Cerritos Hosts Community Budget Workshop, Additional Meetings Planned

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. Those who were unable to attend can view the meeting presentation slides and submit feedback. This information is also available at cerritos.gov/future. 

Recently presented budget forecasts show that, if there are no service adjustments and/or new revenue, City expenditures will continue to outpace revenues over the next several years. On March 9, City staff briefed the City Council on alternative revenue sources to help offset a possible budget deficit. Staff were also directed to develop a dual budget framework, under which the City Council would consider adopting one of two budget options. One option would assume approval and implementation of a voter-approved 1% Transactions and Use (TUT) tax. The other budget scenario would assume no such TUT revenue is approved and include different considerations such as reduced City services in order to balance the budget.

Among the alternative revenues that have been evaluated, a 1% TUT would generate substantially greater ongoing revenue than the others. Projections also show that non-residents would account for the majority of revenue that the City receives from a TUT.
 
The City Council also authorized the City Manager to establish a Resident Budget Task Force to provide community input on the City's current budget situation and potential budget balancing strategies. Task Force meetings are ongoing, with a report being developed to share at a future City Council meeting. 

The next Community Budget Workshop will be a virtual webinar, scheduled for April 21 at 7 p.m. Participants can join the online meeting using this link. Questions are also encouraged in advance of the meeting via an online form.