The Shell Game: How El Cerrito’s City Manager is Playing with Public Funds

Posted byeccrgPosted inState Audit

For years, the state auditor has monitored El Cerrito’s precarious financial situation, flagging it as a high-risk city due to chronic fiscal mismanagement. The city manager, under mounting pressure, appeared to turn over a new leaf, keeping reserves artificially high and curbing expenses just enough to pacify both auditors. The strategy worked. El Cerrito received a passable audit, and the city was downgraded from the highest-risk category.

But it didn’t take long for the facade to crumble.

Now, with the state and commissioned audits behind her and scrutiny seemingly eased, the city manager is back to her old tricks. She’s proposing to dip into the city’s hard-earned reserves—$3.3 million of the $12.4 million in unrestricted reserves—without providing any clear, public explanation. No detailed plans. No transparent budget outlines.. Just a vague announcement that calls the funds discretionary and raises more red flags than it answers.

What’s Really Going On?

The timing of this move isn’t just suspicious; it’s telling. During the period of heightened state oversight, fiscal restraint was the name of the game. Now that the immediate threat has passed, it seems the city manager feels emboldened to resume practices that led El Cerrito into financial trouble in the first place.

Let’s be clear: $3.3 million is not pocket change. It represents nearly 27% of the city’s unrestricted reserves—funds that are supposed to be a financial safety net, not a slush fund for undisclosed expenditures.

And it doesn’t stop there. The city manager has also resumed her expensive junkets, traveling on the public’s time while claiming fiscal responsibility at home. This signals a return to the same reckless spending habits that left El Cerrito teetering on the brink of bankruptcy not long ago.

Adding insult to injury, the previous City Council granted her a five-year contract extension, effectively cleaning the slate. With job security seemingly locked in, she appears to have no qualms about steering El Cerrito right back toward financial disaster, confident that her position is safe regardless of the city’s fiscal health.

The lack of transparency leads to an uncomfortable but likely conclusion: this isn’t about new projects or unforeseen emergencies. This is likely deferred deficit spending—expenses the city manager strategically held back until after the audit to avoid triggering more negative attention from the state auditor.

Why This Matters to Every El Cerrito Resident

Unrestricted reserves aren’t just numbers on a spreadsheet. They’re critical for maintaining essential services, especially in emergencies—think natural disasters, economic downturns, or unexpected revenue shortfalls. Depleting reserves without a clear plan jeopardizes the city’s financial stability and could force future cuts to public safety, infrastructure, and community programs.

Moreover, the city’s reputation has already taken a hit. El Cerrito’s history of poor financial management led to higher borrowing costs and eroded public trust. Reckless spending will only deepen those wounds.

Demand Accountability

The residents of El Cerrito deserve better. They deserve leaders who manage taxpayer money responsibly, who prioritize long-term fiscal health over short-term political convenience. They deserve transparency—not vague requests for multi-million-dollar withdrawals with no public explanation.

It’s time for the City Council to step up. They must demand:

  1. A complete, detailed breakdown of the proposed $3.3 million expenditure, including specific allocations, justifications, and intended outcomes before approving the use of unrestricted reserves.
  2. An independent review of the city’s current financial obligations to uncover any hidden deficits that may have been deferred until after the audit.
  3. Clear, public-facing communication about how these decisions will impact city services, both now and in the future.

El Cerrito residents should attend council meetings, ask tough questions, and refuse to accept vague answers. The city manager works for the public, not the other way around.

Because when financial sleight of hand becomes the norm, the people who pay the price are always the taxpayers.

Contact Your City Council Members

To voice your concerns and demand accountability, reach out to your City Council members:

Your engagement is crucial in holding our city leadership accountable and ensuring a fiscally responsible future for El Cerrito.

Thank these Council members for granting Pinkos a full pardon for sending us near bankruptcy. Now we are headed back

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