Why El Cerrito’s City Manager Karen Pinkos is Not Fit to Lead: A Timeline of Missteps

In March 2021, the California State Auditor released a report warning that El Cerrito was the 6th most likely among 400+ cities in California to face bankruptcy. This report outlined serious concerns about the city’s overspending, poor budgeting practices, and insufficient efforts to address financial challenges. Under City Manager Karen Pinkos, who took office in 2018, the city’s financial health has only “missed opportunities”.

Despite the urgency of these issues, they have not been resolved—and El Cerrito is now ranked as the 13th most likely city in California to go bankrupt.

2021 State Auditor’s Report

Key Findings from the State Auditor’s Report

The auditor’s report, “Excessive Spending and Insufficient Efforts to Address Its Perilous Financial Condition Jeopardize the City’s Ongoing Fiscal Viability”, highlighted the following major concerns:

  1. Continual Overspending: For years, El Cerrito has spent more than it brought in, causing deficits in the general fund. The city relies heavily on short-term loans to cover budget gaps, and the costs continue to mount. Despite this, no significant reforms have been introduced to rein in expenses:“Because It Consistently Overspends, El Cerrito Is in a Weak Financial Position, as Demonstrated by a Deficit in Its General Fund, Reliance on Costly Short-Term Loans, and Rising Pension Costs.”
  2. Pension Liabilities: El Cerrito’s massive pension liabilities continue to grow. The administration under Pinkos has made no effort to pay more than the minimum contribution required, despite the increasing burden these pensions place on the city’s budget. The city has yet to develop a viable plan to reduce this long-term liability:“According to El Cerrito’s finance director, the city does not plan to pay more than the minimum required employer contribution each year.”
  3. Inadequate Infrastructure and Capital Funding: The city’s infrastructure remains neglected, and capital projects have been delayed for years. At the current pace of spending, it would take more than 50 years to address even the most basic infrastructure needs:“Because of its financial condition, El Cerrito has delayed efforts to address the maintenance and repair of its facilities and the development of needed capital projects.”

Declining Bond Ratings: A Red Flag

During Karen Pinkos’ tenure, El Cerrito’s bond ratings have steadily declined, further evidence of the city’s deteriorating financial health. A downgrade by both S&P and Moody’s reflected concerns about the city’s ability to manage its finances and pay its obligations. Declining bond ratings are a direct reflection of how poorly the city’s finances have been handled under Pinkos’ leadership. This impacts the city’s ability to borrow money for essential projects and increases the cost of existing debt.

The bond rating agencies have cited El Cerrito’s structural deficit, reliance on reserves, and rising pension costs as reasons for the downgrade. Yet, despite these warnings, no effective measures have been taken to improve the city’s financial standing.

Sexual Harassment Settlement: Another Burden

Adding to the city’s financial woes is the $544,000 settlement El Cerrito paid in 2021 to resolve a sexual harassment lawsuit. The settlement stemmed from a complaint against a city official, further straining the already precarious city budget. This settlement is not only a financial burden, but it also underscores a lack of dedication to employee well-being under Karen Pinkos’ leadership. The mishandling of such a serious issue indicates broader concerns about the work environment and employee protections, reflecting poorly on the city’s overall commitment to supporting its staff.

Problems Persist: No Real Solutions

Despite the glaring warning signs from the State Auditor six years ago, declining bond ratings, and costly legal settlements, these critical issues have not been resolved. Nearly three years after the State Auditor’s report, El Cerrito’s financial situation remains precarious. No comprehensive plan has been introduced to address the city’s long-term budget crisis, overspending continues, and pension liabilities loom larger than ever. Meanwhile, the city’s infrastructure remains underfunded, and residents are still left in the dark about the true state of the city’s finances.

Prior to the 2021 report, the state auditor sent TWO letters of concern to El Cerrito. After 6 years she should be years well into the strategic plan implementation. The concept of a plan is woefully inadequate.

Lack of Transparency and Misleading the Public

Karen Pinkos has continuously demonstrated a lack of transparency in how the city communicates its financial situation. The city manager has misled residents on multiple occasions, particularly regarding the true extent of El Cerrito’s debts. In public presentations, Pinkos downplayed the city’s $90 million in unfunded pension liabilities, falsely claiming that the city has “very little debt.” This misrepresentation has allowed her administration to deflect scrutiny while asking residents to pay higher taxes without explaining where their money is going. she maintains that all of the state auditors concerns have been addressed. Nothing could be further from the truth.

The lack of open communication has left El Cerrito residents in the dark about the real state of the city’s finances. As a result, citizens are making decisions based on incomplete and often misleading information.

Misaligned Priorities and Strategic Failures

Pinkos has continuously demonstrated an inability to align city priorities with fiscal realities. Instead of focusing on long-term financial stability, she has pursued non-strategic priorities that only exacerbate the city’s fiscal problems. For instance, while infrastructure continues to crumble and pension liabilities grow, Pinkos purchased a $1.5million building while more important capital needs remain unmet. She has expanded administrative ranks and hired costly consultants. These decisions have added further strain on the city’s budget, offering little in return to the community.

Misleading Residents to Secure Tax Increases

Perhaps the most troubling aspect of Karen Pinkos’ leadership is her administration’s use of misleading tactics to secure public support for higher taxes. Residents have been asked to approve tax increases under the premise that essential services will be cut without them. However, despite these taxes, financial mismanagement continues, with little accountability for how those funds are being spent.

Residents have a right to ask: Is this tax really necessary, or is it just another Band-Aid solution to cover up ongoing fiscal mismanagement?

Why Karen Pinkos is Not Fit to Run El Cerrito

Karen Pinkos has had years to address these issues, yet the evidence shows that under her leadership, El Cerrito continues to spiral deeper into financial trouble. Her administration has shown no real commitment to fixing the underlying problems:

  • Overspending has not been controlled.
  • Pension liabilities of $90 million remain unfunded, with no strategy to address them.
  • Essential infrastructure continues to deteriorate.
  • Residents have been misled, and transparency remains a serious issue.
  • Declining bond ratings – BBB reflects the growing concern of external agencies over the city’s financial health.
  • A $544,000 sexual harassment settlement has further burdened the city’s finances and highlights a lack of dedication to employee well-being.
  • El Cerrito is now ranked 13th most likely to go bankrupt in California. This is among approximately 400 cities, which means approximately 390 CA cities are better managed than El Cerrito

Pinkos has demonstrated time and again that she lacks the strategic vision, financial discipline, and leadership skills necessary to turn El Cerrito around. The same issues identified in the March 2021 State Auditor’s report persist today, with no indication that the city is on a path toward fiscal stability.

The Path Forward

El Cerrito cannot afford another year of Karen Pinkos’ leadership. The city needs a leader who values transparency, fiscal responsibility, and strategic planning. Without these qualities, the future of El Cerrito remains at risk, with financial mismanagement continuing to jeopardize essential services and the quality of life for its residents.

The time has come for a change—El Cerrito deserves leadership that is committed to real solutions, not more Band-Aids, misdirection, and inaction. Our city’s future depends on it.

State Auditor’s Report on El Cerrito – March 2021

#ElCerrito #CityManagement #FiscalResponsibility #TransparencyMatters #LeadershipChange #KarenPinkos #CaliforniaCities #BankruptcyRisk #ElCerritoBudget #PensionLiabilities #BondRatings #SexualHarassmentSettlement #EmployeeWellBeing #CommunityFirst #TimeForChange

More Deception

In recent years, the City of El Cerrito has developed a reputation for confusing its residents with misleading initiatives, and the latest Measure G is no exception. The ballot language appears to indicate that the proposal is for a “1 cent” sales tax, but in reality, it represents a 1 percent sales tax. While the difference may seem subtle, the financial implications are significant.

A 1 cent tax is understood by most residents to be a fixed, nominal amount, while a 1 percent tax directly correlates to a percentage of every transaction. This deceptive wording creates the illusion that the financial burden would be minor when, in fact, it is far more substantial. If passed, Measure G would generate approximately $4 million annually for the city, as the flyer itself mentions.

