Council asks staff for revenue options analysis — TOT, cannabis tax, utility user fee among items discussed

Westminster staff told the City Council on April 28 that they will analyze a set of potential new revenue options and return with reports to help the council decide whether to pursue any proposals.

“Explore other opportunities to generate revenue for the city, including transient occupancy tax, cannabis taxes, digital billboard revenues and expanded utility user tax,” the facilitator read from the draft objectives, and council members and staff discussed how to sequence analysis and outreach.

City Manager Christine said staff did not provide advance spreadsheets or detailed revenue estimates so the workshop discussion could remain neutral. She described the workshop’s goal as a “working session” that would surface concepts and allow staff to advise on timelines and next steps. The finance director and city attorney said legal and procedural outlines (for example, what process a TOT or cannabis tax requires) could be delivered quickly, while revenue estimates and outreach planning require more time.

Finance staff provided preliminary figures on two items during the workshop. A staff member explained that Westminster’s current utility users tax is 4% and generates about $5.8 million annually; a 1‑percentage‑point increase on that tax would yield roughly $1.5 million annually, according to the presentation. The council was also told the city’s transient occupancy tax (hotel tax) is 8% and generates around $1 million a year; the staff example suggested a 1‑point change to TOT would produce about $125,000 under current assumptions.

City staff discussed sequencing: one recommendation was to treat annexation and property‑use studies as separate lines in the draft matrix because they require different timelines and resources. The city manager urged that staff not overload the council during the budget cycle and proposed August as a reasonable timeframe for deeper analyses; several council members encouraged an earlier, high‑level look in June to inform budget conversations.

City Attorney Scott Potter and the finance director said legal procedures for taxes could be outlined in a few weeks, while revenue forecasts and public outreach would take longer. Where appropriate, staff recommended separating items (for example, TOT) into standalone work streams to allow focused analysis.

No formal action was taken; staff will return with preliminary procedural analyses and estimates and will propose a timetable for follow‑up, with council discussion planned in the weeks ahead.