El Cerrito’s Budget Illusion

Posted byeccrgPosted in#richmondside, Budget, City Council Meetings, Election 2026, FAB Meetings, Financial Mismanagement, GFOA, leadership, TransparencyTags:, , , , ,

El Cerrito residents are being misled. Despite claims of discretionary spending, the reality is starkly different. The so-called “surplus” is nothing more than a fragile cushion, barely above the minimum reserve requirement—and it’s shrinking fast. Here’s what you need to know.

Not Discretionary Funds – Only a Cushion

The city’s financial projections show approximately $2.1 million above the Government Finance Officers Association (GFOA) recommended 17% reserve requirement. However, this is not discretionary spending. It is a critical cushion meant to protect the city against unexpected financial shocks.

But even this cushion is misleading. El Cerrito has developed a troubling pattern of using reserves to balance the budget at mid-year. This means that any amount used this year reduces the available cushion in future years, leaving the city more vulnerable to further financial instability.

City Balks at Requests for Information

Unfortunately, the Finance Director has often parroted the City Manager’s responses rather than addressing these concerns directly. When council members asked for more detailed financial information, the response has been opaque or difficult for residents to understand. Like the City Manager, the Finance Director’s most common excuse given is a supposed lack of staff to provide the most basic information. This raises an important question:

  • Is the city unable to provide accurate, clear, and complete financial information and forecasts due to incompetence?
  • Or does it simply not want to provide the appropriate information to residents and council members?

Either scenario is unacceptable. A city cannot function responsibly without clear, accurate, and timely financial reporting.

Essential Items That Must Be Built into the FY26 Budget

Given this financial reality, El Cerrito must focus on essential spending areas in the FY26 budget, including:

  • Maintaining Core Services: Prioritize funding for essential services such as police, fire, and public works.
  • Capital Improvements and Maintenance: Address deferred maintenance for critical facilities.
  • Compliance and Legal Obligations: Ensure adequate funding for legal obligations, including regulatory compliance.
  • Revenue Stabilization: Explore options for increasing revenue through grants, service fees, or other sustainable methods.

City Council Contact Information

If you want the city to prioritize responsible spending, reach out to your City Council representatives:

A Call for Fiscal Responsibility

El Cerrito cannot continue to balance its budget using reserves without severe long-term consequences. The City Council must take meaningful steps to right-size the budget, control spending, and explore sustainable revenue sources. El Cerrito can build a more secure financial future for all residents by making tough decisions now.

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