Greg Lyman’s tenure on the El Cerrito City Council during the economic downturn of 2008 which led to the financial crisis that nearly bankrupted our city between 2012 and 2020 should be a stark reminder of the consequences of poor leadership. Despite these historical failures, it’s more than disappointing—it’s outright irresponsible—that Greg Lyman continues to wield so much influence over the El Cerrito Democratic Club.
Recently, the El Cerrito Democratic Club endorsed two well-connected insiders: Lisa Motoyama and Rebecca Saltzman. Rebecca has led her agency toward a fiscal cliff, yet both candidates received the club’s backing, with William Ktsanes finishing third in the endorsement process. Courtney Helion, the third insider and endorsed by both Lisa Motoyama and Greg Lyman, came in fourth.
With three seats up for grabs in November 2024, the choices before us are clear. El Cerrito’s government has consistently lacked financial transparency, as evidenced by the city’s $6 million deficit in FY 2024, a slashed general fund reserves goal (down from 17% to just 10% of expenditures), and an $85 million unfunded pension liability. To add insult to injury, city management refuses to disclose the current amount in the general fund reserves. This is a strong indication that the general fund balance has decreased.
Given these alarming fiscal realities, let’s highlight William Ktsanes. William teaches finance and ethics at the University of San Francisco, bringing the exact skill set that El Cerrito desperately needs right now. While Lisa and Rebecca will almost certainly be elected, the race for the third seat is a critical decision between William Ktsanes and Courtney Helion.
Courtney, though seemingly a nice person, submitted a candidate statement to the city clerk that failed to mention city finances altogether. Her performance at the Democratic Forum only heightened concerns—when questioned about city spending, she appeared out of her depth. Her endorsements from Greg Lyman, who was part of the council during the financial debacles, and Lisa Motoyama, who was mayor when the $6 million deficit budget passed, suggest that Courtney might not be the independent and financially savvy voice El Cerrito needs.
For the future of our city, we must prioritize competence and independence. The race for the third city council seat is between William Ktsanes and Courtney Helion. Given William’s background in finance and his commitment to ethical leadership, the choice is clear.
Let’s not repeat the mistakes of the past. Let’s vote for someone who can guide El Cerrito through these challenging times with the financial acumen and integrity we so desperately need.
For more details about the November 2024 candidates and the El Cerrito Democratic Club, visit the official websites.
When it comes to planning for the future, one would expect a city to have a clear and coherent capital improvement plan, especially for major infrastructure projects. Unfortunately, the reality in El Cerrito is far from ideal. Around 2010, budget documents pointed to three significant projects: a new senior center, a new library, and a new public safety building. Fast forward to today, and what do we have? A series of half-baked proposals, a lot of money spent, and little to show for it.
The voters made their voices clear when they defeated the 2016 library measure. Despite this, the city council persisted in trying to sell various library proposals to the public, most of which lacked substance and failed to address the real needs of the community. The senior center, once deemed a necessity, has now been all but erased from the city’s priorities. This decision was made without meaningful public input, and it leaves one to wonder: what happened to the promises made to our seniors?
More recently, the city decided to purchase a piece of property at a significantly inflated price—$1.5 million, to be exact, despite an appraisal valuing it at $1.29 million. The purchase was justified by council member Lisa Motoyama, who argued that it was a strategic acquisition for the city’s portfolio. Yet, in the same breath, Lisa voted to rent out the portables that were once used as a senior center. How does this align with the city’s long-term strategy, if there even is one?
The reality is that capital improvements have been put on hold because the city simply cannot afford them. Despite spending a considerable amount of money last fiscal year to purchase the property, the current budget document projects a declining unrestricted general fund for the next few years. Moreover, the city is burdened with an $85 million Unfunded Actuarial Liability (UAL) pension liability, a financial strain that further complicates the city’s ability to invest in meaningful infrastructure.
It’s also worth noting that the purpose of the newly acquired site remains unclear. During a recent meeting, council member Quinto suggested that it might be a good site for a future public safety building. However, without a clear plan or timeline, this suggestion feels more like wishful thinking than strategic planning.
Addressing these items on a case-by-case basis is neither strategic nor in the best interest of the community. A piecemeal approach to major decisions like these only adds to the confusion and uncertainty, preventing us from achieving the cohesive and forward-looking vision that El Cerrito desperately needs.
One more thing: during the meeting, it was curious to observe how public participation was managed. While the El Cerrito Booster was called upon with a mere wave of his hand, one might wonder if the average citizen would receive the same treatment. Do they need to fill out a form to speak, or is there a different standard for certain individuals? Transparency and fairness in public meetings should not be optional—they should be the norm.
