Westminster City Council/Successor Agency to the Westminster Redevelopment Agency
SUBJECT
Title
Fiscal Year 2025-26 Proposed Budget.
End
From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Erin Backs, Finance Director
____________________________________________________________
RECOMMENDED ACTION
Recommendation
A. Adopt a Resolution entitled, "A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, ADOPTING AND APPROPRIATING THE BUDGET FOR THE 2025-2026 FISCAL YEAR AND AUTHORIZING THE CITY MANAGER TO INCREASE THE 2024-2025 OPERATING BUDGET"; and
B. Adopt a Resolution entitled, "A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, ESTABLISHING THE ARTICLE XIIIB APPROPRIATION LIMIT FOR THE 2025-26 FISCAL YEAR"; and
C. Adopt a Resolution entitled, "A RESOLUTION OF THE WESTMINSTER HOUSING AUTHORITY ADOPTING AND APPROPRIATING THE BUDGET FOR THE 2025-26 FISCAL YEAR"; and
D. Approve the job descriptions for Police Communications Manager, Receptionist, Parking Control Officer, and Building Inspector; and
E. Adopt a Resolution entitled, “A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, REVISING RESOLUTION NO. 5270, AMENDING THE SALARY SCHEDULE FOR THE MANAGEMENT, ADMINISTRATIVE AND CONFIDENTIAL EMPLOYEES FOR THE PERIOD OF JULY 1, 2023, THROUGH AND INCLUDING JUNE 30, 2026”; and
F. Adopt a Resolution entitled, “A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, REVISING RESOLUTION NO. 5271, AMENDING THE SALARY SCHEDULE FOR THE WESTMINSTER POLICE OFFICERS’ ASSOCIATION (WPOA) FOR THE PERIOD OF JULY 1, 2023, THROUGH AND INCLUDING JUNE 30, 2026.”
G. Adopt a Resolution entitled, “A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, REVISING RESOLUTION NO. 5234, AMENDING THE SALARY SCHEDULE FOR THE WESTMINSTER MUNICIPAL EMPLOYEES ASSOCIATION (WMEA) FOR THE PERIOD OF JULY 1, 2023, THROUGH AND INCLUDING JUNE 30, 2026.”
end
BACKGROUND
The proposed budget was reviewed at study sessions on May 14, 2025 and June 11, 2025. The budget document serves as the basis for the City’s work plan for the upcoming fiscal year. The proposed operating and capital projects budget for Fiscal Year (FY) 2025-26 presents 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.
The City Council has made “Achieving Financial Stability” one of the City's Strategic Plan goals. As part of that goal, the City Council placed Measure Y, a one-cent 20-year transaction use tax beginning April 1, 2023, and Measure E, a half-cent until ended by voter’s transaction use tax beginning July 1, 2024, to sustain Westminster's long--term financial stability and prevent future cuts to services. Collectively, these measures generate $23 million in annual revenue.
Fiscal Year 2024-25
Over the past year, departments citywide have worked hard to show the community that the City Council and staff are responsible stewards of local funds, consistently aiming to achieve more with fewer resources. Some FY 2024-25 highlights that reflect the community priorities are as follows:
Administration
• Conducted the March 2024 Special Election and November 2024 General Municipal Election.
• Continued document imaging of all records and quality controlling per the records retention schedule.
• Continued to update the City’s Records Retention Schedule, per State guidelines.
• Maintained legal compliancy with various federal, state, and local laws.
• Transitioned to an electronic process for handling Public Records Requests.
• 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 249 requests for public records.
• Closed 56 out of 61 claims with no loss to the City.
• Opened and recruited for 60 positions and successfully onboarded 45 new employees, including key positions such as the Economic Development Manager, City Engineer, and Principal Planner.
• Processed 1,055 personnel transactions.
• Received Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for FY 2023-24.
• Received GFOA Distinguished Budget Presentation Award for FY 2024-25.
• Added unclaimed property and forms to the website.
• Partnered with the Orange County Inland Empire Small Business Development Center (OC/IE SBDC) to develop a small business summit, workshops, and grant opportunities for Westminster’s small business community.
• Completed the three-year cycle of the City’s first-ever strategic plan and adopted a new three-year plan.
