Cerritos council adopts 2025–26 budget after cuts and compromises, leaving a $407,000 shortfall

The Cerritos City Council adopted its fiscal year 2025–26 budget on June 26 after several hours of public comment and multiple amendments designed to reduce a revised deficit estimate.

Staff told the council the city initially projected a $1.1 million shortfall that grew to $2.9 million after an HDL sales-tax revision that lowered revenue by about $1.8 million. Director of Administrative Services Drew Schneider said subsequent council-led adjustments and staff actions cut roughly $2.2 million from the proposed gap, leaving a net shortfall before final amendments of about $700,000.

Mayor Frank Yokoyama credited staff and council for the work to reduce the gap and said the council’s choices reflected residents’ priorities and a desire to maintain public safety and basic services. ‘‘This city council has made the tough decisions,’’ he said during debate, urging colleagues to approve a compromise budget that the city can implement on July 1.

Council members debated a range of options during the public hearing. Concerns raised by residents included proposed reductions in library hours (noted in the agenda as a $200,000 net adjustment if implemented), cuts or reconfigurations of community events and festivals, and changes to staffing plans. Several speakers urged the council to preserve library access and cultural programming, while others pressed for more structural revenue such as hotels or economic development to boost transient-occupancy and sales tax receipts.

Councilmember Jennifer Hong proposed additional reductions including a more aggressive deferment of information-technology projects. Her motion to increase the deferred IT adjustment from the originally proposed $99,000 to a full $392,000 (an additional $293,000 of savings) passed on a 5–0 vote, shrinking the deficit further to $407,000.

Councilmember Mark Polito and others discussed vacancies and hiring plans. Staff reported five full-time positions that had not yet been posted; pausing all five could have closed the shortfall, staff said, but council and the city attorney warned that several positions are labor-sensitive or critical to operations. City Manager Robert Lopez and staff emphasized the positions were recommended to meet strategic-plan priorities and to restore services after years of deferred maintenance and understaffing.

After motions and amendments were adopted, Councilmember Mark Polito moved to adopt the budget package, including the required joint resolutions for the city and successor agency and an annual investment policy. The motions passed unanimously, 5–0, and staff will proceed with upcoming meet-and-confer steps regarding labor implications before implementing any reductions in hours.

What happens next: staff will implement the adopted budget beginning July 1, continue meet-and-confer processes where changes affect represented employees, and return with any required follow-up reports on rate studies and phased implementation schedules. The city manager said reserves remain sufficient to cover short-term contingencies but emphasized the council must pursue new recurring revenue and prudent stewardship to avoid future shortages.