El Cerrito Budget and Library Update

Management Presents Hyper-Expensive Library Proposal, Claims (without any evidence) It Will Save Money

The June 11th library proposal includes a highly contentious and costly plan for a new library, which management claims will save money in the long run. However, the financial implications and the logic behind these claims have raised significant concerns among residents.

Main Concerns

One of the primary financial issues overshadowing the budget discussion is the city’s unfunded accrued liability (UAL) for pension payments. In 2017, the UAL pension payment stood at $3.2 million. By 2031, this amount is projected to balloon to $9.7 million. This steep increase represents a considerable financial burden on the city’s budget and raises questions about the prudence of additional expenditures at this time.

Library Proposal Details

The proposed library plan has been a major focal point, sparking intense debate and scrutiny. Here are some of the key points:

• Original Proposal: 21,000 square feet with 63 parking spaces.
• Current Proposal: 20,000 square feet with zero parking spaces.
• Value of Lost Parking: According to the city FAQ, the value of the lost parking spaces is estimated at $5 million.

Important Dates and Figures:

• Referendum Date: Unknown
• Tax Amount: $300 per property, forever
• Cost of Ballot Measure: Approximately $200,000 spent so far.
• Year Effort Began: 2002
• Grants Won: Zero
• Grants Given Out by State: Hundreds of millions of dollars
• Interest Rate Environment: Very high
• Construction Costs Environment: Very high
• Contracts That Fix Costs: None
• Library Ownership: Renter

Public Meeting Overview

The recent library meeting was standing room only, indicating high public interest and concern. Attendees were greeted with name tags and a sign-up sheet, although it was unclear who was collecting the information or what would be done with it. A five-page handout provided some answers to frequently asked questions. The audience comprised many older residents and individuals in their 30s to 50s.

Former councilmember Greg Lyman, who has been actively promoting the new library proposal, was seen monitoring attendees and taking notes. The city staff, along with Group 4 architects and county librarians, delivered a polished presentation, outlining the city’s long-standing efforts to secure a new library and the rationale for the proposed Transit-Oriented Development (TOD) library.

Timeline and Cost Projections:

• Construction Start: Projected for 2026
• Library Opening: 2028
• Total Cost: Initially projected at $21 million but later mentioned as $28 million during the presentation.

Funding Details:

• Market rate rent (no documentation to support claims of $1 for 99 years)
• Construction Cost Share: Unclear
• State Grant: The city is applying for a $50 million grant that includes housing, a library, and services. The grant requires a 50% matching fund, which could be covered by a proposed $300 “forever” tax on residents.

Meeting Dynamics and Feedback

The meeting, intended to be 45 minutes, extended over an hour, leaving only 23 minutes for a highly structured Q&A session. Attendees expressed frustration over the limited opportunity to ask questions, as question cards were only provided upon request. The format, while managing the overflow crowd, left many questions unanswered.

Key Issues Raised:

• Parking: Many questions about the lack of parking were inadequately addressed.
• Oversight: Suggestions for an oversight committee and the Financial Advisory Board (FAB) involvement were vague and lacked detail. This is particularly disturbing because the City Manager decides which items are presented to FAB and oversight on the RPPT revenue is severely lacking.
• Alternative Plans: Questions about renovating the existing library on Stockton Street or the fate of the property if the library moves were not satisfactorily answered. Questions about moving the library to an existing location akin to the San Pablo library were not addressed.

Conclusion

Despite the extensive presentation and polished pitch, the proposal for a new 20,000-square-foot TOD library leaves many critical questions unanswered and concerns unaddressed. The financial strain of escalating pension payments, the high interest and construction cost environment, and the uncertain funding and tax implications make this a contentious issue for El Cerrito residents. As the City Council moves towards approving this budget on June 18th, the community remains divided and wary of the long-term financial impact.

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For more details on the library proposal and updates, visit the El Cerrito Library website.