Community Services
• Hosted numerous City-led special events including Movies and Music (successfully integrated the Police Department’s National Night Out with Summer Concert on August 8), Ribbon Cutting Ceremonies to welcome the new playgrounds at Newcastle Park and Tony Lam Park, Fall Festival (expanded its footprint with the addition of a “Cultural Night” on Thursday, a senior health and wellness resource fair on Saturday, and a “Creative Babe” vendor market on Sunday), Halloween Spooktacular Trunk or Treat and Movie Night, Santa on the Go, Tree Lighting Ceremony, American Vietnam War Veterans Day Event, Black April Commemoration, Bunny Hop, and Earth Day activities.
• Successfully led the 2025 Tet Parade, celebrating the Lunar New Year.
• Managed 24 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.
• Successfully operated the Splash Pad in summer 2024 with 42 private party rentals.
• Reserved 69 facility rentals with over 7,000 guests.
• Registered over 1,885 participants in 1,074 recreation classes, programs, and activities.
• Reserved over 3,085 hours of field use.
• Through the Family Resource Center (WFRC), provided in-person services to 1,506 individuals from 1,186 family clients, including counseling, Personal and Empowerment Program (PEP), case management, parenting classes and special activities.
• The WFRC expanded services to include monthly community workshops including disaster prep, domestic violence awareness, health and wellness classes, tenant rights, human trafficking, and financial planning.
• WFRC continued to offer low-cost medical services, monthly citizenship and legal clinics, employment and job search assistance, Cal-Benefits assistance and food & diaper distributions.
• Graduated 24 students through the Project SHUE program.
• Senior Center provided 25 social events with lunch for the older adult community with 2,047 participants.
• The Senior Center registered 17,000 membership scans.
• Hosted 103 educational classes and presentations for the older adult community that were attended by 1,337 people.
• Provided food distribution to 2,500 low-income individuals.
• Senior Center partnered on five occasions with LA Quinta High School AVID students and UCI Health Science students for nutritional program support.
• Senior Center partnered with Westminster High School Workability program on eight events for volunteer opportunities with nutrition programs.
• Hosted two intergenerational events with meals on wheels.
• Provided home-delivered meals for an average of 45 seniors a week.
• Added Scrabble and community art programs for the older adult population free of charge.
• Hosted two teen tech help workshops for older adults and added a bimonthly in-person tech support program for older adults.
• Entered a partnership with the Assistance League for a breakfast program for older adults, providing 20 breakfasts for 65 older adults each time.
• Hosted 12 free sessions for 1:1 appointments for older adults with Health Insurance Counseling & Advocacy Program (HICAP).
• 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 55 older adults per weekday.
Public Works
• Installed 48 new Accessory Dwelling Unit (ADU) water services.
• Repaired 72 service leaks and two water main breaks.
• Exercised 385 water valves and serviced 66 fire hydrants.
• Replaced 2,600 water meters.
• Pumped 100% well water and saved approximately $317,000 in import water costs.
• Repaired 5,000 potholes citywide.
• Removed 5,800 graffiti locations.
• Picked up 430 abandoned items in the public right-of-way.
• Replaced 14 damaged sidewalk locations and installed six pedestrian wheelchair ramps.
• Current construction of the Mendez Historic Trail Improvement Project.
• Current construction of Trask Avenue from Beach Boulevard to Hoover Street.
• Completed construction of the Citywide Slurry Seal 2024, which included 59 residential street segments.
• Completed construction of the CDBG 24-25 Citywide Overlay Project, which included eight residential street segments and one alley.
• Completed construction of the Magnolia Street Improvement Project from Heil Street to Edinger Avenue.
• Completed construction of the Garden Grove Boulevard Street Improvement Project from Edwards Street to Beach Boulevard.
• Completed construction of the Newcastle Park, Tony Lam Park, Bowling Green Park, College Park, Russell C. Paris Park, Westminster Village Park, and Bolsa Chica Park playground renovation projects.
• Completed construction of the Blakey Park Renovation Project.
• Current construction of the Sigler Park Soccer Field Project and Cherry Street Community Garden Project.
• Completed construction of the Westminster and Buckingham Park Baseball Renovation Project.
• Re-scoping of work for the HVAC Project for the City Hall, Council Chamber, Senior Center, and Community Services buildings.
• Current design of the Elden F. Gillespie Park Playground Renovation Project.
