Overview

Cerritos Mayor Frank Yokoyama addressed the community regarding the City Council's recent meeting focused on shaping the Fiscal Year 2026-2027 budget. The discussion highlighted the city's financial challenges and the steps being taken to ensure sustainable services.

The meeting featured a presentation on the current fiscal climate, revealing projected structural deficits and declining General Fund reserves, which could impact the city's ability to fund essential services and infrastructure projects.

Key details

  • The City Council is working on the Fiscal Year 2026-2027 budget.
  • A staff presentation outlined the city's fiscal climate and included a 10-year forecast of expenses, revenues, and reserve balances.
  • Projected expenditures are expected to exceed revenues, leading to recurring structural deficits.
  • General Fund reserves are declining, limiting the city's ability to fund capital improvements.
  • The City Council is considering a potential 1% Transactions and Use tax (TUT), which is a local sales tax.
  • Adoption of the TUT would require voter approval.
  • Estimates suggest a 1% TUT could generate about $19 million annually, with more than half coming from non-residents.
  • A dual budget planning framework will be developed, allowing for two budget scenarios: one with more revenue and services, and another with less revenue and limited flexibility.
  • A Resident Budget Task Force will be established to gather community input on budget strategies.
  • Community budget workshops are scheduled for April 15 and April 21.
  • The City Council will conduct additional budget study sessions on May 11 and June 8.
  • A public hearing and budget adoption are set for June 22, with the new fiscal year starting on July 1.

Context

The financial challenges faced by Cerritos are prompting proactive measures from the City Council to ensure that the community continues to receive high-quality services while addressing infrastructure needs.

What happens next

Community members are encouraged to participate in upcoming budget meetings to learn more about the fiscal situation and provide their feedback on potential budget strategies.

What we don't know yet

It is not confirmed how the community will respond to the proposed TUT or the specific details regarding the composition of the Resident Budget Task Force.