Westminster City Council/Successor Agency to the Westminster Redevelopment Agency
SUBJECT
Title
Study Session - Fiscal Year 2026-27 Proposed Budget
End
From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Erin Backs, Finance Director
____________________________________________________________
RECOMMENDED ACTION
Recommendation
Provide direction only. No action.
end
BACKGROUND
The budget document outlines the City's plan for spending and priorities for Fiscal Year (FY) 2026-27. The proposed operating and capital projects budget for FY 2026-27 provides the best estimates for revenues and expenditures for the remainder of the current fiscal year and for the next fiscal year. More importantly, it informs the community about the City Council's priorities as outlined in the City's Three-Year Strategic Plan.
Achieving Financial Stability is a key goal of the Strategic Plan. To support this objective, the City Council placed Measure Y, a one-cent 20-year transaction use tax effective April 1, 2023; and Measure E, a half-cent transaction and use tax effective July 1, 2024, and continuing until repealed by voters, on the ballot. Together, these measures generate $23 million in annual revenue to sustain Westminster’s long-term financial stability and help prevent future service reductions.
The City of Westminster faced significant financial challenges after Redevelopment Agencies were eliminated in 2012, causing a major loss of revenue. In response, voters approved Measure SS in 2016 -- the City’s first one-cent transaction and use tax. Measure SS expired on December 31, 2022, and Measure Y replaced it beginning April 1, 2023.
Over the past 11 years, the City has made strong progress toward financial stability. Since the first sales tax measure was approved, the General Fund balance/reserves has increased by 167% -- from $20.8 million to $55.6 million. During that time, the City has expanded services, increased reserves, created Section 115 trust accounts to save for future costs, and strengthened its reserve policy by adding additional financial contingencies.
In June of 2025, as part of the Strategic Plan, this City Council adopted an enhanced fund balance policy. This policy includes increased reserves to 32% of General Fund expenditures and added additional contributions to the Section 115 trust accounts to address pension and Other Post-Employment Benefits (OPEB) liabilities. The General Fund reserves are projected to end FY 2026-27 as follows:
|
Projected General Fund Balance on June 30, 2027. |
Amount |
|
17% Emergency Reserve |
$16,437,638 |
|
10% Budget Contingency |
9,669,199 |
|
5% Infrastructure Reserve |
4,834,599 |
|
Assigned/Non-spendable |
1,154,382 |
|
Unassigned/Spendable |
23,465,962 |
|
Total |
$55,561,780 |
Section 115 Trust Account balances as of April 30, 2026:
• Pension $9,354,557
• OPEB $9,066,783
FISCAL YEAR 2025-26
Over the past year, City departments have worked hard to show the community that the City Council and staff are responsible stewards of public funds, consistently striving to do more with fewer resources. Key FY 2025-26 highlights reflecting community priorities include:
Administration
• Continued to update the City's Records Retention Schedule per State guidelines.
• Maintained legal compliance with various federal, state, and local laws.
• Completed annual filings for Fair Political Practices Commission (FPPC) Forms 700.
• Provided excellent internal and external customer service and information to the public.
• Improved accuracy and timely preparation of agendas.
• Received and responded to 763 requests for public records.
• Processed payroll data entry for approximately 223 full-time and 124 part-time employees.
• Protected the City’s assets and promoted sustainable management of the City’s resources through effective risk management and long-term planning.
• Fostered positive alliances between employees and management, working together to improve internal collaboration, employee involvement, morale, and customer service in the City.
• Successfully reduced three 457 plans to one, which is available to all current and past employees.
• Updated Personnel Policy Manual which was last updated in 2005.
• Conducted RFP for new Workers’ Compensation third party administrator and transferred files successfully.
• Presented to City Council the City’s annual Recruitment and Retention Report, demonstrating a retention rate of 9%.
• Hosted Benefits Fair and processed 37 benefit elections from vendors such as CalPERS, Delta Dental, VSP, The Advantage Group, and The Standard.
• Recognized years of service milestones for 28 employees with 405 cumulative years of City service and hosted annual Employee Appreciation breakfast with 200 attendees.
• Administered the City's cafeteria benefits program and retirement program.
• Administered and reduced all Liability and Workers’ Compensation Programs.
• Received Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for FY 2024-25.
• Received GFOA Distinguished Budget Presentation Award for FY 2025-26.
• Activated the Emergency Operations Center for a 78-hour crisis incident.
• Improved communications and social media reach through increase in newsletters and posts.
• Hosted second small business expo in partnership with the Small Business Development Center.
• Hosted the first State of the City address in nine years.