• Current design of the Goldenwest Street Improvement Project, from Garden Grove Boulevard to Westminster Boulevard.
• Provide support for the Southern California Edison’s Overhead Utility Underground Project at Bolsa Avenue and Brookhurst Street.
• Provide support for the I-405 Widening Project construction within the city’s limits.
Community Development
• Implemented a new policy to significantly reduce the time required to process applications that require Planning Commission review from more than 15 months to less than five months.
• Reduced the time required to conduct zoning review of Business License applications to three business days.
• Revised the permitting process for Accessory Dwelling Units (ADUs) to reduce the number of steps and time required to obtain zoning approval.
• Initiated the Mixed-Use Zoning Code Update, which will increase the density within mixed-use areas and expand the boundaries of some districts.
• Commenced Phase 2 of the Zoning Code Update to modernize and simplify this chapter of the Municipal Code.
• Completed the Annual Progress Report on the implementation of the City’s Housing Element.
• Initiated eight amendments to the Zoning Code intended to streamline procedures, improve the usability of the Code, respond to State law, or changing needs in the community.
• Established a new list of on-call consultants for the Planning Division after soliciting proposals from qualified firms. Having these consultants under contract allows the Division to more quickly respond to changes in state law, process complicated development applications, and address staff vacancies.
• Returned the Business License Inspector to the field, where he was able to reduce the number of businesses delinquent in payment of renewal fees by 20%.
• Conducted more than 12,000 building inspections
• Issued more than 1,200 building permits with a combined valuation exceeding $75 million.
• Implemented an online platform for solar permits (SolarAPP+) that allows contractors to apply for permits online. City staff can review and issue the permits in real time.
• Implemented “Westminster Build,” an online portal offering access to public records, online plan submittal, inspection scheduling, and the status of active building permits.
• Worked with several developers to complete major projects, including Bolsa Row, the Pace Center, H Mart, Temple Beth David, and the Southern California Edison building.
• Building inspectors responded to 16 emergency calls when fires or vehicle accidents affected buildings.
• Successfully integrated the Code Enforcement Division into the Community Development Department.
• Implemented the permit process for food trucks in April and issued five permits in the first month.
• Code Enforcement Officers initiated more than 700 cases while also responding to more than 1,200 complaints. In addition, more than 200 Courtesy Notices were issued proactively.
• Conducted more than 50 food vendor sweeps, issuing more than 60 citations to vendors operating without required permits.
• Assisted with the clean-up of more than 300 homeless encampments.
• Removed more than 17,000 items of debris from the public right-of-way.
• Adopted policies specifying timeframes to complete initial inspections and re-inspections for code enforcement cases.
• Staff participated in an assessment of the department conducted by a management consultant; a significant number of the recommendations were implemented to address identified issues and needs.
• All employees received performance evaluations. Some employees had not received evaluations for years.
• Completed the implementation of EnerGov, the City’s automated permit tracking system. This system tracks planning applications, building permits, and code enforcement cases and provides a repository for case records.
Police
• Leadership: Hosted leadership training for prospective Sergeants, and a new Sergeant promotion onboarding training.
• Over a dozen traffic operations and DUI checkpoints were conducted by the traffic division.
• Hosted events such as Safety Day at Sigler Park, Coffee with a Support K9 event, several Coffee with a Cop events, National Prescription Drug Take Back, and Community Crime Prevention Workshop at the Senior Center.
• Participated in National Walk to School Day.
• Detectives were awarded an ABC Grant and received funding from Prop 69.
• Detectives added an HSI Task force to focus on International Crime Rings.
• Detectives are participating in the ICAC (Internet Crimes Against Children Task Force).
• Police made 2,041 arrests since July 1, 2024.
• Hosted several quarterly Probation Officer Trainings.
• Homeless Liaison Unit has seven days a week coverage and has conducted regular homeless outreach events with some focused on illegal encampments.
• Assisted Code Enforcement/CPU on weekly Street Vendor Operations.
• Facilitated National Night Out with Community Services.
• Held a Community Academy and graduated 21 attendees.
• Hired 18 new Police Officers and 5 Dispatchers.
• Patrol handled approximately 44,768 calls for service since July 1, 2024.
• Dispatch handled a total of 70,848 calls (incoming/outgoing) since July 1, 2024.
• Created 2024 Annual Report (currently in draft form).