As we move forward, it’s crucial for the city to articulate a clear and realistic capital improvement plan that aligns with the community’s needs and financial realities. Half-baked proposals and unclear priorities will only lead us further down a path of fiscal instability and unmet promises.
It’s a common refrain these days that there’s “no money” for essential services in El Cerrito, especially when it comes to our senior community. Yet, just this past January, the City made a substantial purchase, paying $1.5 million for the Life in Christ property on San Pablo Avenue. This site is located between the parking lot that previously housed bungalows/modules, which temporarily replaced the Open House Senior Center, and the El Cerrito Fire Department building.
What’s even more perplexing is that this centrally located property, with easy access via AC Transit, is sitting unused. Despite its size—5,698 square feet on a 20,000 square foot lot—the property remains idle, with no clear plan for its future.
The Life in Christ building is quite substantial, featuring a well-equipped kitchen, a cafeteria, an auditorium with a capacity for 225 people, two classrooms, and an office. Outside, there’s a paved and inviting courtyard, perfect for community gatherings. City staff have informed us that the building needs repairs, such as addressing holes in the floor under the carpeting. However, with some modifications and repairs, this space could potentially be transformed into a vibrant senior center.
Imagine a senior center operating five days a week in a space that large, centrally located, and fully equipped. It could serve as a hub for social, educational, and wellness activities for our older residents—something that our city sorely needs.
However, when we inquired about the intended use for this property, the answer we received was vague at best: a public safety complex. But with the city consistently pleading poverty, it’s hard to believe that this vision will come to fruition any time soon. The likely reality? The San Pablo Avenue property will sit idle for years, a missed opportunity for a community desperately in need of accessible services for its seniors.
This situation raises significant questions about the city’s priorities. There seems to be a recurring theme of financial resources being available—or not—depending on what the city deems important. While essential services, like a senior center, are delayed or dismissed due to “lack of funds,” significant amounts are spent on properties that may not be utilized effectively or efficiently for years, if ever.
The potential for this site is enormous, yet it appears destined to languish unused while our seniors continue to lack a dedicated space. This is not just a matter of resources but of prioritization. It’s high time the city reassessed its priorities and considered how this property could be used to better serve our community.
Let’s not allow this valuable asset to go to waste. The Life in Christ property represents a tangible opportunity to provide something of real value to the citizens of El Cerrito, particularly our seniors, who have contributed so much to the fabric of this city. If the city is truly strapped for cash, then it should at least ensure that its investments serve the immediate and pressing needs of its residents. The alternative is an empty building, a wasted opportunity, and a community that continues to wait for the services it deserves.
Let’s demand that this property be put to good use—for the benefit of all.
If you believe the Life in Christ property should be repurposed as a senior center, make your voice heard. Contact the city council, attend meetings, and share this message with your neighbors. Together, we can ensure that this property doesn’t sit idle and instead serves a valuable purpose for our community.
Write to the El Cerrito City Council to express your support for this cause. The City Clerk’s email address, which can forward your message to the council members, is cityclerk@ci.el-cerrito.ca.us. You can also reach the City Clerk’s office by phone at (510) 215-4305. The office is 10890 San Pablo Ave., El Cerrito, CA 94530.
Let’s take action now to create a senior center that truly benefits our community.
For the past two decades, our city has done little more than tax us. Despite these taxes, we’ve seen a bloated pension plan, an increase in crime and drugs, and businesses leaving our community—except for liquor stores, massage parlors, and dispensaries. Do we feel safer? We don’t, yet the city continues to demand more and more of our hard-earned money.
El Cerrito’s Measure G is a prime example of this. Measure G seeks to extend the current 1% Measure R sales tax hike, set to expire in March 2027, into perpetuity. A permanent sales tax hike would create significant obstacles for citizens wanting to repeal it later on. There would be no straightforward way for voters to demand city officials place a repeal on the ballot. In other words, approving this tax now is not urgent, as the current Measure R won’t expire until March 31, 2027.
Consider this: with a sales tax rate of 10.25%, El Cerrito already has the highest rate in Contra Costa County and is among the top ten state-wide. Despite this excess revenue, city leaders have failed to manage the city’s finances effectively. This is why the State Auditor designated El Cerrito as a high-risk local government. The City Council has shown no inclination, desire, or ability to tighten the budget and roll back some of the bloated bureaucracy. For a city of just 26,000 people, we have some 14 commissions and committees, all staffed with city employees.