• Received $250,000 grant from the State of California’s Jobs First Regional Investment Initiative to support economic growth and revitalization in Little Saigon.
• Continued programs such as Small Business of the Year and Woman of Distinction; and implemented the new Holiday Home Decorating Contest.
Community Services
• Hosted numerous city-led special events including Movies and Music (successfully integrated Safety Day as part of the National Night Out + Summer Concert event on August 7); ribbon cutting ceremonies to welcome the new playgrounds at Westminster Village Park, Bowling Green Park, Bolsa Chica Park, and Elden F. Gillespie Park, as well as the new Soccer Fields at Sigler Park and the Community Garden; Fall Festival (added Community Loteria to Thursday Cultural Night and continued the successful Embrace Aging Expo on Saturday, hosted 2 vendor markets: The Makers Hive on Saturday night and Dreamers Market on Sunday); Halloween Spooktacular Trunk or Treat and Movie Night, Santa on the Go, Breakfast with Santa, American Vietnam War Veterans Day Event, Black April Commemoration, Bunny Hop, and Earth Day activities.
• Elevated Tree Lighting Ceremony by moving the location to the Sunken Gardens and adding a beautiful new, larger tree, and decorations. Event attracted approximately 800 attendees, more than double previous years.
• Successfully facilitated community outreach efforts for the proposed conversion of two tennis courts into eight pickleball courts at Tony Lam Park, through both in-person and virtual outreach events.
• Successfully led the 2026 Tet Parade, securing $127,223 in sponsorship support and coordinating 80 parade entries.
• Managed 14 approved special event permits including Movie Nights at Bolsa Chica Park, Blessed Sacrament's Annual Festival, Asian Garden Mall Night Market, ceremonial events at Sid Goldstein Freedom Park, and several large events at Westminster Mall.
• Co-hosted with CalOptima Health the Back-to-School Health and Wellness Fair with more than 3,600 in attendance.
• Successfully operated the Splash Pad in summer 2025 with 32 private party rentals.
• Reserved 67 facility rentals with over 7,200 guests.
• Registered over 1,800 participants in 1,032 recreation classes, programs, and activities.
• Completed major field improvements at Sigler Park and Buckingham Park, including the addition of new soccer fields at Sigler Park, and facilitated 1,876 hours of ballfield rentals outside of construction periods.
• Expanded the Mobile Rec program to visit 20 parks on separate occasions throughout the year including school breaks, holidays and special events.
• Created four quarterly Newsletter and Recreation Guides, in full color, mailed to over 30,000 Westminster households and businesses.
• Hired full-time receptionist to consistently support front desk operations.
Westminster Family Resource Center (WFRC)
• Through the WFRC, provided in-person services to 1,345 individuals, 1,572 children from 790 family clients, including counseling, Personal and Empowerment Program (PEP), case management, parenting classes, and special activities.
• WFRC added a new service component by offering Differential Response Path 1 (DRP1) services. Through the Social Services referral process, 83 clients were contacted, receiving services and referrals.
• The WFRC expanded services to include monthly community workshops including domestic violence awareness, health and wellness classes, tenant rights, immigration rights, human trafficking, art for healing and youth situational awareness to 275 participants.
• WFRC continued to offer low-cost medical services, monthly legal clinics, employment and job search assistance, Cal-Benefits assistance, and food and diaper distributions.
• The WFRC volunteer group CEAC launched a peer-led weekly skills-building class designed to strengthen participants’ workforce skills.
Senior Center
• 16 students graduated through the Project SHUE Program.
• Senior Center provided 30 social events with meals for the older adult community with 1,664 participants.
• The Senior Center registered 17,606 membership scans.
• Hosted 146 educational classes and presentations for the older adult community that were attended by 983 people.
• Provided food distribution to 2,016 low-income individuals.
• Senior Center partnered on eight occasions with UCI Health Science Students for Nutritional Commodities Program.
• Senior Center partnered with Westminster High School Workability Program on eight events for volunteer opportunities with nutrition programs.
• Provided home-delivered meals for an average of 47 seniors a week.
• Added a Crochet and Fiber Arts Program and an in-person adaptive yoga fitness program.
• Hosted two teen tech help workshops for older adults and added a weekly in-person tech support program for older adults.
• Worked with the Assistance League to include a weekly breakfast program for older adults, providing 36 breakfasts for 65 older adults each time.
• Hosted 12 free sessions for one-on-one appointments for older adults with Health Insurance Counseling & Advocacy Program (HICAP) and added monthly Vietnamese language HICAP appointments.
• Westminster On Wheels (WOW) transportation provided over 5,253 one- way trips for senior Westminster residents.