• Doubled the amount of FLOCK cameras from eight to 19 mounted citywide.
• Increased community engagement and information on public safety and city matters via social media.
• Processed over 8,367 police reports for internal and court purposes to date.
• Processed over 1,200 public records requests for insurance agencies, attorneys, general public requests, and criminal discovery requests.
• Processed over 2,850 court packages and evidence discovery requests for criminal filing with the Orange County District Attorney's Office.
• WPD was awarded multiple grants including a grant from Cal OES for the updating of the Local Hazard Mitigation Plan and a grant from the Department of Justice, Community Orientated Policing Services (COPS) for IT related Infrastructure.
Fire Services as submitted by Orange County Fire Authority (OCFA)
• OCFA handled 183,934 emergency calls in 2024, which is 5,500 more incidents than in 2023 and 8,500 more than in 2022, representing an approximate 5% increase.
• The Emergency Command Center received over 233,734 911 calls in 2024, dispatching responses in an average of 56 seconds, well below the national guideline of 1 minute and 4 seconds.
• The Westminster Fire Department is equipped with three Paramedic Engine Companies (Engines 64, 65, and 66) and a Battalion Chief. A fourth Paramedic Engine Company (Engine 25) is stationed in Midway City, which provided support to Westminster with over 1,000 responses in 2024.
• Westminster's contract costs cover the three Paramedic Engines and one Battalion Chief; the city is not billed for equipment or personnel from OCFA specialty programs, including Technical Rescue Units, Swift Water Rescue Units, the Hazardous Materials Response Team, Aerial Firefighting/Rescue Helicopters, Unmanned Reconnaissance Aircraft, Wildland Hand Crew, Heavy Equipment Specialists, Fire Investigators, Fire Prevention, and the Incident Management Team.
• Units in Westminster responded to 9,369 emergency calls, averaging 25 calls per day. This total includes 178 fires, 7,245 critical medical emergencies, and 1,946 other service calls.
• Fire Inspectors and Firefighters conducted over 2,000 fire safety building inspections.
• The department participated in several community events, including the Tet Parade, American Vietnam War Veterans Day Recognition, Summer Concert Series, Safety Day, and the Tree Lighting Ceremony.
• Cadet Post 64, hosted at Fire Station 64, has over 35 cadets, many of whom are Westminster residents.
• Supported Westminster High School by reviewing the 2024 Westminster High School Safety Plan.
• The department received tens of millions of dollars in grant funding to help minimize costs for cash contract cities, like Westminster.
• OCFA hosted our largest Open House event to date, attracting over 7,500 community members who received fire safety education through demonstrations and activities throughout the day.
• OCFA expanded Division 1 social media footprint, resulting in tens of thousands of interactions and hundreds of thousands of views on content related to Westminster and the surrounding areas.
• In 2024, garnered over $290 million in earned media coverage.
• OCFA hosted the 5th Annual Girls Empowerment Camp, dedicated to introducing young women to the challenges and rewards of a career in firefighting.
• Two Recruit Firefighter academies were conducted, each with 50 candidates, along with two Fire Apparatus Engineer academies, two Fire Captain academies, and one Battalion Chief academy in 2024.
• The Operations Training & Safety Section provided quarterly training for operations personnel and offered several career development courses, including promotional leadership classes and academies.
• OCFA was recognized as a leader in emerging technologies within the industry, with members testifying before Congress’ Emerging Technology Subcommittee to discuss the benefits of Unmanned Aircraft Systems in Public Safety.
• Strengthened OCFA Air Operations through the growth of the Drone Program, training more than 25 operators to utilize Unmanned Aircraft for reconnaissance and fire mapping.
• Placed two new Sikorsky S70 FIREHAWKS into service, adding to the agency's two Bell 412EP helicopters; this enhances OCFA Air Operations' ability to perform day and night aerial fire suppression, remote rescues, and other all-hazard missions more safely and effectively.
Fiscal Year 2025-26 Budget
The budget is balanced as submitted, marking the first time in six years that the City of Westminster has achieved a balanced budget. 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 is a total of nine positions requested through the supplemental process - six in the general fund and three in the water fund. The proposed general fund budget, excluding the supplementals, adds $711.3 thousand to reserves. The proposed budget, including the supplementals, adds $249.8 thousand to reserves. In many cases, part-time wages are eliminated to offset the cost of a new full-time position.