Before placing this permanent tax extension on the ballot, the City spent $36,500 of our tax dollars on a feasibility study conducted by Godbe Research to test how far voters would be willing to extend the sales tax. According to city officials, market research showed that voters preferred “until voters end it.” But here’s the kicker—the city won’t allow the public to review this research. Council members have discounted concerns that poll participants did not understand that “until voters end it” likely means the tax could become permanent. Most citizens are unaware of the significant process required to end the tax once it’s in place.
This situation is nothing short of a scare tactic designed to coerce support for the Measure G forever tax. Voting No on Measure G will force the city to add a sunset date, ensuring that this tax doesn’t become a permanent fixture in our lives without a proper review.
Don’t let the city scare us into supporting this measure. Protect our wallets and vote No on Measure G.
For more information, visit the official site here.
On Saturday, August 17, 2024, the El Cerrito Democratic Club hosted a forum featuring four candidates vying for seats on the City Council. As the forum unfolded, it became clear that the issues facing our city are both urgent and complex. If you missed the live discussion, I strongly encourage you to view the recorded conversation, which will soon be available on the club’s website and other platforms. Being an informed voter is essential, especially given the financial challenges our city currently faces.
The forum showcased a range of perspectives, but it was William Ktsanes who stood out as the most candid and insightful on the critical issue of El Cerrito’s finances. Ktsanes, who teaches finance and ethics at the University of San Francisco, brings a unique blend of expertise and experience to the table. His background includes service in the Peace Corps and volunteering for various causes that have positively impacted communities. It is this combination of financial acumen and a deep commitment to public service that positions Ktsanes as a candidate capable of tackling El Cerrito’s pressing financial issues.
Ktsanes made it clear that his campaign will focus on financial transparency and fostering genuine engagement between the government and the public. His understanding of the city’s financial woes, coupled with his willingness to confront these issues head-on, distinguishes him from the other candidates.
While Lisa Motoyama expressed a desire to address the city’s finances, her track record and approach left some questions unanswered. We’ve written extensively about Motoyama in the past. While it was encouraging to hear her acknowledge the financial situation, specifics on her plan to resolve these issues were not fully articulated, but Ktsanes, should he get a seat, can assist in those efforts.
Rebecca Saltzman, another candidate, highlighted her experience with BART and housing, areas where she has undoubtedly made contributions. However, her failure to address the financial challenges facing El Cerrito during the forum was notable. Despite her repeated references to her tenure at BART and claims that transit has improved, she did not acknowledge the broader issues plaguing BART, particularly in the realm of finances, which mirror some of the challenges El Cerrito faces. The community’s reluctance to return to BART, despite her assurances, speaks to the deeper, unresolved problems that need addressing.
The forum provided a valuable opportunity for voters to hear directly from the candidates, but it also underscored the importance of financial transparency and accountability in our local government. As we move closer to the election, it is crucial for voters to critically evaluate each candidate’s ability to address the financial health of El Cerrito.
You can watch the forum and form your own opinions by visiting the El Cerrito Democratic Club’s website at https://ecdclub.org.
Stay informed, stay engaged, and let’s work together to ensure a brighter future for El Cerrito.
As concerned residents of El Cerrito, it is alarming to witness the city inching once again toward financial insolvency. The federal bailout, which temporarily provided relief by paying off the TRANs loans, did little more than put a band-aid on a festering wound. Despite the state auditor’s clear warnings, the city seems determined to ignore the advice and continue down a perilous path.
In the wake of the state auditor’s findings, one would expect responsible leadership to take decisive action to reduce costs and stabilize the city’s finances. Instead, the City Manager chose a different route: raising the salaries of her management team by double digits. This decision is not only fiscally irresponsible but also deeply unjust. The individuals in these positions now earn upwards of $275,000, considerably more than the majority of El Cerrito’s population. Yet, it is these same residents—many of whom are struggling with stagnant wages and rising living costs—who are expected to shoulder the tax burden to support these exorbitant salaries.
Assistant City Manager: From $241,834 to $330,863, a 36.8% increase.
Finance Director: $282,482 (latest figure).
Public Works Director: From $269,537 to $331,407, a 23.0% increase.
Community Development Director: From $264,396 to $300,921, a 13.8% increase.
Recreation Director: From $260,745 to $299,816, a 15.0% increase.
City Clerk: From $203,716 to $276,276, a 35.6% increase.
The city’s financial situation is dire. Last year alone, El Cerrito drained $6 million from its reserves. Revenue remains flat, but expenses continue to rise, leaving the city with a mere $6.3 million in unrestricted reserves. Any reasonable and informed person would be gravely concerned about this trajectory. The reserves that once served as a safety net are nearly depleted, and without significant changes, the city is heading toward a financial crisis.
