El Cerrito has faced budget deficits in 18 of the last 21 years. Since 2003, the city has been plagued by financial shortfalls, repeatedly dipping into emergency reserves and relying on short-term loans, known as “TRANS” (Tax Revenue Anticipation Notes), to stay afloat. By 2017, the reserves were fully depleted, leaving the city with no cushion to manage future financial crises.
In June 2019, during a City Council meeting, City Manager Karen Pinkos and Finance Director Mark Rasiah assured the council that the city’s financial outlook was improving. Rasiah boldly declared that the going concern statement, which had been issued for two consecutive years, would likely disappear by the end of the fiscal year. His optimism was mirrored by Council members, but the reality was starkly different. By January 2020, the city had incurred a $2.9 million cost overrun, and the going concern statement reappeared for the third time in a row. Despite these financial warnings, the council approved increases in management wages, further deepening the fiscal crisis.
The current council members often tout the city’s improvement from 6th to 13th on the State Auditor’s list of California cities most likely to face bankruptcy. However, what they conveniently omit is that there are over 400 cities in the state—being 13th is no cause for celebration. Additionally, the city’s BBB bond rating, barely above junk status, underscores the persistent financial instability.
Much of this mismanagement can be traced back to long-serving council members like Greg Lyman (2008-2020), Gabe Quinto (2014-present), and now Lisa Motoyama (2020-present). All three have contributed significantly to the city’s financial troubles by repeatedly voting for policies that escalated costs without addressing the structural issues underlying the budget crises. Their tenure on the council has been marked by decisions that failed to rein in spending, neglected to prepare for economic downturns, and continuously relied on unsustainable financial practices.
El Cerrito’s legacy of budget deficits, its reliance on short-term fixes like TRANS, and leadership’s unwillingness to confront these issues head-on have left residents paying the price. Despite years of warnings, council members continue to avoid making the hard choices necessary for true financial recovery. The city’s deep-rooted fiscal problems remain, and unless real changes are made, this pattern will continue to burden the people of El Cerrito for years to come.
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El Cerrito Committee for Responsible Government (ECCRG) 