Cerritos public works staff on Tuesday outlined a proposed five‑year water and sewer rate plan designed to end the utilities’ reliance on the city’s general fund and fund critical system upgrades.

“We expect $8,900,000 will be used to support daily water and sewer operations” under the status quo, Assistant Director of Public Works Chris Hubert told the Property Preservation Commission, adding that the city’s water and sewer rates have not changed since July 2021. The proposed plan would phase out general‑fund transfers and, according to staff, have the water and sewer funds fully self‑funded by July 2029.

Why it matters: Staff said current general‑fund transfers are not sustainable and that delaying rate adjustments would require the general fund to absorb tens of millions over the next five years. The presentation included a five‑year capital improvement program that staff estimated at roughly $23,000,000 (about $25,300,000 when applying a 4% inflation assumption) and an identified major project — the C4 well and treatment system — estimated at $16,000,000.

Under the plan, adjustments would be made to both the fixed meter charge (scaled by meter size) and the volumetric rate; staff also proposed eliminating the minimum water unit so customers are billed for actual usage. On the sewer side, staff said status‑quo general‑fund needs would total about $12,100,000 over five years, and the proposed sewer plan would limit total transfers to about $3,600,000 and make the sewer fund self‑sufficient by July 2029.

Low‑income assistance: In response to City Council direction, staff proposed a program modeled on the Southern California Edison CARE discount, which Hubert described as “32 and a half percent” for income‑qualified households. He said more than 2,200 Cerritos households were enrolled in CARE as of October 2025 and staff estimated roughly 23 households in Cerritos would qualify for a similar water/sewer discount. To control costs, the staff alternative would provide a fixed bimonthly discount of $40 rather than a percentage reduction.

Next steps: In line with Proposition 218 notice requirements, staff sent mailed notices to property owners and water and sewer customers on Nov. 13 describing the proposed changes, how they were calculated and instructions for submitting written protests. A public hearing is scheduled for Jan. 26, 2026, when the City Council may formally adopt the proposed rate changes; staff said new rates would begin in February 2026 with annual adjustments each January through the plan’s term.

Details cited by staff included the role of the rate study consultant (Water Resources Economics, retained Feb. 2025), the prioritization of only critical CIP projects to limit near‑term rate impacts, and the intent to update fixed charges by meter size to improve equity and align with American Water Works Association guidance.

The commission received the presentation and had no substantive questions at the meeting. Staff said they and Director Alvin Papa would be available at the upcoming public hearing to answer council and public inquiries.