Cerritos council adopts 2025–26 budget after cuts, leaves $407,000 shortfall

The Cerritos City Council adopted the city’s annual combined financial program for fiscal year 2025–26 on a unanimous 5–0 vote, approving the budget package and related resolutions after multiple study sessions and public comment.

Council members, city management and finance staff described a year-long process that began with an initial projected shortfall and culminated in a set of reductions and policy changes the council said were necessary to maintain services without drawing down reserves imprudently. Director of Administrative Services Drew Schneider told the council the city started with an initial deficit estimate of about $1.1 million, then received revised sales-tax information that raised the gap to $2.9 million. After council-directed cuts and modifications the projected shortfall was reduced to about $700,000; an amendment adopted during the meeting increased reductions in deferred information-technology projects and pushed the remaining deficit to $407,000.

Why it matters: The budget funds core services for nearly 50,000 residents, including police, fire and public works. Council members said they prioritized public safety and basic infrastructure while trimming community programs and one-time spending to align revenues and recurring costs.

Key points - The council adopted the annual combined financial program and related resolutions (including the investment policy and pay schedules) by a single motion that passed 5–0. - The city’s reserve policy remains intact: staff said the general fund reserve is projected around $48.8 million at the start of the fiscal year, with restricted funds and other reserves beyond that; the council repeatedly noted the city is relying on a reserve cushion to manage short-term variability. - The council approved a 3.1% cost-of-living adjustment for represented and unrepresented staff per the labor agreements, and new salary ranges for executives were published in the budget documents. - To reduce the deficit, the council approved multiple modifications. One of the largest single-line reductions was increasing the deferred information technology projects reduction to $392,000 (an additional $293,000 reduction relative to an earlier figure) — a change made by motion and adopted 5–0. That change lowered the deficit from $700,000 to $407,000. - The council approved changes to event planning and program delivery (including consolidating or reimagining some community events and Santa-related programming to use the Cerritos Center for the Performing Arts as a venue) and directed staff to pursue revenue-generation opportunities for the CCPA and other assets.

What the budget does not cut: City officials emphasized the budget as adopted maintains public safety funding and does not reduce police staffing levels. The council also preserved funds for long-term capital needs but discussed the need for continued attention to deferred maintenance in coming years.

Next steps and implementation: City staff said they would proceed with the adjustments in the adopted budget and follow statutory procedures including meet-and-confer with employee unions where required before implementing some changes (for example, the planned one-day weekly reduction in library hours is subject to negotiations before implementation). Councilmembers asked staff to continue exploring recurring revenue sources, review vacancies and hiring timelines, and report back as plans proceed.

Votes at a glance - Motion to increase deferred IT reductions to $392,000 (Councilmember Hong’s amendment): passed 5–0. This change lowered the projected deficit to $407,000. - Motion to adopt the budget, related financial resolutions, and implementing actions (moved by Councilmember Pulido): passed 5–0.

Ending: City staff and council framed the adopted budget as a compromise aimed at preserving core services while reining in costs and pursuing revenue strategies that could stabilize the city’s finances in future years. Council members and staff said they will provide additional updates on implementation, labor negotiations and any subsequent adjustments as the year progresses.