Fiscal Transparency and Sustainability

Community Budget Workshops are underway. Join the virtual workshop on Tuesday, April 21, at 7 p.m.

You're invited to submit questions in advance of the workshop, and share your feedback to our budget questions. Responses will help guide our workshops and support the budget development process. 

Join Virtual Webinar Submit a question Share your feedback

Overview

The City of Cerritos is committed to responsibly managing our public resources that support our long-term financial goals and strengthen our future. This commitment to fiscal transparency and sustainability is prioritized in our Strategic Plan and is symbolic of our Cerritos in Progress theme. We invite Cerritos residents to engage in the Fiscal Year 2026-2027 Budget planning process. Through increased fiscal engagement, we’ll progress together in building a bright future for Cerritos.

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Budget Meeting Dates | Budget News | Informational Charts | FAQs

Budget Meeting Dates

You’re invited to engage in the annual budget process and learn more about how the City operates.  The process includes multiple community workshops, City Council budget study sessions, and concludes with a public hearing and formal budget adoption. 

Upcoming Events

  • April 21, 2026: Community Budget Workshop;
  • May 11, 2026: Budget Study Session #2; Cerritos City Council meeting
    • 7 p.m., City Council Chamber
  • June 8, 2026: Budget Study Session #3; Cerritos City Council meeting
    • 7 p.m., City Council Chamber
  • June 22, 2026: Public Hearing and Budget Adoption; Cerritos City Council meeting
    • 7 p.m., City Council Chamber
  • July 1, 2026: Fiscal Year 2026-2027 begins

April 15, 2026: Community Budget Workshop

April 3, 2026: Budget meeting mailers

  • Cerritos residents and businesses began receiving postcards in the mail inviting them to participate in upcoming community budget meetings. 

March 9, 2026: City Council meeting

  • 9B: Review and consideration of the City of Cerritos Annual Comprehensive Financial Report for Fiscal Year 2024-25.
  • 9C: Review and Consideration of the Fiscal Year 2025-2026 Midyear budget update and proposed Fiscal Year 2025-2026 Budget amendments. 

December 11, 2025: City Council meeting

  • 9A: Review and consideration of information related to the FY 2026-2027 budget development process and Strategic Plan update (Budget Study Session #1)

December 2025: Budget at a Glance mailed

  • A Budget at a Glance document was mailed to Cerritos residents in December 2025 to provide clarity on projected Citywide expenses and revenues for Fiscal Year 2025-2026. 

Budget News

News articles from the City of Cerritos on the budget process, key initiatives, and dates.  

Cerritos Hosts Community Budget Workshop, Additional Meetings Planned

April 16, 2026 - Information on Cerritos’ fiscal climate, financial forecasts, and budget considerations was shared during the first of two Community Budget Workshops on Wednesday, April 15. The meeting at the Cerritos Senior Center was facilitated by consultant Tripepi Smith and City staff. Budget workshops are intended to provide information to residents and facilitate feedback to inform the Fiscal Year 2026-2027 budget. 

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Community Invited to Series of Meetings on Cerritos’ Budget

April 7, 2026 - The City of Cerritos invites the community to participate in a series of meetings ahead of the Fiscal Year 2026-2027 Budget adoption. Meetings will focus on the City’s current fiscal climate, financial forecasts, and budget considerations. Participants will also have opportunities to share their feedback.

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City Council Reviews Alternative Revenue Sources, Directs Dual Budget Planning Framework

March 11, 2026 - The Cerritos City Council on March 9 directed staff to conduct further evaluation of a potential 1% Transactions and Use Tax (TUT) that would support additional revenues and future water and sewer rate relief. The action followed a presentation by staff at the direction of the City Council on multiple alternative revenue sources. Among the alternative revenues evaluated at the meeting, a 1% TUT would generate substantially greater ongoing revenue than the others.

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Informational Charts

Fiscal Climate Overview

The City's Fiscal Climate handout consists of budget meeting dates, informational charts on Cerritos revenues and expenditures, and forecasted revenues and expenditures. Charts can also be viewed individually through the dropdown sections below.  

Fiscal Climate Handout

Individual Charts

City of Cerritos revenues are comprised of six fund types. The General Fund accounts for the largest source of City revenue. 

Pie chart displaying citywide total revenues by fund type.

Sales tax revenues make up nearly half of the overall General Fund. Out of the 9.75% sales tax paid by consumers, the City receives 1%. For each dollar spent in Cerritos, the City receives one cent. 

