Westminster City Council proposes $26M roadway improvement fee to address traffic demands

Westminster City Council is taking significant steps to address its infrastructure funding needs, particularly for fire and street services. During a study session on June 2, 2025, city officials outlined a plan to bridge a $9 million annual funding gap for fire station operations and a $26 million shortfall for street improvements.

The council discussed the implementation of a new roadway improvement fee aimed at generating additional revenue from businesses, particularly those that contribute significantly to traffic. This fee structure is designed to shift more of the financial burden from residents to commercial entities, with a tiered approach that categorizes businesses based on their traffic impact. The proposed fee would increase residential charges from $6 to $8 per month, while non-residential fees would be adjusted based on the volume of traffic generated by different types of businesses.

City staff highlighted that the current roadway improvement fee, established in 2007, has not kept pace with inflation or rising construction costs. If adjusted annually, the fee could have been significantly higher today. The proposed changes aim to raise an estimated $4 million annually from the new fee structure, reducing the overall funding gap to $5 million.

Council members expressed support for the proposed fee adjustments, emphasizing the importance of a balanced approach that considers both residential and commercial contributions. Some councilors raised concerns about ensuring that large online retailers, like Amazon, are adequately accounted for in the new fee structure, as they contribute heavily to road wear without being directly taxed.

The council plans to draft an ordinance for the new fee this summer, with an outreach campaign to engage the community and businesses before implementation, which is expected to take place in approximately one year. Additionally, discussions included the possibility of incorporating automatic inflationary adjustments to the fee to prevent future funding shortfalls.

This proactive approach by the Westminster City Council aims to enhance public safety and infrastructure while ensuring that the financial responsibilities are equitably distributed among residents and businesses.