In Tuesday’s annual State of the City address, outgoing El Cerrito Mayor Lisa Motoyama delivered a message of optimism and progress for our beloved city. While the tone was cheerful, it’s essential to consider the broader context and some missed points that are crucial for a complete understanding of El Cerrito’s current situation.
Her optimistic perspective failed to foster trust or instill confidence in the city’s leadership. As a result, numerous citizens are left questioning whether our leadership is out of touch with the real challenges facing our community, as the commentary seldom aligns with our lived experiences.
One notable aspect of the Mayor’s address was her advice to discount statements made on social media. While social media can indeed be a source of misinformation, it’s also a vital platform for citizens to engage in discussions and voice their concerns. Discounting these voices might inadvertently undermine the spirit of open dialogue that’s essential for our community’s growth. A few of the most critical challenges ahead are listed here:
State Auditor Recommendations
In March 2023, El Cerrito presented its latest corrective action plan, responding to the critical audit report from 2021 by the California State Auditor. This report, part of a high-risk local government agency audit program, highlighted El Cerrito’s perilous financial condition and excessive spending habits.
While the city has taken steps to address some risk areas, challenges persist in managing spending effectively. The State auditor’s report notes progress yet underscores the city’s struggle to align expenditures with revenues.
Federal relief funding has provided a lifeline, aiding El Cerrito in improving its fiscal health. However, the city continues to dip into its reserves to balance the budget. As of the fiscal year 2021–22, the general fund reserve stood at $16.4 million. Recent decisions to spend a portion of reserves to balance the budget and create an emergency reserve resulted in non-restricted reserves dropping to around $5 million. This reserve amount of $ 5 million is just half the GFOA amount. Consistently dipping into general fund reserves is the same path that led to depleting reserves and reliance on short-term borrowing.
El Cerrito ceased its short-term borrowing in 2022–23, but recent budget updates reveal concerning trends. Immediately following, the mid-year update proposed an increase in both revenue and expenditures, with a significant portion allocated to salary increases and community development projects. This approach continues the pattern of expenditure growth outpacing revenue, a behavior that previously led to financial instability.
Despite avoiding short-term borrowing, El Cerrito’s financial practices suggest a disconnect between spending and revenue. The city has yet to implement critical actions necessary for long-term fiscal stability. As of the latest audit, El Cerrito’s expenditures are projected to exceed its revenues, continuing a cycle that risks future financial health. The practice of presenting a balanced budget with one-time and capital expenditures excluded from budget calculations is a prime example. According to the State Auditor, the budget is technically imbalanced if planned expenditures are omitted, even if the City mentions these planned expenses in the text.
The Library Campaign
Another highlight of the address was the mention of the ongoing library campaign. While this is undoubtedly a noteworthy initiative, it’s equally important to recognize that over $200,000 has already been spent on a previous unsuccessful library campaign. Understanding the challenges and lessons learned from past efforts is crucial for making informed decisions moving forward.
Mayor Motoyama’s address did not touch upon some significant issues, such as missed opportunities – the failure to apply for a state grant, which could have provided much-needed funding for various city projects. Additionally, there was no discussion of the rising costs associated with construction projects or the fact that El Cerrito’s credit rating has declined over time.
One significant financial concern unaddressed in the speech was the increase in pension liability from $57.8 million to $85.0 million. With CalPERS charging 6.8%, this translates to an additional cost of $1.8 million which accounts for about 12% of the city’s budget. These figures deserve serious consideration as they have a direct impact on our city’s financial stability.
For more details on El Cerrito’s financial situation and the State Auditor’s report.
El Cerrito faces a crucial juncture. Aligning spending with revenues and building a robust reserve are essential steps toward a stable financial future. The community and its leaders must work together to ensure responsible fiscal management, safeguarding the city’s viability for years to come.
Firstly, initiating the process should involve the creation of a transparent timeline, open to public input and subject to thorough review by the Financial Advisory Board and subsequent consideration by the City Council.
To ensure a more complete and realistic portrayal of the state of the city, it’s crucial that these issues and concerns are addressed transparently. Additionally, the potential for a budget deficit in FY 2024 and a commitment to open governance, including the release of survey data, should be considered as part of our city’s growth and development.
In conclusion, while Mayor Motoyama’s address was cheerful and well-received by some, it’s essential to delve deeper into these unaddressed issues to gain a more comprehensive understanding of our city’s challenges and opportunities. An informed and engaged citizenry is the foundation of a thriving community, and open dialogue should always be encouraged.
Although the departing mayor chose not to address the city’s existing challenges, this situation provides a distinct opportunity for the incoming mayor to prioritize accountability and transparency and to address the recurring concerns voiced by our Citizens.
Here is how you can help:
– Share this post with other residents.
– Attend the monthly City Council meetings in person.
– Post on Next Door
– Voice your concerns. Tell the City Council to require that all Councilmembers reside in the City of El Cerrito during their time on the Council.
– Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members. All their emails are below:
– Councilperson Gabe Quinto gquinto@ci.el-cerrito.ca.us
– Councilperson Carolyn Wysinger cywysinger@ci.el-cerrito.ca.us
– Councilperson Tessa Rudnick trudnick@ci.el-cerrito.ca.us
– Mayor Lisa Motoyama lmotoyama@ci.el-cerrito.ca.us
– Councilperson Paul Fadelli pfadelli@ci.el-cerrito.ca.us
El Cerrito Committee for Responsible Government (ECCRG) 