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, in the budget are recommended capital projects for the upcoming year. Capital improvement project (CIP) requests totaling $15 million are found behind the capital improvements tab.
All schedules show FY 2023-24 actuals, FY 2024-25 revised budget, FY 2024-25 estimated year-end actual, and the proposed FY 2025-26 budget. The General Fund and Water Fund schedules also include a column for the proposed FY 2025-26 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 2024-25. The proposed budget with supplementals includes everything included in the proposed budget column plus the requested supplementals, which are identified in the column shown in green. There are nine positions - six in the general fund and three in the water 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.
o 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.
Proposed Fiscal Year 2025-26 Budget - All Funds
The total City budget of $154.1 million includes 35 funds and funding for 256 full-time positions. The total FY 2025-26 budget, including all funds, is summarized in the following table:
|
Fund Type |
Beginning Balance |
Revenue |
Transfers In |
Total Sources |
Operating Expenditures |
Transfers Out |
Total Uses |
Ending Balance |
|
General Fund |
45,359,063 |
91,175,282 |
- |
136,534,345 |
90,438,986 |
25,000 |
90,463,986 |
46,070,359 |
|
Special Revenue |
26,260,469 |
13,985,586 |
- |
40,246,055 |
7,503,458 |
9,417,028 |
16,920,486 |
23,325,569 |
|
Capital Project |
20,355,632 |
179,000 |
9,642,028 |
30,176,660 |
12,407,028 |
- |
12,407,028 |
17,769,632 |
|
Enterprise |
19,622,074 |
23,505,200 |
4,005,685 |
47,132,959 |
24,183,802 |
3,980,685 |
28,164,487 |
18,968,472 |
|
Fiduciary |
35,583 |
5,899,333 |
- |
5,934,916 |
5,859,333 |
- |
5,859,333 |
75,583 |
|
Internal Service |
(908,880) |
14,306,846 |
- |
13,397,966 |
13,690,107 |
225,000 |
13,915,107 |
(517,141) |
|
Total All Funds |
110,723,941 |
149,051,247 |
13,647,713 |
273,422,901 |
154,082,714 |
13,647,713 |
167,730,427 |
105,692,474 |
Projected revenue for all funds is $149.1 million, while proposed expenditures amount to $154.1 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 $105.7 million.
The proposed budget has been updated from the budget previously submitted at the study session on May 14, 2025 to include:
• Increased revenue projections from gas tax sources in the amount of $126.3 thousand. The request for capital projects in the gas tax program have also been increased by this amount.
• The OCFA final contract number came in $25 thousand higher for facility maintenance.
• The contractual budget for the ambulance program was reduced by $50 thousand based on the approval of the ambulance transport and billing service agreements at the June 11, 2025 City Council meeting.
• The Housing Authority program budget was reduced by $240 thousand.
Legal costs are an important component of the total budget. The FY 2025-26 budget includes an allocation of $1.3 million to legal fees.
Proposed Fiscal Year 2025-26 Budget - 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 2025-26 is balanced as proposed. Projected revenues are estimated at $91.2 million while expenditures, including transfers out, are projected to be $90.5 million. This will result in an ending balance of $711.3 thousand, increasing reserves to $46.1 million. Of this total, $15.4 million is allocated to the emergency reserve and $30.7 million is unassigned. The budget version including supplementals shows expenditures of $90.9 million. This will result in an ending balance of $249.8 thousand, increasing reserves to $45.6 million. Of this total, $15.5 million is allocated to the emergency reserve and $30.2 million is unassigned.
Projected fund balances for FY 2025-26 are based on projections for the current year. The general fund revenues for FY 2024-25 are trending above budgeted projections by $2.4 million. The increase is primarily a result of 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 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 budget was adopted with a use of reserves of $1.9 million. Current projections add $1 million to reserves. It is recommended that the City Council allocate the annual $1.5 million for street improvements from the FY 2024-25 surplus to help achieve a balanced budget in FY 2025-26. This allocation will continue the practice of funding $1.5 million annually since the implementation of the first transaction use tax.
