5.02 Strategic Plan Goal 1 - Achieve Financial Stability. Strategic Plan Objective - Provide information to the City Council on the impacts to the city if the sales tax measure is not renewed.
8200 Westminster Boulevard
City of Westminster
Westminster, California
92683
Staff Report
File #:22-78,Item #:5.2 Meeting Date:
Westminster City Council
SUBJECT
Strategic Plan Goal #1:Achieve Financial Stability.
StrategicPlanObjective:ProvideinformationtotheCityCouncilontheimpactstothecityifthesales
tax measure is not renewed.
From:Christine Cordon, Interim City Manager; Erin Backs, Finance Director!Erin
Prepared by:Backs, Finance Director
_____________________________________________________________________
RECOMMENDED ACTION
Staff!recommends that the!Mayor and City Council receive and file the presentation.
BACKGROUND
On!January!17,!2022,!the!City!Council!held!a!strategic!planning!workshop!to!develop!the! city’s!first!
strategic!plan!and!identify!priorities!for!the!city.!The!workshop!resulted!in!a!three-year!strategic!plan!
comprised!of!three!goals;!each!goal!consists!of!multiple!strategic!objectives!intended!to!serve!as!
benchmarks in the progress of each goal.
One!of!the!strategic! plan’s!goal!is!to! “Achieve!financial! stability,”!and!its!first!objective!is!to!provide!
information to the City Council on the impacts to the city if the sales tax measure is not renewed.
In!2016,!voters!approved!locally!generated!revenue!through!Measure!SS,!a!one!cent!(percent)!
transactions and use sales tax that is set to expire December 31, 2022.
Locally!controlled!revenue!funds!stabilized! Westminster’s!finances!and!allowed!the!city!to!continue!
providing!the!basic!and!necessary!services!essential!to!the!safety!and!quality!of!life!for!the!
community including:
City of WestminsterPage 1 of 9Printed on 3/3/2022
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File #:22-78,Item #:5.2 Meeting Date:
Addressing homelessness through the hiring of two Homeless Liaison Officers
Protecting drinking water supplies
Maintaining fire protection
Maintaining local jobs
Preventing cuts to 9-1-1 emergency response
PreventingtheeliminationofPoliceNarcotics,DomesticViolence,SexCrimes,Gang,and
Human Trafficking units
Preventing cuts to the number of firefighters
Recruiting and retaining Spanish/Vietnamese-speaking police officers
Supporting residents and local businesses
Preventing the loss of trained officers to other cities
Recruiting lateral police officers
Investing $7.5 million in street improvement projects
Asthelocallygeneratedrevenuesourceisexpiring,ithasbeenhardertoattractandretain
employees.AsoftheendofJanuary2022,therewere24vacantpositions,including10police
officers.ThroughexitinterviewsconductedbytheHumanResourcesDepartment,100%ofthe
employeeswhoresignedidentifiedtheuncertaintyofthelocalfundssurroundingtheexpirationofthe
localsalestaxmeasureandlowpayasthetwomajorfactorsintheirdecisiontoleave.Itisalso
hardertorecruitqualifiedemployeestofillvacantpositions.Forexample,ontworecentrecruitments,
dataprovidedthroughtheonlinehiringportalshowedtherewasinitialinterestfromprospective
candidatestoviewthejoblistings.However,thepercentageofthosewhoactuallyappliedforthe
position were extremely low at 1% for a part-time position and 4% for a full-time position.
Five-Year Projections of Revenue, Expenditures and Reserves
General Fund2021-222022-232023-242024-252025-26
EstimateAdoptedProjectedProjectedProjected
Revenue 70,655,12561,084,23356,097,95757,104,89257,914,378
Expenditures 66,282,22171,631,99773,559,74075,564,03277,450,228
Contribution/(Use) of Reserves 4,372,904(10,547,764)(17,461,783)(18,459,140)(19,535,850)
Reserve Balance 39,212,21628,664,45211,202,669(7,256,471)(26,792,320)
Thelossoflocalfundswillincreasethe City’sdeficitbyover$16millionannuallyandbyfiscalyear
2024-25thecityiscompletelyoutofreserves.Notonlywillthissignificantlyimpact Westminster’s
budget,thelossofrevenuethroughlocallygeneratedfundingwillresultindeepcutstobasiccity
services,andaffectadditionalservicesandprogramsrelatedtoeconomicrecovery.Thelossoflocal
fundswillreducetheCity'sabilitytosupporttheresidentsandbusinesscommunity.Withoutalocally
fundedrevenuesourcededicatedtotheprioritiesoftheWestminstercommunity,serviceswillbe
limitedtostrictlymandatedessentialsthatdonotprovideforenhancingqualityoflifeordevelopment
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File #:22-78,Item #:5.2 Meeting Date:
of the community.