This isn’t the first time El Cerrito has been accused of such tactics. The city has a history of providing unclear information on financial matters, making it difficult for residents to fully grasp the long-term impact of such measures. The language of Measure G is crafted to soften the blow of what is effectively a tax increase, despite the “no tax increase” messaging.

City leadership would like you to believe the tax isn’t a “forever “tax, but there’s no sunset. Effectively, it’s “forever” tax as it would take considerable time and financial resources to repeal the tax.

The citizens of El Cerrito deserve transparency, especially when it comes to initiatives that affect their wallets. Misleading language only erodes trust in local government, and Measure G, with its unclear terms, is another move in a series of actions that undermines that trust. If you’re voting, be sure to understand the true nature of the proposal before making your decision.

The Cost of Overstaffing: How El Cerrito’s Bloated Payroll is Draining Public Resources

In a startling comparison between two neighboring cities, El Cerrito and Hercules, we find an alarming disparity that should concern every resident and taxpayer in El Cerrito. Both cities cover roughly four square miles and serve similar populations, yet El Cerrito’s staff size is nearly twice that of Hercules. This bloated staff not only burdens the city’s salary costs but also inflates pension liabilities, contributing significantly to El Cerrito’s enormous $90 million unfunded pension liability.

The Impact of Inflated Staffing

Why does this matter? The answer is simple: money. The larger the staff, the higher the salary and medical premium costs. But that’s just the beginning. Each additional employee also adds to the city’s pension obligations, which are already unsustainable. El Cerrito’s unfunded pension liability is a ticking time bomb, currently at $90 million and the city’s inability to manage its staff size responsibly is adding fuel to the fire.

Hercules, by contrast, manages to operate with roughly half the employees of El Cerrito. This isn’t due to a lack of services or lower standards; it’s the result of smarter, more efficient management and resource deployment. Hercules demonstrates that it is possible to run a city of this size effectively without burdening the taxpayers with unnecessary costs.

Management, Not Unions, at Fault

This is not an issue with the unions, as some might suggest. The problem lies squarely with city management. The City Manager, who is responsible for determining the size of the city staff, also sets the raises and pension benefits. Unfortunately, the El Cerrito City Council has gone along with this reckless expansion of the city’s payroll, approving these decisions without sufficient scrutiny.

It’s worth noting that many of the highest-paid staff in El Cerrito, including the City Clerk, are not even unionized. Despite this, they command salaries + benefits of $275,000 or more, a figure that is not only excessive but unsustainable for a city of just 25,000 people.

A Call for Accountability

El Cerrito’s inflated staff size is a glaring example of mismanagement. The City Manager’s decisions have cost the public buckets of money, and the long-term impact on the city’s financial health could be catastrophic. The comparison with Hercules should serve as a wake-up call. It is possible to run a city of this size efficiently, with fewer staff and lower costs, without sacrificing the quality of services.

The El Cerrito City Council must take immediate action to right-size the city’s staff and implement stricter oversight of the City Manager’s decisions. The current path is unsustainable and will only lead to further financial strain on the city’s residents.

It’s time for a change in how El Cerrito is managed—before it’s too late.

#CityManagement #PensionCrisis #LocalGovernment #FiscalResponsibility #TaxpayerMoney #PublicFinance #HerculesCA #MunicipalManagement #Accountability #CityCouncil #UnfundedLiabilities #LocalPolitics #ElCerrito

The Purpose of El Cerrito Committee for Responsible Government (ECCRG): Informing, Empowering, and Uniting Residents

In a city like El Cerrito, staying informed about local government actions is key to ensuring transparency and accountability. The El Cerrito Committee for Responsible Government (ECCRG) is dedicated to keeping residents up to date on financial and civic matters that directly impact their community. Unlike divisive groups, ECCRG’s mission is to provide clear, actionable information to empower residents, especially when the city lacks transparency.

Promoting Awareness and Accountability

ECCRG plays a critical role in helping El Cerrito residents understand the financial, political, and community decisions that shape their city. At times, official city communications may lack detail or clarity, and ECCRG steps in to ensure that residents receive the full picture. Here’s how:

  • Bridging Information Gaps: ECCRG offers detailed analysis on city finances, budgets, and governance decisions, especially in cases where transparency is limited. This lets residents be fully informed about the issues that affect them most.
  • Encouraging Civic Engagement: ECCRG urges residents to actively participate in local government by attending city council and Financial Advisory Board (FAB) meetings, where key decisions are made. Resident involvement is crucial to holding officials accountable and ensuring their voices are heard.
  • Advocating for Fiscal Responsibility: ECCRG monitors city financial practices, ensuring responsible spending and transparency. The committee provides insights and recommendations to prevent mismanagement and promote better financial stewardship for the community.

When Are Blogs Like This One Necessary?

In an ideal world, local governments provide open, honest, and clear communication to their residents, and local newspapers focus on highlighting city events, governance issues, and public decisions. In cities where these conditions exist, blogs like this one may be unnecessary. When the government operates transparently, residents can easily access information on public meetings, financial decisions, and policy changes through official channels or local media.

However, when city communication is unclear, incomplete, or difficult to access—and when local newspapers are unable or unwilling to focus on these important matters—communities like El Cerrito need alternative sources of information. ECCRG fills this gap by providing residents with the details and transparency that are sometimes lacking. Until the city consistently practices open communication and accountability, organizations like ECCRG remain essential to ensuring that the public stays informed and engaged.

Divisiveness vs. Providing Essential Information

It is important to differentiate between creating division and providing necessary information to empower residents. ECCRG’s goal is to inform, unite, and ensure accountability, not to divide. Here’s the key difference:

  • Accountability Without Division: Divisive groups often aim to stir conflict and polarization. ECCRG, however, fosters unity by bringing residents together around shared values of responsible governance and fiscal transparency.
  • Filling Information Gaps for Clarity, Not Conflict: When the City of El Cerrito fails to fully disclose or explain its decisions, ECCRG provides the missing information. This is not about creating division; it’s about ensuring that residents have all the facts needed to participate in meaningful discussions and decisions.
  • Constructive Criticism, Not Polarization: ECCRG’s approach is to offer solutions, not just criticism. The committee advocates for improvements and reforms in governance, promoting a better, more efficient city for all residents.

Take Action: Attend Upcoming Meetings and Contact Officials

Participation is key to driving meaningful change. ECCRG encourages all residents to get involved by attending these crucial meetings:

  • City Council Meeting: October 15, 2024, at 6:00 PM, City Hall
  • Financial Advisory Board (FAB) Meeting: October 22, 2024, at 6:30 PM, City Hall

These meetings provide an opportunity for residents to ask questions, offer input, and stay informed about the decisions that shape El Cerrito’s future.

In addition to attending meetings, residents are encouraged to write to the City Manager and City Councilmembers to express concerns and share feedback. Contact information for city officials is provided below:

Get Involved

Now is the time to act. Attend City Council and FAB meetings, reach out to city officials, and engage with the El Cerrito Committee for Responsible Government to help ensure a more transparent, fiscally responsible, and united community. Together, we can make El Cerrito better for everyone.

  • #ResponsibleGovernmentElCerrito
  • #ECCRG
  • #ElCerritoTransparency
  • #CommunityEngagement
  • #FiscalResponsibility
  • #ElCerritoCityCouncil

Editorial: Why Karen Pinkos Has Not Been Successful as El Cerrito’s City Manager

Karen Pinkos, El Cerrito’s City Manager, has had more than five years to address the pressing concerns raised by the State Auditor, but rather than take meaningful action, she continues to insist that everything is just fine. This lack of transparency and failure to act has done little to reassure the residents of El Cerrito, who have been left to bear the consequences of her inaction.

Before the State Auditor’s 2021 report, two letters of concern had already been sent to El Cerrito, warning of the city’s poor financial management and operational inefficiencies. These warnings were a clear signal that change was needed, but Karen Pinkos has chosen to focus on telling everyone how well she’s doing rather than fixing the real problems.