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 2024-25 year-end estimate, FY 2025-26 proposed budget without supplemental plus five additional years of projections.
|
General Fund |
2024-25 Estimate |
2025-26 Proposed |
2026-27 Projected |
2027-28 Projected |
2028-29 Projected |
2029-30 Projected |
2030-31 Projected |
|
Revenue |
89,046,284 |
91,175,282 |
93,774,042 |
96,5584,030 |
99,492,425 |
102,503,008 |
105,619,717 |
|
Expenditures |
88,034,902 |
90,463,986 |
95,365,755 |
97,882,673 |
101,674,075 |
104,116,113 |
107,256,517 |
|
Reserves +/(-) |
1,011,383 |
711,296 |
(1,591,713) |
(1,298,643) |
(2,181,650) |
(1,613,105) |
(1,636,799) |
|
Reserve Balance |
45,359,063 |
46,070,359 |
44,478,646 |
43,180,003 |
40,998,354 |
39,385,249 |
37,748,449 |
The following lists the differences between the adopted FY 2024-25 budget and the proposed FY 2025-26 budget.
Revenue projections increased $4.6 million with the largest changes as follows:
• Property tax increased $680 thousand
• Sales tax increased $514 thousand
• Transaction use tax increased $630 thousand
• Charges for service increased $1.7 million
• Fines increased $305 thousand
• Investment and rental increased $362 thousand
• Licenses and permits increased $255 thousand
Expenditures increased $3.5 million primarily related to the following increases:
• PERS retirement costs increased $1.6 million
• Part time/minimum wages increased $100 thousand
• OCFA 4.5% contracted increase $630 thousand
• Salary and benefit increased per MOU $1.4 million
Transfers out total $25 thousand to the water fund in FY 2025-26 for the Lifeline program. A $1.5 million transfer out for capital projects is included in FY 2024-25 for FY 2025-26 projects. The proposed budget shows an estimated ending fund balance/reserve of $46.1 million (unassigned fund balance of $30.7 million) in FY 2025-26 after the contribution to reserves of $711.3 thousand. This changes to an estimated ending fund balance/reserve of $45.6 million (unassigned fund balance of $30.2 million) in FY 2025-26 after the contribution to reserves of $249.8 thousand if supplementals are included.
At the time of budget preparation, 24 or 9% of the 264 full-time positions funded were vacant; 10 of the 24 are currently being recruited. The supplemental requests (attached) include nine new full-time positions. The total cost of all supplemental requests is $619.1 thousand. The general fund total is $461.5 thousand, and the water fund total is $157.6 thousand. These requests are included in the budget under the proposed budget with supplementals column shown in green.
Since establishment in 2017, the City has contributed salary savings in the amount of $250 thousand to both of the pension and Other Post- Employment Benefits (OPEB) Section 115 Trust accounts. Staff recommends that this practice continue with FY 2024-25 salary savings. Section 115 Trusts for future pension and OPEB costs have been established, and management is recommending funding an additional $462 thousand to be paid from savings accomplished by prepaying the unfunded PERS liability in FY 2025-26. This can also be postponed or eliminated to help offset general fund shortages.
Proposed Fiscal Year 2025-26 Budget - 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 $154.1 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 $14 million and expenditures total $16.9 million for FY 2025-26. Unspent American Rescue Plan Act (ARPA) funds previously allocated by the City Council will be carried over to the FY 2025-26 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 $23.5 million and expenditures total $24.2 million for the FY 2025-26 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 $14.3 million and the expenditure budget is $13.9 million for FY 2025-26. The minimum fund balance policy of a $500,000 unreserved balance is set for all funds. However, the Liability Fund and Government Buildings Fund are currently the funds meeting this requirement. The equipment replacement fund is short $27 thousand due to a large capital project purchase of $190 thousand requested in FY 2025-26. Future revenues will correct this shortage. The General Benefits Fund has $14.9 million in cash, however, $5.5 million of this fund is the 115 Trust reserved for pension benefits. The fund has a large reserve of $9.4 million in worker's compensation claims payable which causes a negative balance. The projected unreserved ending balance of all funds is a negative $517 thousand. 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 $9.7 million of this, $3.2 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 13% of the 256 funded full- time positions
were vacant. The budget as proposed includes 9 new full-time positions as part of the 2025-26 supplemental requests, six full-time positions in the General Fund and three full-time positions in the Water Fund. The total fully burdened cost for all positions is $619.1 thousand. The following list provides additional data for each requested full-time position and includes the fully burdened cost.
