Expose Budgeting Tactics in El Cerrito: A Call for Reform – Microblog

Posted byeccrgPosted inState Audit

El Cerrito residents deserve a transparent and responsible budgeting process—but we’re getting sleight of hand instead.

During the cityCouncil meeting today, City Manager Karen Pinkos continued to present an operating budget that deliberately excluded known expenses. These aren’t surprises. They’re foreseeable needs—yet they’re left out of the formal budget and funded later using unrestricted reserves. That’s not sound financial planning. It’s a tactic that undermines transparency and accountability.

Let’s be clear about the numbers.

The city often touts its 17% reserve level as a sign of stability. But that figure is misleading. It includes:

  • A $1.4 million Section 115 trust, which is restricted and conservatively invested
  • A $9 million Emergency Disaster Relief Fund (EDRF), approved by the City Council in August 2023, was set aside specifically to cover approximately three months of citywide payroll in the event of a natural disaster or economic emergency.

These funds were never intended to cover gaps caused by poor budget planning. When these restricted amounts are removed, the city has just over $11 million in true unrestricted reserves—barely above the Government Finance Officers Association’s (GFOA) minimum recommendation for a town our size.

The deeper concern is the excluded costs are known. Rather than include them in the adopted budget—where they can be weighed against other priorities—the City Manager rolls over much of the previous year’s budget and brings these “must-have” items to Council after the budget is approved. This practice forces Councilmembers into a bind: approve additional spending later or appear to withhold critical services—a no win situation.

That’s not budgeting. That’s brinkmanship.

The City Manager is one of the city’s highest-paid employees. She is responsible for setting priorities and presenting a realistic, comprehensive budget—not relying on reserves to fund known obligations and pressuring the Council to act.

The issue isn’t whether the pool or the fire needs are needed. Both are needed. However, the real problem is that the City manager didn’t do their job. She should have considered these items and presented them in the adopted budget instead of presenting a “balanced” budget. That’s a disingenuous way to govern.

Second, the item should have appeared earlier in the budget. There was no public comment because everyone was asleep. This approach to addressing important issues should not be taken.

Call to Action: Demand Transparency in Budgeting

El Cerrito deserves an honest budget.

The City Council must direct the City Manager to include all known expenses in the original proposed budget—not defer them for mid-year additions funded by reserves. This practice distorts the true cost of city operations, obscures priorities, and puts undue pressure on Council to approve rushed, after-the-fact expenditures.

We urge the Council to take leadership now. Direct the City Manager to present a complete, transparent, and prioritized budget that reflects the city’s real needs up front.

✅ No more piecemeal funding
✅ No more budget sleight of hand
✅ No more misuse of the description of emergency and Section 115 as if they are available for budget overruns.

Contact the El Cerrito City Council Today:

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