Despite having years to turn things around, the financial mismanagement continues, and city services have declined. Residents are being told that all is well, yet they are living through higher taxes, reduced services, and a city that remains in financial distress. Pinkos’ persistent marketing of her so-called success rings hollow when faced with the facts.

During the council meeting, when asked about making budget cuts, she explained that services would have to be reduced. It’s important to note that costs have significantly increased over the past five years, yet services have not improved. Therefore, reducing costs does not automatically mean a decrease in services.

The state’s intervention should have been a wake-up call, but Karen Pinkos seems more focused on protecting her image than doing the hard work required to put El Cerrito on stable financial ground. The residents deserve better—leadership that faces reality and takes action to solve the city’s longstanding issues, not someone who dismisses warnings and pretends everything is under control.

#ElCerrito #CityManagement #LeadershipFail #KarenPinkos #FinancialMismanagement #StateAuditor #ElCerritoWarning #CityTransparency #ResultsNotRhetoric #HigherTaxesNoResults #PublicAccountability #ElCerritoLeadership #ElCerritoResidents #AccountabilityMatters #ElCerritoCommitteeForResponsibleGovernment

Hypocrisy Unveiled

In a performance reminiscent of the republican VP candidate’s debate tactics, El Cerrito’s City Manager, Karen Pinkos, proved herself a master at shapeshifting. She pulled out every rhetorical trick in the book to sidestep looming questions during the recent City Council meeting. It didn’t take long for the council to join in to congratulate themselves.

The topics avoided? The city’s unrestricted general fund reserve balance (or lack thereof), its embarrassing BBB bond rating, probable overstaffing, ballooning costs, and declining quality of services. Yet, instead of addressing these glaring financial issues head-on, Pinkos spent over five minutes congratulating herself and her staff on a presentation award, spinning it as if it were a genuine achievement for financial stability.

For those who aren’t aware, El Cerrito currently holds the ignominious title of the 13th worst-run city in California. The claim of financial stability couldn’t be further from the truth. How can the City Manager claim stability when residents are seeing reduced services, from park maintenance and street repairs being neglected to overall public infrastructure deteriorating? Meanwhile, the city remains overstaffed and operational costs continue to rise with no real plan to manage these issues in sight.

Financial Smoke and Mirrors

One of the most striking moments of the meeting was when City Manager Karen Pinkos danced around the question of the unrestricted reserve balance. A reserve balance is essentially the city’s rainy day fund, a key indicator of financial health. For a city like El Cerrito, which has been teetering on the edge of fiscal crisis for years, you’d think this would be a top priority. Instead, Pinkos sidestepped the question entirely, offering vague statements about “future plans” without giving any specifics. This kind of obfuscation only breeds mistrust.

And what about El Cerrito’s BBB bond rating? This low rating signifies high credit risk, making it more expensive for the city to borrow money. Rather than present a clear strategy for improving this rating, the City Manager offered more evasive answers, suggesting the city’s finances were on the mend without presenting any hard data or actions to back up these claims.

Declining Infrastructure and Ballooning Costs

The city’s deteriorating parks, paths, and streets are clear indicators of where El Cerrito’s priorities do not lie. Over the past few years, the Park Maintenance Index and Pavement Condition Index have both shown marked declines. Residents frequently report cracked sidewalks, poorly maintained park grounds, and deteriorating bike paths—all while the city continues to spend on non-essential projects and an overstaffed administration.

The city’s financial problems are exacerbated by this overstaffing, leading to a bloated budget that is becoming increasingly unsustainable. How can a city justify keeping more staff while public spaces and infrastructure continue to degrade?

When asked about this contradiction, Pinkos dodged once again, reverting to talking points about “staff retention” and “future initiatives.” What future initiatives? At a time when El Cerrito’s residents are getting less and less in return for their tax dollars, the idea of staffing up even more is baffling. There was no mention of plans to streamline operations, reduce redundancies, or even consider a hiring freeze.

Celebrating a “Presentation Award” as a Sign of Stability?

Perhaps the most insulting moment of the evening was the City Manager’s lengthy monologue praising herself and her staff for receiving a presentation award, which she framed as a “budget award.” Let’s be clear—this is not an award for sound financial management or fiscal responsibility. It’s a nod to how well a budget is presented, not how well it’s managed. To spin this into a symbol of financial stability is disingenuous at best and deceitful at worst.

We get it, Karen. You’re a master at shapeshifting, but we’re not buying it. El Cerrito’s residents deserve transparency and accountability, not more smoke and mirrors. While Pinkos and City Council members congratulated themselves, El Cerrito residents are left wondering: Where’s the transparency? Where’s the accountability? Where’s the plan to move this city away from the financial precipice?

Contact Your City Officials

If you’re tired of the non-answers, shapeshifing and dodging, it’s time to speak up. Let your voice be heard and demand real answers. Contact the City Manager and your City Council members today:

City Manager:
Name: Karen Pinkos
Email: kpinkos@ci.el-cerrito.ca.us

City Council Members:
Name: Gabe Quinto
Email: gquinto@ci.el-cerrito.ca.us

Name: Tessa Rudnick
Email: trudnick@ci.el-cerrito.ca.us

Name: Paul Fadelli
Email: pfadelli@ci.el-cerrito.ca.us

Name: Lisa Motoyama
Email: lmotoyama@ci.el-cerrito.ca.us

Name: Carolyn Wysinger
Email: cwysinger@ci.el-cerrito.ca.us

It’s time for El Cerrito’s leadership to stop the shapeshifting and start answering the tough questions. The city’s future depends on it.

#ElCerrito #CityManagement #DemocraticHypocrisy #PoliticalDoubleStandards #CaliforniaPolitics #Transparency #Accountability #LocalGovernment #StopTheSpin #ResidentsMatter #ElCerritoCityCouncil #BudgetTransparency #FinancialAccountability #ShapeshiftingCityManager #JDVanceComparisons

Choose Fiscal Responsibility: Vote for ONE or TWO, Not Three

El Cerrito voters, while you can vote for up to three candidates, the El Cerrito Committee for Responsible Government urges you to cast your vote for just one or two candidates who will focus on fiscal responsibility. Newcomers Rebecca Saltzman and Courtney Helion are advocating for higher taxes, while William Ktsanes is committed to pushing for a city that prioritizes fiscal sustainability without increasing the burden on residents.

Learn more:

Think about the El Cerrito that we pass on to the next- generation – your children and grandchildren. Vote smart for a responsible future for El Cerrito.

#FiscalResponsibility #ElCerritoVotes #LowerTaxes #VoteSmart #CityCouncilElection

Why El Cerrito Doesn’t Have a Senior Center: A Call to Action

For decades, El Cerrito was home to a vibrant senior center located behind the library on Stockton Avenue. The Open House Senior Center was a community hub where seniors could gather, take classes, enjoy meals, and access critical resources. However, in 2018, the West Contra Costa County School District reclaimed the building, forcing the city to move the senior center to two portable buildings next to the police department on San Pablo Avenue. Renamed the “El Cerrito Midtown Activity Center,” the center continued offering essential services—until 2020.

Never Reopened

In March 2020, the senior center was closed due to the COVID-19 pandemic. While many of us hoped the closure would be temporary, the city quietly decided not to reopen the center or restore the full range of services once provided to our seniors. The city eliminated one of the portable buildings, leased the other to the Kensington Police Department, and significantly scaled back senior programming. What little remains is now hosted at the Community Center on Moeser Lane, but it pales in comparison to the offerings of a dedicated senior center.

If you’ve seen the “Senior Center” sign at Hana Gardens next to City Hall, you might be surprised to learn that it’s just an empty conference room rented out for private events—nothing more. This is not the senior center our community needs.

El Cerrito’s seniors deserve better. The pandemic is no longer an excuse, and the city must prioritize reopening a permanent, fully funded senior center. It’s time for city leadership to act.

We urge you to contact the City Manager and City Council members to demand action:

Let them know that El Cerrito’s seniors deserve the return of a full-time, dedicated senior center.


