Running on Empty

_{An Editorial}

El Cerrito’s silence on reserves raises real questions about liquidity, transparency, and long-term stability.

For years now, El Cerrito’s leadership has assured residents that the city is on stable financial footing. They point to a “balanced budget,” downplay concerns about spending, and avoid discussing the one figure that tells the real story: unrestricted reserves.

In most cities, unrestricted reserves are a key indicator of financial health—an emergency cushion, a safeguard against volatility, and a sign of long-term stability. But in El Cerrito, that number is almost never mentioned. When it is, it’s buried under vague language or brushed aside with generic reassurances.

Why the lack of transparency? The answer may be simple: there’s not much left.

A Hidden Liquidity Crisis

It’s not hard to connect the dots. El Cerrito’s budget has grown dramatically over the last decade—outpacing inflation year after year. Yet basic services have been cut, the Senior Center has closed, and the city couldn’t identify funding for a new fire engine during this year’s budget process.

At the same time, the city continues spending freely on consultants, surveys, and PR-style reports. One consultant was paid over $10,000 just to facilitate a meeting. Another was hired to evaluate the city’s swimming pool. A recent survey, which cost taxpayers over $50,000, resulted in a single-page summary.

And then there’s payroll.

El Cerrito’s payroll is significantly higher than that of other California cities of similar size. That’s not just a budget line—it’s a multiplier. Higher salaries lead to much higher pension liabilities, and in El Cerrito’s case, the city’s pension obligations are nearly double those of peer cities. That long-term debt is a massive burden on the budget—and it’s growing.

Behind the scenes, mounting pension obligations—particularly to CalPERS—are putting intense pressure on the city’s finances. It’s increasingly likely that unrestricted reserves are being used to quietly cover these payments. If so, that means the city is spending its last line of defense just to meet recurring costs and is heading woefully toward the minimum amount of general fund unrestricted reserve set by the GFOA.

And they don’t want us to see it.

When You Don’t Report the Number, It Usually Means You Can’t

Cities with strong reserves proudly disclose them. They publish them in budget summaries, audits, and public presentations. El Cerrito doesn’t. That should be a red flag for every taxpayer, homeowner, and voter in the city.

If there were a healthy reserve balance, we’d hear about it.

If there were a plan to restore it, we’d see it.

Instead, all we get is silence—and slide decks designed to distract.

It’s No Longer About Asking Questions—It’s About Changing Leadership

At this point, it’s not enough to ask for clarity. We’ve asked. Financial Advisory Board has asked. Residents have asked. But the silence nothings that matter to us continues.

The election is just over a year away. El Cerrito can’t afford another cycle of budget tricks, hollow reassurances, and unchecked spending.

It’s time to elect people who will hold the City Manager accountable. People who will demand transparency—not just in words, but in budgets and in delivering services to the community. People who understand that a healthy city does not hide its liquidity problems, but one that faces them head-on and plans responsibly for the future.

We don’t need more empty promises. We need to stop running on empty.