El Cerrito’s financial health cannot be left to broad aspirations and vague commitments. The City Council must be specific about its fiscal goals, setting clear, measurable expectations that guide budget decisions and financial planning. Without this clarity, financial stability becomes more of a hope than a strategy.
The City Council Must Set the Agenda
The City Manager operates within the framework established by the City Council. If the Council wants to achieve specific financial outcomes, they must articulate those goals explicitly. It’s not enough to react to budget proposals when they’re presented—the Council should be proactive, giving clear direction before the budget is even drafted.
• If the Council wants to make more than the minimum payment on the unfunded liability, they should say so.
El Cerrito’s unfunded pension liability has grown to nearly $100 million. Currently, the city makes only the minimum required payments, which allows the debt to accumulate interest and grow larger over time. If the Council believes it’s in the city’s best interest to make additional payments to reduce this liability, they need to establish that as a formal goal.
• If the Council wants a plan to address the $250 million deferred maintenance shortfall, they should ask for one.
Deferred maintenance doesn’t disappear; it grows more expensive with time. If the Council wants a comprehensive plan to tackle this backlog, it should request a detailed strategy with specific timelines, priorities, and funding sources.
• If the Council wants to maintain a surplus of a specific dollar amount, they should define that target.
A surplus isn’t just a sign of good fiscal management; it’s a buffer against economic downturns and unexpected expenses. The Council should determine what level of surplus is appropriate and ensure the budget reflects that goal.
• If the Council wants to avoid using reserves to cover operating expenses, they should make that clear.
Reserves are for emergencies, not routine budget balancing. If the Council’s intention is to prevent reliance on reserves for day-to-day operations, they should adopt a formal policy to that effect and hold the budget process accountable to it.
Key Indicators of Financial Health
Adequate General Fund Unrestricted Reserves:
Maintaining sufficient unrestricted reserves is vital for managing unforeseen expenses and economic downturns. The Government Finance Officers Association (GFOA) recommends an unrestricted fund balance of no less than two months of operating revenues or expenditures—about 17%. If the Council wants to exceed this baseline, they should set a clear target.
Balanced Budgeting:
Balanced budgeting isn’t just about matching revenues to expenses. It means accounting for capital expenditures, managing debt obligations, and planning for future needs. If the Council expects the budget to cover these areas without deficits, they should define what “balanced” looks like.
Debt Management:
Prudent debt management includes actively addressing the city’s unfunded liabilities. The Section 115 Pension Funding Trust currently holds $1 million—woefully inadequate for a nearly $100 million liability. If the Council expects more aggressive funding, they must state that expectation clearly.
Transparent Financial Reporting:
Financial reporting should be frequent and detailed. The Council should expect clear, concise reports at the end of each quarter and promptly after the fiscal year concludes. This level of transparency allows for timely adjustments and informed decision-making.
Expenditure Control:
Controlling the growth of salary and benefit costs is critical. The Council should set specific targets for cost containment and require regular reviews to ensure those targets are met. Not just for expense control but also for capital purchases like buildings and trucks
Conclusion: Leadership Requires Clarity
The City Council’s role isn’t just to approve the budget—it’s to lead. Leadership requires clarity. If the Council wants specific financial outcomes, they must articulate those goals explicitly. General aspirations won’t protect El Cerrito from fiscal instability. Clear expectations will.
Contact Information for El Cerrito City Council Members:
• Carolyn Wysinger, Mayor
Email: cwysinger@ci.el-cerrito.ca.us
Term Ends: 2026
• Gabe Quinto, Mayor Pro Tem
Email: gquinto@ci.el-cerrito.ca.us
Term Ends: 2026
• Lisa Motoyama, Councilmember
Email: lmotoyama@ci.el-cerrito.ca.us
Term Ends: 2028
• Rebecca Saltzman, Councilmember
Email: rsaltzman@ci.el-cerrito.ca.us
Term Ends: 2028
• William Ktsanes, Councilmember
Email: wktsanes@ci.el-cerrito.ca.us
Term Ends: 2028
For general inquiries or to reach all council members simultaneously, email the City Clerk’s office at cityclerk@ci.el-cerrito.ca.us. The City Clerk, Holly M. Charléty, can also be contacted directly at 510-215-4305.
If you care about El Cerrito’s financial future, now is the time to make your voice heard. Demand clear goals, measurable outcomes, and responsible fiscal leadership.
El Cerrito Committee for Responsible Government (ECCRG) 