Cerritos staff propose new five‑year water and sewer rate plan; public hearing set for Jan. 26

Assistant Director of Public Works Chris Hubert told the Cerritos Property Preservation Commission on Nov. 25 that the city’s water and sewer rates have not changed since July 2021 and that prior increases did not cover major system upgrades. "Water and sewer rates have stayed the same since July 2021," Hubert said, adding that the general fund has been subsidizing utility operations.

Hubert said staff expects roughly $8,900,000 in general‑fund support for daily water and sewer operations under the status quo and argued that continuing that practice is not sustainable. The presentation outlined a proposed five‑year capital improvement program for the water fund totaling about $23,000,000 (about $25,300,000 with 4% annual inflation) and highlighted a C4 well and treatment system estimated at $16,000,000.

Under the city’s proposed rate plan, Hubert said the water fund would phase out most general‑fund support and require about $9.5 million in total transfers over the period, making the fund self‑sufficient by July 2029. He framed the changes as consistent with industry practice and Proposition 218 requirements and said staff updated fixed meter charges by meter size to improve fairness and to follow American Water Works Association guidance. "This plan also removes the minimum water unit, so every gallon used is billed based on actual usage," Hubert said.

On the sewer side, Hubert presented a proposed five‑year sewer CIP of roughly $3,900,000 (about $4,300,000 with inflation), focused on CCTV inspection work ($1,200,000) and pipe replacement ($2,400,000). He said a do‑nothing scenario would require approximately $12,100,000 in general‑fund transfers over five years, while the proposed plan limits transfers to about $3,600,000 and would make the sewer fund self‑sustaining by July 2029.

Hubert also described a draft low‑income assistance program modeled on Southern California Edison’s CARE program. Staff said CARE enrollment totals roughly 2,200 Cerritos households and estimated about 23 city households might qualify for a municipal program; rather than a percentage discount, the draft proposes a fixed $40 bimonthly discount to control fiscal exposure. "Staff will return to city council with more details at the public hearing on 01/26/2026," Hubert said.

Hubert said notices were mailed Nov. 13 in accordance with Proposition 218; written protests must be submitted to the city clerk by 5 p.m. on Jan. 26, 2026, or presented at the public hearing. He and Director Alvin Papa were available for commissioner questions; commissioners acknowledged receipt of the mailed notice and did not raise additional substantive questions at the meeting.

Next steps: the city council public hearing is scheduled for Jan. 26, 2026, when the council may adopt the proposed changes or modify staff recommendations.