Since FY22–23, El Cerrito’s unrestricted General Fund reserves have been in steady decline. And it’s no accident. Behind the scenes, the City has been quietly drawing down those reserves—while hoping the public won’t notice. Why? Because they’re counting on voters to approve the so-called “Forever Tax” to plug the holes.
In 2023, the City Council voted unanimously to transfer $9 million from the General Fund into the Emergency Disaster Relief Fund (EDRF)—a restricted reserve designed to cover disasters and economic downturns. The fund was recommended by the Financial Advisory Board and adopted in 2019 as part of the City’s Comprehensive Financial Policies. At the same time, the Council seeded a Section 115 Pension Trust with $1 million, a step toward managing long-term pension liabilities.
On the surface, these appeared to be fiscally responsible decisions. The City reported that General Fund Reserves, including the EDRF, totaled over 28% of the city’s expenditures. However, in the months that followed, $2 million had already been withdrawn from the EDRF, and the City is now planning to use the Section 115 Trust to make regular payments to CalPERS—contrary to its original purpose.
Meanwhile, El Cerrito continues to spend more than it brings in, running annual deficits of roughly $2 million. This isn’t a short-term cash flow problem—it’s a long-term structural imbalance. At this pace, the City will exhaust all reserves within three to four years and may be forced to operate with a negative fund balance.
That’s why there’s suddenly so much talk about a library tax—and so little talk about unrestricted reserves. The truth is, the proposed “Forever Tax” isn’t really about building a library. It’s about keeping the City afloat. And they’re hoping you won’t connect the dots before the election.
We need to be honest with ourselves and each other: This tax is a lifeline for a broken budget. If it passes, it will allow the City to delay difficult decisions. If it fails, it may ultimately force leaders to face the reality that expenses must be reduced.
It’s time to stop pretending we can tax our way out of structural mismanagement. The City must reduce expenses, align staffing levels with service demands, and benchmark itself against fiscally responsible peers, such as Hercules and Albany. It’s the only sustainable path forward.
Before you vote for a library or sign a petition ask yourself: Do you want to fund a bail out a budget?
El Cerrito Committee for Responsible Government (ECCRG) 