In her State of the City address on December 19, 2023, Councilmember Lisa Motoyama presented an optimistic picture of El Cerrito’s financial health. Her words, however, warrant closer examination.
Lisa has long been recognized as the most fiscally responsible member of our City Council. Her efforts to steer El Cerrito through challenging financial times have been commendable. Yet, in her latest address, the message was one of unwavering positivity: “How are we doing? We are doing great.” But is this the full truth?
Lisa’s assertion that there is “a lot of misinformation out in the community about our financial condition” suggests a disconnect between the Council’s narrative and the reality that many residents experience. While it’s true that the state audit pointed out areas where improvements were needed, and the city has taken steps to address these issues, the question remains: are we being fully transparent about the city’s ongoing financial challenges?
A Closer Look at the Claims
1. Bond Rating Improvements
Lisa mentioned that the city’s bond rating has gone up. When this administration took over, the bond rating was at a low A-. It did indeed fall to BBB- before a recent increase to BBB. While this is an improvement, it’s essential to recognize that we are still not back to the original rating, and the city continues to face significant financial hurdles.
2. General Fund Reserves:
Lisa proudly stated, “We are well above the 17% that we are supposed to have as a general fund.” However, the current budget paints a different picture, with reserves showing a declining trend. The goal has now shifted to 10%, a reduction that, while perhaps necessary in the short term, does not reflect a robust financial position. Yet, City policy is just 10%—well below the GFOA recommended amount. Additionally, the large graph of reserves conveniently omits the substantial loss of approximately $6 million during fiscal year 2024.
3. Future Projections:
She confidently noted, “After 2026, this will be even better.” Yet, the projections in the current budget do not support this optimism. While we all hope for financial stability, it is crucial to base these projections on realistic assessments rather than wishful thinking.
The City Manager’s Track Record
The City Council should not accept the City Manager’s word for fiscal stability without scrutiny. The City Manager has been wrong many times before. She ignored the going concern letters that warned of financial instability. She went as far as criticizing the state auditor, attempting to discredit their findings by claiming they were wrong. Despite these warnings, she proclaimed fiscal stability back in 2020—only to have the city’s financial condition decline after the federal bailout.
Years of dependency on reserves should make our Council members much more skeptical about the financial information they are provided. It is not enough to accept positive projections at face value; our city’s leadership must demand rigorous, transparent, and honest evaluations of our fiscal health.
A Call for Honest Dialogue
Lisa Motoyama has shown a commitment to fiscal responsibility, and her role on the City Council has been vital. However, as she stands for re-election, the residents of El Cerrito must ask themselves: does she deserve another term if the full truth is not being presented?
Fiscal responsibility is crucial, but so is honesty about where we stand. The residents deserve a transparent and accurate assessment of our city’s financial condition. We can only move forward together if we are all working from the same set of facts. Lisa’s leadership has been instrumental, but as we look to the future, we must demand both responsibility and transparency from our elected officials.
The city has some exciting projects on the horizon, such as the El Cerrito Plaza Transit Oriented Development and Library. These initiatives have the potential to benefit the community greatly, but they must be built on a foundation of financial stability—not just optimistic projections.
It’s time for a candid conversation about where El Cerrito truly stands. The residents deserve nothing less.
El Cerrito Committee for Responsible Government (ECCRG) 