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Cerritos council splits on budget items: consolidates travel fund and suspends remaining chamber grant for fiscal year
Summary
At the March 27 meeting the council approved consolidating council travel funds into a single $50,000 pool and voted to withhold the remaining $15,000 of the fiscal-year grant to the Cerritos Chamber of Commerce, directing staff to report back during the budget process.
During a broad budget overview presentation and ensuing debate on March 27, the Cerritos City Council approved two notable budget actions and gave staff direction on near-term budget priorities.
Director of Administrative Services Drew Schneider and Finance Manager Peter Kemp presented a budget process overview and updated revenue projections. Staff reported a general fund revenue reduction of approximately $1.2 million for the current fiscal year, driven largely by a $2.2 million drop in sales tax receipts related to softer auto sales that account for a sizeable portion of the city’s sales tax base. Staff also noted partial offsets, including increased interest income from higher short-term yields.
Council votes and direction:
- Travel and conference budget: Council approved a motion to convert the existing council travel allocation from individual $10,000-per-member caps (total $50,000) into a single $50,000 lump-sum pool available to the council. The motion was moved and seconded and passed 4-1. The council asked staff to provide periodic updates on expenditures against that lump sum.
- Cerritos Chamber of Commerce funding: A motion to cut the remaining $15,000 in the current fiscal year allocation to the Cerritos Chamber of Commerce passed 4-1, effectively stopping further payments for the remainder of fiscal 2024–25 (the chamber had received approximately $45,000 of the total $60,000 allocated for the year). Council members who supported the cut cited concerns about the chamber’s financial reporting, lack of an executive director, outstanding debts and the chamber’s ability to account for prior grant funds. The motion instructed the chamber to seek alternative revenue sources and encouraged the organization to submit clearer financial documentation for future consideration.
Other budget directions and consensus items: Council asked staff to return with further detail at the May budget study session, including the requested cost estimates for additional community safety officers, ALPR trailers, and other crime-abatement expenditures. Council also asked staff to bring back the items needed to consider creating or restoring an Economic Development Commission as a formal agenda report in the future.
Staff emphasized the revenue pressures from sales tax weakness while pointing to increased investment income as a partial offset. Councilmembers requested more detailed line-item information and asked to reserve more comprehensive budget questions for upcoming budget study sessions in May and June; staff confirmed a schedule of study sessions and the planned June 20 adoption of the FY 2025–26 budget.