#SupportOurSeniors #ElCerrito #SeniorCenter #ECSeniorServices #ElCerritoCouncil #CommunityCare #SeniorHealth #ElCerritoAction #AdvocateForSeniors #ReopenECSeniorCenter

Rebecca Saltzman’s Bid for El Cerrito: A Leap from BART’s Fiscal Challenges

In 2016, Debora Allen joined BART BOD promising to bring common-sense leadership to the BART Board of Directors. She focused on improving the safety of BART riders and workers, bringing financial transparency to BART’s $2.4 billion annual budget, and maintaining political independence from special interest groups.

From the onset, Allen understood the immense challenges faced by BART, the nation’s fifth-largest transit agency. Her journey has been an uphill battle, consistently advocating for sound fiscal policies and common-sense measures. The pandemic and a 60% permanent loss in ridership have exacerbated these challenges, yet Allen has diligently worked to bring oversight and accountability, facing structural deficits of over $350 million annually.

Contrastingly, Rebecca Saltzman, an urban director, and majority board member, has often been at odds with Allen’s fiscally responsible approach. Saltzman’s tenure saw her focus on agendas that some argue have hindered BART’s recovery post-pandemic, contributing to its ongoing financial woes. In fact, she voted against Allen’s cost reduction requests every year Now, Saltzman has announced she will not seek re-election to the BART Board but will instead run for the El Cerrito City Council. This move has raised concerns, as she transitions from one financially troubled institution to another.

However, one might wonder if the financial turmoil BART faces also influenced her decision. Is it possible that she wants to distance herself from the fiscal challenges BART is facing, or is she genuinely motivated to bring about positive change in El Cerrito?

Saltzman’s 2024 campaign yard sign reads “experience matters” We couldn’t agree more. Saltzman has been on the BART BOD since 2012 – for 12 years

BART is grappling with severe financial difficulties driven by a sustained decline in ridership, escalating operational costs, and mounting pension liabilities. The agency’s fare revenues have not kept pace with rising expenses, particularly in areas like maintenance and pension obligations, putting additional strain on the budget. Efforts to maintain service levels have further stressed financial resources, leading to discussions about potential tax measures, fare increases, and other funding mechanisms to stabilize its financial outlook.

These issues sound strikingly similar to El Cerrito’s problems, where mismanagement and fiscal irresponsibility have plagued the city. Rebecca Saltzman, having played a role in creating these financial and operational challenges at BART, is ill-equipped to address El Cerrito’s financial crisis, given her track record of enabling similar fiscal missteps.

El Cerrito is once again teetering on the brink of bankruptcy under its current city management. Saltzman’s track record at BART, which includes significant financial and operational challenges, raises doubts about her ability to navigate El Cerrito out of its financial turmoil.

While Saltzman’s commitment to public service is evident, her move to El Cerrito’s City Council sparks debate. Will her experience at BART translate into effective governance for El Cerrito, or is this a strategic retreat from a sinking ship? Only time will reveal whether Saltzman can positively impact El Cerrito’s future and steer the city away from the brink of bankruptcy.

BARTFinancialCrisis #ElCerritoIssues #FiscalResponsibility #PensionLiabilities #TransitFunding #PublicAccountability #TaxpayerConcerns #LeadershipFailings #SustainableSolutions #TransportationCrisis #CityMismanagement #RebeccaSaltzman

The El Cerrito Library: A Tale of Workshops, Secrecy, and Misguided Plans

The City of El Cerrito continues to hold “public workshops” that are nothing more than pep rallies for the Transit-Oriented Development (TOD) library. At the last event held at the library, no information was distributed, and no relevant questions were answered. The city has little involvement in operating the library. The County has total control and funds what goes on in the library with our property taxes: people, programs, hours. The City lacks any expertise or domain knowledge in library science. So, why are they holding these “workshops”? About what, exactly?

The real reason for this dog and pony show is that the City needs the $300 per resident “forever tax” money to cover excessive spending. This tax is a perpetual burden on residents, designed to cover financial mismanagement rather than truly serving the community’s needs.

The Real Issue: Location and Cost

The real issue is simple: where is the best place to locate the library, and how much space do taxpayers want to pay for a new or renovated building? Residents want their say, but they are not getting it. Worse yet, parcel owners will foot the bill alone and not getting their say. Even non-residents have several questions about the proposed project. Many believe the alternative sitings for the library are far superior, but also think the existing library is a good fit for a new reconstruction. No one knows how the city insiders come up with “no parking” at the current library. It’s hard to understand how voters could decide on a new library without knowing what the alternatives were/are. That seems a rather undemocratic kind of “voting.”

Lack of Transparency and Questionable Financial Plans

The City has put forth plans that lack details, except they somehow plan to turn a supplemental parcel tax into $21,000,000 of proceeds for constructing the housing development, of which the library will occupy 20,000 sq ft.

  1. Lease Agreement Negotiations: What is the City negotiating with the Contra Costa County (CCC) Library Commission Lease Agreement document? The City has no involvement in library operations other than authorizing up to more hours a week of library hours. Its only job is to provide space for a library.
  2. Interest Payments: Who is paying the $1,600,000 interest payment on the proposal? Not the City. How does the Supplemental Property Tax collected by the CCC Tax Collector get to El Cerrito and to the entity paying the interest on the $21,000,000 that is going to be raised for construction? It’s all complicated and a bad sign.

Developer Influence and Lack of Competition

The City seems to be “captured” by the housing developer and the City Council. No other contractor wants to talk to El Cerrito because the City Council is already committed to the housing developer, to which the City made a $250,000 investment, making it clear that engaging with other contractors would be a waste of time.

A Call for Transparency and Resident Involvement

Residents deserve transparency and the ability to have a meaningful say in where their library is located and how much they will pay for it. The current process is opaque, with critical information withheld from the public. The City’s workshops should provide real answers and detailed plans, not serve as mere promotional events for pre-decided outcomes.

It’s time for the City to listen to its residents and provide the transparency and involvement they deserve. Without this, the future of the El Cerrito Library remains uncertain, and the trust in our local government continues to erode.

We urge all El Cerrito residents to demand transparency and accountability from their city officials. Attend city council meetings, ask tough questions, and insist on detailed plans and honest answers. Voice your concerns about the proposed perpetual tax and the lack of resident involvement in these critical decisions. Together, we can ensure that our community’s needs are met and that our local government truly serves its people. Join us in advocating for a library plan that reflects the desires and best interests of all residents. Your involvement is crucial. Let’s hold our City accountable and shape the future of our library together.

Greg Lyman: A Record of Financial Mismanagement and Misleading Narratives

During Greg Lyman’s tenure on the El Cerrito City Council from 2008 to 2020, the city’s financial health sharply declined, culminating in a bond rating drop from AA- to BBB-. Lyman’s leadership failed to adapt to the city’s financial “new normal,” despite attributing the need to draw on reserves to the 2008 recession. This short-sighted approach multiplied exponentially and left El Cerrito with a staggering $100 million liability owed to CalPERS.

In his 2019 interview with the State Auditor, Lyman provided misleading information, shifting blame to external factors and neglecting his role in exacerbating the city’s financial issues. He attributed the need to dip into reserves solely to the recession, yet failed to implement necessary financial adjustments once the city’s revenue stabilized. This resulted in a continued reliance on reserves and worsening fiscal conditions for El Cerrito.

As financial troubles mounted, Lyman’s policies led to significant cuts in services for residents. Senior center programs were reduced, library hours were shortened, and city hall’s operating hours were cut—all while city employees continued to work a 37.5-hour workweek, an unsustainable approach given the city’s financial turmoil. Despite these cuts, El Cerrito’s pension obligations continued to rise, placing an even greater burden on the community.

Now, as an employee of the San Francisco City and County, Lyman is maximizing his CalPERS retirement benefits. While San Francisco’s robust financial resources can absorb these high pension payouts, the decisions made by Lyman while on the El Cerrito council have left the city struggling with unsustainable pension liabilities and reduced services for its residents.

