Will becoming a charter city solve Orange's financial struggles? Voters will decide this fall

Voters in Orange will decide in November if the city should become a charter city.

The City Council approved 4-3 at its July 14 meeting to bring the question to voters. Councilmembers Arianna Barrios, Ana Gutierrez and John Gyllenhammer opposed the measure.

Orange is currently a general law city, which means it’s bound by state law and mandates. Charter cities still have to follow state law, but can establish their own rules on issues such as mayoral authority, term limits and financial management. Each charter city varies in how they establish those rules. (Read more about the nuts-and-bolts of Orange’s proposed charter city below.)

In California, 121 cities have adopted charters, including Los Angeles, Santa Ana and Huntington Beach. Other cities, including Fullerton, have also discussed adopting a city charter.

Why this matters 

Supporters of the ballot measure have said that a city charter will give Orange more control over city planning, contracting and revenue. The city is facing a budget deficit and largely lacks the revenue to sustain operations, according to consultants.

Last year, consultants warned Orange officials that if big changes aren’t made, the city could go bankrupt by 2029.

Councilmember Kathy Tavoularis introduced the charter idea earlier this year, saying the move could help the city face its financial problems.

“If you talk to people from other charter cities, Anaheim included, they'll tell you the benefits that they have from it,” Tavoularis said. “I will respect what the voters say. It's just an option, and I want to keep giving the voters options.”

Is a charter really the solution to Orange’s problems? 

The answer might not be straightforward. Jodi Balma, a political science professor at Fullerton College, told LAist that the charter can help with finances, but it all boils down to how it's written.

“The idea that being a charter city absolves you of all state regulation is not true,” Balma said. “How does a charter city change the finances? That depends what's in the charter. But cities get their revenue from taxes. The charter itself does not magically give the money.”

Voters can amend the charter later, she added.

“Residents can put charter amendments on the ballot,” Balma said. “Some of the cities have done good governance charter amendments, or written it in to begin with, and other cities have used that power to block the public out.”

For a city to adopt a charter, it requires a majority approval from voters. Adopting a charter alone will not cost the city, but placing the measure on the ballot will incur a cost.

What do opposing council members say? 

Other council members questioned the timing of the ballot measure and whether the city was moving too fast on the idea.

“My actual issue about not voting for this right now has to do with the timing against the other things we've brought forward,” Barrios said. “I don't think it's a bad idea. I think we need more time to get there.”

Councilmember Guttierez also said the charter item could have been tabled to prioritize more pressing city issues.

“I'd be happy to discuss this in the future after we get ourselves out of this structural deficit that we have,” Guttierez said.

What would the city’s proposed charter do?

Here are some highlights of what the 10-page proposed charter would accomplish: 

Fiscal responsibility: The proposed ordinance includes several rules concerning finances. For example, the city is required to adopt a balanced budget. An annual independent audit to be presented to the City Council would also be required under the ordinance. When deciding where to use general funds, repairing public infrastructure, replenishing reserves and reducing outstanding debt are among the city’s top priorities, per the charter.

Term limits: The ordinance governs all manner of elections, district boundaries, term limits and qualifications. For example, a resident must reside in Orange for 30 days or more to qualify to run for office. And no person can serve as mayor for more than two four-year terms in a lifetime. Also, no person can serve as a city council member for more than three four-year terms in a lifetime.

Open space reserve: A unique section in the proposed charter ensures the preservation of parks, wildlife habitat and other natural resources. The designated areas would be restricted to certain uses like recreation and park use.

You can read the full proposed charter here.