Cerritos staff say aging water, sewer systems need $81 million over five years; City sets Jan. 26 Prop 218 hearing

City of Cerritos public works officials on Tuesday told the Economic Development Commission that decades-old water and sewer infrastructure will require roughly $81 million of work over the next five years and that the city will hold a Proposition 218 public hearing on the proposed rate changes on Jan. 26, 2026.

Alvin Papa, the city's director of public works, said much of the system was built in the 1960s and 1970s and is at or near the end of its design life. "This is a large increase," Papa said, adding that staff "empathize" with residents who will feel the impact. He and staff described frequent small leaks, brown water complaints tied to rusting steel and iron pipe, and a November category 1 sewer spill that discharged into Coyote Creek.

Staff said an asset assessment identified about $81 million in needs over five years, including well construction and treatment systems, pipe replacement and sewer relining. Papa cited consultant recommendations from Stetson Engineers for a long-term pipe replacement program (roughly one mile per year) and noted costs such as an estimated $3.3 million per mile for pipe replacement and a multi-million-dollar range for cathodic protection.

Assistant Director Chris Hubert, who presented the rate-study details prepared by Water Resources Economics (WRE), said the proposed five-year plan would make the water and sewer enterprise funds self-sustaining by July 1, 2029 and would phase out general-fund transfers. Under the proposed plan staff says the water fund would require about $9.5 million in general-fund support over the rate cycle and reach self-sufficiency in 2029; under the status quo the water fund would need roughly $69 million of general-fund support over the next five years. For the sewer fund, staff estimated status-quo general-fund need at about $12.1 million versus a proposed transfer limit of $3.6 million under the plan.

Hubert described rate-design changes that would update fixed meter charges by meter size, remove the minimum water unit so usage is billed on actual gallons, and apply annual adjustments beginning Feb. 1, 2026, to meet reserve and capital needs while following Proposition 218 rules. Using staff examples, a typical single-family four-person household currently pays about $65.11 bimonthly; the proposed increase would raise that bill by about $49.53 to roughly $114.64 bimonthly. Staff estimated typical commercial bills would also rise, and commissioners discussed approximate percentage increases during Q&A.

To reduce the immediate rate impact, staff said it trimmed the initial CIP proposals from about $43 million to the most critical projects (approximately $23 million for water projects, $4 million for sewer projects). The plan also includes a proposed low-income assistance program modeled on SCE's CARE program: rather than a percentage discount, staff proposed a fixed $40 bimonthly credit for income-qualified households. Staff estimated roughly 2,300 households could qualify; as of October 2025 about 2,200 Cerritos residents were enrolled in CARE.

Several commissioners asked about alternatives and grant funding. Papa said staff is pursuing grants and has looked at programs including the state revolving fund and options through the State Water Resources Control Board and Water Replenishment District but has not secured major long-term grant funding to date.

Public commenter Robert, who said he has lived in Cerritos for 25 years, urged clearer public notice and said mailed materials buried key numbers (referring to a "Table 3" in the mailed notice). He asserted the cost to the average household could amount to about $100 per month based on the notice's tables and questioned whether the enterprise should be fully self-sustaining if it reduces funding for other city services.

Staff corrected a slide number during the meeting and said the official protest count required by Proposition 218 will be provided by the City Clerk at the conclusion of the Jan. 26 public hearing. The staff presentation, rate study and more information are posted at cerritos.gov/waterrates, and staff will return to the City Council for the Jan. 26 public hearing.

Next steps: the City Council public hearing on the proposed water and sewer rate adjustments is scheduled for Jan. 26, 2026. If the council approves the rates, additional administrative steps and outreach would follow before the new charges take effect.