The City of El Cerrito’s recent decision to invest $250,000 in a housing developer for a speculative real estate development raises significant concerns, particularly when examined in the context of the Supplemental Property Tax. This tax, intended to fund “people and programs” such as after-school care and other city-sponsored activities, appears to be diverted to finance the construction of the first floor of a Transit-Oriented Development (TOD) housing project. This deviation from its original purpose deserves scrutiny and public awareness.
The Purpose of the Supplemental Property Tax
A Supplemental Property Tax is designed to support community programs and services. In El Cerrito, such funding could enhance various city-sponsored activities and initiatives. However, it is now being used to finance the TOD housing development—a project that benefits a private developer rather than the broader community.
Appropriate Financing for the Library
Construction bonds are the standard and suitable financial instruments for building or renovating public facilities like libraries. These bonds function similarly to home loans, eventually being paid off and retired. El Cerrito already benefits from the services of the Contra Costa County Library system, funded through a portion of property taxes paid by all county property owners. The 2024-2025 budget for this system is set at $43,978,078, reflecting a 6% increase from the previous year. This budget, accessible on the County website, provides detailed performance and operating statistics, offering transparency and accountability.
Questions About the TOD Housing Development
The financing scheme for the TOD housing development raises several questions:
- Supplemental Property Tax Misuse: How does an annual property tax, intended for community programs, translate into $21,000,000 in proceeds to finance the library’s first-floor construction? The six floors of housing above this floor further complicate the financial justification.
- Interest Costs: The City’s budget projects $1,600,000 in interest costs. If there is no traditional financing, how can these interest payments be justified? Who will bear this financial burden?
- Unaccounted Funds: What happens to the remaining $900,000 in Supplemental Property Tax receipts?
These questions highlight the need for greater transparency and responsible fiscal management.
A Better Path Forward
The State of California has proposed a $20 billion affordable housing bond for Contra Costa and the surrounding nine Bay Area counties, which will be on the ballot on November 5th. This bond, coupled with a reduced requirement for voter approval, presents an opportunity to fund affordable housing projects without burdening local property taxpayers. Utilizing these state funds for the housing developer’s return on investment (ROI) is a more equitable solution.
Separate Projects for Separate Needs
Combining the library renovation with the housing project is impractical and misleading. Housing and library projects each have unique challenges and should be addressed separately. The library should be renovated or rebuilt on the existing site owned by the city, ensuring a larger, architecturally significant building that serves the community’s needs.
Influence from Blog Followers
One of our blog followers commented on the June 27th Library post, bringing to light several critical points and questions that have heavily influenced this blog. Their insightful commentary underscored the importance of transparency and fiscal responsibility, inspiring a deeper investigation into the issues at hand.
Conclusion
El Cerrito residents deserve transparency and accountability in how their taxes are used. Diverting funds meant for community programs to finance a private development undermines public trust. Let’s advocate for the responsible use of state funds for affordable housing and a standalone library project that honors the city’s commitment to its residents. Say yes to affordable housing and yes to a standalone library that serves as a beacon of community pride.
For those interested, they highly recommend reading the Contra Costa County Library budget available on the County website. It offers a wealth of information and insights into how our libraries operate and perform.
Let’s ensure our city’s decisions reflect the best interests of its residents, promoting transparency, accountability, and a commitment to community well-being.
El Cerrito Committee for Responsible Government (ECCRG) 
Thank you for your persistence in highlighting the City’s lack of transparency and concern for public input. Hopefully the new Richmond Side will include El Cerrito when it begins to investigate local matters. Perhaps we can convince them to further explore our City Manager. She has no accountability to the public and for years she has been shielded by the City Council. Although the State Audit might have been a wake up call to the management for a short time, it appears they continue to operate in a manner where they make their decisions, roll out their plans, then profess to take public input with their mind fully made up. The so-called library workshops are generally used for persuasive purposes rather than used to promote dialogue. I personally have no objections for a new library and agree with many reasons why the existing site in no longer suitable. Unfortunately, I do not trust our City Manager and her crew with a new revenue stream using our tax dollars.
On Thu, Jun 27, 2024 at 12:19 PM El Cerrito Committee for Responsib
LikeLiked by 1 person
No fight here
LikeLike