El Cerrito’s Removal from High-Risk Designation: A Milestone, Not a Finish Line

Today marks a significant moment for the City of El Cerrito. The California State Auditor has officially removed our city from its “High Risk” designation, a status reserved for the bottom 5% of cities with severe financial vulnerabilities.

This milestone reflects the city’s progress in achieving fiscal stability, improving budget reporting, and implementing some sound financial management practices. It’s a well-earned recognition of hard work and collaboration—but it’s also a reminder of the challenges that lie ahead. Remember we are no longer in the bottom 5% and there’s much more work to be done to achieve sustainable stability.

The news is encouraging but remember it took 5 years of denial (from city officials) to get here Over the past five years, El Cerrito the city faced a daunting financial situation and these achievements are worthy of acknowledgment and gratitude for everyone who contributed to this effort.

However, while this accomplishment is reason to feel hopeful, it is not a moment to relax or declare victory.

High Risk: A Designation to Avoid

The “High Risk” designation is not applied lightly. It identifies cities that fall into the worst-performing 5% in terms of financial health.

While El Cerrito has successfully removed itself from this category, we must acknowledge the reality: meeting the threshold for removal does not mean we’ve solved all our financial challenges. It means we’ve created a stable foundation, but sustaining it will require constant vigilance, cost discipline, and a commitment to continuous improvement.

Moving Forward: The Real Work Begins

As we reflect on this progress, we must also acknowledge the challenges still ahead:

Structural Deficits: While the General Fund is stabilized, maintaining it requires disciplined fiscal policies, an evaluation of staffing levels + adjustments, careful monitoring, and a willingness to make difficult decisions.

Infrastructure and Services: Our city still faces significant needs in infrastructure maintenance, public safety, and community services. These demands must be balanced within our financial capacity.

Economic Uncertainty: Economic shifts, inflation, and external pressures could pose risks to our fiscal stability. Planning for these uncertainties will be critical.

Transparency and Accountability: The culture of transparency and accountability we’ve built must remain a cornerstone of how we operate, ensuring that our community stays informed and engaged in our financial decisions.

A Call for Partnership

The progress El Cerrito has made belongs to all of us, and so does the responsibility to ensure we don’t slip backward. We must move forward with humility, caution, and a sense of purpose, knowing that the hard work of maintaining fiscal stability is never complete. This is a time to double down on our efforts, not ease up.

So, while we pause to acknowledge this milestone, let’s put the champagne back on ice. There’s much to celebrate, but there’s even more to accomplish. Together, as a community, we can ensure that this achievement becomes the foundation for an even brighter and more sustainable future for El Cerrito.

Let’s keep moving forward, El Cerrito. There’s still work to do.

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