Two years after voting in favor of raising taxes to maintain public services, Westminster voters will again be asked to increase city sales tax indefinitely in the March 5 primary election.
It’s another effort to combat the city’s long-term budget deficit – something officials have been struggling with for years.
A ‘yes’ vote for ballot measure E in the upcoming primary would raise Westminster’s total sales tax to 9.25% spanning over the next couple of decades – making it among the highest city tax rate in Orange County joining Santa Ana and Los Alamitos.
The measure projects $8 million annually for city coffers, allotting more funding for police and fire services, emergency responses, and maintaining public spaces like parks among other city public services.
The sales tax in Westminster currently is 8.75%, already on the higher end of city tax rates in the county with a median of 7.75%.
The city faces a roughly $9 million deficit for the 2023-24 fiscal year. Westminster is expected to generate $19 million from sales tax for the 2023-24 budget year, roughly 13% of the city’s overall revenue of $143 million for the year.
City officials often are divided on measures raising tax, however, city Financial Director Erin Backs said during the meeting that funds were needed to secure services for residents.
City Attorney Christian Bettenhausen highlighted at the same meeting that the city potentially loses $2 million in anticipated revenue every fiscal quarter if voters don’t vote in favor of the tax measure in March.
No arguments were formally submitted to the city against measure E.
Critics at the December city council meeting, like Councilman Chi Charlie Ngueyn, said the tax increase should have a sunset clause.
Others, like Councilwoman Amy Phan West, said the measure was rushed.
But everyone agreed the city needed to figure out a way to generate more tax revenue.
A similar tax increase was adopted by voters in 2022 to prevent further budget cuts toward the police department, fire department, city staff and other essential city services like senior programs.
[Read: Westminster Sales Tax Proposal Heads to November Ballot After Several Tries]
The tax initiative, known as Measure Y, continued an existing 1% sales tax increase for 20 years from the approval date set to expire by the end of March 2043.
With a population of about 90,000 people, more than half of Westminster’s population is Asian based on 2020 Census data, which translates to about 46,000 individuals — another 24% of residents, or roughly 22,000 identify as Hispanic or Latino.
The average household income for Westminster residents is $85,229, roughly $6,000 below the average in California.
The city is also home to a large population over the age of 65, making up 22% of all residents – over 6% of the state average.
City staff has repeatedly urged city council members to address revenue shortfalls before completely running out of funds for public services.
[Read: Westminster Voters to Consider Another Tax Increase Measure in March]
Last year, over 125,000 calls to 911 were made in Westminster often requiring medical attention.
Voting ‘yes’ on measure E also means the prevention of eliminating the Police Narcotics, Domestic Violence, Sex Crimes and Human Trafficking units from the department.
The measure also continues allotting funds for annual independent financial audits and continuing an independent citizen’s oversight committee.
Funding for improved street cleanups and trash pick-ups is also included in the measure – in which $14 million is needed to clean Westminster streets based on a city presentation in a Dec. 8 special meeting.
Hugo Rios is a Voice of OC intern. Contact him at hugo.toni.rios@gmail.com or on Twitter @hugoriosss
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