San Clemente voters are poised to decide on a 1% sales tax increase aimed at preserving the city’s rapidly shrinking coastline. The proposed measure is intended to generate approximately $15 million annually for acquiring sand and implementing other measures to protect the city’s beaches, a challenge city leaders report they are regularly grappling with. This local initiative is part of a broader trend across Orange County, where residents in 13 cities will consider a variety of ballot initiatives this year, with over half focused on new taxes to address municipal budget imbalances, according to the source material.
Alongside San Clemente, the cities of Orange and Santa Ana are also seeking voter approval for sales tax adjustments. Orange leaders are proposing a 1% sales tax increase, which they estimate could bring in over $37 million each year. This revenue is intended to help patch growing budget deficits within their general fund. This marks the second attempt by Orange to secure a tax increase, following a failed 2024 effort for a 0.5% sales tax. That previous failure compelled council members to redirect funds from infrastructure projects and eliminate vacant job positions to balance the budget. Orange city council members are additionally asking voters to change Orange from a general law city to a charter city, a move they suggest could assist in controlling the municipal budget deficit and provide greater local control.
In Santa Ana, city council members are asking voters to make permanent a 1.5% sales tax increase that was initially approved in 2018. Santa Ana’s leaders are currently struggling with balancing the city's budget, having cut millions in spending this year alone. Multiple city leaders have expressed concern about a financial armageddon should the tax lapse.
Beyond sales taxes, several cities are also proposing increases to their transient occupancy tax, a fee applied to hotel rooms. Orange leaders are seeking to raise their hotel bed tax from 10% to 14%. Placentia leaders are also asking voters to approve an increase from 10% to 14%. While Placentia's financial situation is described as better than Orange's, the city is still managing budget problems and laid off two staffers earlier this year. Westminster and Los Alamitos are likewise asking voters to bump their hotel taxes from 8% to 12%.
Other ballot measures across Orange County involve changes to governance and housing policy. Laguna Beach leaders are asking voters to implement term limits that would require city council members to wait at least two years after serving two terms before being eligible to run for office again. Conversely, Lake Forest leaders are seeking to overturn their current two-term limits. Their proposal would instead introduce a four-year cool-off period after city council members serve two consecutive terms, effectively removing the city’s existing lifetime ceiling of two terms.
Irvine voters will consider a shift to an entirely new voting method called ranked choice voting. This system allows voters to rank candidates by preference rather than choosing a single candidate. If approved, this change could be implemented as early as the 2028 elections.
In Newport Beach, voters have one initiative on the ballot: the Responsible Housing Initiative. This measure, financially supported by a major developer in the city, aims to restrict the total amount of new housing that can be built in the city moving forward. Three other initiatives proposed for Newport Beach, addressing transparency improvements, term limits, and a shift to district elections, were deemed to have qualified too late by the OC Registrar of Voters for inclusion on the 2026 ballot.
Finally, Costa Mesa leaders are considering changes to how businesses are charged for licenses. The city's website indicates that larger businesses would pay more based on their gross income. This modification could generate over $4.6 million for city funds, with proponents noting that the cost to operate a business in Costa Mesa has not increased since 1985.
