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Cerritos council directs study of sewer‑rate scenario to close $12.1M gap; unanimous vote
Summary
The City Council voted 5–0 Aug. 28 to advance a five‑year sewer‑rate scenario that staff says will help close an estimated $12.1 million funding gap for sewer operations and capital needs; staff outlined two phased options and scheduled public open houses.
The Cerritos City Council voted unanimously Aug. 28 to direct staff to finalize a sewer‑rate study under “scenario 1,” a five‑year plan staff and the consultant said will help address a roughly $12.1 million funding gap in the sewer fund.
Assistant Director of Public Works Chris Kubert, presenting the study developed with Water Rate Economics (WRE), told the council that sewer rates historically have been set far below costs: “Since 2021, we only collected $350,000 from sewer rates,” he said, and proposed adjustments are intended to reduce reliance on general‑fund support.
Why it matters: staff said the city’s sewer system needs inspection and repair work — including CCTV pipe inspections and a cost‑saving pipe‑lining method staff described as many times cheaper than full replacement — and that without rate changes the general fund could face far larger drains. Council finance staff told the council the city projects a funding gap of about $12.1 million over the rate period if no adjustments are made.
What staff proposed: WRE modeled two scenarios. Scenario 1 calls for a larger first‑year increase with smaller, steadier increases thereafter; staff estimated a typical bimonthly residential sewer bill would increase by about $9.18 in year one (roughly $4.59 per month). Scenario 2 spreads increases more gradually. Staff said both scenarios aim to reduce general‑fund support from millions toward zero in year five and to reach a common minimum reserve target.
Council discussion and legal context: Council members asked whether five years complies with Proposition 218 notice and protest requirements; the city attorney and staff said a five‑year horizon is common and that longer schedules can be used if a study justifies them. Staff also committed to evaluating low‑income rate options and to hold three community open houses in September; if council directs a Prop 218 protest hearing, direct mail to affected properties would be sent.
Next steps: Council directed staff to incorporate scenario 1 into the final report and return for additional review and a public hearing. If adopted after required hearings (staff identified a public hearing scheduled for Jan. 22, 2026), new rates would take effect Feb. 1, 2026.
Action: Motion to finalize sewer rate study under scenario 1 and return with final reports — moved by Mayor Pro Tem Johnson; passed 5–0.
