El Cerrito’s $21 Million Library Bond: A Ponzi Scam Disguised as Civic Investment

The City of El Cerrito is pressing residents to approve a tax so they can secure a $21 million bond to construct a 20,000 sq ft library. But make no mistake: this bond is less about serving the public and more about benefiting the developer and bailing out the city for mismanagement and inflated staffing.

Outdated Studies, Dubious Promises

Officials claim this blueprint is the result of “years of careful study.” What they fail to disclose is that the last serious study was done in 2014—years before digital library use became the norm, before the pandemic, and before the city’s fiscal position deteriorated.

They also promise this plan will “save $10 million”, but they have not produced a single piece of documentation to back that up.

No Alternatives, No Transparency

Perhaps most troubling, the city has not offered residents a single alternative to meet library needs.

No serious evaluation has been presented on retrofitting the existing building, adding a second floor, adapting existing commercial spaces like Marshalls or other vacant retail properties, or pursuing smaller, more fiscally responsible designs. Nothing.

Instead, we are being presented with one expensive, developer-driven vision—take it or leave it.

How Much Will We Pay?

City officials like to say “it’s just a dollar.” In reality, every property owner will pay at least $300 per year, whether the library ever gets built or not. El Cerrito residents pay nearly $3 million per year – at least $75 million + over 30 years for the privilege of paying one dollar rent.

The reality is that El Cerrito could build, retrofit and move into the Barnes N Noble building for $75 million! Instead they’re pushing a ground floor space in an apartment building.

Meanwhile, El Cerrito carries over $80 million in unfunded pension liabilities, has a long history of chronic overspending, and only recently climbed out of the bottom 3% of all California cities on the State Auditor’s fiscal risk list. Despite City Hall’s rosy rhetoric, El Cerrito still ranks in the bottom 20% statewide in financial health.

A Ponzi Scam in Disguise

This bond isn’t really about libraries. It’s essentially a Ponzi scheme: new tax dollars are presented as an investment in the community, but the annual tax revenue is actually diverted into the general fund to cover existing budget deficits. The city conveniently fails to fulfill its promises. Each new measure is added on top of the previous ones, with no structural solutions in place — just new revenue streams to keep the excessive spending and structural inefficiencies running.

Staffing Levels: A Key Driver of Costs

El Cerrito’s staffing structure is significantly larger and more expensive than peer cities of similar size. This isn’t just about “overhead” — it’s a major driver of the city’s $80+ million unfunded pension liability. No other city of comparable population carries a pension burden anywhere near this magnitude.

📊 Fact Box: El Cerrito Staffing vs. Peer Cities

CategoryEl CerritoSan PabloAlbanyHercules
Population~25,000~31,000~20,000~26,000
Fire DepartmentCity-run with 4 Battalion ChiefsRegional fire district (no city battalion chiefs)City-run with 1 Battalion ChiefRegional fire district (no city battalion chiefs)
City Manager’s OfficeCity Manager + Assistant City Manager + Executive Assistant, plus staffCity Manager + Assistant City Manager + support staffCity Manager + Assistant to City Manager City Manager + 1 Administrative Specialist
Unfunded Pension Liability$80+ million — unprecedented for a city this sizeSignificantly lowerSignificantly lowerSignificantly lower

👉 Extra management layers and high fire command staffing have directly contributed to ongoing costs, especially the city’s unfunded pension liability, which burdens current and future budgets year after year.

Broken Oversight Promises: History Repeats

This pattern has played out repeatedly:

  • Oversight committees are promised up front.
  • Once measures pass, City Manager Karen Pinkos redirects the revenue into the general fund, where transparency evaporates.
  • The City Council asks only softball questions, providing no meaningful check. She is never sent back to the drawing board — no matter how flimsy the plan.

A clear example is the pool parcel tax approved by voters in 2000 (Measure A). Residents have paid this tax for decades, yet the city has not set aside enough for maintenance, and now millions more are needed to keep the facility operational. The 2018 Property Transfer Tax followed a similar pattern: promised oversight never materialized, and service levels continued to decline.

A 20,000 sq ft Library in the Digital Era?

At a time when people increasingly access information online, a massive 20,000 sq ft library is financially irresponsible. Sure, neighboring cities have 20,000 ft²; however, those were built a long time ago, when that was more appropriate. However, there’s no longer a need for El Cerrito.

This is not about modernizing services — it’s about creating a permanent new revenue stream for a city that refuses to live within its means.

Follow the Money — Not the Marketing

They call it a library measure; it’s really a budget shell game.
They say “it’s only $1”; we pay $300 a year.
They promise oversight; the money disappears into the general fund.
They promise savings; they show no proof.


They promise transparency; they offer none.

The truth is simple: El Cerrito’s ongoing pension obligations and inflated staffing costs are driving the need for new revenue streams, and library bonds are just the latest tool to plug those gaps. Instead of restructuring spending and addressing the $80+ million pension liability, the city keeps returning to taxpayers for more.

This bond is not a public benefit. It’s a Ponzi scheme, using future tax revenue to patch over today’s budget problems. El Cerrito deserves better than developer giveaways, inflated staffing, skyrocketing pension liabilities, and a City Council that refuses to hold leadership accountable.

What Residents Can Do

El Cerrito’s finances won’t change unless we act. For too long, city leadership has made promises it hasn’t kept, redirected funds from their intended purposes, and expanded overhead while essential services stagnate. This library bond is simply the latest chapter in a long pattern of fiscal misdirection.

Here’s how residents can push back:

  • Don’t sign the petition to place the library bond measure on the ballot.
  • If it does appear on the ballot, vote NO.
  • Reject any new tax or bond measure for this library until the city demonstrates transparency, explores alternatives, and gets its financial house in order.
  • Support and elect new city leaders who are fiscally responsible, who prioritize core services, and who will hold the City Manager accountable instead of rubber-stamping whatever is put in front of them.

El Cerrito doesn’t need more taxes. It requires leaders who will spend wisely, address the $80+ million pension hole, and focus on basic services that residents actually rely on.

It’s time for a change.

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