Specific Reductions in Services and Staff
Forover30years, Westminster’sfinancesreliedheavilyonStateofCaliforniaredevelopmentfunds
tomaintainbasicservicesandstaffinglevels,aswellasprovideassistancetowardbusiness
development,low-andmoderate-incomehousing,andcommunity-basedprograms.Whenthestate
eliminatedtheredevelopmentprogramandretainedthefundingthathadbeengoingtolocalcities,
Westminsterwasleftwithabudgetshortagethatresultedinmassivelayoffsacrosstheentire
organization,reductionandeliminationofservicesthroughoutthecity,anddepletionofthe city’s
reservefunds.In2016,throughthewillofthevotersandthecommunity,thecitywassavedfrom
inevitable bankruptcy through the passage of Measure SS.
SignificantcutstoservicesandstaffweremadepriortothepassageofMeasureSSinresponseto
thelossofredevelopmentfunds.However,evenwiththepassageofMeasureSS,staffinglevels
haveremainedatminimumlevelsandmanyprogramsthatwereeliminatedhavenotbeenreinstated
toensurebasicservicesweremaintained.Withtheupcomingexpirationofthelocallycontrolled
revenuefunds,thecitywillloseapproximately24%ofitsoperatingbudget.Toaddressthelossof
revenue,thecitymustprioritizethemandatoryservicesneededtooperate,andeliminateallother
functionsandstaff.Basedonthe ’scurrentstate,withthelossoflocallycontrolledrevenuefunds,
cuts would result in the following scenario:
Administration
o City Council
Eliminate all technology equipment and supplies
Eliminate funding for conferences, training, and memberships
Eliminatestipendforpaidcommissioners,anddisbandallcommissionsnot
required by law
o City Manager
MaintainCityManagerpositionandeliminateallotherpositions:AssistantCity
Manager,EconomicDevelopmentManager,ExecutiveAssistant,Administrative
Analyst (Communications), and Administrative Assistant II
o City Clerk
MaintainCityClerkpositionasrequiredbystatelawandeliminateallother
positions: Assistant City Clerk and Administrative Assistant II
Departmentwillbeunabletomeetagendapreparationdeadlines,response
timesforrequestsforpublicrecordswillbedelayed,andelectionfilingsand
state-imposed deadlines will be impossible to meet
o Human Resources/Risk Management
MaintainHumanResources/RiskManagementDirectorpositionandeliminateall
other staff: two human resources analysts, and one human resources specialist
Responseandreviewtimesofclaimswillbedelayedwithpossibilityofincreased
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File #:22-78,Item #:5.2 Meeting Date:
liability to city for payment of unresponsive claims
Decrease in oversight will lead to increase in liability to the city
o Finance
MaintainFinanceDirector/Treasurerpositionasrequiredbylawandeliminate
fouroutofsixemployeeswhocoveraccounting,payroll,accountspayable,
purchasing, and cash receipts
Lackofstaffwillcreateinabilitytosegregatedutiesandeliminatechecksand
balances in finance processes
Delayinpaymentofrefundsorservicestooutsidevendors,consultants,
residents, and businesses
Reducedcountercoverageandabilitytorespondtothepublic,including
processing counter payments
Community Development
o Eliminate Community Preservation Unit (CPU) and the following services:
Nohomelessliaisonoutreachassistance-CPUassistsWPDwithclean-upsof
transientencampmentsthroughoutthecityonadailybasis.Someofthese
outreachprogramsareconductedintotheeveninghoursandincludeslarge
cleanupsatthefreewayunderpassesandfreewayaccessareas.CPUalso
regularlyrespondstorequestsfrompolicedispatchregardingpick-upof
discarded items left behind by transients.
No shopping cart retrieval
No staff to address public property issues such as:
Inoperative vehicles
Discarded trash and debris
Graffiti
Overgrown weeds and vegetation
Trash bins in public view
Publicright-of-wayissuesuchasunpermittedworkontheparkwayand
sign removal
Parking or storing vehicles on unpaved surface
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File #:22-78,Item #:5.2 Meeting Date:
Unkempt trash enclosures
Unpermitted signage such as flag banners and banners
Excessive window coverage at store fronts
Eliminate Management Analyst position
o
Nosupportforrealestate,businesslicense,outdoordiningprogram,andother
operations
No new grant applications or special projects could be initiated or administered
o MaintainPlanningManagerorSeniorPlannerpositionandeliminateallassociateand
assistant planners, which will result in:
Significant reduction in available counter hours, phone, and email services
Delaysinprocessingdevelopmentapplicationswillnegativelyimpactproperty
owners and the development community
Inabilitytomaintainstate-mandatedapplicationprocessingtimeswhilemeeting
other required, legislative demands
Significant extended wait times for scheduling of inspections
Delays in Building Plan Check turn-around times
No special projects or programs could be undertaken
Necessary actions such as the zoning code update would be delayed
Community Services and Recreation
o EliminateCommunityServicesDirector,SeniorCenterSupervisor,andtwoCommunity
Services Coordinators.
