California municipalities are ranked each year based on key fiscal indicators—including net worth, pension costs, and pension obligations. These rankings, which compare cities statewide, offer insight into local governments’ fiscal health and future sustainability. For El Cerrito, the trend is clear: while the city has improved its relative standing, the underlying numbers still reflect a heavy pension burden and fiscal strain.
Ranking Breakdown
| Year | Net Worth (X/L) | Pension Costs (U/L) | Pension Obligations (R/L) | Total Cities Ranked |
|---|---|---|---|---|
| 2022 | 431 of 457 | 439 of 457 | 443 of 457 | 457 |
| 2023 | 368 of 420 | 414 of 420 | 414 of 420 | 420 |
| 2024 | 184 of 211 | 207 of 211 | 208 of 211 | 211 |
What Do These Rankings Mean?
- Net Worth Rank: El Cerrito has moved from near the bottom of the list in 2022 (#431 of 457) to the mid-range in 2024 (#184 of 211). While that may seem like progress, it reflects the shrinking number of cities included in the ranking rather than a significant improvement in fiscal health.
- Pension Costs and Obligations: El Cerrito continues to rank near the bottom in both pension costs and long-term obligations. In 2024, the city ranked 207th and 208th out of 211 cities—placing it in the bottom 2%. These high costs crowd out resources for basic services and infrastructure investments.
Misleading Messaging from the City’s Advisors
During a recent presentation, NHA Advisors, the city’s paid financial consultants, claimed that the situation was primarily caused by CalPERS failing to meet investment targets—and that “every city is in the same position” as El Cerrito holding about $70 million in UAL. While this is true for all California cities, including those with several hundred thousand residents, this is simply not true for cities like El Cerrito.
Most cities do not face the same level of pension distress. The data clearly shows that El Cerrito is an outlier, not the norm. This pattern of downplaying or deflecting fiscal problems prevents real solutions from emerging.
Why This Matters
High pension costs and obligations significantly limit El Cerrito’s ability to meet current and future needs. Each year, a growing portion of the budget is absorbed by retirement benefits, leaving less funding for parks, streets, housing, and public safety. Without long-term planning and honest financial assessments, residents will continue to bear the consequences of past inaction.
Call to Action
The City Council must take ownership of this issue—not defer blame or rely solely on consultants. Solutions begin with:
- Including all known liabilities in the adopted budget
- Adopting a pension sustainability strategy
- Providing the public with clear, transparent fiscal updates
If you’re concerned about the direction of El Cerrito’s finances, please contact your City Council members and ask them to prioritize long-term financial health:
- Mayor Carolyn Wysinger: cwysinger@ci.el-cerrito.ca.us
- Mayor Pro Tem Gabe Quinto: gquinto@ci.el-cerrito.ca.us
- Councilmember Lisa Motoyama: lmotoyama@ci.el-cerrito.ca.us
- Councilmember Rebecca Saltzman: rsaltzman@ci.el-cerrito.ca.us
- Councilmember William Ktsanes: wktsanes@ci.el-cerrito.ca.us
Let’s ensure future budgets reflect both fiscal reality and community priorities.
Source: https://californiapolicycenter.org/fiscal-health-dashboard/#el-cerrito
with all of that, the city manager recently received the employer contribution to PERS back into her contract to be added as salary at the time of retirement. That increases her retirement by 10%, thus obligating higher pension costs. She was one of the negotiator on the city side when all employee groups gave up the EPMC due to dire financial circumstances. What does this say about her view of the residents; they are simply funding her retirement.
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