• Senior Center provided goody bags to all home-delivered meals clients during Christmas and Easter.
• Provided a daily lunch program for an average of 60 older adults per weekday.
• Added a monthly birthday celebration for participants to enjoy their special day.
• Added a monthly blood pressure clinic at the Senior Center for the older adult community.
• Secured a private non-profit grant to upgrade the dining room furniture and fixtures.
• Secured six event sponsorships in the amount of $2,400.
Community Development
• Implemented a comprehensive invoice tracking system and successfully reconciled and processed previously outstanding invoices.
• Initiated development of a Records Retention System for the Community Development Department, currently cataloging approximately 1,700 Planning files and 6,633 Building files.
• Developed the Community Development Statistical Tracker to monitor monthly metrics for Planning, Building, and Code Enforcement; launched a public-facing quarterly dashboard on the city website on April 6, 2026.
• Created and updated multiple planning forms and informational materials to ensure compliance with applicable legal and regulatory requirements.
• Began development of a comprehensive Community Development Policy and Procedures Manual in coordination with the Interim Community Development Director.
• Streamlined Developer Deposit tracking processes and have actively collaborated with the Finance Department to reconcile, close, and issue refunds for applicable accounts.
• Processed and fulfilled 123 Public Records Requests (PRRs), coordinating across multiple divisions and compiling responsive documentation.
• Administered and supported 13 Planning Commission meetings, including preparation of agendas and minutes, video uploads to Granicus, and archiving of approved documents in Laserfiche.
Planning
• Finalized the Mixed-Use Zoning Code Update, which will increase the density within mixed-use areas and expand the boundaries of some districts on April 22, 2026, City Council meeting.
• Completed the Annual Progress Report on the implementation of the City's Housing Element.
• Initiated seven (7) Zoning Code amendments to streamline procedures, improve usability, ensure consistency with State law, and respond to evolving community needs.
• Established a new list of on-call consultants for the Planning Division following a competitive solicitation process. These contracts allow the
Division to respond more efficiently to changes in State law, process complex development applications, and address staffing needs.
• Finalized and adopted updates to the SB 9 and ADU Ordinances and incorporated the changes into the Zoning Code.
• Streamlined the ADU review process by eliminating the Zoning Clearance requirement; ADUs are now reviewed concurrently with Building Plan Check.
• Updated pre-approved ADU plans on the City’s website, making them readily accessible to the public.
• Streamlined review procedures for single-family residential development by allowing duplexes and triplexes to proceed without discretionary review, consistent with state law.
Building & Safety
• Conducted 13,868 building inspections.
• Issued 2,015 building permits with a combined valuation exceeding $106 million dollars.
• Worked with several developers to complete major projects, including the old Stater Bros Market, H-Mart, Bolsa Row Retail building shell, and Brandywine’s 25 townhouses.
• Inspectors responded to 18 emergency calls when fires or vehicle accidents affected buildings.
• Completed the virtual plan submittal and review process.
• Adopted 2025 California Building Standards Codes.
Code Enforcement
• Initiated more than 1,118 cases while responding to over 1,106 community complaints. In addition, more than 1,822 cases were successfully resolved through property owner compliance, demonstrating strong community cooperation and effective enforcement efforts.
• Conducted more than 36 food vendor enforcement sweeps in collaboration with OC Health Care Agency. These operations focused on identifying unpermitted vendors and removing perishable food items to protect public health and safety.
• Continue to work closely with property owners to address graffiti-related blight. To date, staff have addressed over 187 properties citywide and launched a proactive graffiti abatement program in January 2026, now available to residents through the City’s Code Enforcement website.
• Launched a targeted enforcement initiative focused on blighted multi-family apartment complexes, vacant lots, and illegal massage establishments, further enhancing neighborhood quality and addressing ongoing community concerns.
• Administrative staff handled over 3,483 customer interactions, including responses via email, MyCivic, and counter service, while providing support to field officers.
Police
• Leadership: Hosted leadership training for prospective Sergeants.
• Leadership: Hosted a new Sergeant promotion onboarding training.
• Hosted Leadership training for Staff.
• Over 45 traffic operations and DUI checkpoints were conducted by the traffic division.
• Hosted a combined Safety Day/National Night Out with a Concert in the Park.
• Hosted a Coffee with a Support K9 event and several Coffee with a Cop events.
• Participated in National Walk to School Day.
• Organized the Special Olympics Torch Run.
• Coordinated a Mobile Field Force Geographical Team with agencies within Orange County.
• Detectives were awarded an ABC Grant and received funding from Prop 69.
