From the Mayor's Desk: May 1, 2026

One of the most important responsibilities of the Cerritos City Council and City staff is to ensure we are good stewards of taxpayer dollars. This creates trust and greater financial sustainability and ensures that quality services can be provided. That commitment is at the heart of our Fiscal Year 2026-2027 Budget process. 

Current financial forecasts show that City expenditures are projected to outpace revenues over time, resulting in recurring structural budget deficits. The Cerritos City Council recognizes that, absent meaningful changes, these long-term financial pressures will intensify. That is why, at our March 9 meeting, the City Council directed staff to develop a dual budget planning framework for the coming fiscal year. Under this approach, the City Council will consider two budget scenarios. In one scenario, City staff will present a balanced budget using expenditure cuts achieved through service and infrastructure maintenance reductions. A second scenario will include a combination of expenditure cuts and an increase in revenue generated from the potential adoption of a Transactions and Use Tax (TUT) to help offset rising costs while growing long-term revenues. 

The primary scenario, if no TUT revenue is approved, would require extensive expenditure reductions and service level adjustments. Both paths have real impacts for our community, and I want residents to understand them fully.

This is precisely why we’ve sought feedback from the public during this budget process. That included the creation of a Resident Budget Task Force, which the City Council directed the City Manager to appoint in early March. The 16-member Task Force recently concluded its work, and a report will be delivered to the City Council at our May 11 meeting. Additionally, the City hosted two Community Budget Workshops to connect with the broader community about our fiscal climate, financial forecasts, and receive feedback. Thank you to those who attended and let your voices be heard. Your feedback is incredibly insightful. Presentation slides, a recording of our webinar workshop, and a feedback form can be found at cerritos.gov/future. 

Ahead of our new fiscal year beginning July 1, I hope you’ll take some time to join us at our upcoming meetings. This includes the City Council’s next two budget study sessions on May 11 and June 8, with a public hearing and final budget adoption scheduled for June 22. 

Our collective efforts align with the City’s Strategic Plan goal of Fiscal Transparency and Sustainability. To borrow our theme of “Cerritos in Progress,” it is your participation that makes that progress meaningful.