Calimesa Leads the Way: A Bold Solution to El Cerrito’s Fiscal Crisis

Calimesa Leads the Way: A Bold Solution to El Cerrito’s Fiscal Crisis

El Cerrito faces an unfunded liability reported at $85 million, an amount surpassing its annual budget. The unfunded liability is the amount owed for pension costs that El Cerrito has not paid. With the California Public Employees’ Retirement System (CalPERS) applying a 6.8% charge on this unfunded portion, the financial burden is set to grow substantially unless El Cerrito takes prompt action.

The State Auditor has repeatedly warned El Cerrito about rising pension costs.

As El Cerrito edges closer to financial peril, the small city of Calimesa emerges as a glimmer of hope, demonstrating a bold approach to tackling the looming pension expense crisis. This initiative not only challenges the status quo but also sets a precedent for fiscal responsibility that other cities might follow.

The Looming Fiscal Challenge

El Cerrito’s in a tight spot. Spiraling pension costs are consuming ever-larger portions of our municipal budget, forcing the city into difficult choices: cutting services, raising taxes, or both. Despite the stock market’s robust performance and any gains for the state’s pension funds, the sustainability of these financial strategies in the event of an economic downturn remains a question mark. The California Public Employees’ Retirement System’s (CalPERS) reassurances do little to quell concerns, especially as it contemplates further fee hikes for already strained cities.

The Calimesa Model: Innovation in Public Service

Enter Calimesa, a small city in Riverside County that dared to think differently. Faced with the daunting task of managing public safety expenses, which consumed 60% of its general fund budget, Calimesa chose action over inaction. Under the leadership of Mayor Jeff Hewitt, the city reduced its reliance on costly union contracts by ending its contract with Cal Fire and establishing its own fire department. This move allowed Calimesa to set its own staffing levels and transition from a traditional pension plan to a more sustainable 401(k)-style retirement plan.

This strategic shift was not just about cost savings; it was about taking control and innovating for the betterment of the community. By doing so, Calimesa has been able to enhance its firefighting services, including building a new fire station and acquiring a state-of-the-art fire truck, all while navigating away from the financial brinkmanship that threatens many Californian cities.

A Path Forward

The success of Calimesa’s approach serves as a beacon for El Cerrito where leaders are also grappling with similar fiscal challenges. The city’s ability to implement these reforms without sacrificing service quality or public safety highlights a critical lesson: flexibility and innovation in public service can lead to both financial stability and enhanced community welfare.

While the median total compensation for firefighters in El Cerrito skyrockets, Calimesa’s model demonstrates that it is possible to balance fair compensation with fiscal responsibility. The city’s experience also underscores the importance of local control and the potential for municipalities to craft solutions tailored to their unique circumstances.

Engaging with Fiscal Responsibility

The journey of Calimesa is more than a local success story; it is a call to action for cities across California and beyond. As we face the twin challenges of fiscal sustainability and public service quality, Calimesa’s example encourages a reevaluation of entrenched systems and the exploration of innovative solutions.

As El Cerrito residents, it is crucial to engage with these issues, whether by participating in local governance, supporting reform initiatives, or simply staying informed about the fiscal health of our communities. The path Calimesa has charted offers a way out of the fiscal morass, displaying that sustainable solutions are within reach with creativity, courage, and community engagement.

Conclusion

In a city where fiscal challenges loom large, the story of Calimesa stands out as a testament to what can be achieved when cities dare to reimagine the status quo. As we look to the future, let us draw inspiration from others’ bold steps towards fiscal health and public service excellence. It is time for El Cerrito residents to demand more from their cities, insisting on innovative, sustainable approaches to governance that put the needs of communities first. Calimesa may be a small city on the map, but its impact on the discourse around fiscal responsibility and public sector innovation is profound.

 Here is more on how you can help:

Inform the City Council and City Manager that you seek sustainable long-term solutions to the fiscal crisis.

Share this post with other residents.

• Comment on the post.
• Attend the monthly Financial Advisory Board meetings in person.
• Post on Next Door
• Voice your concerns with the Council.
• Council meetings are remote and in-person, but public comment is currently to in-person attendees.

If you want to contact City Council Members or the City Managers, all their emails are below:

• Karen Pinkos-City Manager kpinkos@ci.el-cerrito.ca.us
• 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