Community involvement is essential for good governance. Simply liking social media posts is not enough to bring about real change. Staying informed and engaged through platforms like Livable El Cerrito and the El Cerrito Committee for Responsible Government can provide valuable insights into how our city is being managed.
El Cerrito’s financial struggles began nearly 20 years ago, during the 2008 financial crisis. While many cities took necessary steps to align their expenses with revenue in the following years, El Cerrito remains one of the few that has yet to do so. Instead of making meaningful structural changes, the city has relied on tax increases and short-term solutions to address long-standing budget issues.
Since 2010, multiple tax hikes have been approved, yet essential services remain stagnant or have even been reduced. Instead of improvements, much of the additional revenue has gone toward increasing employee compensation.
Before 2008, city expenditures have tracked closely with revenue increases. However, a concerning trend has emerged—despite repeated assurances of fiscal responsibility from city leadership, El Cerrito has struggled to maintain financial discipline. In 2019, residents were told that the city’s financial management had taken a conservative approach and that they had proven the independent auditor’s concerns wrong. Yet, the FY 2019 independent audit revealed that the city had overspent its budget by millions of dollars.
Now, in FY 2024—the first post-COVID year—El Cerrito’s financial situation appears eerily similar to pre-pandemic FY 2019. During the four COVID years (FY 2020–2023), the city experienced unique financial circumstances that temporarily alleviated fiscal pressures, with increased revenues and decreased expenditures.
Factors That Increased Revenues During COVID:
1. Federal ARPA Funding: El Cerrito received $6.1 million in federal aid.
2. Real Property Transfer Tax: Initially projected to generate $2.7 million annually, it exceeded expectations, bringing in over $4 million each year.
3. Property Tax Boom: Low interest rates led to inflated home prices, resulting in higher ongoing property tax collections.
4. Sales Tax Windfall: Changes in sales tax laws significantly boosted city revenue.
Factors That Reduced Expenditures During COVID:
1. Service Reductions: The permanent closure of the senior center and prolonged reduction of city services saved significant funds.
2. Staffing Challenges: Many police officers resigned, and overall employee compensation was lower than projected.
3. Infrastructure Neglect: Road repairs continue to be underfunded, with the city spending well below consultant recommendations, despite having a dedicated road repair tax.
4. Deferred Maintenance: The Ohlone Greenway and other critical infrastructure needs remain unmet, with an estimated $250 million backlog.
5. Missed Opportunities: The city failed to capitalize on low interest rates to refinance its CalPERS pension debt, potentially costing taxpayers millions annually.
6. Lost Grant Funding: El Cerrito did not allocate matching funds for a state library grant worth up to $10 million.
While the city is no longer on the brink of bankruptcy, the financial outlook remains concerning. Serious challenges persist, including underfunded infrastructure, pension liabilities, and the ongoing impact of service reductions on vulnerable populations. Without clear, transparent communication from city leaders about current and future financial needs, residents may face further tax increases without meaningful improvements to public services.
El Cerrito needs to take a hard look at aligning expenses with revenue, as so many other cities have done. The community deserves responsible financial planning that prioritizes long-term stability over short-term fixes.
Now more than ever, it is crucial for citizens to actively engage in the governance process. Attending council meetings, asking tough questions, and demanding accountability can help steer El Cerrito toward a more sustainable financial future.
If we want a thriving, well-managed city, participation must extend beyond social media. Stay informed and get involved—El Cerrito’s future depends on it.
Stay Informed, Stay Involved
El Cerrito Committee for Responsible Government
#ElCerrito #FiscalResponsibility #TransparencyMatters #TaxpayerAccountability #CityBudget #CommunityEngagement #InfrastructureMatters #PublicServices #ResponsibleGovernment #LocalGovernment #StayInformed #SpeakUpElCerrito #FinancialTransparency #TaxDollarsAtWork #LivableElCerrito
El Cerrito Committee for Responsible Government (ECCRG) 