General Fund Supplemental Requests $461,504 fully burdened
1. New full-time Police Communications Manager, General Police program 31000 - The total increase for the new position is $148,153. This position will oversee the Communications Bureau; however, it should be left flexible to allow for other potential roles. There is a need for a manager to oversee the operation due to technology upgrades, changes in dispatching requirements, and high turnover.
2. Two new full-time Parking Enforcement Officers replace 2 part-time positions, Parking program 31100 - The full-time positions cost $84,047 each and are offset by a $56,485 reduction in part-time wages. The total increase for the new positions is $111,609. The positions will be assigned to street sweeping and paid parking enforcement and will address a lot of quality-of-life issues as well as act as another set of eyes for patrol who can quickly report things that are seen and need to be addressed. These positions have the potential to increase revenue through parking citations.
3. New full-time Receptionist position replaces 2 part-time positons, Community Services Administration program 70000 - The full-time position cost of $82,791 is offset by a $54,395 reduction in part-time wages. The total increase for the new position is $28,396. The Community Services & Recreation administration current front desk coverage relies on two part-time positions, totaling 58 hours per week. However, the escalating turnover rate in these roles has proven to be a costly and inefficient model. The continuous cycle of recruitment, hiring, and training consumes significant staff time and resources. Over the past 4 years staff as averaged less than a year in the position. The inconsistency in staffing impacts service quality and can lead to errors and delays. A dedicated full-time front desk staff member will not only provide consistent and reliable coverage but also reduce the long-term costs associated with high turnover. This investment will streamline operations, improve service delivery, and free up valuable staff time currently being spent on managing the consequences of part-time instability. to provide consistent and reliable coverage and reduce the long-term costs associated with high turnover.
4. New full-time Building Inspector position replaces 1 part-time position, Building program 62050 - The full-time position cost of $113,246 is offset by $37,300 of part-time wages. The total increase for the new position is $75,946.
2010 inspection volume (3 FT Inspectors): 10,758 inspections
2012 inspection volume (laid off 1): 8,837 inspections
2022 inspection volume: 13,569 inspections
2023 inspection volume: 13,998 inspections
2024 inspection volume: 12,748 inspections
2025 NPDES Inspections: 145 inspections
Certification required under State Law; current PT staff are not certified. Inspection workload warrants an additional inspector when compared to workload in surrounding communities, Inspectors have more time to devote to residents’ construction jobs. Can assist with trade plan checks (HVAC, plumbing, etc.). Ensures continuity of services during staff training, vacations, etc.
5. New full-time Code Enforcement Officer, Code Enforcement program 63050 - The total increase for the new position is $95,400. At the recent budget study session, staff was asked by the City Council to provide an overview of the functions of the Code Enforcement Division and staffing needs with potentially adding two officers. Staff informed the City Council at the subsequent study session that the Code Enforcement Division needs administrative support and direction was provided to proceed with adding an Administrative Assistant. However, since the study session, in evaluating the Division's needs and considering the minimal salary difference between a Code Enforcement Officer and an Administrative Assistant, staff recommends the addition of a full-time Code Enforcement Officer. This have a more significant impact on enforcement efforts in the City, and an additional Code Enforcement Officer will enable the Division to reorganize, provide better customer service, improve efficiency, and enhance the way business is conducted in Westminster. A new Code Enforcement Officer will enable the City to transition from a traditional model of Code Enforcement to specialized teams that are dedicated and focus on different types of violations. The officers will be assigned to a Residential, Commercial, and an Encampment/Vacant Lot Team. To fill the void for administrative support, the current Community Development Department Administrative Assistant will provide the necessary support. These support functions will include taking phone calls and responding to voicemails, addressing My Civic App complaints, and entering new code enforcement case data into the Energov database system. Additional duties will involve providing daily logs of incoming phone calls, emails, and walk-in customers at the counter.
Water Fund Supplemental Requests $157,626 fully burdened
1. New full-time Accountant I position, Utility Billing and Collection program 23000 - The total increase for the new position is $89,835. Water regulations have become more labor intensive. The city is also in the process of switching meters on water accounts, which requires Finance to update all information in our billing software. In addition, the position will assist with:
• Making courtesy phone calls to get payments on accounts with high balances and possibly set up payment plans.
• Finding closed accounts with balance due and beginning collection process.
• Sending letters as reminders/ final notices before collections and tracking these.