Residents deserve better leadership in the El Cerrito Democratic Party—one that prioritizes fiscal responsibility, transparency, and the long-term financial health of the community.

For more details on Lyman’s statements during his 2019 interview, you can access the full document here.

#GregLyman #ElCerrito #CityCouncil #FinancialManagement #BondRating #PensionReform #CalPERS #StateAuditor #CommunityServices #CityHall #FiscalResponsibility

Greg Lyman: El Cerrito’s Power Broker of Fiscal Irresponsibility – It’s Time to Change the Guard

Greg Lyman, a former City Councilmember turned El Cerrito power broker, currently serving as Treasurer for two city council candidates he endorsed. Lyman has consistently pushed policies that exacerbate the city’s fiscal woes. Known for his influence on local decision-making and El Cerrito City Council candidates, Lyman has supported expanding city spending, including bloated administrative salaries and an oversized fire department that employs four battalion chiefs—far more than any other California city of similar size. Despite not having faced a major fire in years, the department’s focus remains on staffing rather than prioritizing fire prevention, which should be its main objective. This mismanagement only adds to the city’s already inflated expenses.

Similarly, the police department has one of the largest forces for a city of El Cerrito’s size, yet crime prevention has not improved in proportion to its growth. The focus has remained on staffing rather than taking proactive, data-driven approaches to reduce crime. These issues reflect Lyman’s broader pattern of fiscal irresponsibility, which leaves residents paying for inefficiencies instead of solutions.

During his tenure at City Hall as a council member, Lyman’s fiscal irresponsibility has been nothing short of damaging. Under his leadership, El Cerrito consistently overspent on salaries and pension obligations while ignoring the looming debt crisis. His lack of foresight has contributed significantly to the financial disaster the city is now grappling with. Residents are still living with the fallout from decisions made under his watch, with ballooning debt, depleted reserves, and a reliance on future tax hikes to plug financial holes. Instead of exercising fiscal restraint, Lyman’s tenure exemplified unchecked spending that has left the city teetering on the edge of bankruptcy.

One of his most controversial proposals is recent – the “$300 per year forever tax” to fund a new library. While El Cerrito does need a new library, Lyman’s advocacy for a permanent tax places an undue and unnecessary burden on the city’s residents. This tax comes on the heels of El Cerrito securing $39 million in funding for housing, making it hard to justify asking taxpayers for more. Instead of offering sustainable financial solutions, Lyman has continued his pattern of opting for short-term fixes, relying on taxpayer dollars to paper over deep-rooted problems.

It’s Time to Change the Guard
Lyman’s track record proves that new leadership is essential for El Cerrito’s future. We need council members who will prioritize fiscal responsibility, focus on efficient city services, and make decisions that benefit residents, not just the city’s administration. It’s time for fresh perspectives, innovative solutions, and real accountability to take center stage in El Cerrito.

Call to Action
Contact the El Cerrito City Council today and voice your opinion on Greg Lyman’s misguided financial policies and the unnecessary $300 forever tax. Let’s ensure that the city is held accountable for its fiscal decisions and that meaningful solutions are prioritized over tax hikes.

Hashtags
#ElCerrito #FiscalResponsibility #NoForeverTax #GregLyman #ChangeTheGuard #CommunityVoice #StopTheTax #ElCerritoCityCouncil

CalPERS Update: El Cerrito UAL Payments to Exceed $10 Million in 2031

City staff would lead you to believe that the unfunded liability fluctuates. However, over the last 5+ years, the amount has only increased. The latest CalPERS actuarial report reveals that El Cerrito’s pension liability (UAL – unfunded accrued liability) has risen to $89,246,893, up from $84,956,834. This poor financial planning will cost El Cerrito taxpayers $7,763,945 for FY 2026, a significant jump from just under $7 million paid in FY 2025.

CalPERS projects that the FY 2031 payment will surpass $10,212,000.

To address this $89 million deficit, the city has only set aside a little over $1 million in a Section 115 Trust.

Despite these alarming figures, insider candidates Courtney Helion, Lisa Motoyama, and Rebecca Saltzman still maintain that El Cerrito is on solid financial ground.

🔗 CalPERS Public Agency Valuation Reports

El Cerrito’s GFOA Budget Award: A Hollow Victory for a City in Financial Turmoil

GFOA Budget Award

It turns out that the Government Finance Officers Association (GFOA) did, in fact, award the City of El Cerrito with a budget award. But before we break out the confetti, it’s important to understand what this award actually measures—and what it doesn’t.

The GFOA budget award, despite its name, isn’t actually a “budget award” in the traditional sense of evaluating financial health. It’s more accurately described as a Budget Presentation Award. The award focuses on how well a budget is presented, how clearly it communicates its contents, and how many public discussions were conducted. It does not require that the city include public recommendations in the budget. The budget award does not assess a city’s financial sustainability, long-term planning, or overall fiscal health.

In other words, a city can receive this award even while facing severe financial instability—as long as the budget document is well-organized and looks good on paper.

It’s worth noting that El Cerrito’s name does not appear on the GFOA website along with the other award recipients. Presumably, this is because the award was granted after the initial group was listed. This raises further questions, especially given El Cerrito’s financial struggles. Was the City’s budget award granted after an appeal or reconsideration? If so, it only underscores how misleading this recognition can be when taken out of context.

In 2023, 159 California cities—about one in three—received the GFOA budget presentation award, including several that are on the California State Auditor’s high-risk list of cities most likely to become bankrupt. Clearly, the GFOA award does not differentiate between cities with sound financial footing and those on the verge of insolvency. It’s simply a recognition of how well a city presents its budget, not how well it manages its finances.

When “Recognition” Means Nothing

To put this in context, let’s look back to the 2014 Comprehensive Annual Financial Report (CAFR)—now referred to as the Annual Comprehensive Financial Report (ACFR). The City of El Cerrito proudly displayed its GFOA award in the CAFR, but just a few pages later, the independent auditor expressed serious concerns that the City might not be able to continue as a going concern. The auditor’s report highlighted that El Cerrito’s financial position was so precarious that it questioned the city’s ability to meet its financial obligations and continue operating normally.

This contradiction makes it clear: a GFOA budget presentation award is no guarantee of financial well-being. In fact, it can be misleading when presented without context. The City’s financial documents showed severe issues—so severe that the independent auditor felt it necessary to issue a “going concern” warning. Yet, the City flaunted the GFOA award as if it were an indicator of sound financial management. And we know that the city has had deficit budgets in most years since then.

Why the Award Doesn’t Reflect Financial Health

The GFOA budget presentation award does not address several critical aspects of financial health, including:

  • Pension Liability: The City of El Cerrito has nearly $100 million in unfunded pension liabilities. This looming financial obligation is a long-term burden that threatens the City’s ability to provide services and meet future obligations. The GFOA budget presentation award does not assess or reflect the status of pension liabilities, making it an incomplete measure of financial health.
  • Unrestricted General Fund Reserve Balance: The unrestricted general fund reserve balance indicates the city’s financial flexibility and capacity to handle unforeseen expenses. The GFOA award does not evaluate whether a city has adequate reserves or whether reserve policies are aligned with best practices. Given El Cerrito’s reliance on reserves to balance budgets in the past, this is a crucial omission.
  • Long-Term Financial Planning: The GFOA budget presentation award criteria do not assess a city’s ability to create and maintain long-term financial strategies. For a city like El Cerrito, which has struggled to address its structural deficit and has relied on short-term borrowing to cover basic operating costs, the lack of focus on long-term planning is a major shortcoming of the award.
  • Debt Levels and Borrowing Practices: El Cerrito’s use of Tax Revenue Anticipation Notes (TRANs) and its fluctuating bond rating—from a low of BBB- to its current BBB—are not factored into the GFOA budget presentation award. A budget can be well-organized and clearly presented, but that doesn’t mean the city is not drowning in debt or making unsustainable financial decisions.

Misleading the Public?