• Detectives applied for and received a BSCC Grant. New Protective gear for officers, and training were provided through the grant.
• Forensic Unit hosted a Teen Forensics Academy.
• Detectives cleared all new Homicides during this FY.
• Police made 2,041 arrests since July 1, 2024.
• Hosted several quarterly Probation Officer Trainings.
• Conducted numerous homeless outreach events to focus on illegal encampments.
• HLO Team completed several community engagement outreach events and included other City Departments to help facilitate processes.
• Assisted Code Enforcement/CPU on weekly Street Vendor Operations.
• Two full-time Parking Control Officer positions were created and filled.
• Parking Control issued 12,000 citations from July 2025 to December 2025.
• Two new Park Ranger positions were created, and a Park Ranger program was developed.
• Traffic completed a rollout of the city-wide RV parking permit program.
• Held a Community Academy and graduated 13 attendees.
• Hired 13 new Police Officers and 3 Dispatchers.
• Dispatch has handled a total of 125,000 calls (incoming/outgoing) since July 1, 2025.
• Created 2025 Annual Report (currently in draft form).
• Continued using Social Media as a community engagement and information on public safety and city matters communication tool.
• The Forensics Unit responded to 15 call outs and 50 field calls.
• The Property and Evidence Unit received 3,000 items, released approximately 400 items, and destroyed approximately 2,400 items.
• Processed over 1,770 public records requests for insurance agencies, attorneys, general public requests, and criminal discovery requests.
• Processed over 2,419 court packages and evidence discovery requests for criminal filing with the Orange County District Attorney's Office.
• Assisted over 6,600 community members at the front counter.
• Processed over 1,213 discovery requests for criminal filings with the Orange County District Attorney’s Office.
• Hosted a Halloween themed maze at the Police Department for the annual Trunk or Treat event.
Public Works
• Installed 50 new Accessory Dwelling Unit (ADU) water services.
• Repaired 42 service line leaks, four water main breaks, and 30 damaged valves.
• Exercised 4,488 water valves and serviced 732 fire hydrants.
• Replaced 2,876 water meters.
• Supplied 100% well water, resulting in an estimated savings of approximately $980,000 in imported water costs.
• Repaired 2,971 potholes citywide.
• Removed graffiti from 2,331 locations.
• Collected 1,373 abandoned items within the public right-of-way.
• Replaced nine damaged sidewalk locations, three curb and gutter sections, and installed five driveway approaches.
• Trimmed 2,142 parkway trees.
• Completed construction of the Elden F. Gillespie Playground Renovation Project.
• Completed construction of the Cherry Street Community Garden Project.
• Completed construction of the Baseball Infield Renovation Project at Buckingham Park and Westminster Park.
• Completed construction of the Blakey Park Building Restoration Project.
• Completed construction of the Sigler Park Soccer Fields Project.
• Completed construction of the Bowling Green Park, College Park, Russell C. Paris Park, Westminster Village Park, and Bolsa Chica Park Playground Renovation Projects.
• Completed construction of the 2025 CDBG Overlay Project, including improvements to seven residential street segments.
• Completed construction of the 2025 CDBG Concrete Improvement Project, including replacement of 42 sidewalk segments, five ADA-compliant curb ramps, five driveway approaches, and one cross gutter.
• Completed construction of the Trask Street Improvement Project (Beach Boulevard to Hoover Street).
• Completed construction of the 2024 Citywide Slurry Seal Project, including 59 residential street segments.
• Completed construction of the Mendez Historic Trail Improvement Project.
• Awarded the construction contract for the McFadden Avenue, Brookhurst Street, and a portion of Bolsa Avenue Improvement Project.
• Awarded the construction contract for the City Hall Roof Replacement Project.
• Awarded the contract for the ADA Transition Plan.
• Awarded the contract for the Facilities Condition Assessment and Master Plan.
• Completed design for the FY 2025-2026 Citywide Residential Overlay Project.
• Completed design for the Westminster Police Department Server Room HVAC Project.
• Initiated design of the Bolsa Chica Road Street Improvement Project (Rancho Road to Old Bolsa Chica Road).
• Ongoing construction of the City Hall HVAC Project.
• Ongoing construction of the Brownstone Lane Condominium Community Water Service Line Replacement Project.
Fire (as submitted by Orange County Fire Authority OCFA)
• We had an incredibly successful 23/24, but as stated in The OCFA Way, “Settling for work considered ‘good enough’ is simply not part of our culture.” Case in point, we improved in almost all measurable areas in 24/25 as evidenced by the data below
• Westminster units responded to 9,254 emergency calls, averaging 25 calls per day, consistent with last year. This included 177 fires, 7,107 critical medical emergencies, and 1,970 other service calls. Westminster’s call volume remains approximately 30% higher than the OCFA system-wide city average serving 23 cities.
