El Cerrito’s financial journey over the past two decades highlights a persistent pattern of fiscal instability and difficult decision-making. While the city recently managed to remove itself from the State Auditor’s High-Risk Cities List, over 450 cities in California are still more well-run, underscoring the ongoing challenges the city faces.
From Stability to Decline: The Early 2000s
In 2001, El Cerrito was in a strong financial position with general fund reserves at 42% of annual expenditures. The city’s general fund budget was around $28 million—comparatively modest but well-managed. Today, the general fund budget has ballooned to $52 million, yet the financial outlook has only worsened. The once-promising financial foundation has eroded, leaving the city grappling with deficits and unmet infrastructure needs.
Temporary Gains, Structural Issues
In recent years, El Cerrito has relied on increased tax collections, federal ARPA funds, and postponement of major capital improvement projects to stabilize its finances. Measures like closing the senior center, while effective in reducing short-term costs, failed to address the deeper structural issues plaguing the city. These temporary fixes provided breathing room but left critical infrastructure, like the city’s roads, in steady decline.
The Persistent Problem of Deficit Spending
By FY 2024, El Cerrito had returned to deficit spending, reflecting an inability to balance its budget while addressing deferred projects. While no longer in the bottom 3% of cities statewide, over 450 other cities in California are still better run. This speaks volumes about El Cerrito’s ongoing inability to resolve its fundamental fiscal issues. More deficit spending is expected in the coming years, raising concerns about the city’s ability to sustain basic services and improve the quality of life for its residents.
Leadership and Accountability: A Double-Edged Sword
Contrary to fostering stability, El Cerrito’s leadership has often perpetuated a downward trend. Many key figures in city governance have remained in their roles for years, but continuity in leadership has not translated into effective financial management. Instead, it has contributed to entrenched strategies that have failed to address the city’s systemic issues. Residents are left questioning whether a change in leadership and approach might finally reverse the city’s trajectory.
Getting Off the State Auditor’s List: A Hollow Victory?
While getting off the State Auditor’s High-Risk Cities List was celebrated, it does little to mask the fact that El Cerrito remains financially precarious. Temporary measures continue to provide only short-lived relief, leaving systemic issues unaddressed.
The Road Ahead
For El Cerrito to emerge from this prolonged period of financial instability, city leadership must adopt bold, forward-thinking strategies that prioritize long-term sustainability over short-term fixes. Transparent budgeting, meaningful community engagement, and accountability are essential for charting a new course.
Residents of El Cerrito deserve more than just staying off a list—they deserve a city that is resilient, well-managed, and capable of meeting their needs for generations to come.
El Cerrito Committee for Responsible Government (ECCRG) 