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FROM:
PHONE: (562) 860-03 I I • CERRITOS.GOV
AGENDA REPORT
Honorable Mayor and Members of the City Council
Robert A. Lopez, City Managerfvtr_,_
2008
INITIATED BY: Kristin Aguila, Assistant City Manage~
DATE:
Drew Schneider, Director of Administrative Services A-- ~ /, h. C. David Siris, Finance and Budget Manager/_~ Treasurer~~ Natalie Equihua, Accounting Administrator,(_
July 27, 2026
SUBJECT: APPROVAL OF FISCAL YEAR 2026-27 BUDGET AMENDMENTS
BACKGROUND
In accordance with Joint Budget Resolution No. 2026-20 / No. CSA 2026-01 and the Strategic Financial Plan and Budget Preparation Policy (Policy 2.04) as adopted by the City Council, the following information serves to notify the City Council of amendments to the Fiscal Year 2026-27 Budget. The following section summarizes the budget amendments as proposed:
1. Account/Project: 110552-79070 (Machinery and Equipment) Amount: $70,000
Justification: A carryover of unexpended funds from the prior fiscal year is requested for the purchase of critical network switches (core replacements) that were not procured during Fiscal Year 2025-26 due to ongoing nationwide supply chain delays.
These network switches serve as the core infrastructure supporting the City's communication and information technology systems. Because they are essential to the operation of nearly all City technology services, an unexpected failure could result in a prolonged network outage that would significantly disrupt City operations. Such an outage could affect the City's ability to provide essential services, including public safety support functions, financial systems, customer service operations, and water operations, requiring many business processes to be performed manually until service is restored.
No additional funding is being requested other than the carryover of unexpended Fiscal year 2025-26 funds. Carrying these funds forward will ensure that the necessary appropriations remain available to complete the 7B
3 LYNDA P. JOHNSON
MAYOR
MARK E. PULIDO
MAYOR PRO TEM
JENNIFER HONG
COUNCILMEMBER
SOPHIA M. TSE
COUNCILMEMBER
FRANK AURELIO YOKOYAMA
COUNCILMEMBER
2 Fiscal Year 2026-27 Budget Amendments
July 27, 2026
purchase of this core infrastructure, reduce the risk of service disruptions, and maintain the reliability and continuity of City operations.
2. Account/Project: 110211-61430 (Professional Services) Amount: $85,000
Justification: A carryover of unexpended funds from the prior fiscal year is requested to continue economic development initiatives, including the Economic Development Strategic Plan, Enhanced Infrastructure Financing District (EIFD) analysis, hotel feasibility analysis, and real estate advisory services.
No additional funding is being requested other than the carryover of unexpended Fiscal year 2025-26 funds. Carrying these funds forward will ensure the completion of these important initiatives, which support the City's Strategic Plan and promote economic development.
3. Account/Project: 110221-63409 (Transit Programs - Prop A) Amount: $79,000
Justification: A carryover of unexpended funds from the prior fiscal year is requested for completion of the City Council-approved station study associated with Metro's Southeast Gateway Line. Award of contract for the study was originally approved by the City Council in June 2025, and is being funded by way of restricted Proposition A funds.
No additional funding is being requested other than the carryover of unexpended Fiscal year 2025-26 funds. Rather, due to the time required to coordinate with external agencies and complete the study, a carryover of the remaining FY 2025-26 appropriations are requested to allow the project to continue to completion.
FISCAL IMPACT
The proposed budget amendments presented in this report have been thoroughly reviewed for their financial implications. These amendments have been determined to be fiscally sustainable and will not adversely affect the City's overall financial condition.
The proposed amendments do not represent new or additional appropriations. Rather, they provide for the technical carryover of previously approved, unexpended Fiscal Year 2025-26 appropriations to Fiscal Year 2026-27. Carrying these funds forward will ensure the completion of previously authorized studies, analyses, and capital purchases that were delayed due to project timelines, coordination with external agencies, procurement lead times, or other operational factors. This approach preserves the City Council's original budgetary intent while supporting the timely completion of initiatives and maintaining continuity of City operations.
RECOMMENDATION
Staff recommends that the City Council:
1. Authorize the Budget Amendments as summarized in this report.