Orange city officials warn that the city could face bankruptcy within two years if voters reject a proposed one-cent sales tax measure in November. The City Council adopted a budget that uses transfers to cover a $4.4 million deficit.
- The council voted 6-1 to adopt the 2026-27 budget, eliminating $6 million in vacant positions and transferring $15 million. - Councilwoman Arianna Barrios said this is the last budget where transfers can cover deficits.
- City Manager Jarad Hilldenbrand said bankruptcy is not imminent but is "on the horizon." - A similar sales tax measure failed in 2024; the new measure would last 13 years and generate $37 million annually. The city is also deferring over $3 million in infrastructure projects.
Council members who opposed the tax argued the city is not close to insolvency.