Westminster council introduces FY2026 budget with no property tax increase; water, sewer rates to rise

Westminster’s Mayor and Common Council on May 5, 2025 heard a presentation of the city’s proposed fiscal year 2026 budget and formally introduced an ordinance to adopt that budget, with no change to the real property tax rate and modest increases to water and sewer fees.

City Administrator Miss Imholz told the council the proposal is grounded in the city’s vision and strategic plan, reading the administration’s guiding statement: “Westminster is a safe, healthy, and engaged community where new ideas and sustainable innovation enhance the community’s quality of life and create economic opportunities for today’s residents and future generations.” The budget ordinance was introduced for consideration; Councilman Tony Carvacci moved to introduce the ordinance and Councilmember Gilbert seconded the motion, and the council voted in favor to introduce the ordinance.

Why it matters: The city’s proposal maintains the real property tax rate at 56 cents per $100 of assessed value for the thirteenth consecutive year while passing along higher utility costs to users. Officials said the decision was shaped by an increased assessable base and several fixed cost pressures the city must absorb.

Key details: City staff reported the city’s net assessable base rose by about $148,900,000 — roughly a 7.5% increase — as Westminster remains in the second year of the state’s triennial reassessment cycle and adds new properties through annexation. Because of that growth, staff said general-fund revenues are projected to exceed operating expenses in most funds, except the housing fund, under current estimates.

The administration told the council there will be no change to the real property tax rate; water rates would increase by 3.5% and sewer rates by 5.0% under the proposed operating budget. The presentation listed several cost drivers beyond staff control: an 11.5% increase in the city’s health insurance premiums, a roughly 10% increase in pension contributions for non‑sworn staff, a 4.1% increase in the Law Enforcement Officers’ Pension System (LEOPS) contribution rate, an estimated 16% rise in workers’ compensation renewal rates, and a 10% increase in general insurance premiums.

Capital projects: The city’s capital improvement program (CIP) highlights included upgrades and design work for the Carroll Arts Council building (door hardware and other items), trail design and upgrades at Wakefield, completion of playground equipment at Tahoma Farm Park (phase 2), pickleball courts at King Park, improvements to ball fields at City Park, continued infiltration and inflow repairs in the sanitary system, roof replacements at the water plant and the reclamation plant, the ongoing enhanced nutrient removal (ENR) project, and continued construction on the water reuse project.

Process and next steps: Finance staff said the ordinance that would adopt the budget was introduced at the meeting and will be the subject of working sessions and council deliberations over the coming weeks. Director of Finance Ms. Rogers and city staff said they will present more detailed line‑item material in upcoming meetings and that staff will continue updating projections as final numbers change.

What the council said: The finance committee chair thanked staff for the budget work and emphasized the city will pursue available county, state and federal funding sources to supplement local resources for large capital projects, including the ENR and water reuse initiatives.

Ending: The budget ordinance (introduced as Ordinance No. 2025-05) will return to the council for further review and formal adoption in upcoming sessions; no adoption vote was taken at this meeting.