When public agencies ask for more funding, whether through tax measures or budget reallocations, they often ask residents to trust their financial stewardship. But what happens when the numbers they present don’t align—even in their own reports?
Recently, while reviewing El Cerrito’s financials, a concerning inconsistency emerged. The unassigned General Fund balance for FY 2023 and FY 2024 is reported differently in the city’s Annual Comprehensive Financial Report (ACFR) and in the General Fund projections published by the finance director just last month. The difference is not minor—it amounts to several million dollars. No explanation has been provided.
This raises a fundamental question: why should the public place confidence in the city’s financial reporting when basic figures like the General Fund balance cannot be reconciled between official documents?
There’s more.
The city projects a General Fund balance of $12.52 million as of June 30, 2025. But before that date even arrives, a large CalPERS payment is expected. Historically, the city has paid around $8 million each July for its unfunded pension liability (UAL). If that trend holds, the actual available balance will be significantly lower than the projection—again, without clear acknowledgment or explanation in the published numbers.
Additionally, General Fund projections show the city spending more than it takes in for the remainder of the fiscal year. If the monthly average deficit exceeds $1 million, as current trends suggest, then the city could deplete another $9–10 million before June 30, 2025.
This is not a minor bookkeeping issue—it goes to the heart of fiscal transparency and accountability. Residents are being asked to support critical initiatives, including potential tax measures. But before doing so, there’s a right to ask:
Why do the ACFR and General Fund projections report different fund balances? Will the city disclose whether it intends to pay CalPERS $8 million this month for its UAL? Are monthly deficits exceeding $1 million built into the plan? And most importantly, when will the city explain these inconsistencies?
Financial credibility is earned through clarity, not confusion. If the city wants the trust of its residents, it must ensure that its reports tell a consistent story—and that the public can understand how much money is truly available.
Call to Action:
Attend Tuesday’s City Council meeting. Ask your elected officials to explain the conflicting numbers. Demand a reconciliation of fund balance projections and actuals. Insist on a full accounting of planned pension payments and monthly deficits. Transparency isn’t optional—it’s the foundation of good governance.
El Cerrito Committee for Responsible Government (ECCRG) 