Cerritos council reviews preliminary 2025–26 budget, trims events and cuts chamber funding amid $2.9 million shortfall

The Cerritos City Council spent much of its May 22 meeting on a study-session review of the preliminary 2025–26 budget and took a set of actions intended to reduce costs and reshape city programming while staff works on longer-term revenue measures.

City staff told the council that a recent revision to the city’s sales-tax forecast produced a larger-than-expected shortfall: staff estimated a temporary $2.9 million gap in the general fund and recommended covering the near-term deficit from reserves while pursuing structural solutions. Ferric factors cited by staff included lagging auto-sector sales — a major element of Cerritos’ tax base — and national economic uncertainty.

Council actions and direction on May 22 included: - Deleting two recurring seasonal events from the city’s schedule: the Autumn Moon Festival and the multi-evening Santa Float. The council directed staff to develop a proposal for a Lantern Festival/Cultural Celebration Day (to replace Festival of Friendship) and a single-day Santa’s Sleigh event staged at the Cerritos Center for the Performing Arts (CCPA). (Motion passed 4–1.) - Removing the Cerritos Regional Chamber of Commerce from the 2025–26 community groups funding list. (Motion passed 4–1.) - Asking city staff to pursue short- and long-term revenue options, including expanded efforts to attract hotels and to analyze a potential tax measure; Council Member Mark Pulido asked staff to engage a consultant to study sales-tax measure feasibility (council consensus to begin exploration was recorded). - Directing staff to continue and accelerate studies that could alter fund flows, including a comprehensive non-enterprise rate and fee study (RFP issued the week of the council meeting) and a water/sewer rate study; the council later passed a motion directing staff to pursue sewer and water rate adjustments as soon as feasible (motion passed 4–1). - A motion to reduce the library card fee from $150 back to $100 per year (council vote 4–1) — the council asked staff to implement the change and to communicate auto-debit options for residents who want to avoid credit-card processing fees.

Public commenters repeatedly urged the council to address a separate, long-running budget drain at the adjacent Cerritos Center for the Performing Arts (CCPA). Staff said the CCPA budget contribution is projected to be a roughly $2.6 million net subsidy in the 2025–26 budget; council members noted the center’s economic role but also the fiscal pressure it places on city finances.

Council members and staff agreed on a two-track approach: use reserves to smooth the shortfall for the coming year while pursuing revenue and cost adjustments (rate and fee studies, targeted economic development, hotel outreach, and a review of city operations and staffing). Staff said some savings would take months to materialize, and that an updated budget will return to the council for further review before final adoption.

Ending: Council members said they expected to continue public discussion of the draft budget at future meetings once consultants’ reports and staff analyses deliver firmer revenue and rate estimates.