WESTMINSTER : New Budget Cuts Jobs, Hikes Water Rate

The City Council this week approved a $56-million budget that shows a slight surplus for the first time in several years, but includes a 6.5% water rate hike.

The 1995-96 budget, approved with a unanimous vote, eliminates 27 vacant positions, calls for the layoff of a grants coordinator, and continues outside contracting for fire and street sweeping services, City Manager Bill Smith said.

The water rate hike means Westminster residents will pay an average of $1.12 more a month, officials said.

A freeze on hiring, salary and benefit levels will continue, Smith said.

The city was spared major spending cuts for next year by having contracted out for fire and street sweeping services this year, which is expected to save about $2 million annually, and recently raising the business license taxes to bring in another $500,000.

“If we hadn’t gone to contracts, [this budget] would have been very painful,” financial director Brian Mayhew said.

The projected $27.3-million general fund shows a surplus of about $93,000, the first time the city has not had to avert a projected deficit since 1991, Smith said.

However, he said, the city’s financial outlook is not entirely healthy. Westminster’s cash reserves are currently at a low level, $4.2 million.

“Anything below $7.5 million for a city this size is in the danger zone,” he said.