Westminster Clears Deficit of $1.9 Million

WESTMINSTER —  City officials were able to a wipe out a $1.9-million deficit in 1995, but the municipal budget offers virtually no money for new programs or major street repairs, the city’s financial director said last week in his mid-fiscal year report.

“While we’ve survived, we’re not out of the woods,” said financial director Brian Mayhew.

Over the last several years, Westminster has had to cope with dwindling state funds and lower revenues from property taxes. The city has also been hit with extra expenses and legal fees stemming from problems with its former Fire Department.

Mayhew said the 1995-96 budget will be balanced through a series of steps taken last year: an increase in business license fees and water rates, contracting for fire services with the Orange County Fire Authority for a $1.8-million annual savings, and maintaining a hiring freeze for all employees except police officers.

“This is the first year where I can say: ‘You’ve turned the corner,’ ” Mayhew told the City Council. “You get to breathe, but not too hard.”

Mayhew warned that the city’s $27-million general fund budget does not include money for new programs or infrastructure repairs, including major street repairs.

“Public infrastructure will be sacrificed in the near future,” he said. “There just isn’t the money to do it.”

The current budget allows $400,000 for annual repairs, and the city currently has identified $5-million worth of priority projects, Mayhew said.

Although property tax revenue has dropped by about $1 million since 1992, the city received $9.1 million in sales tax revenue in 1995, the highest amount since 1990, he said.

Also on a positive note, property values in the city increased by an average of 2.8% overall. “It’s not staggering by 1985 standards, but is staggering by 1995 standards,” Mayhew said.