For those new to this issue and interested in understanding the city’s initial response to the state auditor, I recommend watching the following videos:
Financial Advisory Board (FAB) Meeting on April 13, 2021 (start at 58:40): Watch here
City Council Meeting on April 20, 2021 (start at 1:17): Watch here
Our City Council members must be held accountable. With the upcoming elections, it is time for a change in city management. Before the state auditor’s findings, “going concern” letters were issued to the city, indicating serious doubts about its ability to continue functioning financially. Yet, the city did nothing. The current City Manager has shown that she cannot or will not address these critical issues, and it is clear that new leadership is desperately needed—leadership that will take the state auditor’s findings seriously and make the tough decisions required to steer El Cerrito back to financial health.
As the election approaches, it is up to us, the residents of El Cerrito, to demand accountability and ensure that those in power are working in the best interests of the community. It is time for a leadership change that prioritizes fiscal responsibility and the long-term sustainability of our city.
Allegations of sexual harassment within the El Cerrito Police Department continue to raise serious concerns about the safety and well-being of employees. Five years ago, former police officer Sarah Perez filed a lawsuit on August 20, 2019, accusing the department of sexual harassment, sex discrimination, and retaliation. Despite the passage of time and the seriousness of these allegations, the city has not reported any policy or procedural implementations to protect employees, particularly in departments like police and fire, where female employee headcount is considerably lower. This lack of action demands attention from city leadership to ensure a safe working environment for all employees.
Allegations of a Toxic Workplace
Sarah Perez, one of only four female officers in the department, alleged that she was subjected to a hostile work environment, where male officers engaged in inappropriate behavior, such as changing clothes near her desk and making crude comments about her body. The harassment reportedly began as soon as Perez started her job and escalated over five years. Her direct supervisor, Sgt. David Wentworth, was accused of becoming “obsessed with her,” with the department not only tolerating but condoning such behavior.
The Cost of Silence
The lawsuit, filed in Contra Costa County Superior Court, accused the police department of failing to protect Perez from harassment by colleagues and supervisors. Her experience was not an isolated incident but a reflection of systemic issues within the department. With no admission of liability, the $544,341 settlement paid to Perez raised questions about the city’s handling of such claims. With three city council members (Fadelli, Quinto, and Abelson) present during the settlement approval, the city’s accountability was under scrutiny.
Financial Implications and Accountability
The financial implications of this settlement were alarming, especially considering El Cerrito’s ongoing fiscal challenges. While the city manager had recently proposed budget cuts affecting library hours, a significant payout was made to settle this case. The settlement specified that Sgt. Wentworth would not contribute financially, leaving taxpayers to bear the burden. This raised concerns about potential future claims and the lack of accountability within the department.
A Call for Transparency and Action
Given the seriousness of these allegations, the City Manager and Police Chief Paul Keith must address the public on what steps are being taken to prevent such incidents in the future. As of now, the city has not reported any systems in place to prevent recurrence. Transparency is crucial in rebuilding trust in the community. The following actions are essential:
Implementation of Clear Policies: The city must establish and enforce clear policies against sexual harassment, ensuring that all employees understand their rights and responsibilities.
Training and Education: Mandatory training sessions on sexual harassment prevention and response should be conducted for all city employees, with a focus on creating a respectful and inclusive workplace.
Independent Investigations: Harassment allegations must be investigated independently and transparently, with accountability for those found responsible.
Support for Victims: Providing support and protection for harassment victims is essential. Employees should feel safe reporting incidents without fear of retaliation.
Diversity and Inclusion Efforts: The department should actively work towards increasing diversity among its ranks, ensuring that female officers and other minority groups are represented and protected.
A Dysfunctional System
This case highlights the dysfunction within El Cerrito’s leadership and the urgent need for reform. The allegations against the police department and the city’s handling of the situation reflect a larger issue of mismanagement and lack of accountability. The community deserves better, and it is time for city leaders to take responsibility and enact meaningful change.
The City Manager is urged to update the community on the measures being implemented to prevent such occurrences in the future. Another $500,000 payment is not something El Cerrito can afford.
In her State of the City address on December 19, 2023, Councilmember Lisa Motoyama presented an optimistic picture of El Cerrito’s financial health. Her words, however, warrant closer examination.
Lisa has long been recognized as the most fiscally responsible member of our City Council. Her efforts to steer El Cerrito through challenging financial times have been commendable. Yet, in her latest address, the message was one of unwavering positivity: “How are we doing? We are doing great.” But is this the full truth?
