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Cerritos council selects moderated water-rate path, directs staff to prepare Prop. 218 process
Summary
After weeks of study, the Cerritos City Council voted unanimously to advance a moderated five-year water-rate plan (Scenario 2B) and directed staff to prepare a final rate study and public-notice process under Proposition 218. The plan spreads increases over time, preserves critical capital work and phases out general‑fund support.
The Cerritos City Council on July 28 voted 5-0 to direct staff to pursue “Scenario 2B,” a phased five-year water-rate adjustment that spreads initial increases more gradually while funding critical water-system projects and winding down general‑fund support over time.
Director of Public Works Alvin Papa told the council the city’s water system is aging and that current rates “have not covered the full cost to operate and maintain the system. The water fund has run deficits for years and relied on general fund support.” He and the city’s consultant, Charles Diamond of Water Resources Economics, presented three scenarios that balance capital work, operations and near‑term bill impacts.
Why it matters: Cerritos has relied in past years on the general fund and one‑time transfers to backfill utility shortfalls. Council members said they want to avoid a continuing drain on the general fund while reducing the risk that a failing well would force the city to buy far more expensive imported water.
Most of the discussion centered on choosing between: (1) a plan that fully funds all projects quickly (larger, immediate increases); (2) a minimal plan that delays some work and extends general‑fund support; and (3) a middle path, Scenario 2B, that phases increases more gradually to soften immediate bill shock while funding critical projects. Papa and the consultant showed sample bills illustrating how a typical single‑family household would be affected under each option.
Public commenters urged transparency and relief measures. Resident Catherine Pasquale said the scale of increases was “crazy” but supported doing the work; she urged the council to combine any rate changes with outreach and options to spread payment. Another speaker suggested the city consider low‑income discounts and monthly payment options to soften the transition.
Council action: Mayor Pro Tem Linda Johnson moved to direct staff to develop the final rate study and proceed with the Proposition 218 notice and public‑hearing process based on Scenario 2B; Councilmember Polito seconded the motion. The vote was 5-0 in favor of moving forward on Scenario 2B. Councilmembers asked staff to return with a detailed October study that will include cost breakdowns, affordability options (including possible low‑income assistance), and a public‑outreach plan.
What happens next: Staff will return with final water, reclaimed‑water and sewer rate reports in October, give public outreach and a 60‑day Prop. 218 notice period, and hold a public hearing in January 2026. If adopted after the hearing, new rates could take effect as early as Feb. 1, 2026.
Councilmembers emphasized that the vote is direction to prepare materials and does not itself adopt new rates; the final adoption will follow the statutorily required notice and protest process.
