CHI CHARLIE NGUYEN, Westminster mayor, has a new attitude about asking voters to approve a sale tax increase (File photo).

By Jim Tortolano/Orange County Tribune

The last time the Westminster City Council came to grips with a looming catastrophic financial picture, the majority waited until the last possible moment to put a 1 cent sales tax on the ballot.

But this time, as Mayor Chi Charlie Nguyen put it, “it’s a new era.”

The council, which has two new members – Amy Phan West and  Namquan Nguyen – voted unanimously Wednesday to continue the agenda item on asking voters to support an additional half-cent tax to a council study session not only on the financial impact of a new tax, but how it would affect the city treasury for five, seven, and 10 year intervals.

“Nobody wants to raise taxes,” said the mayor, who had opposed the 1-cent Measure Y that voters approved in 2022. “But this is the situation we’re in.”

Councilmember West spoke of a 10-point plan that would consider seeking to balance the budget with a combination of spending cuts and new revenue. She wanted to wait on a new tax until other alternatives were explored. “We have two years before we go into deficit,” she said.

But Councilman Carlos Manzo pointed out that the city is currently taking money from reserves to balance the books. “We’re in a deficit now. We shouldn’t be pulling from reserves now,” he said, citing staff reports stating that $3 million this year and $6 million to $8 million the next year would be needed from the treasury to pay the bills. “What is the fix for this?” he asked.

Councilmember Kimberly Ho gave some background on how Westminster’s financial problems developed, noting how the end of redevelopment cost the city $35 million annually. “We have not been able to bring back $35 million,” she said.

“We should capture the half-cent.”