• OCFA handled 183,865 emergency incidents in 2025, resulting in 223,859-unit responses. The Emergency Command Center received over 345,000 calls, answering 99.92% within 15 seconds and dispatching resources in an average of 53 seconds, well below the national benchmark.
• Implementation of enhanced dispatch protocols and apparatus tracking reduced overall response times by 18 seconds, further reinforcing OCFA’s standing as a leader in system performance as reported during our Standards of Coverage assessment three years ago.
• OCFA paramedics continue to outperform national benchmarks in cardiac arrest survival. Return of Spontaneous Circulation (ROSC, i.e., restoring a patient’s heartbeat) rates reached 29-31%, exceeding the national average of 23-25%. Division 1 paramedics managed an average of 27 full cardiac arrests per month in 2025.
• In 2025, Arson investigators responded to 66 fires in Westminster to determine if arson was involved, determining 30 were arson cases, and arresting 19 individuals suspected of arson.
• The City of Westminster is served by three paramedic engine companies (Engines 64, 65, and 66) and a Battalion Chief.
• OCFA reduced Westminster’s cash contract cost by 1.5% in 2026.
• Westminster’s contract covers core staffing and support services, while receiving full access, at no additional cost, to OCFA’s specialized resources, including technical rescue, hazardous materials response, air operations, fire investigations, and incident management teams.
• Truck 64 was reestablished in Westminster to address a ladder company need in Battalion 1 by reconfiguring Engine 25. This unit was placed in service at no cost to the City, funded through OCFA structural fire funds. The city used to cover Truck 64 costs but removed it from service in 2019 to reduce costs.
• OCFA secured millions in grant funding to help offset costs for contract cities.
• The department negotiated the purchase of 14 Type 1 fire engines at a savings of $400,000 per unit, while also avoiding extended national delivery delays, receiving the units in 10 months versus 2-3 years.
• Firefighters and Fire Prevention personnel completed over 2,000 fire and life safety inspections across the city.
• OCFA participated in 48 city community events, including the Tet Parade, Summer Concert Series, Safety Day, and the City’s Tree Lighting Ceremony.
• Cadet Post 64, based at Fire Station 64, continues to grow with over 35 cadets, many of whom are Westminster residents.
• The 6th Annual OCFA Open House welcomed over 5,000 community members, providing hands-on fire safety education and outreach.
• Division 1 expanded its social media presence, generating strong engagement and increasing visibility of OCFA’s service in Westminster and surrounding communities.
• OCFA generated over $300 million in earned media coverage in 2025.
• The 6th Annual Girls Empowerment Camp was held, continuing efforts to introduce young women to careers in the fire service.
• In 2025, OCFA conducted two Recruit Firefighter Academies (up to 50 candidates each), along with multiple Engineer, Captain, and Battalion Chief academies to support workforce leadership development.
• The Operations Training & Safety Section delivered quarterly training and a range of career development programs, including leadership and promotional courses.
• OCFA continues to lead in emerging technology, including testimony before Congress on the use of Unmanned Aircraft Systems (UAS) in public safety.
• Air Operations capabilities were further strengthened through the expansion of the drone program, with over 25 trained operators supporting incident response and mapping, and advancement of a drone-as-first-responder program.
• Upgraded cardiac monitors and AEDs were placed into service across all apparatus, enhancing patient care capabilities.
• OCFA is in the process of replacing and upgrading all command vehicles.
• A new generation of Self-Contained Breathing Apparatus (SCBA) has been deployed, improving firefighter safety, communication, and operational duration in smokey or hazardous environments.
• All company officers have been issued a second radio, improving communication, accountability, and incident safety.
• OCFA partnered with UC Irvine to study PFAS exposure in firefighters and implement strategies to reduce long-term health risks.
FISCAL YEAR 2026-27 BUDGET
The budget is balanced as presented, making this the second year in a row the city has had a balanced budget. Prior to FY 2025-26, the city had not had a balanced budget in six years. The proposed budget, which does not include any service enhancements, is highlighted in blue. Additionally, requested supplemental items are included and identified in the green column. There are 11 new positions offset by three full-time and two part-time position eliminations requested through the supplemental process. All position requests are in the General Fund. The proposed General Fund budget, excluding the supplementals, adds $1.5 million to reserves. The proposed budget, including the supplementals, adds $477 thousand to reserves.