The City’s press release and celebratory social media posts on Instagram and Facebook seem designed to distract from the city’s ongoing financial troubles. The narrative of receiving a prestigious financial award creates a false sense of security, making it appear as if El Cerrito has its finances under control when, in fact, the opposite is true.

Given the city’s troubled financial history, this could be more than just a misunderstanding—it may be part of a larger effort to shape public perception and deflect from real issues. The timing of the GFOA award also suggests that El Cerrito may have appealed or requested reconsideration after not being listed among the initial group of recipients. Residents deserve to know whether the city is being honest about its financial awards, and if not, what else might be misleading in its communications.

Why It Matters

Transparency and accountability are not just buzzwords; they’re essential for trust in local government. When a city like El Cerrito repeatedly asks residents to approve tax increases while failing to address the root causes of its financial woes, it’s reasonable to question its credibility. El Cerrito has one of the highest fire department staffing levels in the state for a city its size, and yet, crime rates remain high, and essential services have suffered. Why is there such a disconnect between spending and service outcomes?

Meanwhile, instead of taking decisive action to reduce expenses and rightsize operations, the city celebrates unverified awards and downplays the severity of its financial situation. This pattern of behavior erodes trust and prevents meaningful conversations about real solutions.

A Call for Clarity and Action

Residents deserve honest and transparent communication from their local officials. The focus should be on addressing El Cerrito’s significant financial challenges—not on flaunting an award that does not reflect fiscal stability. Suppose the City truly wants to build trust with its residents. In that case, it should start by presenting a clear picture of its financial health, including releasing the unrestricted general fund reserve balance and other critical metrics.

The GFOA budget presentation award may look good on paper, but it’s meaningless for a city teetering on the edge of financial disaster. The residents of El Cerrito deserve more than empty accolades. They deserve real solutions.

Feel free to share your thoughts on the City’s social media posts on Next Door, Instagram, and Facebook.


#ElCerrito #FiscalResponsibility #TransparencyMatters #CityManagement #GFOAAwards #GovernmentAccountability #CommunityFirst #ElCerritoResidents #PublicFinance #HoldThemAccountable #ElCerritoBudget #CaliforniaCities #LocalGovernment #OpenGovernment #FinancialTransparency

El Cerrito’s Financial Stability: Smoke and Mirrors?

The City of El Cerrito recently issued a press release announcing that it has received a Government Finance Officers Association (GFOA) budget award. Yet, a quick search on the GFOA website reveals that El Cerrito is not listed as a recipient. This absence raises a serious question: Is the city misleading residents about its financial standing?

The city has made similar claims about winning the GFOA award in past years, but there’s no official record of this except in 2016 It’s concerning, especially given that El Cerrito has been struggling financially for quite some time. El Cerrito’s fiscal issues have made it a fixture on the California State Auditor’s list of cities most likely to become bankrupt, currently ranked at #13. How does a city on the brink of financial ruin claim to be recognized for sound financial practices?

A History of Financial Distress

El Cerrito was heavily reliant on short-term borrowing through Tax Revenue Anticipation Notes (TRANs) and experienced a drop in its bond rating to BBB- before a slight recovery to BBB. This low rating reflects serious concerns about the city’s fiscal health. On top of that, the city’s unfunded pension liabilities have ballooned to nearly $100 million—almost double the city’s annual operating budget.

Even more troubling is the City’s reluctance to provide transparent financial data. There have been repeated calls for the City to release its unrestricted general fund reserve balance, a metric that gives a true picture of available resources and fiscal health. Instead, City Manager Karen Pinkos only released the general fund balance, which lacks context and doesn’t adequately reflect the City’s financial stability. By withholding this critical information, the City leaves residents in the dark about its true financial condition.

Misleading the Public?

The City’s press release and celebratory social media posts on Instagram and Facebook seem designed to distract from the city’s ongoing financial troubles. The narrative of receiving a prestigious financial award creates a false sense of security, making it appear as if El Cerrito has its finances under control when, in fact, the opposite is true.

Given the city’s troubled financial history, this could be more than just a misunderstanding—it may be part of a larger effort to shape public perception and deflect from real issues. Residents deserve to know whether the city is being honest about its financial awards, and if not, what else might be misleading in its communications.

Why It Matters

Transparency and accountability are not just buzzwords; they’re essential for trust in local government. When a city like El Cerrito repeatedly asks residents to approve tax increases while failing to address the root causes of its financial woes, it’s reasonable to question its credibility. El Cerrito has one of the highest fire department staffing levels in the state for a city its size, and yet, crime rates remain high, and essential services have suffered. Why is there such a disconnect between spending and service outcomes?

Meanwhile, instead of taking decisive action to reduce expenses and rightsize operations, the city celebrates unverified awards and downplays the severity of its financial situation. This pattern of behavior erodes trust and prevents meaningful conversations about real solutions.

Next Steps

It’s time for residents to demand transparency from their city officials. City Manager Karen Pinkos should be asked to provide documentation verifying any GFOA awards the City claims to have received. You can reach her at kpinkos@ci.el-cerrito.ca.us or (510) 215-4300.

Additionally, residents should insist on the release of the unrestricted general fund reserve balance instead of the general fund balance, so they can have an accurate picture of El Cerrito’s financial health. With nearly $100 million in unfunded pension liabilities and ongoing concerns from the State Auditor, we must get the full story.

Let’s not be distracted by press releases that paint a rosy picture when the reality is far more troubling. El Cerrito has been on the State Auditor’s list of cities most likely to go bankrupt for a reason. Until the city starts addressing its core financial issues and providing honest, transparent information, residents have every right to be skeptical.


#ElCerrito #FiscalResponsibility #TransparencyMatters #CityManagement #GFOAAwards #GovernmentAccountability #CommunityFirst #ElCerritoResidents #PublicFinance #HoldThemAccountable #ElCerritoBudget #CaliforniaCities #LocalGovernment #OpenGovernment #FinancialTransparency

Who’s Really Voting for Perpetual Taxes in El Cerrito?

When we closely examine who supports taxes with no sunset in El Cerrito, we see a pattern. It’s not the average resident, small business owner, or family planning to stay in the city for years to come. Instead, the push for these endless taxes often comes from groups who are far removed from the financial realities most of us face.

  1. The Wealthy: For this group, perpetual tax increases are barely noticeable. They can afford the higher costs without it impacting their daily lives. To them, these taxes are a small inconvenience in exchange for maintaining services they value, but the impact on middle- and lower-income families is much more severe.
  2. The Transient: These are people who don’t plan to stay in El Cerrito long-term. Whether they’re homeowners, renters, temporary residents, or people with one foot out the door, the long-term financial burden of higher taxes doesn’t matter to them. They vote for the tax increases knowing they’ll be gone before the real costs kick in.
  3. Those Without Heirs: People without children or dependents who will inherit the growing tax burden often vote for these measures with little personal consequence. They aren’t thinking about how these decisions will impact future generations or the families who plan to stay and grow roots in El Cerrito.
  4. The Low-Information Voter: Some voters believe that taxes with “no sunset” can easily be repealed by the public at a later date, assuming it’s a simple process. They don’t realize that once these taxes are in place, undoing them is extremely difficult and rare. These voters mistakenly think the public will always have the power to reverse the tax if it becomes too burdensome, but history shows that’s rarely the case.

These tax hikes are not the solution for the rest of us, who are invested in El Cerrito’s future. We’re facing long-term financial obligations that could be avoided if El Cerrito followed the example of other Contra Costa cities. These cities have managed to maintain lower expense bases by tightening their budgets, improving operational efficiency, and making smarter financial decisions—without continuously raising taxes. El Cerrito needs to pursue similar alternatives instead of relying on perpetual tax hikes that increase the cost of living without addressing the root causes of our financial problems.

This tax initiative will likely pass, but the language used to describe it is misleading. The ballot refers to Measure G as a “1-cent sales tax.” This is inaccurate! When you dig deeper, it becomes clear that this is actually a 1% sales tax.