Lisa’s assertion that there is “a lot of misinformation out in the community about our financial condition” suggests a disconnect between the Council’s narrative and the reality that many residents experience. While it’s true that the state audit pointed out areas where improvements were needed, and the city has taken steps to address these issues, the question remains: are we being fully transparent about the city’s ongoing financial challenges?
A Closer Look at the Claims
1. Bond Rating Improvements
Lisa mentioned that the city’s bond rating has gone up. When this administration took over, the bond rating was at a low A-. It did indeed fall to BBB- before a recent increase to BBB. While this is an improvement, it’s essential to recognize that we are still not back to the original rating, and the city continues to face significant financial hurdles.
2. General Fund Reserves: Lisa proudly stated, “We are well above the 17% that we are supposed to have as a general fund.” However, the current budget paints a different picture, with reserves showing a declining trend. The goal has now shifted to 10%, a reduction that, while perhaps necessary in the short term, does not reflect a robust financial position. Yet, City policy is just 10%—well below the GFOA recommended amount. Additionally, the large graph of reserves conveniently omits the substantial loss of approximately $6 million during fiscal year 2024.
3. Future Projections: She confidently noted, “After 2026, this will be even better.” Yet, the projections in the current budget do not support this optimism. While we all hope for financial stability, it is crucial to base these projections on realistic assessments rather than wishful thinking.
The City Manager’s Track Record
The City Council should not accept the City Manager’s word for fiscal stability without scrutiny. The City Manager has been wrong many times before. She ignored the going concern letters that warned of financial instability. She went as far as criticizing the state auditor, attempting to discredit their findings by claiming they were wrong. Despite these warnings, she proclaimed fiscal stability back in 2020—only to have the city’s financial condition decline after the federal bailout.
Years of dependency on reserves should make our Council members much more skeptical about the financial information they are provided. It is not enough to accept positive projections at face value; our city’s leadership must demand rigorous, transparent, and honest evaluations of our fiscal health.
A Call for Honest Dialogue
Lisa Motoyama has shown a commitment to fiscal responsibility, and her role on the City Council has been vital. However, as she stands for re-election, the residents of El Cerrito must ask themselves: does she deserve another term if the full truth is not being presented?
Fiscal responsibility is crucial, but so is honesty about where we stand. The residents deserve a transparent and accurate assessment of our city’s financial condition. We can only move forward together if we are all working from the same set of facts. Lisa’s leadership has been instrumental, but as we look to the future, we must demand both responsibility and transparency from our elected officials.
The city has some exciting projects on the horizon, such as the El Cerrito Plaza Transit Oriented Development and Library. These initiatives have the potential to benefit the community greatly, but they must be built on a foundation of financial stability—not just optimistic projections.
It’s time for a candid conversation about where El Cerrito truly stands. The residents deserve nothing less.
The Government Finance Officers Association (GFOA) Budget Award is considered a benchmark of excellence in public budgeting. Receiving this award signifies that a local government’s budget document is comprehensive and transparent and serves as an effective policy document, financial plan, operations guide, and communication device.
GFOA Budget Award Criteria
To achieve this prestigious award, a local government must meet several stringent criteria:
Policy Document: The budget should articulate how it supports policy priorities and goals, providing a clear link between the community’s strategic vision and its financial planning.
Financial Plan: A comprehensive financial plan must be presented, showcasing both short-term and long-term financial strategies and the ability to meet community service delivery needs and priorities.
Operations Guide: The budget should effectively guide operational practices, ensuring resources are allocated efficiently and programs are managed effectively.
Communications Device: It should serve as a key communication tool, enhancing transparency and accountability by providing the community with a clear understanding of how public funds are utilized.
Recent Recipients
In recent years, many municipalities across the country have received the prestigious GFOA Budget Award, demonstrating their commitment to excellence in financial governance and accountability. These cities have demonstrated outstanding fiscal responsibility and innovative budgeting techniques that meet the GFOA’s high standards. You can see the list of recent recipients here.
Unfortunately, El Cerrito was not among the recipients in either 2023 or 2024. Despite the city manager’s declaration that securing a GFOA budget award was the singular goal for this year’s budget, it appears that more work is needed to align the city’s financial practices with the award criteria. This goal, while admirable, must be complemented by comprehensive strategies that address underlying fiscal challenges, including deficit spending and unfunded pension liabilities.
As we move forward, it’s crucial for El Cerrito to not only aim for recognition through awards but to fundamentally strengthen its financial management processes. The GFOA Budget Award should be viewed as a byproduct of effective governance and sound fiscal planning, rather than the sole objective.
