SHOULD WESTMINSTER said its sales tax by a half-cent? (Shutterstock).

Should Westminster raise its sales tax by another half-cent?

At Wednesday’s meeting of the city council, one agenda item calls for consideration of placing a measure on the ballot asking voters to increase the tax by a half-cent to 9.25 from its current 8.75 percent.

Voters in November 2022 approved the one cent increase and collections started on April 1, 2023. That tax hike “brought in $16 million in revenue, but was never enough to fund increased service levels or even continue services at current levels, especially from inflation and other economic fluctuations,” according to a staff report.

Keeping the rate as it is would mean the city would have to dip into reserves for the proposed 2023-2024 budget and be completely out of reserves by fiscal year 2027-28, the report notes. After that deep cuts in city services would be on the horizon.

If approved by voters, the increase would bring in an estimated $8 million annually to city coffers. The costs associated with placing a measure on the ballot – if consolidated with a general election – would be in the range of $134,000 to $260,000 or $578,000 to $695,000 in a stand-alone election.

Measure Y was approved overwhelmingly by voters last fall but the city council majority only agreed to place it on the ballot just before the deadline, citing objections to raising taxes.

Also on the agenda is the second reading and adoption of an ordinance that exempts minors – mainly Girl Scouts selling cookies – from needing a sidewalk vendor permit.

The council will meet in closed session at 4 p.m. followed by the open session at 6 p.m.