To a casual reader, this might seem like a 1-cent tax on purchases, regardless of the amount. In reality, it’s a 1% sales tax, which means it’s 1 cent on a $1 purchase, $10 on a $1,000 purchase, and so on. This kind of phrasing contributes to the community’s mistrust of the city. Whether intentional or simply a result of poor diligence, there’s no excuse for misleading residents.

It’s time we stood up for responsible fiscal management and said no to endless taxes that only serve to cover bloated spending. Instead, we need real solutions that reduce unnecessary expenses and hold our city accountable.

Join us in demanding smarter budgeting and fiscal responsibility from El Cerrito’s leadership. Let’s advocate for sustainable solutions that don’t place the burden of excessive taxes on current and future residents. The future of our city depends on it—get involved, make your voice heard, and vote for responsible financial management.

#ElCerritoTaxes #FiscalResponsibility #StopEndlessTaxes #SmartBudgeting #InformedVoter #NoMoreTaxHikes #SustainableSpending #ProtectOurFuture #AccountabilityMatters

A Tale of Two Cities: How El Cerrito Can Learn from Hercules’ Financial Struggles

As residents of El Cerrito, it’s important that we take a hard look at our city’s fiscal health and understand the broader context within which we’re operating. The recent ranking by the California State Auditor places El Cerrito in a precarious financial position—13th most likely city in California to face bankruptcy. But what does this really mean, and how does it compare to our neighbors in Hercules?

California State Auditor’s Rankings: El Cerrito vs. Hercules

Hercules, like El Cerrito, has faced significant financial challenges in the past. The State Auditor once ranked Hercules as one of California’s most fiscally distressed cities. While the city has since improved its standing, El Cerrito has not followed suit. According to the California State Auditor’s financial health index, Hercules now ranks much healthier, scoring 51.89. In stark contrast, El Cerrito’s health index stands at 9.25, making it one of the lowest in the state. These scores reflect the cities’ ability to manage liabilities, revenue, and overall fiscal health.

The key issues in Hercules revolved around excessive debt, unfunded liabilities, and mismanagement of public resources—strikingly similar to the situation El Cerrito faces today. However, Hercules has made strides to address its fiscal imbalance by restructuring debt, reducing expenditures, and reevaluating its staffing needs.

El Cerrito, on the other hand, has continued down a path of fiscal irresponsibility. With over $85 million in unfunded pension liabilities and a workforce that’s disproportionately large for a city of 25,000 residents, it’s time to assess how we can right-size our operations.

Staffing Size and Contract Support: Key Factors in Fiscal Responsibility

One of the most significant differences between Hercules and El Cerrito is staffing size and the reliance on outside contractors. Hercules has taken aggressive steps to reduce staffing, consolidate departments, and outsource non-essential services. These decisions have not been easy, but they were necessary to avoid further financial deterioration.

In contrast, El Cerrito not only maintains high staffing levels but also heavily relies on contract support, which increases our operational costs even further. The city continues to employ one of the largest fire departments for a city its size, with four battalion chiefs, and an overstaffed police department, despite high crime rates. Adding to the strain, the city frequently brings in outside contractors and consultants to do “staff” work, further driving up costs, rather than addressing the inefficiencies in its existing workforce.

While Hercules has cut back on staff and reduced its dependency on external contracts, El Cerrito has expanded, adding new positions even as our financial woes deepen and excessively relying on contractors to fill roles that should be handled by full-time staff. This growth, paired with our dependence on expensive outside help, is not sustainable for a city of our size, particularly given our lack of diversified revenue streams and our chronic dependence on reserves to balance the budget.

Right-Sizing El Cerrito

Right-sizing doesn’t mean cutting essential services; it means allocating resources effectively and efficiently. We are not asking for layoffs of union staff. We are, however, suggesting structural changes and reductions to management ranks and a reconsideration of the heavy reliance on costly contract support. By reducing unnecessary management layers and bringing certain functions in-house to reduce reliance on contractors, El Cerrito can avoid a fiscal collapse similar to what Hercules once faced. Here are a few steps we should consider:

1. Conduct a Staffing and Contracting Audit: Evaluate the need for all positions, particularly in top management and high-paying administrative roles, and assess how much reliance there is on external contracts. Other cities our size operate with far leaner leadership teams and less dependency on outside support.

2. Restructure the Fire Department: El Cerrito hasn’t faced a major fire in years, yet we maintain an outsized fire department. We should explore shared services with neighboring cities and reduce unnecessary management roles.

3. Reduce Reliance on Contract Support: Outsourcing should be strategic and limited to non-core services. El Cerrito needs to evaluate areas where contractors can be replaced with full-time staff or where services can be delivered more efficiently in-house.

Hercules’ turnaround is a testament to the difficult decisions required to secure long-term financial health. El Cerrito now faces a similar crossroads, and without a decisive approach to right-size staffing, reduce contract dependency, and control expenditures, we risk following the path of financial ruin. We must urge our City Council to take the necessary steps now—before it’s too late.

Let’s not wait until El Cerrito reaches a point of no return. It’s time for our city to make the tough decisions that will secure a stable and prosperous future.

Contact Information

To voice your concerns and encourage our city leaders to make responsible decisions, you can contact the El Cerrito City Manager and City Council at the following:

Karen Pinkos: citymanager@ci.el-cerrito.ca.us Phone: (510) 215-4300
El Cerrito City Council:
• Mayor Tessa Rudnick: trudnick@ci.el-cerrito.ca.us
• Mayor Pro Tem Carolyn Wysinger: cwysinger@ci.el-cerrito.ca.us
• Councilmember Paul Fadelli: pfadelli@ci.el-cerrito.ca.us
• Councilmember Gabriel Quinto: gquinto@ci.el-cerrito.ca.us
• Councilmember Lisa Motoyama: lmotoyama@ci.el-cerrito.ca.us

Let’s stand together as a community and demand the changes we need to secure El Cerrito’s financial future.

ElCerritoFiscalHealth

RightSizeCityStaff

ElCerritoVsHercules

CaliforniaStateAuditor

FiscalResponsibility

SaveElCerrito

ReduceContractDependency

FixElCerritoNow

El Cerrito’s Financial Mismanagement: A Legacy of Deficits, Missed Promises, and Depleted Reserves

El Cerrito has faced budget deficits in 18 of the last 21 years. Since 2003, the city has been plagued by financial shortfalls, repeatedly dipping into emergency reserves and relying on short-term loans, known as “TRANS” (Tax Revenue Anticipation Notes), to stay afloat. By 2017, the reserves were fully depleted, leaving the city with no cushion to manage future financial crises.

In June 2019, during a City Council meeting, City Manager Karen Pinkos and Finance Director Mark Rasiah assured the council that the city’s financial outlook was improving. Rasiah boldly declared that the going concern statement, which had been issued for two consecutive years, would likely disappear by the end of the fiscal year. His optimism was mirrored by Council members, but the reality was starkly different. By January 2020, the city had incurred a $2.9 million cost overrun, and the going concern statement reappeared for the third time in a row. Despite these financial warnings, the council approved increases in management wages, further deepening the fiscal crisis.

The current council members often tout the city’s improvement from 6th to 13th on the State Auditor’s list of California cities most likely to face bankruptcy. However, what they conveniently omit is that there are over 400 cities in the state—being 13th is no cause for celebration. Additionally, the city’s BBB bond rating, barely above junk status, underscores the persistent financial instability.

Much of this mismanagement can be traced back to long-serving council members like Greg Lyman (2008-2020), Gabe Quinto (2014-present), and now Lisa Motoyama (2020-present). All three have contributed significantly to the city’s financial troubles by repeatedly voting for policies that escalated costs without addressing the structural issues underlying the budget crises. Their tenure on the council has been marked by decisions that failed to rein in spending, neglected to prepare for economic downturns, and continuously relied on unsustainable financial practices.