In a surprising turn of events, the $20 billion Bay Area housing bond proposal has been pulled from the November ballot. The Bay Area Housing Finance Authority made this decision in light of dwindling support for new taxes, according to recent polls. This development raises significant questions for residents of El Cerrito, a city that has consistently supported tax increases, often promising improved services but delivering less.
NO NEW TAXES
El Cerrito has a history of being an outlier when it comes to tax policies. The city’s leadership frequently leans on increasing taxes as a solution to its financial woes, but residents have seen little return in the form of enhanced public services. The recent controversy surrounding the 55% tax proposal, which aimed to change the threshold for certain tax measures, further illustrates the city’s tendency to move the goalposts in ways that are often viewed as misleading.
The 55% proposal, although ultimately considered misleading and not pursued, highlights a troubling pattern. The city appears willing to adjust the rules to secure more revenue, even when such changes may not align with the best interests of its residents. This approach fosters a growing skepticism among taxpayers, who are expected to bear the burden of these decisions while receiving diminishing returns in services.
With the removal of the housing bond measure from the ballot, one must wonder if this signals a shift in public sentiment across the region. Will El Cerrito continue to push for higher taxes despite offering fewer services, or will this be a wake-up call for the city to reevaluate its approach? As other cities in the Bay Area reconsider their tax strategies in response to voter fatigue, El Cerrito’s leadership faces a critical decision: continue down the path of taxing without tangible improvements, or listen to its residents and chart a new course.
It’s time for the city to reflect on its priorities and consider whether its current trajectory is sustainable or if it’s time to align more closely with the broader regional sentiment. The future of El Cerrito’s financial health, and the satisfaction of its residents, may very well depend on this crucial decision.
In the realm of public finance, the goalposts seem to shift whenever it suits those in power. In El Cerrito, we’ve seen this play out with how the city measures the health of its General Fund reserves. When the City meets the Government Finance Officers Association (GFOA) guidelines, it’s cause for celebration. But when the numbers don’t add up, new, less robust guidelines are quickly adopted. This practice of “moving the goal line” raises serious concerns about transparency and accountability in city management.
The GFOA Guidelines: A Moving Target
Let’s start with the GFOA guidelines, which recommend that municipalities maintain a General Fund unrestricted reserve of at least 17% of their annual expenditures. This standard is designed to ensure that cities have enough of a financial cushion to weather economic downturns or unexpected expenses.
On June 20, 2023, city management proudly announced that, “as a result of these significant strategies, coupled with a robust real estate market and funding from the Federal Government, the City continues to maintain a positive General Fund balance that well exceeds the Government Finance Officers Association (GFOA) recommended standard of 17% of General Fund expenditures.”
But as the real estate market cooled and federal assistance was used to balance the budget rather than to invest in the community, the city found itself falling short of the GFOA’s 17% guideline. Now, the city management is claiming victory by a different measure: “As a result of these significant strategies, the City continues to maintain a positive General Fund balance well above the City’s 10% reserve level policy.”
The problem is clear. When the city can’t meet the GFOA’s 17% guideline, it simply lowers the bar to 10%, declaring success based on its own, more lenient standard. This isn’t just moving the goal line; it’s redefining the game to guarantee a win.
The Ongoing Financial Strain
This pattern of behavior is especially troubling given the city’s current financial situation. According to city management, the total budget for FY 2025 tells a story of continued financial strain.
On June 18, 2024, the city revealed that “with all funds combined, the Proposed FY 2024-25 Budget recommends total expenditures of $71,613,889 and provides funding for all City services, including Police, Fire, Recreation, Community Development, Public Works, and City Management. At this time, total revenues are projected to be $68,057,453. These funds will continue to be monitored and updated as the lingering impacts of inflation, rising interest rates, and uncertain economic conditions continue.”
In other words, the city is once again planning to spend more than it takes in. While the General Fund budget for FY 2024-25 projects a small surplus of $33,952, this is a drop in the bucket compared to the overall budget gap. And yet, the city is already hinting that deficits are likely to continue.
The Implications of Moving the Goal Line
So, what does this all mean for the residents of El Cerrito? By continually adjusting the benchmarks for financial success, city management obscures the true state of the city’s finances. This lack of transparency prevents meaningful public discourse about the city’s fiscal health and hinders accountability.
Moreover, by lowering the reserve target, the city is taking on greater financial risk. A 10% reserve might be enough to get by in the short term, but it leaves the city vulnerable to future economic shocks. And as the city’s financial challenges persist, the temptation to move the goal line even further will only grow.
