Cerritos Moves Toward Water and Sewer Rate Increases Under Prop 218 Review

LCCN Staff Report

CERRITOS — The Cerritos City Council is preparing to raise water and sewer rates for the first time in several years, citing rising operating costs and the need to reduce subsidies from the City’s General Fund.

At its October 27 meeting, the Council approved a resolution setting a Proposition 218 public hearing for January 26, 2026, to consider proposed annual rate adjustments covering a five-year period from Fiscal Year 2025-26 through 2029-30.

Under California’s Proposition 218, also known as the “Right to Vote on Taxes Act,” local governments must notify property owners and allow time for public input before raising certain fees or charges related to property, such as water or sewer rates. Residents have the right to submit written protests, and if a majority of affected property owners object, the increase cannot move forward. Proposition 218, passed by voters in 1996, was designed to ensure transparency and prevent hidden taxes disguised as fees.

For years, Cerritos has used general-fund dollars to offset shortfalls in its Water and Sewer Enterprise Funds. City staff say the new plan would gradually phase out those subsidies, ensuring that customers—not the City’s general taxpayers—cover the actual cost of water delivery, treatment, and sewer maintenance.

In compliance with Proposition 218, residents will soon receive official notice by mail outlining the proposed rate changes and instructions on how to submit written protests. The City will also host three community information sessions—November 17, December 8, and January 15—where Public Works representatives will answer questions about the plan.

Under Prop 218 rules, if a majority of affected property owners submit valid written protests before the January 26 hearing, the City cannot adopt the new rates. If not, the new rates could take effect as early as February 2026.

City officials emphasized that Cerritos still ranks among the lowest in water and sewer costs compared with neighboring cities. Even with the proposed increases, the City would remain in the bottom half of regional rate comparisons.

To help residents most impacted by higher costs, the Council also directed staff to create a low-income assistance program offering qualifying households a fixed $40 bimonthly discount on combined water and sewer bills.

For more information about the proposed rate adjustments, the Prop 218 process, and upcoming community meetings, visit cerritos.gov/waterrates.

 Prop 218 – What Cerritos Must Prove Before Raising Rates

Before approving new water and sewer charges, Cerritos must show it is following the rules set by California’s Proposition 218:

1. Cost of Service: The new rates must reflect the true cost of delivering water and sewer services, not generate excess revenue.
2. Proper Notice: Every affected property owner must receive a mailed notice at least 45 days before the January 26 hearing.
3. Right to Protest: Residents can submit written protests. If a majority object, the increase cannot proceed.
4. Transparency: The City must publicly release its cost study to show how the new rates were calculated.

If Cerritos meets these standards and no majority protest is filed, the new rates could take effect in February 2026.