Overview

The Cerritos City Council is moving forward with plans to increase water and sewer rates for the first time in several years. This decision is driven by rising operational expenses and the necessity to minimize reliance on the City’s General Fund for these services.

During the meeting on October 27, the Council approved a resolution to hold a public hearing under Proposition 218 on January 26, 2026, to discuss proposed annual rate adjustments for a five-year period spanning from Fiscal Year 2025-26 to 2029-30.

Key details

  • The proposed rate increases aim to address rising operating costs.
  • The City seeks to reduce subsidies from the General Fund that have been used to support the Water and Sewer Enterprise Funds.
  • The public hearing is scheduled for January 26, 2026, as part of the Proposition 218 review process.
  • Proposition 218 requires local governments to notify property owners and provide an opportunity for public input before raising certain fees.
  • Residents will be allowed to submit written protests regarding the proposed rate increases.
  • If a majority of affected property owners protest, the rate increases cannot be implemented.
  • Proposition 218 was enacted in 1996 to ensure transparency and prevent hidden taxes.
  • Cerritos has historically used general-fund dollars to cover shortfalls in water and sewer funding.
  • The new plan aims to ensure that customers fully cover the costs of water delivery, treatment, and sewer maintenance.
  • Residents will receive official notices by mail detailing the proposed changes and how to submit protests.
  • Three community information sessions will be held on November 17, December 8, and January 15 to address questions from the public.
  • Even with the proposed increases, Cerritos will remain among the lowest in water and sewer costs compared to neighboring cities.
  • A low-income assistance program is being developed to provide qualifying households with a $40 bimonthly discount on combined water and sewer bills.

Context

This initiative reflects a broader trend among local governments in California to reassess utility rates in light of increasing operational costs and the need for sustainable funding mechanisms.

What happens next

Following the public hearing, if no majority protests are received, the new rates could be implemented as early as February 2026.

What we don't know yet

Specific details regarding the exact rate increases and the number of residents who may participate in the low-income assistance program have not been confirmed.