From the Mayor's Desk: June 6, 2025

Each year around this time, the City of Cerritos focuses its attention on preparing and finalizing a fiscally responsible budget for the next fiscal year. This includes budget study sessions at City Council meetings with staff to review projected expenditures and revenues, and consider potential modifications to best suit the needs of our community.  

This work is in direct alignment with the City's Strategic Plan, our comprehensive and long-term guide to successful City operations. The budget process is in direct correlation with Strategic Goal Number 6, Focus on Fiscal Transparency and Sustainability. This work is incredibly important to strengthening public trust and responsibly managing our resources. 

Sales tax is a major source of revenue for Cerritos, making up about one-third of the City’s overall revenues and just over 40% of the General Fund. As of April 1, the sales tax rate in Cerritos is 9.75%, which is lower than in many surrounding cities. However, it’s important to understand that Cerritos receives only a small portion of that total. Of the 9.75% collected on purchases made in Cerritos, the City receives just 1%. The rest is distributed to other agencies: approximately 3.94% goes to the State, and 4.81% is allocated to Los Angeles County for regional programs and services like transportation, social services, and homelessness initiatives. Unlike many cities, Cerritos does not have its own local sales tax, which unfairly limits the revenue that stays in the community. Cerritos also receives relatively low property tax revenue compared to other cities. This is the result of decisions made decades ago following the passage of Proposition 13.

Financial forecasts show the City bringing in less revenue than expenditures, requiring us to make some difficult but necessary decisions about how we move forward. These challenges are largely driven by national economic headwinds that have trickled down to the local level. These circumstances demand strong, steady leadership, and my City Council colleagues and I are fully committed to that responsibility. 

Already, we’ve made significant progress through collaborative efforts with staff on department and division budgets, as well as strategic adjustments to managing expenses and strengthening services. We have trust in our knowledgeable City staff to identify thoughtful, effective solutions that align with this Council’s priorities and the fiscal expectations of our residents. The City has an award-winning budget and finance team carrying out this important work. For the 2024 budget year, the City of Cerritos received the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) for meeting the highest principles of governmental budgeting. The GFOA Award reflects not only the hard work of the Finance and Budget Division, but also the valuable contributions from every department in creating a budget document that demonstrates transparency, accountability, and a commitment to excellence. 

The City Council looks forward to another future budget study session, and finalizing our Fiscal Year 2025-2026 Budget. We will do so with transparency and ensure our actions are sustainable to the long-term vitality of Cerritos, in accordance with our strategic goals. The next budget study session is scheduled for Thursday, June 12, with final adoption of the Fiscal Year 2025-2026 Budget set for Thursday, June 26.

Learn more about the City’s Strategic Plan at cerritos.gov/strategy and view upcoming Council meetings dates and details at cerritos.gov/agendas.