El Cerrito Council Passes Budget with No Public Input

The El Cerrito City Council passed its budget on a 5-0 vote, a decision made by each member in advance of the meeting. They could have saved us all a lot of time because the questions they asked were sophomoric except for the question about covering the $250,000 revenue shortfall so quickly. A council member pointed out the issue but failed to press the issue with city staff, missing a great opportunity to identify more cost reductions. Only one community member, from outside the Financial Advisory Board (FAB), submitted written comments- none of which were addressed. During the session, Councilmember Fadelli announced that he would not be running for re-election.

Missing Discussions and Oversights

Several critical issues went unmentioned during the meeting. There was no discussion of the city’s pension liability or the current fiscal year’s (FY24) budget deficit causing the need to use reserves. The council also neglected to address the city’s BBB credit rating, the significant decline in the pavement condition index, the need for reserves in FY25, and the absence of a senior center.

Discontinuation of Remote Public Comment

Adding to the lack of public input, the city recently discontinued public comment from remote access. This decision significantly limits community engagement, particularly for those unable to attend meetings in person.

City Manager’s Role in Budget Presentation

Interestingly, the City Manager, rather than the Finance Director, presented the budget. Both the Budget Manager and the City Manager fielded most of the questions, which could indicate a shift in how the city is managing its financial communications and who’s trusted to adequately respond.

Transparency Claims and FAB Quorum Issues

Mayor Rudnick emphasized the city’s transparency, although she did not point to any specific areas where public comment influenced the budget. Councilmember Fadelli pointed out that the FAB did not even have a quorum to debate and vote on the budget. He also discussed the notable repeated absenteeism of several FAB members. Despite the city manager’s claim of working with FAB, the lack of quorum and engagement undermines the council’s claims of comprehensive discussion and oversight. It should be noted that the City Clerk and City Manager determine who’s recommended to serve on FAB and other commissions and boards. The City Council approves all FAB member appointments, so seating unengaged FAB members bodes well for the City Manager and City Council.

Ignoring FAB Member Recommendations

None of the FAB members who provided public comment recommended approving the budget. Instead, they offered several recommendations for improvement. However, the council members only pretended to address these suggestions, moving forward with the budget without implementing any substantial changes.

The budget discussion included talk of a million-dollar surplus, primarily driven by an earlier FAB recommendation. However, this surplus was more of a facade than reality. The actual budget surplus is less than $50,000, and the city is already considering using reserves for upcoming expenses. This window dressing does little to address the city’s long-term financial health or credibility.

City Manager’s Mantra and Fire Department Shortfall

The City Manager’s mantra that “service equals people and people equal services” is simply ridiculous because there’s no evidence that an increase or decrease in staffing has a significant impact in service delivery. For example, the city’s $250,000 fire department revenue shortfall was addressed as easily as reading the morning paper indicating the overtime reduction should have occurred without the revenue shortfall. Furthermore, the city does not have performance standards or measure service levels, so the impact of a staffing reduction remains unknown. However, Battalion Chiefs, heavily staffed administrative departments, and over-reliance on consultants have little impact on service delivery. These are just three elephants in the room, and there is much more fat to be trimmed.

Social Media Warnings and the Role of This Blog

Councilmember Fadelli cautioned community members against listening to social media naysayers. However, this blog and other social media outlets exist to provide a counter-narrative to the overly optimistic portrayals by council members and the City Manager, who often celebrate successes prematurely. These platforms aim to highlight the city’s shortcomings and ensure a balanced view of the situation.

State Auditor’s Recommendations and Unaddressed Issues

Several council members claimed that the state auditor’s recommendations had been met. However, the auditor’s main findings focused on expense control, which remains unaddressed given the city’s continued use of reserves. Another substantial issue related to high pension costs and unfunded liability ($85 million +) neither of which has been addressed. Additionally, the budget does not include any funding for capital expenses, leaving many repair issues and the need for a new fire truck unfunded.

Misleading Assumptions and Public Silence

The council’s narrative suggested that the city has done incredibly well, but there has been a failure to communicate specific successes to the public. The truth is the federal bailout rescued El Cerrito, not fiscally responsible actions. Councilmember Fadelli noted that the lack of public comments on the budget might indicate satisfaction. He suggested that since no community members spoke on the budget, it could be seen as a potential indicator that the city is doing a great job.

However, many residents do not speak publicly about city finances, feeling that the council would inevitably defer to the City Manager’s deficit spending plans.

The lack of public comment may also be attributed to the small number of community members remaining during the public comment period. Most people who spoke earlier about bike and pedestrian safety had departed, leaving more staff than residents in attendance.

Staff Sacrifices and Public Skepticism

Mayor Rudnick thanked the staff for their excellence and sacrifices, though it remains unclear what specific sacrifices were made. This raises questions about the authenticity of the council’s narrative and further underscores the need for independent scrutiny and accountability.

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This blog was influenced by social media commentary and will continue to monitor and report on the City of El Cerrito’s budgetary decisions and overall governance, providing the community with a critical perspective on the city’s management and financial health.