Deceit

The last blog focused on the Broken Promises: The myth that City Leadership allocates resources to improve the lives of El Cerrito residents.

This follow-up episode spotlights

Deceit: How City Leadership Has Repeatedly Misled the Community

Merriam-Webster defines deceit as a noun:  de·​ceit di-ˈsēt 

Deceit: the act of causing someone to accept as accurate or valid what is false or invalid: the act or practice of deceiving: DECEPTION

We know City leadership is biased and prone to painting a rosy picture. Far from a political spin, much of the communication is inaccurate and flat-out misleading.  

We are living in a time that requires evidence-based information. But as great as that need is, we see many instances of elected officials and policymakers failing to address these challenges adequately.

We also see data and performance standards providing answers and viable approaches. Still, too often, these lifelines are brushed aside or ignored. Too frequently, our elected officials and City leaders fail us, elevating artful pandering and lack of honesty regarding the City’s financial affairs using three types of deception tactics:

Deceit by Commission — using false statements or occurs when an important fact is left out to foster a misconception. 

Deceit by Omission — holding back relevant information.

Paltering — a subtle form of lying using correct information but presenting it misleadingly.

• The City Manager touted a balanced FY24 budget, but the budget is far from balanced. Although there’s a small surplus in the so-called balanced budget, there are over $475,000 planned operating expenses and another $1.1M in capital expenses conveniently omitted from the so-called “balanced budget.” 

• The City Manager has repeatedly misrepresented a Section 115 Trust as a vehicle to PREPAY Pension Payments. In this on month’s June 28^th city manager update, she states, Among other initiatives, in the coming months Crystal and I will be working, in coordination with the Financial Advisory Board, on developing options for City Council consideration relating to pre-funding pension costs and reviewing the policies surrounding the General Fund Reserve and how to handle annual budget surpluses. We’re eager and excited to move those discussions forward. The City Manager is accurate because payment could be made for future liabilities. She cleverly omits the glaring issue: The City has a multi-million-dollar Pension Liability. In October 2022, the East Bay Times reported, “For the fiscal year 2020-21, the city’s $70 million pension liability accounted for 123% of the city’s $57 million in revenues.”

• Looking at the F.Y. 2022 budget on page 37, Table 2-8, you will see that they predicted $2,600,000 mid-year for F.Y. 2021, the Real Property Transfer Tax. At that time, the City had already collected $2,364,194 in the first six months of the fiscal year.
• When El Cerrito was in the state’s top 10 worst-run cities, City Management convinced the City Council to relax monthly financial results in favor of quarterly reporting. Since then, no financial report has included documentation supporting the oral recitation.

• NEWS & VIEWS, SPECIAL EDITION, JULY 2023 is a slick, 4-page document that just came in the mail and is all about a new E.C. library. The document contains additional misleading statements. For example, “Any measure would be budget stable and will continue the high standards in El Cerrito for fiscal accountability and transparency. The budget is not sound; there’s almost no accountability or transparency. Given the current state of affairs, with El Cerrito ranking El Cerrito remains the 13th most financially troubled among over 400 cities in California, this statement couldn’t be further from the truth, as stated below by the State of California.

Corrective Action Plan and Assessment—City of El Cerrito

El Cerrito’s Failure to Manage Its Spending Resulted In the Depletion of Its General Fund Reserves

ICYMI The Financial Advisory Board recommended a policy to the Council requesting they disapprove any further depletion of the General Country Reserves. Like every document from the Clerk, they received an advance copy of the FAB recommendation. Although the Council approved EVERY other initiative brought forth by the City Manager, they decided to kick the can, indicating they will review the FAB policy request in August. The City Manager’s report and the initial Council calendar are both mute on the recommendation. The City Council has not implemented one Financial Advisory Board recommendation. They have an opportunity to implement a bit of sound advice. Tune in or attend and see for yourself.

Repeatedly, City leaders have demonstrated that they cannot be trusted. They have little accountability, credibility, honesty, or transparency. Whether intentionally, through sloppy analysis, incompetence or something else, the result is the same: residents get inaccurate, incomplete and misleading information.

Given the lack of solid, evidence-based information, residents have relied on the City Manager’s rosy “characterization” of financial affairs. The City has done little to address the budget problems. It’s time for the City to act with accountability, transparency and integrity.

Before El Cerrito gets another taxpayer bailout, reforms must be implemented to make the City more accountable to taxpayers.

El Cerrito, the City needs you. Please attend the monthly Financial Advisory Board meetings in person. Council meetings are both remote and in-person. City leadership is more accountable and accountable to taxpayers when citizens attend meetings.

The City Council meeting with be on August 15^th. The schedule is here.  

The next FAB meeting will be on August 27th.   The schedule is here.