Virtual Community Budget Workshop April 21, 2026

The City of Cerritos held a virtual community budget workshop on April 21, 2026, focused on educating residents about the city's finances and budget challenges. City Manager Robert Lopez and other staff provided an overview of the city's revenue sources, including the general fund, enterprise funds like the water utility, and special revenue funds. They discussed the significant impact of the loss of redevelopment agency funds since 2012, which previously contributed about $30 million annually to capital projects and services. The city is currently facing a projected 10-year budget gap of approximately $11.8 million, with reserves expected to be depleted by 2031 if no changes are made. To address this, the city is considering both expenditure cuts—such as suspending the pine tree reforestation program and closing some facilities one day a week—and new revenue options, including implementing a local transactions and use tax (TUT) of up to 1%, which could generate $2.5 to $4.5 million annually. The workshop also covered the city's unique low property tax base, reliance on sales tax revenue, and ongoing efforts to enhance economic development and revenue generation, including potential naming rights for the performing arts center and new commercial developments. The city council will review the draft budget and consider public input at a study session scheduled for May 11, 2026.