Call to Action
It’s time to hold our city leaders accountable. We need to demand that El Cerrito adhere to the established GFOA guidelines and resist the urge to move the goal line whenever it’s convenient. Transparency and accountability are non-negotiable if we want to secure a stable financial future for our community. Let your voice be heard—attend city council meetings, ask tough questions, and advocate for responsible financial management. Our city deserves leadership that plays by the rules, not one that changes them when it suits their agenda.
Let’s work together to ensure that the goal line stays where it belongs.
El Cerrito, CA – August 13, 2024 – Four years after the State Auditor’s report highlighted the severe financial mismanagement and fiscal irresponsibility plaguing El Cerrito, the City Council remains conspicuously negligent in addressing the crisis. The consequences of their inaction are stark, with the city teetering on the brink of bankruptcy, driven by a chronic reliance on reserves, unfunded pension liabilities, and a failure to implement meaningful reforms.
El Cerrito’s fiscal crisis has, unfortunately, become a norm rather than a wake-up call for its leadership. Instead of taking decisive action to rectify the financial chaos, the City Council has chosen to sidestep the recommendations of the State Auditor, allowing the situation to deteriorate further..
The State Auditor’s 2020 report painted a grim picture of El Cerrito’s finances, ranking it among the top 6 cities in California most likely to face bankruptcy. The warning signs were clear: excessive reliance on dwindling reserves, ballooning pension liabilities exceeding $85 million, and a glaring absence of sustainable revenue streams. Yet, four years later, the City Council has failed to take substantive measures to address these critical issues.
Instead of enacting necessary budget cuts, streamlining operations, or renegotiating contracts, El Cerrito’s leaders have allowed the city’s financial woes to fester. The FY25 budget, once again likely be balanced on the back of depleted reserves, will leave the city’s savings well below the Government Finance Officers Association’s recommended levels. The city however touts strong reserves but $10 million of the $16 million are restricted reserves.
The city’s top-heavy leadership structure remains untouched, and despite the State Auditor’s warnings, a classification and compensation study was implemented, further straining the city’s finances.
The City Council’s approach to public communication has been riddled with obfuscation, half-truths, and outright lies. In a recent presentation, the City Manager downplayed the severity of El Cerrito’s financial situation, glossing over the $85 million in unfunded pension liabilities—a substantial economic burden, even if it doesn’t appear on the balance sheet. She also claimed that the City was never close to bankruptcy, despite the issuance of the State Auditor’s going concern letters and the 2020 designation of El Cerrito as the 6th most likely city in California to go bankrupt. With the city now ranked 13th most likely to become bankrupt, it is clear that El Cerrito remains dangerously close to financial collapse. The City Manager’s misleading statements, combined with the Council’s ongoing refusal to address the fiscal realities, have severely eroded public trust and intensified concerns about the city’s long-term viability.
El Cerrito’s leadership claims that the city’s financial woes are out of their control, attributing the crisis to external factors like increased non labor related costs. However, this narrative falls apart under scrutiny. Exorbitant wages for most of the city’s leadership, excessive staffing levels, and an increased reliance on consultants are fully within their power to address. Instead of taking steps to contain costs, El Cerrito continues to grow its budget, a stark contrast to other cities in Contra Costa County that have successfully recovered from pandemic-related challenges through prudent fiscal management.
Additionally, the use of “scare tactics” has become a rather successful operating model for the City Manager. By waiting until the budget adoption day to address critical issues, the City Manager creates a sense of crisis, which in turn creates confusion and demands immediate action by the City Council—irrespective of cost and common sense. This approach provides cover for accepting irrational decisions under the threat that services will be decimated if cuts are made. While this claim isn’t necessarily true, it becomes a self-fulfilling prophecy when the City Manager refuses to engage in advance planning to address the city’s inflated expense budget.
The situation in El Cerrito is emblematic of a broader failure in governance. When leadership prioritizes short-term optics over long-term solutions, it is the residents who suffer. The city’s financial instability is not just a number on a ledger; it impacts essential services, public safety, and the quality of life for all residents. The continuation of this fiscal mismanagement threatens the very fabric of the community.
El Cerrito voters should reject any new tax or bailout measure until the fiscal crisis is addressed without additional support from taxpayers. The future of El Cerrito depends on it.
To avoid a fiscal catastrophe, El Cerrito needs robust crisis management led by independent experts who can conduct a thorough analysis of the city’s operations, identify cost-saving opportunities, and develop a sustainable financial plan. This process must include renegotiating labor and vendor contracts, consolidating redundant functions, and making hard choices about service levels.
