Cerritos council directs staff to finalize sewer rate study under Scenario 1 to close a $12.1 million gap

The Cerritos City Council on Aug. 28 directed staff to finalize the sewer rate study using the consultant’s Scenario 1, a five-year adjustment pathway designed to close a roughly $12.1 million funding gap for sewer operations, maintenance and capital work.

Assistant Director of Public Works Chris Kubert presented the study prepared by consultant Water Rate Economics (WRE). He told the council the city’s sewer system includes more than 100 miles of lines and five pump/lift stations and that current rates “are by far the lowest” in the region and have not covered system costs. Staff said that since 2021 the city collected about $350,000 from sewer rates while relying on about $5.5 million in general fund support; the sewer system needs about $12.7 million over the next five years for operations, maintenance and capital repairs.

WRE modeled two rate scenarios. Scenario 1 increases rates more in year one and less in later years; Scenario 2 starts with a smaller first-year increase and ramps up more gradually. Under the figures presented, Scenario 1 would raise residential bimonthly sewer charges by about $9.18 in the first year (roughly $4.59 per month) and reach about $1.20 per CCF by year five. Scenario 2 showed a smaller initial bimonthly increase (about $4.70 bimonthly or roughly $2.35 per month) and a different end-year level. Staff said either scenario would keep Cerritos among the lower-rate cities in the region but would allow the city to build reserves and fund necessary capital work.

Staff emphasized the need to repair aging pipe and to perform CCTV inspections and trenchless pipe lining (a “cured-in-place” liner, described in the presentation as far less expensive than digging and replacing pipe). The presentation said lining can be roughly 20 times less expensive than full replacement and that delaying work would increase the risk of sewer breaks and spills and push costs onto the general fund.

City staff also reported they are negotiating a multimillion-dollar safety project with the LA County Sanitation District for the reclaimed-water pumping station; reclaimed-water rates and that project’s costs will be returned to council once negotiations and cost estimates are clearer.

Mayor Pro Tem Johnson moved to approve Scenario 1 and direct staff to finalize the sewer rate study report for presentation to council. Council member Se seconded the motion. The motion passed unanimously, 5–0. Staff outlined next steps: community open houses in September, a final presentation to council on Oct. 27, a Proposition 218 protest hearing set for Jan. 22, 2026, and, if adopted, new rates would be implemented on Feb. 1, 2026. Staff also said it will evaluate low-income rate options and post more information at cerritos.gov/waterrates.

Speakers during public comment supported clarity and transparency; some urged gradual increases while others emphasized the need to fund repairs to avoid costlier emergency repairs. Council discussion noted the alternative of extending studies to a longer horizon but staff and the city attorney explained five years aligns with common practice and with Proposition 218 requirements for rate justification.

Council directed staff to finalize the Scenario 1 study and to continue community outreach and the Proposition 218 process.