from the budgeted expenditures from FY 2007-2008. Despite this decrease, this balanced budget includes $850,000 of staff and operational costs previously funded by the former Orange Redevelopment Agency which ceased with the passage of the State Legislature Bill AB X126 which dissolved Redevelopment Agencies in California.

The significant decrease in City expenditures over the past five years includes an ongoing 5% furlough for non-safety employees, restructured labor agreements that include employees paying 94% to 100% of the employee retirement costs, a collective staff effort to reduce operational costs, freezing or eliminating vacant staff positions, and lowering total staff through attrition. Since 2007 the City has reduced staffing levels by over 100 positions, which is over 10% of the City workforce, without the need for layoffs.

This budget also reflects a steady increase in revenues year-over-year including Sales Tax (6.2% over FY 11-12), Franchise Fees (2%), and Transient Occupancy Tax (4.3%).

Overall, the City projects FY 12-13 revenues to be $88.6 million dollars, or 3% over FY 2011-2012 estimated revenues.  The City will begin FY 12-13 with a General Fund balance of $10.5 million dollars, which does not include a separate Catastrophic Reserve of $18.1 million dollars.

In keeping with the City’s efforts to keep Orange "A Great Place to Live and Work," the FY 12-13 budget provides for $44 million dollars in new and continuing Capital Improvement Projects.  Just some of the planned projects are: Improvements and upgrades to the City’s water production and distribution infrastructure, street maintenance and rehabilitation projects throughout the City, and lighting and signal projects designed to improve signal coordination and synchronization, and the application of anti-graffiti coating throughout the City’s park and trail system, which will protect the concrete, bricks, blocks, and stone surfaces from vandalism.
The new, balanced budget is the culmination of five years of conservative fiscal leadership by the Orange City Council, the hard work of City Staff, who have been going the extra mile to maintain superior service levels in the face of ever decreasing resources, creative new service delivery models by City management, and the collective employee bargaining groups who agreed to necessary pension cost-sharing proposals during contract negotiations.