From the Mayor's Desk: October 10, 2025

The City of Cerritos is committed to fiscal transparency and sustainability, a goal codified in our Strategic Plan. This is why it’s important to routinely provide our residents with information to help familiarize and understand sections of our budget and how it’s developed.

We’ve just completed a budget period that was well documented in this column, during our City Council meetings, and at my State of the City address. While the final budget reflects some fiscal constraints due to broader economic conditions, we’ve positioned ourselves to carry out the business of the City in a responsible manner. The City’s Fiscal Year 2025-2026 budget, which was approved by the Cerritos City Council and went into effect July 1, includes expenditures by department and projected City revenue. Another significant portion of our budget is the Capital Improvement Program (CIP).

The City first adopted a CIP in the Fiscal Year 1973-1974 Budget to support long-range infrastructure planning. While project priorities and funding needs have evolved over time, the City has maintained steady progress toward its long-range capital improvement goals. This year’s CIP includes just over $23 million to support the following: parks and open spaces, water improvements, sewer improvements, streets and highways, traffic signals, and City buildings. While spending reductions were made this past budget cycle, it’s important to note that the CIP total was unchanged when comparing the preliminary to the adopted budget.

Projects in the Capital Improvement Program are critical to maintaining essential services to our residents, businesses, visitors, and employees. Yet some of these projects you may not see or hear much about, such as HVAC system repairs or underground fiber optic infrastructure. Nevertheless, we rely heavily on their functionality. This is why our staff spend a great deal of time assessing our operations, conducting routine maintenance, and planning ahead.

We’ve talked previously about needed water and sewer infrastructure upgrades, including potential rate increases to align operation costs with expenses. There is approximately $2 million budgeted for this work in the CIP. Separate from the CIP, supplemental funds are needed over the long term to fully support water and sewer infrastructure. The next step in that process will occur later this month, when the City Council will receive the water and sewer rate studies and make its formal recommendation on potential rate increases. Background on this project can be found at cerritos.gov/waterrates.

The more tangible CIP projects that you often engage with are our streets and highways. This fiscal year, the City has committed nearly $11 million worth of repairs and upgrades so that transportation throughout Cerritos is safe and meets our standards for quality. We’re also spending $1.3 million on parks and open spaces to improve our amenities, their security, and maintain our beautiful scenery.

Aligning with our Strategic Plan, we are responsibly managing resources by ensuring transparent financial practices, meeting all legal obligations, and making well-informed decisions that support long-term fiscal sustainability. To learn more about the City of Cerritos 2025-2026 Fiscal Year Budget and Capital Improvement Program, visit cerritos.gov/budget.