Visitors to iconic Old Towne Orange will soon have to pay for parking in the area or potentially get a ticket as officials continue to move forward with new parking rules amid a roughly $3 million deficit.
It comes after officials voted earlier this year to implement paid parking at Orange Plaza in Old Towne as a host of other OC cities are contracting with third party companies to enforce parking rules.
[Read: Orange May Roll Out Paid Parking in Old Towne Amid Budget Woes]
On Tuesday, Orange City Council members voted 4-2 to approve a $1.8 million three year contract with ACE Parking III to implement, enforce and manage paid parking in Orange Plaza.
It’s the second parking enforcement contract they’ve approved since last year after they first projected facing a $19 million budget deficit this year – but whittled that down to $2.6 million through a series of cuts by eliminating positions, reducing overtime funding and deferring park improvements.
Mayor Dan Slater said the paid parking at Orange Plaza is expected to generate $900,000 the first year in revenue and then $1.2 million annually after that.
“This is a big change for Orange granted, but I think it’s long overdue. It’s something the merchants have been asking for for a long time,” Slater said.
“I would of course, rather we not have parking in Old Towne and we go back to the 1960s when we didn’t even – who cared. We didn’t need the parking but now we do, because our downtown is thriving and the merchants are thriving, it’s only going to get better,” he said.
Councilmen Denis Bilodeau and Jon Dumitru were the dissenting votes on the contract, with Bilodeau stating he previously voted against implementing paid parking in Old Towne and Dumitru arguing that the revenue should be used for additional parking.
“I still feel very strongly that any revenue that is generated should be spent to enhance the historic district in regards to additional parking, such as using that money to fund the construction of another parking structure,” Dumitru said.
Councilwoman Arianna Barrios abstained from the vote, stating her home is too close to Old Towne Orange.
Orange’s Financial Woes
That same night, council members voted unanimously to adopt the budget for 2025-26 fiscal year with roughly $253 million in revenues and $280 in expenditures.
The general fund is expected to bring in roughly $147 million in revenue next year while spending over $149.6 million – leaving the city with a $2.6 million gap, according to city staff.
Officials ended up using one-time undesignated money to help fill that gap and pass a balanced budget for the upcoming fiscal year starting in July.
Adoption of the budget comes after 50.43% voters last November turned down Measure Z – a ballot measure that if approved would have raised the city’s sales tax from 7.75% to 8.25% in a city where officials have struggled to rein in what was initially projected to be a $19 million deficit.
[Read: Orange Sales Tax Increase Election Night Results 2024]
Officials were ultimately able to whittle down the initial projected deficit and pass a balanced budget by making over $17 million in cuts to the general fund by freezing positions, eliminating positions, deferring vehicle replacements, reducing overtime funding and more.
They also made roughly 14 million in cuts to their capital improvement budget by deferring and discontinuing park improvements and other projects.
Parking Enforcement in Orange County
Orange city council members last year approved a $2.5 million five year contract with SP Plus to enforce parking rules across the city that staff expects to generate up to $10 million in revenue over the course of the contract.
Other cities have also turned to contractors to enforce their parking rules.
[Read: Some OC Cities Privatize Parking Enforcement For Higher Ticket Revenue]
Last year, Stanton officials unanimously approved a $213,087 one-year contract with SP Plus to enforce the city’s various parking laws between 6 p.m. and 6 a.m. as part of a pilot program – a move expected to generate up to $200,000 in additional revenue.
But some residents across the region have pushed back on utilizing parking enforcement contractors, arguing they take an aggressive approach ticketing the communities they serve.
In Fullerton, it got to the point last year where residents in the southern part of the city – a predominantly working class area with a lot of overcrowded living situations – have complained to city staff and officials that they keep getting ticketed.
Officials in the college town – another city that has been struggling financially – end up putting a moratorium on issuing street sweeping tickets before resuming them earlier this year.
[Read: Fullerton Brings Back Street Sweeping Tickets]
In Santa Ana, both elected officials and residents raised concerns about LAZ parking – the city contracted parking enforcement officers – handing out too many tickets and lacking basic customer service skills even enforcing traffic rules they weren’t hired to enforce.
[Read: Are Santa Ana’s Contracted Parking Officers Giving Too Many Tickets?]
In March, city council members there called on police and staff to rein in the contractor.
Hosam Elattar is a Voice of OC reporter. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.