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Voters in Orange weighed in on whether they want to increase their sales tax from 7.75% to 8.25% in a move city officials hope will avert a municipal budget crisis.
As of 11:00 p.m. on Election Night, 51.60% of voters were opposed, while 48.40% were in favor – a difference of 1,105 votes, according to the OC Registrar of Voters.
So far, 34,491 votes have been tallied.
If the measure – known as Measure Z – passes, officials say critical local services could be maintained, an issue city officials have been fumbling with since cutting programs in an attempt to fix the budget deficit.
Currently, the city is in a $6.7 million deficit and is projected to reach $29 million in five years. According to a city website, they are “expected to run out of reserve funding in 18 to 24 months if it maintains current service levels.”
If approved, the City of Orange would still be on the lower end of the spectrum of sales tax in Orange County – with Los Alamitos, Santa Ana and Westminster having the highest rates at 9.25%.
Local autoship dealers have been gearing up to fight the measure, saying the move will drive away business.
The Orange Police Union political action committee spent over $13,000 on flyers and digital ads in support of the measure as of Oct. 19.
The Orange County Automobile Dealers Association spent nearly $250,000 – mostly on mailers – against the measure as of Oct. 19.
City council members have slashed various areas of spending, including a crossing guard program that was met with resident backlash in June – with officials later reinstating it after financial help from OC Supervisors.
[Read: OC Supervisors Help Fund Crossing Guards in Orange Amid City Budget Cuts]
Janitorial services have also been cut at city buildings like the library and city hall which has left residents and staff having to deal with vermin issues.
[Read: Cuts to Orange City Hall’s Janitorial Services Leads to Vermin Problem]
Gigi Gradillas is a Voice of OC Tracy Wood Reporting Fellow. Contact her at gigi.gradillas@gmail.com or on Twitter @gigigradillas.
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