Westminster budget projects $91M revenue with significant tax contributions

The Westminster City Council held a study session on May 14, 2025, focusing on the city's budget for the upcoming fiscal year. Key discussions centered around the general fund, which is the primary operating fund for city services, and the projected financial outlook.

The budget projections indicate a significant increase in revenue, with an anticipated rise of $4.6 million compared to the previous year, bringing total general fund revenues to approximately $91.2 million. This revenue primarily comes from taxes, which account for 80% of the general fund, followed by charges for services and investment income.

A detailed breakdown revealed that the largest source of revenue is property taxes, contributing about $21.8 million, or 30% of the total. Sales tax follows closely, making up 25% of the revenue, with locally generated transaction use tax being a significant contributor. The budget also includes a contribution of $624,000 to reserves, although this figure does not account for any supplemental requests.

The council highlighted that Westminster has one of the lowest shares of property tax revenue among cities in Orange County, receiving only 7.4% of the property taxes collected. Most of the property tax revenue is allocated to schools (71%) and the county (12%), leaving the city with limited funds for local services.

In terms of expenditures, the council presented a chart detailing the distribution of general fund spending across various departments, emphasizing the need for careful financial planning to ensure the sustainability of city services.

Overall, the meeting underscored the city's financial challenges and the importance of maximizing revenue sources while managing expenditures effectively. The council will continue to refine the budget as they prepare for the upcoming fiscal year.