Oversight Needed

The last blog focused on DEEP DENIAL: More than Guard Rails Needed.

This episode spotlights FUTURE TAX INITIATIVES SHOULD BE ATTACHED TO OVERSIGHT AND OTHER REQUIREMENTS.

When finding a solution to the operating crisis facing El Cerrito, the only plan coming from City leaders is more taxes.

Like many other Cities, El Cerrito adopted a summer schedule.

Unfortunately for residents, El Cerrito is unlike most California cities.

Nearly all – 97% of other California Cities are more fiscally responsible than El Cerrito.

In case you missed it, the original State Auditor designation of High Rick occurred on March 21, 2021 – 2.5 years ago. However, El Cerrito wasted the first year criticizing the State Auditor. In the nearly three years since the High-Risk designation, the City has made unsustainable cuts around the fringes which have not led to long-term, strategic or sustainable reforms.

In addition to fiscal responsibility, many of these 400 better-positioned Cities have performance standards. El Cerrito is neither financially stable nor does the City have published performance standards or performance metrics.

El Cerrito began its summer recess, having passed the latest state budget. The $73 million plan reflects the City’s stated values:

• Ethics and Integrity
• Fiscal Responsibility
• Inclusiveness and Respect for Diversity
• Innovation and Creativity
• Professional Excellence
• Responsiveness
• Transparency and Open Communication

The Adopted Budget supports service delivery for Administration, including Council Travel, Community Development, Public Works, Recreation, Police and Fire, which on the surface sound quite admirable. But as many El Cerrito residents know, the City has already spent millions of dollars on the same problems — with very little to show for it.

There are significant failures where City Leaders refuse to govern.

Police

You read it here, on CBS and in the East Bay Times. In 2019 Sarah Perez sued the ECPD for sexual harassment and retaliation. She alleged she was sexually harassed by her supervisor David Wentworth. When a colleague filed a complaint on her behalf, she alleges the retaliation began. The situation ended with her quitting her job. Ms. Perez received some back pay and a $544,341 settlement. The settlement agreement has no admission of liability and not only condoned the problem, but the City also created the culture that allowed the sexual abuse to happen.

The City has not implemented any reforms to mitigate the risk of future occurrences or to keep women safe. And they wonder why it is difficult to get female officers. Hmmm, the writer is sure you have all figured it out.

Also, the City can ill afford such unnecessary and avoidable cash expenditures.

Real Property Transfer Tax

The forecast was overly optimistic. The estimated $4.3M in RPTT assumes an average of $358,000 annually. However, the May, June and July receipts were approximately $259,000, $332,000, and $175,000 for $766,000 vs. 1,075,000 in City Projections. Yet, the City has no plan to address any revenue shortfalls.

Houston, we have a problem.

The City has a pension liability in the tens of millions of dollars yet focuses on establishing a Trust for FUTURE liabilities. Still, they keep pushing for Section 115 Trust to pay future liabilities.

By ignoring the nearly $70M in pension liabilities (in arrears), the City leadership is on track to ensure their pensions are intact at the expense of abandoning the less-tenured and future employees.

And they wonder why they cannot find competent employees.   Hmmmm…..everyone knows this except City Leadership.

Sounds like an even more significant problem.

These failures prove that good intentions and lots of money are not enough to fix what troubles El Cerrito. To make the City’s progressive beliefs mean anything, the City must ensure that the money the City spends is actually improving the lives of the people the City says it is committed to helping.

El Cerrito can meet these goals with three significant changes in how the City works. First, the City must stop hamstringing progress, programs and services with special interest demands that do little for the City. Second, the City must establish and make public “service level agreements” that provide minimum standards for El Cerrito’s services.   Third, the City needs to gather and evaluate data on how its programs work, including supporting independent watchdogs to tell El Cerrito that it wastes the City’s money and fails to get the job done.

The City plans a ballot measure requesting more taxes. But, until the City develops a long-term fiscally responsible plan, the City doesn’t deserve any new money.

Before El Cerrito gets another taxpayer bailout, reforms need to be implemented to make the agency 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.

The City Council meeting with be on September 19. The schedule is here.  

The next FAB meeting will be on August 22 at City Hall. The schedule is here.