Westminster projects $2 million increase in general fund at midyear; revenues up, vacancies reduce expenses

City finance staff presented a midyear budget review on Feb. 26 showing Westminster’s general fund is projected to end fiscal year 2024–25 with an approximately $2 million increase in fund balance, up from a budgeted $1.9 million deficit.

The presentation focused on the general fund only. Staff said revenues are projected to be about $1.9 million higher than budgeted, mainly from higher charges for service, while sales-tax and transaction-use taxes are projected $455,000 below budget. Expenditures are forecast about $2 million under budget primarily because of salary savings tied to vacancies. As of the Dec. 31 reporting period staff said 34% of general fund revenues had been received.

Key figures presented: budgeted general-fund revenues of $86.6 million; current projections of approximately $88.5 million; budgeted expenditures of roughly $87.0 million and projected expenditures near $85.0 million; projected reserves of $46.3 million at year-end, with an emergency reserve of $14.7 million and $31.6 million unassigned.

Council members asked about the city’s reserve policy and appropriate reserve targets. Finance staff said the city follows Government Finance Officers Association guidance and maintains an emergency reserve target of about 17% and noted separate retiree trust balances (Section 115 trusts) of roughly $5 million each that are not included in the general-fund totals presented.

Council voted to receive and file the budget report; the motion carried 4–0 (one councilmember absent at the vote). Staff recommended no midyear budget adjustments and said the next update will be part of the FY 2025–26 budget process with study sessions beginning in May.

Ending: The council received the midyear report; staff will include updated projections in the upcoming budget study sessions.