A Legacy of Neglect

For nearly twenty years, El Cerrito residents have shouldered the consequences of City Hall’s fiscal negligence. The City’s pension costs now exceed $8.5 million every year—roughly 16 percent of the city’s entire General Fund budget. Those costs keep rising, even as service levels fall, and public safety concerns grow.

This didn’t happen by chance. It’s the result of long-standing patterns of mismanagement—decisions made by both elected and appointed leaders that expanded payroll, increased pension obligations, and routinely allowed expenses to exceed revenues year after year.

A History of Warnings—and Inaction

El Cerrito’s fiscal troubles began in earnest during the 2008 recession, when cities across California took aggressive steps to reduce costs, renegotiate contracts, and build long-term financial resilience. El Cerrito did the opposite.

While other municipalities restructured debt, cut nonessential spending, and rebuilt reserves, El Cerrito continued to expand payroll, add positions, and defer necessary reforms. Temporary revenues masked structural problems, and repeated internal warnings about unsustainable spending were ignored.

By 2018, the California State Auditor had taken formal notice—designating El Cerrito a “going concern” because its ability to continue operating independently was in serious doubt. That designation was reaffirmed multiple times between 2018 and 2021, as the Auditor cited the same pattern of declining reserves, mounting debt, and ballooning pension costs.

In 2020, the Auditor ranked El Cerrito in the bottom 3 percent of all California cities for fiscal health—one of the least financially responsible municipalities among more than 400 statewide. The report described “severe fiscal distress,” pointing to shrinking reserves and overreliance on one-time fixes.

Still, City Hall did not act decisively. Budgets continued to draw on reserves to stay balanced. Payroll and pension obligations kept rising. And temporary grant funding or deferred payments were touted as signs of recovery.

Although El Cerrito has since moved out of the bottom 3 percent, it remains ranked among the worst-run cities in California, burdened by the same structural weaknesses that prompted the Auditor’s intervention.

During the pandemic, $6.1 million ARPA funding and the $3+ million of real property transfer tax provided El Cerrito with sorely needed influx of revenue which led to the increase in reserves. However, the city will not get more ARPA funding, and the real property transfer tax has been absorbed into the General fund rather than its intended purposes and the city continues to drain reserves.

Leadership at the Helm

Accountability starts at the top. The following City Managers presided over El Cerrito’s a decline:

• Scott Hanin, City Manager until 2018
• Karen Pinkos, Assistant City Manager under Hanin and current City Manager (2018 – present)

Scott Hanin retired in 2018 with a substantial public pension, funded by the same taxpayers now paying more for fewer services. His departure coincided with the City’s worsening fiscal outlook and the State Auditor’s “going concern” classification.

His successor, Karen Pinkos, has continued that pattern. After stepping into the top post, she negotiated a pension formula and compensation package more favorable than those offered to other employees, ensuring long-term benefits at taxpayer expense.

Her five-year employment contract, approved by the City Council and later extended, included no performance-based evaluation clause, meaning she would not normally be held accountable for measurable fiscal outcomes. However the city council has the power to implement such requirements.

Her package includes:

• A base salary exceeding $230,000 per year, with automatic cost-of-living increases
• Extended her contract for five additional years
• Full CalPERS pension participation at the highest available tier
• Deferred-compensation contributions and executive-leave cash-outs
• Vehicle allowance and professional-association stipends

The Council approved this arrangement without linking pay to performance or financial reform.

The Current Narrative vs. Reality

City Hall now insists that El Cerrito is “fiscally healthy”—pointing to an improved bond rating as proof of progress. But an upgraded credit score doesn’t erase the facts. The City still relies on reserves every year to balance its budget, a clear sign of structural imbalance. Those reserves are finite, steadily shrinking, and unsupported by any long-term capital plan.

At the same time, the City continues to over-tax residents under the guise of earmarking funds for specific purposes. Yet prominent examples—like the Pool Tax and the Real Property Transfer Tax—show a pattern of broken promises. The funds have not been used as initially pledged, and neither tax has been subject to a public audit or independent oversight, even though El Cerrito now carries at least 10 separate taxes on its books.

Fiscal health requires integrity—not just new taxes and a higher bond rating.

Meanwhile, El Cerrito faces an unfunded pension liability of more than $80 million—a burden City Hall continues to ignore in public discussions. There is no transparent repayment plan, no honest accounting of its long-term impact, and no credible strategy to stop the debt from growing.

To make matters worse, the City bundles all of its general fund reserves together and presents the combined total as evidence of fiscal strength. That practice masks the weakness of individual funds, particularly unrestricted reserves and misleads residents about the City’s actual financial position.

Claiming fiscal health while relying on savings and creative accounting to stay afloat isn’t management—it’s manipulation. And manipulation doesn’t pay the bills.

 Officials Who Approved the Budgets and Contracts

To understand how the crisis deepened, here’s a breakdown of City Council members by period of service—and the one leader who tried to do better.

