For years, residents have raised red flags about El Cerrito’s unsustainable pension obligations and the threat they pose to the City’s ability to maintain basic services. Now, with barely a whisper, City management has finally acknowledged the obvious: ballooning CalPERS pension liabilities are crowding out essential services and deferring needed repairs.
Buried on the July 15 consent calendar, Agenda Item 7E recommends a City-wide Service Delivery Study—at a cost of nearly $150,000—to assess the efficiency, effectiveness, and sustainability of City operations. The study, to be conducted by Citygate Associates, is a long-overdue response to mounting warnings from financial advisors and watchdogs. It follows a May 2025 presentation by NHA Advisors that made one thing abundantly clear: El Cerrito is on an unsustainable financial path through at least 2035.
According to the City’s own records, CalPERS Unfunded Accrued Liability (UAL) payments have more than tripled since 2018—from $3 million to a projected $10 million by 2031. Even worse, 98 percent of these costs stem from pre-2013 “Classic” pension plans—meaning these debts are largely the result of past decisions, yet they are paid with today’s and tomorrow’s dollars.
The real cost? Roads go unrepaired. Parks and public spaces fall behind. Public-safety resources get stretched thinner each year. The City is sacrificing its present and future to pay for the past.
The citizen has been tracking these issues closely since the California State Auditor’s 2021 report first labeled El Cerrito a high-risk city. Independent analyses have consistently shown how unchecked pension liabilities are choking the City’s fiscal flexibility and undermining its ability to invest in core services residents rely on.
The proposed Service Delivery Study is a start—but it is only that. There are three real tests ahead:
Conducting an in-depth, independent analysis that thoroughly examines the impact of escalating pension costs on service delivery.
Releasing the study’s findings to the public in a timely and transparent manner so residents can see the full scope of the challenge.
Following through with bold, necessary action to restructure and realign City operations in a fiscally sustainable way.
Approving a study is easy; acting on its findings is what counts.
Residents must stay informed, engaged, and vocal. Leadership must be held accountable not just for ordering reports, but for delivering results. A robust, data-driven response to the pension crisis is critical to El Cerrito’s future.
It’s time for transparency. It’s time for urgency. It’s time for leadership.
Call to Action:
Attend Tuesday’s City Council meeting and make your voice heard. Ask tough questions. Demand real follow-through—not just another study that gathers dust. El Cerrito deserves a sustainable path forward.
El Cerrito Committee for Responsible Government (ECCRG) 