• Tracking payment plans-every cycle has accounts with payment plans, we must confirm they have kept up with it before sending delinquent notices or hang tags. The number of payment plans are growing rapidly every week since we started shutting off water for non-payment.
• Processing returned mail and updating information. This is a big part of discovering people moved away but didn’t close their account. Calling to verify customer information anytime we get a notification from the post office.
• Meter change outs have increased, so we have a lot to process every week. Meters must be updated before we go out to read it.
• Researching meter read issues/mistakes which have increased dramatically with new hires.
2. New full-time Water Technician I replaces 2 part-time positions, System Maintenance program 57000 - The full-time position cost of $85,360 is offset by $70,822 of part-time wages. The total increase for the new position is $14,539. This position will read water meters and provide customer service. A full-time employee is more efficient and reliable in providing accurate readings, and capable of making necessary repairs to the water meters and addressing customer concerns.
3. New full-time Administrative Assistant replaces 1 part-time position, Water Administration program 55500 - The full-time position cost of $94,697 is offset by $41,444 of part-time wages. The total increase for the new position is $53,252. This position will assist with data entry for the Meter Exchange, Cross-connection, Lead & Copper Rule Revisions, Break registry, demand forecast, fire flow, and ADUs. Monitor monthly water production to meet 20% conservation reduction requirements. Keep track of Class B licenses, Distribution and Treatment certifications, National Incident Management System (NIMS) trainings, and other Water related trainings. Work on outreach program with schools in Westminster to generate interest in water conservation among students.
Job Descriptions
Approval of three new job descriptions is necessary to implement the 2025-26 Budget. Descriptions are attached for the following full-time positions:
• Police Communications Manager (Dispatch Manager)
• Receptionist
• Parking Control Officer
• Building Inspector
Funding for these positions is included in the supplemental version of the budget documents.
The following resolutions are required to authorize the budget for fiscal year 2025-26.
Budget Adoption
The City Budget Adoption Resolution approves and appropriates the budget for fiscal year 2025-26 and establishes the rules and responsibilities for administration. It also makes needed budget adjustments to the previous year's budget. These adjustments have been included in the current budget projections.
Appropriations Limit
The Appropriations Limit Resolution is required by Article XIII B of the State Constitution. The City is limited to appropriating "proceeds of taxes" that do not exceed the legal limit established under the appropriations formula, which is adjusted annually by a combination change in per capita income and population growth. The City's Appropriations Limit for fiscal year 2025-26 is $130,615,149.
Westminster Housing Authority
The Housing Authority Resolution approves and appropriates the budget for fiscal year 2025-26 and establishes the rules and responsibilities for administration.
FISCAL IMPACT
The total proposed budget for all funds for FY 2025-26 is $149.1 million in revenue and $154.1 million in expenditures. Transfers between funds total $13.6 million. Several current year budget adjustments are being requested as noted on the attached 2024-25 Budget Adjustments document.
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. Staff is seeking initial feedback and direction from the City Council on the FY 2025-26 proposed budget and supplemental budget options. The general fund budget shows a contribution to reserve funds of $711.3 thousand without supplementals and $249.8 thousand with supplementals. 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. Future budgets are expected to remain tight, as there are currently no short-term solutions for substantial revenue increases, and long-term solutions will be budgeted as they are implemented.
ATTACHMENTS
1. Resolution - City Council Budget Adoption
2. 2025-26 Proposed Budget
3. 2024-25 Budget Adjustments
4. Resolution - Article XIIIB Appropriations Limit
5. Resolution - Housing Authority Budget Adoption
6. Job Description - Police Communications Manager
7. Job Description - Receptionist
8. Resolution - Management, Administrative and Confidential Employees
9. Revised Application of Resolution - Management, Administrative and Confidential Employees
10. Management, Administrative and Confidential Employees Salary Schedule
11. Job Description - Parking Control Officer
12. Resolution - Westminster Police Officers Association
13. Revised Recognition for WPOA MOU
14. Westminster Police Officers Association (WPOA) Salary Schedule
15. Job Description - Building Inspector
16. Resolution - Westminster Municipal Employees Association
17. Revised Recognition for WMEA MOU
18. Westminster Municipal Employees Association (WMEA) Salary Schedule
19. Combined (city-wide) Salary Schedule
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager