City Council to Conduct Public Hearing and Adopt Budget on June 22

Details

The Cerritos City Council is scheduled to review and consider adoption of the Fiscal Year 2026-2027 budget during its meeting on June 22. Action by the City Council will follow a public hearing on the budget, formally known as the Annual Combined Financial Program.

The City Council completed its third and final budget study session on June 8. At that meeting, City staff received direction to proceed with a singular budget scenario in lieu of the dual budget option first presented in March. This action removes from consideration the budget scenario that projected to raise additional annual revenue through a voter-approved Transactions and Use Tax (TUT). The remaining budget scenario assumes no new revenue and requires significant expenditure and service reductions.

Reductions for the next fiscal year may include a limited hiring freeze, projected to save the City about $1.7 million. Another $3.7 million would be saved for the deferring of maintenance of City facilities and landscaping. At the CCPA, a 20% reduction in non-Arts Education-related programming, staffing, and marketing initiatives will save approximately $700,000. One-day closures per week or adjustments in operating hours at community centers are also being considered.

The City's overall expenditures, however, may increase next fiscal year if specific service modifications become required. The City Council has directed staff to include in the draft budget administrative expenses associated with a potential recall election and the potential repeal of water and sewer rates. As presented, the City's total budget position shows a $10.6 million deficit. In order to balance the Fiscal Year 2026-2027 Budget, the City would use reserve funding to cover the deficit, thus reducing its reserve fund balance and impacting long-term fiscal sustainability efforts.

For More Information

The full agenda report for the June 22 meeting will be published by the end of day on Tuesday, June 16, at cerritos.gov/agendas. For more information on the City's fiscal climate, including prior budget activity and frequently asked questions, visit cerritos.gov/future.