o Senior Center becomes a part-time facility
No activities, classes, events, transportation, outreach, or support services
Essentials left as nutrition/meals only
Eliminate Project SHUE program
o Youth-centered programs and services are eliminated
No youth sports, summer or afterschool programs
Reduced access to Splash Pad due to lack of staff for supervision
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File #:22-78,Item #:5.2 Meeting Date:
o Eliminate community promotions and programs
Eliminate printed brochure and other marketing materials
No city special events will be held
Nooversightoverprivatespecialeventstakingplaceonpublicorprivate
property requiring permits
Nomanagementoroversightovercrossingguardsandreductionofcity-funded
crossing guards
Public Works
o Eliminate 16 full-time positions and 14 part-time employees
o Impacts to parks
Close all parks
No graffiti clean-up or median maintenance
o Impacts to streets and street maintenance
Reduceoreliminatepotholefilling,concreterepairs,drainagedevicesand
sidewalk cleaning
o Impacts to building and facilities maintenance
No staff or budget for plumbing, electrical, HVAC repairs, and painting.
No cleaning of buildings or set-ups for facility rentals or events
o Impacts to fleet or vehicle maintenance
Nostaffforrepairsandmaintenanceofcityvehicles,includingpublicsafety
vehicles
o Impacts to engineering
No staff forengineering design, construction management, and inspections
No longer able to pursue and obtain grant funds for new projects
o Reductions in existing maintenance contracts
Reduceparkmowingfromweeklytoonceamonthandeliminateweed
abatement in public right-of-way
Cut park watering in half
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File #:22-78,Item #:5.2 Meeting Date:
Reduce a quarter of tree trimming budget, impacting claims for fallen trees
Police
o Reducingthepoliceforceby1/3,equivalentto24sworn,17non-swornand25part
time positions
o Addressing homelessness:
Eliminate both Homeless Liaison Officer positions
Nospecializedunitstocompletehomelessencampmentclean-upsoraddress
other homelessness issues and complaints
No HLOs to provide direct impacts and services to homeless residents
Homelessness-related issues will increase
o Emergency response:
Response times to emergencies would increase
Victimswouldbewaitlongerforpolicetoarrive,evenforemergencycallssuch
as in-progress domestic violence, robbery, and assault
Policewouldnothaveresourcestorespondtomostnon-emergencycrimes,
such as thefts and non-violent disputes
o Traffic Bureau and enforcement:
WiththeeliminationoftheTrafficBureau,trafficcollisions,includingfatalities,will
increase
Parking issues will go unaddressed and associated revenue will be lost
o Crimes, reports, and investigations:
Elimination of jail services and staffing contract
Patrolstaffwillspendlesstimepatrollingandrespondingtocallsforservice
whentaskedwithbookingandhousingarresteesWithonlyafewexceptions,
most crimes would not be investigated
No crime prevention efforts
No investigation of cold cases
Delayedturnaroundtimeforpolicereports,information,orotherpaperworkfrom
the WPD
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File #:22-78,Item #:5.2 Meeting Date:
o Special programs and task force:
All community outreach programs would be eliminated
Revenuesreceivedfromseizureswouldbeeliminatedwiththeeliminationofthe
detectivefromtheDEATaskForce,andanyresourcesassociatedwiththistask
force will be eliminated
Staffwouldnotbeavailabletoprovidepublicsafetypresenceforspecialevents
andassignmentssuchascouncilmeetings,theannualTetparade,school
events, National Night Out, Public Safety Day, and public memorial services
FISCAL IMPACT
Thereisnofiscalactionrequestedwiththisreport.Thisisanexampleofapproximately$17millionin
general fund budget reductions.
LEGAL REVIEW
The City Attorney’s Office has reviewed and approved this report as to form.
CONCLUSION
Ifthesalestaxmeasureisnotrenewed,thechangestothewayservicesareprovidedandthequality
oflifefortheresidentsandbusinesscommunitywillbenegativelyimpacted.Thelossofthislocally
fundedrevenuesourcewillplacethecityinthesame,ifnotworse,positionpriortotheapprovalof
MeasureSS.Thistakesintoaccounttheincreaseincostsofdoingbusiness,aswellasreductionsin
revenueimposedbytheStateofCalifornia.Externalfactorssuchasinflationandrecessionmayalso
contribute to additional budget shortages.
Withover$17millionincuts,thestructureoftheorganizationandserviceswillbedrastically
changed and the community will notice and be affected by these reductions.
AspartoftheapprovedCityofWestminsterStrategicPlan,theCityCouncilhasprioritizedagoalof
achievingfinancialstability.Thisreport,aspartoftheplan,providestheCityCouncilandthe
communitywiththemostcurrentoverviewofwhatWestminstercouldpotentiallybecomeifthesales
tax measure is not renewed.
ATTACHMENTS
N one.
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File #:22-78,Item #:5.2 Meeting Date:
REVIEWED BY
Christian Bettenhausen, City Attorney
Erin Backs, Finance Director
Christine Cordon, Interim City Manager
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