El Cerrito
On June 27th, the City Manager presented at Juku Cafe, sponsored by the Chamber of Commerce. The event was not widely publicized and should have been advertised on EC social media channels well ahead of the event.
We also have concerns about the accuracy of some of the statements made during this event, particularly regarding the City’s debt load and financial stability.
Misrepresentation of Debt Load
During the presentation, the City Manager claimed the City has “very little debt.” This statement seems to ignore the reality of over $85 million in unfunded pension liabilities. These liabilities are economic debt, even if they are recorded off-balance sheet. The omission of such a significant financial obligation raises questions about the transparency and completeness of the information provided to the public.
Denial of Bankruptcy Concerns
The City Manager also stated that the City was never near going bankrupt. This assertion contradicts the concerns raised by various financial analysts and the State Auditor, who previously identified El Cerrito as the 6th most likely city in California to face bankruptcy. Given the chronic overspending, reliance on reserves, and significant pension liabilities, it’s hard to reconcile her statement with the facts particularly since the city is currently ranked 13th of approximately 400 California cities to face bankruptcy.
Upcoming Sales Tax Measure Vote
Another point of concern raised during the presentation was the City Manager’s focus on the upcoming vote to extend the 1% sales tax measure, set to expire in 2027. Her concern about this vote indicates the City’s reliance on this revenue stream for financial stability. This reliance further underscores the precarious financial situation of the City, despite claims to the contrary.
Call to Action
We urge anyone who attended the meeting at Juku Cafe to share their observations and perspectives. As residents, we must have a clear and accurate understanding of our City’s financial health. Transparency and accountability are essential for making informed decisions, especially with critical votes on the horizon.
Let’s ensure that the information we receive from our City leaders is complete and truthful. If you were present at the meeting or have any insights, please reach out or leave a comment. Together, we can hold our City management accountable and work towards a financially stable and transparent El Cerrito.
El Cerrito Committee for Responsible Government (ECCRG) 