Westminster Council explores funding options including marijuana sales tax for road improvements

The Westminster City Council convened on May 3, 2025, for a workshop focused on the development of the 2026 budget, addressing critical funding needs and potential revenue sources. The meeting began with a presentation outlining the city's current financial landscape, highlighting a total budget of $26 million, of which $7 million is derived from highway user tax fees and road and bridge funds from Jefferson County. An additional $3 million comes from the roadway improvement fee, indicating that approximately $10 million is already allocated to asphalt and roadway improvements.

Council members discussed various funding opportunities to bridge the existing financial gap, emphasizing the need for transparency regarding the city's tax rates. The current sales tax rate stands at 3.85%, while the property tax mill rate is 3.65%. Comparisons were made with neighboring jurisdictions, many of which impose additional taxes for fire districts.

A significant portion of the discussion centered around the potential legalization of marijuana sales within the city. Council members explored the implications of such a move, noting that while the city could legalize sales under its authority, any additional tax on marijuana would require voter approval. Projections indicated that legalizing marijuana sales could generate revenue, although immediate financial benefits were not expected due to the time required for licensing and market establishment.

Concerns were raised about the impact of marijuana sales on public safety, with references to increased police call loads in neighboring cities that have legalized sales. Council members expressed the need for thorough analysis of the potential risks and benefits, particularly in light of current trends indicating a decrease in marijuana sales statewide.

The workshop also addressed the annual funding needs of the city, estimated at $35 million, with discussions revealing that existing revenue sources would only cover approximately $25 million. This discrepancy highlighted the urgency for the council to consider new revenue streams, including adjustments to commercial fees and potential increases in property and sales taxes.

As the meeting progressed, council members engaged in small group discussions to further explore these funding scenarios and their implications for the city's budget. The workshop concluded with a commitment to continue analyzing the various options available to ensure the city's financial stability and service delivery in the coming years. The council plans to reconvene to discuss findings and potential recommendations based on the workshop's outcomes.