City Council debates property tax and sales tax options for funding gaps

The Westminster City Council convened on May 3, 2025, for a workshop focused on the development of the 2026 budget. The meeting primarily addressed various tax options and funding strategies to bridge budget gaps while ensuring community support.

The discussion began with an exploration of potential tax increases, including property tax and sales tax. Council members expressed the need for more information on how these taxes would impact residents. One council member highlighted that increasing property tax by up to 10 mills could average around $300 per household, while a proposed sales tax increase might only add about $50 annually for groceries. The challenge, as noted, lies in effectively communicating these changes to the public to gain their support.

Council members emphasized the importance of crafting a compelling narrative around the budget proposals. They acknowledged that previous attempts to raise sales tax had failed, suggesting that a more thorough educational campaign might be necessary to inform residents about the benefits of proposed tax increases. There was a consensus that any tax proposal must clearly outline what services or improvements the funds would support.

The conversation also touched on the accommodation tax, with some members open to increasing it as long as it remained competitive with neighboring cities. Additionally, the idea of a roadway improvement fee was discussed, with suggestions for annual increases to keep pace with inflation and community needs.

Council members expressed a desire to gather community feedback through polling to determine which tax options would be most acceptable to residents. They recognized the need for a unified approach among council members to present a cohesive plan to the public.

In conclusion, the workshop underscored the council's commitment to addressing budgetary challenges while ensuring transparency and community engagement. The next steps involve further research into tax implications and developing a strategy to effectively communicate the budget's needs and benefits to Westminster residents.