Bar graph displaying General Fund revenues and City's stales tax allocation.

Citywide operating expenditures fund public safety, maintain infrastructure, support community amenities, and provide high quality services for residents. 

Pie chart displaying Citywide Operating Expenditures by Service Type.

CIP projects are prioritized based on critical need and intended to support reasonable and controlled growth. 

Bar chart displaying Capital Improvement Program project allocations.

Expenditures are projected to outpace revenues over time, resulting in recurring structural deficits. 

Line graph displaying 10-Year Forecasted Expenditures and Revenues

General Fund reserves are declining steadily and are projected to fall below the City's minimum reserve policy threshold within the forecast period. As reserves diminish, the City's flexibility to fund capital improvements, address infrastructure needs, and maintain current levels of service becomes increasingly constrained.

Bar chart displaying 10-Year Forecasted General Fund Reserves

The chart below models the addition of a 1 % TUT beginning in Fiscal Year 2026-27, consistent with the revenue estimate prepared by HdL Companies. Under this scenario, a 1% TUT would produce sustained growth in reserves above the City's minimum policy target. The forecast demonstrates not only compliance with reserve policy, but the accumulation of financial capacity beyond required levels over time.

Line graph displaying Forecasted General Fund Expenditures and Revenues (With 1% TUT)

The chart below models the addition of a 1% TUT beginning in Fiscal Year 2026-27, consistent with the revenue estimate prepared by HdL Companies. Under this scenario, a 1% TUT would produce sustained growth in reserves above the City's minimum policy target. The forecast demonstrates not only compliance with reserve policy, but the accumulation of financial capacity beyond required levels over time.

Bar char displaying Forecasted General Fund Reserves (With 1% TUT)

 

Frequently Asked Questions

The City collects revenues through multiple methods which are distributed to different fund types. Those funds pay for certain services to support Cerritos residents, businesses, and visitors.  The General Fund is the City’s primary operating fund, with nearly half of the fund accounting for sales tax revenues. Cerritos is a “no-low” property tax city, so a small percentage of property taxes contribute to the General Fund. Other revenue sources include the City’s Enterprise Funds, such as the Water Fund and Sewer Fund. Enterprise funds are general paid for by user fees.

Cerritos has a sales tax rate of 9.75% and the City keeps 1% of that total amount. That means if you buy an $8 coffee or boba drink from a local cafe, the City receives 8 cents from the sales tax on that drink. If you’re someone who picks up the same drinks weekly, the City would receive 32 cents over the course of a month. By comparison, nearby cities like Bellflower receive 1.75% from their 10.5% sales tax rate. For the same $8 coffee or boba drink, cities like Bellflower receive 14 cents from the sales tax on that drink, or 56 cents over the course of a month.

The City of Cerritos is projected to generate $43.8 million in sales tax revenue during the 2025-2026 Fiscal Year. Sales tax is one of the community’s main funding sources, helping support essential services such as public safety, street maintenance, parks, and community programs. Residents and visitors alike contribute to the City’s sales tax revenues, whether they’re purchasing everyday household goods at Cerritos Towne Center or shopping at a department store at Los Cerritos Center.  

Cerritos is considered a “no-low property tax” city, meaning the City receives a smaller share of property tax revenue than surrounding cities. As a result, the City relies on other revenue sources, such as sales tax and fees, to support essential services for the community.

A TUT, commonly referred to as a local sales tax, applies to taxable retail transactions for some goods and services occurring within the City and to certain purchases allocated through the countywide use tax pool. Adoption of a TUT would require direction by the City Council to place the item on a ballot and then approved by simple majority of voters. Estimates prepared by the City’s sales tax consultant, HdL Companies, projects that a 1% TUT would generate approximately $19 million annually for the City. More than half of would come revenue from a potential TUT would be generated by non-residents.

A dual budget framework would allow the City Council to consider adoption of either a primary budget scenario or contingent budget scenario. City staff will prepare both budget scenarios. Based on City Council direction, staff will prepare a primary budget scenario that assumes revenues are unchanged and a TUT is not approved, which would result in expenditure reductions and service level adjustments. At the same time, staff would prepare a contingent budget scenario, which assumes approval and implementation of additional ongoing General Fund revenue, including a voter-approved TUT.  

For More Information

Visit the Budget and Finances webpage, or contact the Finance and Budget Division by calling the Administrative Services Department at (562) 916-1355 or submit a notice through the online form. 

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