Budget Layout
The budget is broken down into three main sections. The total sources and uses schedule behind the summaries tab shows revenue, expenditures, and balances for all funds on one page. Each fund is further detailed on individual schedules located behind the fund statements tab. Within each fund are programs. The programs are categorized by department and are located behind the department tabs. The budget is broken down further by objects. Objects are more specific and provide the most detail included in the document. Also, included in the proposed budget are the recommended capital projects for FY 2026-27. Capital improvement project (CIP) requests totaling $16.8 million are found behind the capital improvements tab on page 135.
All schedules show FY 2024-25 actuals, FY 2025-26 revised budget, FY 2025-26 estimated year-end actual, and the proposed FY 2026-27 budget. The General Fund and Water Fund schedules also include a column for the proposed FY 2026-27 budget, including supplementals. The proposed budget does not include any service level increases but does include contracted increases for current services and all service additions added by the City Council during FY 2025-26. The proposed budget also includes salary increases for all groups recently approved at the May 21, 2026 City Council Meeting. The proposed budget with supplementals includes everything in the proposed budget column plus the requested supplementals, which are identified in the column shown in green. There are 11 new positions offset by three full-time and two part-time position eliminations in the General Fund requested through the supplemental process.
The expenditure objects are grouped by type and categorized as follows:
Salaries and Benefits
o Salaries & Personnel Costs - Costs associated with employee compensation and benefits and retiree medical payments.
o Employee related administration, insurance, and claims costs.
• Operations and Maintenance
o Operating costs include contractual, legal, supplies, training, vehicle use, uniforms, postage, printing, utility costs including gas, electric, phone and water, and licensing fees.
o Equity Taxes - Water ground pumping costs. Other Uses - Bad debt expense.
• Capital Outlay/Other
o Expenditure relating to improvement projects and the purchase of equipment.
o Depreciation - Accounting method used to allocate the cost of a tangible or physical asset over its useful life or life expectancy.
• Debt Service
o Interest & Fiscal Charges - Interest charges on outstanding balance of debt issuances.
o Principal Retirement - Payments applied to outstanding debt balance.
• Administrative Charges/Transfers
o Admin Offsets/Credits - Overhead charge spread between City funds.
o Operating Transfers - Transfers between City funds.
Total Budget
The total City budget of $164.5 million includes 41 funds and funding for 276 full-time positions. The total FY 2026-27 budget, including all funds, is summarized in the following table:
|
|
Beginning Balance |
Revenue |
Transfers in |
Operating Expenditures |
Transfers Out |
Ending Balance |
|
General Fund |
54,037,632 |
98,216,137 |
- |
96,666,989 |
25,000 |
55,561,780 |
|
Special Revenue |
32,127,248 |
20,483,980 |
- |
8,260,656 |
11,277,819 |
33,072,754 |
|
Capital Projects |
21,647,184 |
267,000 |
11,637,819 |
14,528,245 |
- |
19,023,758 |
|
Enterprise |
22,554,068 |
24,551,600 |
3,675,000 |
25,334,482 |
3,650,000 |
21,796,186 |
|
Fiduciary |
2,023,236 |
5,895,740 |
- |
5,855,740 |
- |
2,063,236 |
|
Internal Service |
4,685,596 |
14,520,176 |
- |
13,883,456 |
360,000 |
4,962,316 |
|
Total All Funds |
137,074,964 |
163,934,633 |
15,312,819 |
164,529,568 |
15,312,819 |
136,480,030 |
Projected revenue for all funds is $163.9 million, while proposed expenditures amount to $164.5 million. The largest categories of expenditures in the City are in the General Fund followed by the enterprise (water) funds, internal service funds, and capital projects. Ending balances for all funds are projected to total $136.5 million.
Legal costs are an important component of the total budget. The FY 2026-27 budget includes an allocation of $1.2 million to legal fees.
General Fund
The General Fund is the City's primary operating fund. It accounts for all general tax receipts and fee revenue not allocated by law, Council policy, or contractual agreement. General Fund expenditures include operations traditionally associated with activities that are not required to be accounted for or paid for by another fund.
The General Fund budget for FY 2026-27 is balanced as proposed. Projected revenues are estimated at $98.2 million while expenditures, including transfers out, are projected to be $96.7 million. This will result in contribution to reserves of $1.5 million, increasing reserves to $55.6 million. The budget version including supplementals shows expenditures of $97.7 million. This will result in a contribution to reserves of $477 thousand, increasing reserves to $54.5 million.
