The Westminster City Council recently voted 4–1, with Vice Mayor Carlos Manzo opposing, to restart a program in April that reimburses $500 to city residents and businesses for vehicles purchased and leased in the city.
The program—which was requested to be renewed by a handful of car dealerships—is meant to incentivize residents to shop locally.
According to the city, dealerships are one of the top revenue generators for the city, accounting for approximately 29 percent of its income through sales tax.
The city’s program, which ran from 2017 until May 2022, has been under scrutiny because it mistakenly reimbursed for used vehicle purchases, which were not part of the original deal.
But now they are allowing used cars to be part of the program.
City Manager Christine Cordon said she believed this “oversight” was due to a “lack of communication” from previous administration and staff.
Some councilors said they thought the renewed program could be run error-free, due to new city staff.
“We have solid leadership in City Hall right now,” said Councilman Tai Do at a meeting in October. “I’m sure this won’t happen again.”
Mayor Tri Ta voiced support for the program.
“All the money, at the end of the day, goes back to the residents,” he said.
The estimated reimbursements are $600,000 a year with a limit of $3 million over the next five years.
Paid for by the city’s Economic Development Fund, the renewed program is for new and used vehicles purchased or leased by verified Westminster residents and businesses at the four participating dealerships—Elmore Toyota, Lexus of Westminster, Orange Coast Infiniti, and Honda World.
Previously, $1.6 million was reimbursed to residents, according to the city.
According to data from the dealerships, city residents accounted for 11 percent of new car sales, 12 percent of used car sales, and 26 percent of car leases over the last five years.
Unlike Fullerton, Santa Ana, and Garden Grove—which have similar rebate programs for cars, trucks, motorcycles, and off-road vehicles—Westminster limits its program to those only buying or leasing cars and trucks.
