Westminster residents approve sales tax measure in the wake of forecasted bankruptcy

The measure’s appearance on the ballot came after city council members agreed to let voters decide on the extension of Measure Y, which has kept the city’s bankruptcy at bay since 2017. Photo by RENEE ELEFANTE, news & politics editor

This November, Westminster voters were asked to vote on whether to extend sales tax Measure Y, to which approximately 70% of voters voted to approve the measure, as of Nov. 18. Without it, Westminster’s years-long deficit is predicted to increase by over $16 million annually starting after 2023, sentencing the city to a forecasted bankruptcy. 

According to City Manager Christine Cordon in an interview with The Los Angeles Times, the financial cuts resulting from bankruptcy would likely result in closed parks, unpaved streets and the elimination of youth and senior programs, as well as staff layoffs, including a 33% reduction to the police force in a city that has been running on thin staffing for years. 

Westminster’s financial problems stem from a culmination of factors. The city currently doesn’t pay extensive tax revenue, and rather than utilizing the small tax revenue they generate, the city pays out of its general fund. The city is also scarce with public employee pensions as uncertainty about future tax revenue has made it difficult for the city to attract and retain employees. 

After 2012, extreme budget shortfalls prompted city council members to put a 1% sales tax increase before voters, who approved the measure in 2016. The measure, which went into effect in 2017, ensured funding to entire police divisions, city offices and public parks.

An article published by Voice of OC explained that although Measure Y buffers Westminster's financial issues, it is not a perfect solution. Even with the sales tax measure effective for five years, city hall staffing levels and the elimination of basic services have prevented the tax from putting the city financially ahead.

Measure Y only has a six-year life span, meaning that it will expire Dec. 31 and will not take effect until April 2, 2023. Regardless of a three-month expiration period, Measure Y might be the only current and tangible solution to keep Westminster’s bankruptcy at bay.  

According to The LA Times, city staffers have proposed other ideas to generate revenue, including annexing unincorporated county land in Westminster, electronic billboards, opening a city gas station and establishing vendor kiosks at the civic center. Yet, the council has not moved forward on these proposals.

According to Voice of OC, a last-ditch public meeting was held on Aug. 12 where council members agreed to let residents vote on Measure Y. Westminster’s Citizen Oversight Committee implored the city council to put the sales tax extension on the November ballot — arguing its revenue has kept the city from falling into bankruptcy.

Although Measure Y was approved by the council to be put on the November 2022 ballot, it was not easy for Westminster’s Citizen Oversight Committee, council staff and city-appointed fiscal watchdog panel to convince the city council to put the sales tax on the November ballot, with vitriol between opposing factions of council members. 

According to a Voice of OC article regarding a March 9 council meeting, Councilmembers Tai Do, Kimberly Ho and Carlos Manzo clashed with Mayor Tri Ta and fellow Councilmember Charlie Nguyen on the topic of Vietnamese media, preventing a discussion about bankruptcy that was initially slated for the meeting.

Cordon recommended that the council continue items regarding the budget in the upcoming March 14 meeting, stating that the budget crisis “deserves a robust discussion.”

“It’s no longer an elephant in the room,” Cordon stated at the March 14 meeting. “Obviously, the way services are provided and quality of life for residents and businesses in the community will be impacted, and the loss of revenue source will place us in a worse position prior to the approval of Measure (Y).”

Even after being slated for discussion in the March 14 meeting, council members like Ho disapproved of the sales tax entering resident ballots.

“It’s up to residents to get the measure back on the ballot if they wish to see it continue,” Ho said.

In the week prior to Aug. 12, Ho ended up changing her vote in favor of Measure Y entering the ballots alongside Vice Mayor Carlos Manzo, yet Ta and Nguyen were still in opposition. 

Ta and Nguyen changed their positions Aug. 12 after hearing from residents, approving Measure Y to enter current ballots.

According to Manzo, residents have a right to vote if Westminster parks are going to continue to be maintained and if their senior services are going to be cut.

“(Council members) must do what we were elected to do — protect our residents and put their needs before our political ambitions,” Manzo stated at the meeting.