Ignoring the Warning Signs

As concerned residents of El Cerrito, it is alarming to witness the city inching once again toward financial insolvency. The federal bailout, which temporarily provided relief by paying off the TRANs loans, did little more than put a band-aid on a festering wound. Despite the state auditor’s clear warnings, the city seems determined to ignore the advice and continue down a perilous path.

In the wake of the state auditor’s findings, one would expect responsible leadership to take decisive action to reduce costs and stabilize the city’s finances. Instead, the City Manager chose a different route: raising the salaries of her management team by double digits. This decision is not only fiscally irresponsible but also deeply unjust. The individuals in these positions now earn upwards of $275,000, considerably more than the majority of El Cerrito’s population. Yet, it is these same residents—many of whom are struggling with stagnant wages and rising living costs—who are expected to shoulder the tax burden to support these exorbitant salaries.

• Assistant City Manager: From $241,834 to $330,863, a 36.8% increase.
• Finance Director: $282,482 (latest figure).
• Public Works Director: From $269,537 to $331,407, a 23.0% increase.
• Community Development Director: From $264,396 to $300,921, a 13.8% increase.
• Recreation Director: From $260,745 to $299,816, a 15.0% increase.
• City Clerk: From $203,716 to $276,276, a 35.6% increase.

The city’s financial situation is dire. Last year alone, El Cerrito drained $6 million from its reserves. Revenue remains flat, but expenses continue to rise, leaving the city with a mere $6.3 million in unrestricted reserves. Any reasonable and informed person would be gravely concerned about this trajectory. The reserves that once served as a safety net are nearly depleted, and without significant changes, the city is heading toward a financial crisis.

For those new to this issue and interested in understanding the city’s initial response to the state auditor, I recommend watching the following videos:

• Financial Advisory Board (FAB) Meeting on April 13, 2021 (start at 58:40): Watch here
• Town Hall Meeting on April 10, 2021: Watch here
• City Council Meeting on April 20, 2021 (start at 1:17): Watch here

Our City Council members must be held accountable. With the upcoming elections, it is time for a change in city management. Before the state auditor’s findings, “going concern” letters were issued to the city, indicating serious doubts about its ability to continue functioning financially. Yet, the city did nothing. The current City Manager has shown that she cannot or will not address these critical issues, and it is clear that new leadership is desperately needed—leadership that will take the state auditor’s findings seriously and make the tough decisions required to steer El Cerrito back to financial health.

As the election approaches, it is up to us, the residents of El Cerrito, to demand accountability and ensure that those in power are working in the best interests of the community. It is time for a leadership change that prioritizes fiscal responsibility and the long-term sustainability of our city.

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