Note: Former Mayor and longtime Councilmember Janet Abelson, who passed away in 2024, served during much of this period. Her decades of civic involvement are recognized, but her leadership choices—particularly around fiscal management—remain central to understanding the City’s ongoing instability.

2008 – 2012 | Post-Recession Expansion

• Janet Abelson
• Letitia Moore
• Bill Jones III
• Sandi Potter
• Ann Cheng
• Greg Lyman

➡️ Context: After the 2008 recession, most cities tightened their belts. El Cerrito expanded payroll, added management layers, and ignored sustainability.

2012 – 2016 | Mounting Costs and Growing Liabilities

• Janet Abelson
• Greg Lyman
• Mark Friedman
• Jan Bridges
• Rebecca Benassini

➡️ Context: Pension and benefit costs ballooned, but spending continued unchecked, draining reserves further.

2016 – 2020 | State Auditor Intervention and Denial

• Janet Abelson
• Greg Lyman
• Gabe Quinto
• Paul Fadelli
• Rochelle Pardue-Okimoto

➡️ Context: When the State Auditor declared El Cerrito a fiscal “going concern,” most of the Council and City Manager downplayed the warning.
Councilmember Rochelle Pardue-Okimoto was the only member who demonstrated true fiscal responsibility, questioning spending, demanding transparency, and calling for oversight when others refused to act.

2020 – 2022 | Public Awareness, Minimal Reform

• Lisa Motoyama
• Tessa Rudnick
• Gabe Quinto
• Paul Fadelli
• Janet Abelson

➡️ Context: Despite the Auditor’s findings and public frustration, reforms were superficial. Payroll and pension costs continued to rise, while essential services lagged.

2022 – Present | Continuing the Pattern

• Lisa Motoyama
• Tessa Rudnick
• Gabe Quinto
• Rebecca Saltzman (elected 2022)
• Carolyn Wysinger (elected 2022)

➡️ Context: Despite claims of “fiscal health,” El Cerrito continues to rely on reserves to balance its budget and has no transparent plan to address its $80+ million pension liability.

Of all these councils, Rochelle Pardue-Okimoto stood alone in advocating fiscal discipline and transparency. Her leadership showed what responsible governance could have looked like—had others followed her example.

The Cost of Inaction

Even more troubling, overtime pay begins after 37.5 hours—not 40, as in neighboring Albany. This means taxpayers shoulder overtime costs sooner and more often, inflating payroll expenses by hundreds of thousands of dollars annually.

While most residents work 40 hours a week or more to make ends meet, El Cerrito City Hall operates just 37.5 hours per week, closing every other Friday.

Despite shorter hours and higher expenses, service quality continues to erode. Nearby cities—Albany, San Pablo, and Hercules—maintain more substantial reserves and deliver better results.

The Path Forward

Now, newly elected officials like Rebecca Saltzman (2024) have shown little appetite for reform. Despite years of warnings and growing frustration, City Hall continues to ignore fiscal fundamentals.

El Cerrito needs leaders who face facts, respect data, and put residents first. The next generation must be fiscally responsible, transparent, and willing to rebuild reserves, reduce liabilities, and restore public trust.

Our future depends on it.
It’s time to stop mortgaging tomorrow to pay for yesterday’s mistakes.

📊 The Numbers Behind the Crisis

Category	Amount / Statistic	Notes
Annual Pension Cost	$8.5 million	≈ 16 % of General Fund spending
Total Payroll (FY 2023)	$51.2 million	Management, Police, Fire, Public Works
State Auditor “Going Concern” Alerts	2018 – 2021	Repeated warnings were ignored by leadership
Fiscal Health Ranking (2020)	Bottom 3 % statewide	Among California’s least responsible cities
Current Status (2024)	No longer the bottom 3 %, but still among the worst-run	Structural imbalances persist
Unfunded Pension Liability	≈ $80 million	No clear plan for repayment
Karen Pinkos Compensation	$230 K + perks	Five-year contract, no performance clause; currently serving
Overtime Threshold	El Cerrito: 37.5 hrs	Albany: 40 hrs – earlier overtime increases costs
City Hall Work Week	37.5 hrs (bi-weekly Friday closure)	Reduced hours vs. 40-hour standard
Crime Trend (2020 – 2024)	↑ Property and auto theft	Linked to reduced police staffing
Nearby City Comparison	Albany • San Pablo • Hercules	Lower payrolls, healthier reserves

Call to Action – Demand Accountability

El Cerrito can’t fix what it refuses to face. Residents deserve transparency, fiscal honesty, and a plan that prioritizes stability over spin.

• Attend City Council meetings.
• Ask why the City still relies on reserves to balance its budget.
• Demand a plan to reduce the $80 million pension liability.
• Question why overtime starts after 37.5 hours — costing taxpayers more.
• Hold leaders accountable for self-serving contracts and fiscal mismanagement.
• Vote for representatives who will protect El Cerrito’s future — not their own comfort.

El Cerrito’s recovery begins with informed residents.

We can do better.