Projected fund balances for FY 2026-27 are based on projections for the current year. The General Fund revenues for FY 2025-26 are trending above budgeted projections by $4.6 million. The increase is primarily a result of sales tax, higher charges for services, particularly due to development fees and ambulance billing charges. Additionally, General Fund expenditures are projected to be under budget by $2.3 million. The projected decrease is attributed to ongoing cost containment efforts by all departments, as well as the high number of vacancies experienced in the first part of the fiscal year.
The FY 2025-26 budget was adopted with a contribution to reserves of $249 thousand. Current projections add $4.1 million to reserves. It is recommended that the City Council allocate $3 million for street improvements from the FY 2025-26 surplus to save for future capital projects related to street improvements to achieve a balanced budget in future years when funds are not available. This allocation will continue the practice of funding $1.5 million annually since the implementation of the first transaction use tax in 2016.
The salary savings from the 24 current vacant positions will continue until these vacancies are filled. One of the City's Strategic Plan goals is to attract, develop and retain well-qualified staff members. The City is actively working to fill these positions and achieve this goal through the objectives outlined in the strategic planning process.
The following table shows revenue, expenditures and reserve balances for the FY 2025-26 year-end estimate, FY 2026-27 proposed budget without supplemental plus projections to FY 2030-31.
|
Fund |
2025-26 Estimate |
2026-27 Proposed |
2027-28 Projected |
2028-29 Projected |
2029-30 Projected |
2030-31 Projected |
|
Revenue |
96,678,485 |
98,216,137 |
100,563,169 |
104,401,640 |
108,121,273 |
112,017,899 |
|
Expenditures |
92,555,366 |
96,691,989 |
99,020,470 |
103,906,670 |
106,183,809 |
109,966,335 |
|
Reserves +/(-) |
4,123,119 |
1,524,148 |
1,542,699 |
494,970 |
1,937,464 |
2,051,564 |
|
Reserve Balance |
54,037,632 |
55,561,780 |
57,104,480 |
57,599,450 |
59,536,914 |
61,588,478 |
The following lists the differences between the adopted FY 2025-26 budget and the proposed FY 2026-27 budget.
Revenue projections increased $7 million with the largest changes as follows:
• Property Tax increased $1 million
• Sales Tax/Transaction Use Tax increased $595 thousand
• Charges for service increased $2 million
• Fines increased $583 thousand
• Investment and Rental increased $2.6 million
• Other revenue increased $464 thousand
Several new revenue sources are included in the proposed FY 2026-27 budget based on the completion of development project the City Council approved and are in the process of being implemented. Three billboards are included and are expected to be operational by the end of 2026, but a delay by Caltrans in issuance of Outdoor Advertising Permits due to the I-405 Improvement project has the potential to delay the project and the receipt of the $1.7 million in revenue included in the budget. These projects will generate $172 thousand annually after FY 2026-27.
Expenditures increased $5.8 million primarily related to the following:
• PERS retirement costs increased $1.6 million
• Part time/minimum wages increased $182 thousand
• OCFA contract decreased 1.5% or $189 thousand
• Salary and benefits increased per adopted Memorandums of Understanding $3.2 million
Transfers out total $25 thousand to the water fund in FY 2026-27 for the Lifeline program. General Fund street improvement capital projects allocated in FY 2026-27 are being funded from the FY 2025-26 surplus. The proposed budget shows an estimated ending fund balance/reserve of $55.6 million in FY 2026-27 after the contribution to reserves of $1.5 million. This changes to an estimated ending fund balance/reserve of $54.5 million in FY 2026-27 after the contribution to reserves of $477 thousand if supplementals are included.
Since establishment in 2017, the City has contributed annually to both the pension and Other Post Employment Benefits (OPEB) Section 115 Trust accounts. The proposed budget includes funding of $250 thousand to the OPEB 115 Trust account and $502 thousand to the pension 115 Trust account.
Other Funds
While the budget process is largely focused on the General Fund revenues and expenditures, it is important to note that the City's total budget of $164.5 million is made up of several different funding sources, such as the City's water utility, gas tax, Measure M, and various federal and state grants. The funding made available from these sources is highly restrictive and is dedicated to the completion of various infrastructure and capital improvements projects. This funding cannot be used for general City operations, except for specific administrative costs.
Special revenue funds (200-295) account for the proceeds of specific revenue sources that are legally restricted or otherwise assigned for specific purposes. Park dedication, gas tax, Measure M, CDBG, HOME, special police grants, and Family Resource Center are some of the main funds in this category. Special revenue sources total $20.5 million and expenditures total $19.5 million for FY 2026-27. Unspent American Rescue Plan Act (ARPA) funds previously allocated by the City Council will be carried over to the FY 2026-27 budget. ARPA funds must be completely spent by December 31, 2026.
