TO:
FROM:
Cerritos ]B
�ITY flF �Er\J:\IGfC9$� , .... c; 4
c1v1c CENTER. 18125 BWOMnEw AVENUE ' 111
*****
P.O. BOX 3130 • CERRITOS, CALIFORNIA 90703-3 I 30 '"'
PHONE: (562) 860-031 I • CERRITOS.GOV
AGENDA REPORT
Honorable Mayor and Members of the City Council
Robert A. Lopez, City Manager�
2008
INITIATED BY:
Drew
David
Kristin
Schneider,
Siris,
Aguila,
Finance
Assistant
Director
and
City
Budget
of Admi
Manager..,Ui{
Manager/City
nistr�t�rvic __ :O •
Treasure
�f7-2_
�,..,-,L
Natalie Equihua, Accounting Administrato'{f •
DATE:
SUBJECT:
September 28, 2026 • L
APPROVAL OF FISCAL YEAR 2026-27 BUDGET AMENDMENTS
BACKG ROUND
In accordance with Joint Budget Resolution No. 2026-20 / No. CSA 2025-01 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: 110363-67020 (MWD Purchase)
LYNDA P. JOHNSON
MAYOR
110363-65213 (Water Well Pumping)
Amount: $810,000
Justification: A budget transfer of $810,000 is requested from the Water Well Pumping Assessment account to the MWD Purchase account to cover increased imported water costs for July 2026 through October 2026. The C-1 Well was initially taken out of service in March 2026 due to a mechanical gear head failure and, although repairs have been completed, the C-1 Well remains offline while the City addresses ongoing manganese-related water quality and regulatory matters with the California Division of Drinking Water. Because the C-1 Well is offfine, water well pumping assessment expenditures related to this well will be lower than originally budgeted from July 2026 through October 2026. This results in $402,000 of available funds from the Water Well Pumping Assessment account to be transferred to the MWD Purchase account to assist in offsetting costs for the more expensive imported water.
The C-4 Well was recently brought back online in June 2026 with reduced pumping capacity. The reduced capacity results in an estimated annual savings in FY 2026-2027 of $408,000 in the Water Well Pumping Assessment account to be transferred to the MWD Purchase account to offset costs for the more expensive imported water.
MARK E. PULIDO
MAYOR PRO TEM
JENNIFER HONG
COUNCILMEMBER
SOPHIA M. TSE
COUNCILMEMBER
FRANK AURELIO YOKOYAMA
COUNCILMEMBER
1 :.:-- .. .,
-- ,,(, ,,.~
: 'h
• _- -~- SM
2 Fiscal Year 2026-27 Budget Amendments
September 28, 2026
2. Account/Project: 110363-67020 (MWD Purchase)
Amount: $933,686
Justification: A new allocation of $933,686 is required to cover the anticipated costs of purchasing more expensive imported water necessary to offset the loss of groundwater production from C-1 Well from July 2026 through October 2026.
FISCAL IMPACT
The proposed budget amendments presented in this report have been thoroughly reviewed for its financial implication. There are sufficient reserves available to cover the transfers to accommodate the adjustments.
RECOMMENDATION
Staff recommends that the City Council:
1. Authorize the Budget Amendments as summarized in this report.