El Cerrito’s legacy of budget deficits, its reliance on short-term fixes like TRANS, and leadership’s unwillingness to confront these issues head-on have left residents paying the price. Despite years of warnings, council members continue to avoid making the hard choices necessary for true financial recovery. The city’s deep-rooted fiscal problems remain, and unless real changes are made, this pattern will continue to burden the people of El Cerrito for years to come.

#ElCerrito #FiscalResponsibility #BudgetDeficit #CityLeadership #GovernmentOversight #CaliforniaBudgetCrisis

Examining the City Manager’s Financial Report – What’s the Real Picture?

At the September 17 City Council meeting, the City Manager presented the 4th Quarter General Fund Update, painting a rosy picture of El Cerrito’s financial health. While the report claims fiscal prudence and a surplus in the General Fund, we believe the City Manager’s interpretation of the numbers may be misleading.

Misleading Use of “General Fund Balance”

The City Manager emphasized that the General Fund balance is projected to be $22.95 million. However, this figure is not the same as a reserve nor an indicator of available financial flexibility. Much of this balance is already earmarked for specific purposes, such as $9 million for the Emergency Disaster Relief Fund (EDRF) and $1.37 million for the Pension Trust. Additionally, the General Fund balance is used to pay day-to-day expenses like payroll and services, which fluctuate regularly.

By including these restricted amounts in the total balance, the City Manager misleads the public into thinking that these funds are part of the City’s reserve—when in reality, they are designated for specific uses and cannot be accessed for general operations without formal approval. This misrepresentation blurs the line between the City’s actual reserves and the broader General Fund balance, which is not a reserve account.

Lack of Disclosure on Unrestricted Reserves

Crucially, the report fails to disclose the amount of the unrestricted reserves, the portion of the General Fund that is truly available for emergencies or unforeseen expenses. This lack of transparency leaves the public in the dark about the City’s real financial safety net. The unrestricted reserves represent the City’s true financial health, and without this information, it’s impossible to assess how prepared El Cerrito is to handle unexpected financial shocks.

Inflated Reserve Percentage

The City Manager claims that reserves equal 43% of General Fund expenditures. However, this calculation appears to include restricted funds like the EDRF and Pension Trust, which cannot be used for daily operations. When these designated funds are excluded, the actual unrestricted reserves are much lower, potentially closer to the 17% goal set by the City’s financial policies. The real reserve percentage is a key indicator of fiscal health, and the public deserves clarity about what portion of the General Fund is truly available for emergency use.

Admission of a Structural Deficit

Despite the optimistic tone of the report, the City Manager acknowledges a $1 million structural deficit in the General Fund Forecast. This means that recurring expenses exceed recurring revenues, a significant problem that contradicts the narrative of financial stability. Fiscal prudence should focus on resolving this deficit, not masking it with temporary gains.

Over-Reliance on Temporary Revenue

The report warns that if the 1-cent sales tax is not renewed, the City will face a 10% across-the-board cut in services, programs, and staff. This demonstrates El Cerrito’s dependence on temporary revenue sources, rather than addressing the long-term issue of excessive expenditures. A stable city budget should not rely on voters to approve short-term fixes.

Conclusion

The City Manager’s report offers an overly optimistic view of El Cerrito’s financial health. While some gains have been made, the continued presence of a structural deficit, combined with a reliance on restricted funds and temporary sales tax revenues, paints a much less stable picture. We encourage the City to present a more transparent and accurate assessment of its finances.

Councilmembers must be wary of following the City Manager blindly without asking critical questions or scrutinizing the numbers closely. Blind adherence has led to poor financial decisions in the past, and council members must take independent responsibility for ensuring the City’s financial health.

It’s time for the community to ask tough questions and demand clarity on what constitutes real financial stability for El Cerrito. Let’s ensure a brighter financial future for El Cerrito. Reach out to your City Council members and let them know your concerns!

Contact Information

City Manager: Karen Pinkos
Email: kpinkos@ci.el-cerrito.ca.us
Phone: (510) 215-4300

City Council Members:

#ElCerrito #FiscalTransparency #FinancialStability #LocalGovernment #ElCerritoCityCouncil #BudgetTransparency #MeasureG #Accountability #PublicFinance #CommunityEngagement

El Cerrito City Manager Newsletter: A Concerned Citizen’s Observations

The El Cerrito City Manager recently published her monthly newsletter, and as concerned citizens, we believe it’s important to take a closer look at the finance section she provided. For your convenience, here is the El Cerrito September City Manager Newsletter. But before diving into the city’s narrative, some key pieces of information are missing from the newsletter that deserve attention.

El Cerrito’s Credit Rating and Financial Struggles

El Cerrito’s current BBB credit rating is one of the biggest issues not addressed in the newsletter. When the current city manager took office, the city had an A- credit rating. That’s a significant downgrade, and it should concern everyone in the community. A lower credit rating makes it harder and more expensive for the city to borrow money when it needs to fund projects or manage its debt.

Another major red flag is that El Cerrito remains on the State Auditor’s high-risk list, which flags municipalities at risk of fiscal insolvency. El Cerrito has been on this list for 3.5 years, and despite reassurances from city leadership, there’s been no meaningful improvement.

Let’s not forget the elephant in the room: El Cerrito’s CalPERS UAL pension liability. The city currently owes $85 million in unfunded pension liabilities, and this massive debt will continue to grow if not properly addressed.

Financial Reserves: A Closer Look

In the September 17, 2024, council meeting packet, the city’s financial reserves were reported as follows:

  • June 30, 2023: $23,143,081
  • June 30, 2024: $22,957,167

That’s a decrease of $185,914 in reserves over one year. It might not sound like much, but considering the long-term trend of deficit spending and dwindling reserves, it’s a troubling sign.

To make it even simpler: the 2023 number is bigger than the 2024 number. El Cerrito readers, do you agree that our reserves should be growing, not shrinking?

Budget Discrepancies: Predicted vs. Actual Spending

Now, let’s talk about the budget. According to the FY 2024 budget document, the city predicted spending $48,435,585 for the fiscal year. However, the unaudited actual expenditures reported in the council meetings totaled $52,340,189. That’s nearly $4 million more than originally planned.

The question for El Cerrito residents is: Did the city spend more than predicted or less than predicted? The numbers clearly show overspending, yet there seems to be little accountability or explanation for this.

Clarifying the Terminology

It’s also important to understand the financial terms are often used in these discussions. Here are a few key definitions:

  • Reserves: Funds set aside by the city, often used as a financial safety net for emergencies or unexpected costs.
  • Expenditures/Expenses: The total amount of money spent by the city in a fiscal year on various operations, programs, and services.
  • Total General Fund Reserves: The overall amount of money the city has saved in its general fund, which can be used to cover shortfalls or emergencies.
  • Unrestricted General Fund Reserves: A portion of the general fund that is not earmarked for specific purposes and can be used at the city’s discretion for any necessary expenses.

Revenues Are Up, Services Are Down

Here’s another puzzle: In FY 2018, the city had actual revenues of $35,783,921. By FY 2024, the unaudited actual revenues had increased to $52,154,276—an increase of nearly $16 million.

But despite this significant revenue growth, services have been cut. For example, the city still has no senior center. Library hours have been reduced and there are no performance standards for management. Why are services being reduced or stagnant when revenues are increasing?

Join the conversation, attend council meetings, and ask tough questions about the city’s finances. It’s our community, and it’s up to us to make sure our voices are heard.

It’s time for El Cerrito residents to demand more transparency and fiscal accountability from our city leadership. With growing revenues and shrinking services, we deserve clear answers on how our money is being managed. Let’s ensure the city is prioritizing fiscal responsibility and delivering the services our community needs.

Contact Your El Cerrito City Council Members and City Manager

If you have concerns about the city’s financial situation or any other issues, it’s important to reach out directly to your city council members and the city manager. Below are their contact details. Let your voice be heard and ask for the accountability and transparency our community deserves.

El Cerrito City Council Members:

El Cerrito City Manager:

Feel free to reach out to your council members and city manager via email or phone to express your concerns or ask questions about the city’s finances. It’s our community, and it’s up to all of us to stay informed and engage.

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