Enterprise funds operate like a business that charges for a service. The water utility is budgeted for in this category. The City Council passed a water rate increase in February 2021 which included five years of rate adjustments, through January 2025. This has helped achieve financial stability in the Water Enterprise Funds (600, 601, and 602) and provides for funding of necessary improvements to the water system. Combined, water revenues total $24.6 million and expenditures total $25.3 million for the FY 2026-27 budget.
The budget has five internal service funds that account for activities that provide an internal service to the City departments. Total revenue, primarily from department charges, is projected at $14.5 million and the expenditure budget is $13.9 million for FY 2026-27. The minimum fund balance policy of a $500,000 unreserved balance is set for all funds. However, the General Benefits Fund is currently not meeting this requirement. The General Benefits Fund has $13.3 million in cash; however, $8.9 million of this fund is the 115 Trust reserved for pension benefits. The fund has a large reserve of $9.9 million in worker's compensation claims payable which causes a negative balance. Charges will continue to be increased going forward to work toward meeting and maintaining minimum reserve levels. Any future excess fund balance above the $500 thousand policy level could be transferred to the General Fund per the fund balance policy.
Capital project funds account for the planning, design and construction of major capital improvements funded by federal, state and county grants, impact fees, and transfers. Once allocated, funds remain in the project account and the budget rolls to future years until the project has been completed. The Economic Development Fund is also included in this category and projects a positive fund balance of $9.1 million of this, $2.6 million is available for projects.
Fiduciary funds account for resources held for the benefit of parties outside the government. The Successor Agency to the Westminster Redevelopment Agency is in this category. The SAWRA filed its Last and Final Recognized Obligations Payment Schedule and approval was received in April 2022. Expenditures in this fund relate to debt service and revenue is provided through the county property tax distribution to pay the obligations.
Supplemental Requests
At the time of budget preparation, 24 or 9% of the 276 full-time positions funded were vacant; eight of the 24 vacant positions are currently being recruited. The supplemental requests in the FY 2026-27 proposed budget include an increase of nine positions: 11 new positions offset by eliminating 3 previously funded full-time positions and 2 part-time positions. These requests are included in the budget under the proposed budget with supplementals column shown in green and the details and justification for each position can be found starting on page 139 of the budget document. The following is a list of the proposed position changes:
• 1 full-time Senior Finance Analyst. Position costs $156,153. Department to reduce 1 full-time Accounting Manager position that costs $180,289. Total decrease to the budget is $24,135.
• 2 full-time Police Captain positions cost $361,991 each. Plus 5% increase for Deputy Chief due to compaction $18,883. Reduce the unfilled Deputy Chief position saving $363,366. Increase the budget by $742,865 and reduce by one position $363,366. Total increase to the budget $379,500.
• 2 full-time Parking Enforcement Officer positions cost $86,293 each. Reduce part time wages by $56,485. Total increase to the budget is $116,101.
• 1 full-time Leadworker position to oversee weekend Parks and Building Maintenance staff. Total increase to the budget is $106,227.
• 1 full-time Senior Public Works Inspector position. Total increase to the budget is $154,451.
• 1 full-time Plan-Checker Position costs $130,589. Reduce 1 full-time Senior Inspector position $143,070. Total decrease to the budget is $12,481.
• 1 full-time Permit Technician II position. Total increase to the budget is $109,714.
• 1 full-time Permit Technician position. Total increase to the budget is $86,749.
• 1 full-time Senior Code Enforcement Officer position. Total increase to the budget is $134,726.
Based on the costs of each new position and the elimination of several positions, the total cost of all supplemental requests is $1,050,852 to the General Fund.
FISCAL IMPACT
The total proposed budget for all funds for FY 2026-27 is $163.9 million in revenue and $164.5 million in expenditures. Transfers between funds total $15.3 million.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
This proposed budget document is a collaborative effort from all departments and outlines the spending plan for all City funds and programs for the upcoming fiscal year. The General Fund budget shows a contribution to reserve funds of $1.5 million without supplementals and $477 thousand with supplementals.
Staff is seeking feedback and direction from the City Council on the proposed FY 2026-27 budget and supplemental budget options. The City remains committed to finding ways to enhance revenue to ensure Westminster's financial stability, as directed at the most recent Strategic Planning meeting. Implementing new revenue sources can take years.
Based on feedback received, the budget document will be presented to the City Council for adoption at the June 24, 2026 meeting.
ATTACHMENTS
1. FY 2026-27 Proposed Budget
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager