The March 5, 2024 Budget Discussion: Yet, Another Missed Opportunity for Essential Inquiry

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The budget discussion led by City Staff on March 5, 2024, was presented with precision and assurance. The speaker, endowed with impressive vocal quality and presentation skills navigated the topic. However, the presentation was somewhat perplexing and deliberately evaded several significant financial and related topics. This meeting presented a crucial chance for the Council to engage in detailed inquiry and constructive feedback.

Regrettably, the session evolved into an exchange of praises, and more praises, sidestepping issues that required attention. Key topics that were not adequately addressed include El Cerrito’s reduced workweek, the lack of established performance standards, concerning levels of unpaid pension liabilities, and a looming financial imbalance that threatens the city’s fiscal health.

El Cerrito’s Short Work Week: A Missed Beat in Productivity

While many cities enforce a standard 40-hour workweek, especially for managerial positions, El Cerrito sets the bar at just 37.5 hours. This reduction not only puts the city at a 6% manpower disadvantage, it also appears to perpetuate a cycle of justifications for not meeting deadlines. Moreover, in the classification and compensation study conducted, there’s a conspicuous omission: it fails to address that El Cerrito employees do not adhere to the 40-hour workweek norm. This oversight further complicates the situation, as the 6% reduction in working hours effectively translates into a higher hourly wage. The math is straightforward – whereas El Cerrito employees are compensated as if they’re working a full 2,080 hours annually, they actually clock in only 1,950 hours. Thus, an individual earning $150,000 annually outside El Cerrito would have an hourly rate of $72.11, whereas their El Cerrito counterpart would be making $76.92 per hour, highlighting a significant disparity in pay for fewer hours worked.

The Void of Performance Standards

A recent classification and compensation study shed light on El Cerrito’s challenges in hiring and retaining skilled staff. However, what stands out is the lack of performance standards for management. It’s bewildering how the Council expects public acceptance of salary hikes for employees whose performance doesn’t match up. This lack of accountability and performance measurement is a glaring oversight that jeopardizes the city’s pursuit of recovery.

Amid a financial crunch, El Cerrito continues to delegate tasks that should fall within management’s purview to external consultants, exacerbating the issue of lacking performance standards. A striking instance of this trend was the decision to pay a consultant $12,500 to conduct the finance workshop in January. This task arguably should have been undertaken by the city’s well-compensated bureaucrats. Rather than assuming direct responsibility, these top officials appear to be globetrotting, attending events like the ICMA networking meeting, while offloading their duties onto costly consultants. This practice not only raises questions about the efficiency of spending during financial hardship but also about the accountability and role fulfillment of El Cerrito’s senior staff.

Unpaid Pension Costs: A Looming Financial Shadow

El Cerrito grapples with an unpaid pension liability of $85 million, yet it celebrates the initiation of a Section 115 trust with a mere $1 million contribution. This approach is flawed on several fronts. Firstly, the contribution fails to cover even the 6.8% interest charged by CalPERS on the outstanding amount. Secondly, the liability has outgrown the city’s entire annual operating budget, contradicting claims of a strong financial stance. Lastly, the nature of a Section 115 Trust as a long-term saving plan means the unpaid liability will continue to swell. It begs the question: how can the Council claim to monitor finances closely yet overlook such a critical issue?

Financial Imbalance: A Topic Too Vast for One Discussion

The financial imbalance where expenses continue to out pace revenue is El Cerrito is so significant that it warrants its own detailed analysis. It’s a harbinger of deeper issues that could further jeopardize the city’s fiscal health if not addressed with the seriousness and urgency they deserve.

In conclusion, the March 5, 2024, budget discussion was a missed chance for the Council to engage deeply with these pivotal issues. Rather than settling for surface-level accolades, it was an opportunity to ask hard questions and seek actionable solutions. As it stands, El Cerrito faces several unaddressed challenges that have long-term implications for its residents and fiscal sustainability. The community deserves transparency, accountability, and a commitment to addressing these pressing concerns head-on.

This moment demands a leadership that is transparent, accountable, and dedicated to rectifying past missteps to guide El Cerrito toward a more stable and prosperous future.

Here’s how you can help:

  1. Share this post with other residents.
  2. Attend the monthly Financial Advisory Board meetings in person.
  3. Council meetings are both remote and in-person. The City Council meeting will be on tonight. The schedule is here.
  4. Share your voice with the Council Members, the Mayor, and the City Manager.

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