Moreover, the residents of El Cerrito must demand greater accountability and transparency from their elected officials. It is no longer acceptable for the City Council to ignore the glaring issues at hand. The community deserves leaders who are willing to make the tough decisions necessary to steer the city back on course. This includes not only addressing the immediate fiscal challenges but also laying the groundwork for a more sustainable and resilient financial future.
The upcoming elections offer an opportunity for voters to elect representatives who are committed to fiscal responsibility and transparency. It is crucial that candidates running for City Council are held to a high standard, with clear plans for addressing the fiscal crisis and restoring trust in local government.
El Cerrito’s fiscal crisis is not an inevitability; it is the result of years of neglect and poor governance. The community must come together to demand change, starting with the rejection of any new tax measures until the City Council takes meaningful steps to resolve the underlying issues. The path to recovery will not be easy, but with strong leadership and a commitment to accountability, El Cerrito can emerge from this crisis stronger and more resilient.
As we approach the 2024 election, El Cerrito’s City Council race is heating up. With two current council members—Paul Fadelli and Tessa Rudnick—not running for re-election, the landscape is set to change. This blog provides a brief overview of the candidates on the ballot and what their election could mean for the future of El Cerrito.
Who’s Not Running?
Two incumbents, Paul Fadelli and Tessa Rudnick, have decided not to seek re-election. Their departure opens up opportunities for fresh faces on the council. Lisa Motoyama, the only incumbent running for re-election, will be looking to retain her seat amid a competitive field.
Candidates on the Ballot
This election is particularly significant because there are three seats up for grabs on the El Cerrito City Council. With two incumbents stepping down, the race is wide open for new leadership.
Lisa Motoyama As a current council member, Lisa Motoyama brings experience and a record of service to the table. Her re-election campaign will likely focus on continuing the work she’s done during her term, particularly in areas like fiscal responsibility and community development.
Rebecca Saltzman Rebecca Saltzman, currently serving as a BART Board member, is stepping into the local political arena. With her background in public transit and regional planning, Saltzman could bring a unique perspective to the council, especially on issues like transportation and sustainability. However, Saltzman’s tenure at BART has not been without challenges. She has faced criticism for struggles with fiscal management, as BART has dealt with budget deficits, rising costs, and an ongoing pension liability crisis. Additionally, despite efforts to improve passenger service, issues such as service reliability and safety concerns have persisted, leaving some riders dissatisfied.
Courtney Helion Another contender, Courtney Helion, is vying for a seat on the council. Though less is known about her campaign platform at this stage, her participation in the race adds to the diversity of choices available to El Cerrito voters.
Lauren Dodge Lauren Dodge is also in the running, bringing her perspectives and ideas to the forefront of the election. Voters will be keen to hear more about her plans for the city as the campaign progresses.
David Hatton David Hatton has shown interest in running but has not yet submitted the required documents. If he officially enters the race, it will be interesting to see how his platform compares with those of the other candidates.
William Ktsanes Similar to Hatton, William Ktsanes has yet to submit his paperwork but may still join the race. His participation would further broaden the field of candidates.
Important Dates
With two incumbents not filing for re-election, the deadline for submitting candidacy documents has been extended to Wednesday, August 14. This gives potential candidates additional time to declare their intentions and get their campaigns up and running.
What’s at Stake?
The 2024 election is a crucial one for El Cerrito, as the newly elected council members will have significant influence over the city’s future. Key issues like fiscal management, public safety, and community services are likely to dominate the discussions in the coming months. The candidates’ positions on these matters will play a pivotal role in shaping El Cerrito’s direction in the years to come.
As the campaign season unfolds, we’ll be watching closely to see how the candidates differentiate themselves and what they propose to tackle the challenges facing El Cerrito. Stay tuned for more updates as we get closer to election day.
For more details on the candidates and their campaign disclosures, you can visit the official El Cerrito election pages.
El Cerrito recognize that employee compensation is one of the largest expenses for any organization, including our city. Often, this area goes unmanaged, leading to significant issues such as inconsistent pay for performance and disparities in compensation. Given the pivotal role of the City Manager in El Cerrito’s administration, it’s crucial to have a clear, transparent, and effective evaluation mechanism.
Mayor Tessa Rudnick, no longer running for reelection and who claims to be data-driven has dismissed any public recommendations for service delivery or performance metrics.
A compensation scorecard is a comprehensive tool that collects and displays key metrics to monitor and evaluate performance. This tool helps identify problems, improve decision-making transparency, and enhance the overall quality of service delivery and financial decisions. For El Cerrito, using a compensation scorecard can significantly increase the effectiveness of managing the City’s performance. .
Goals and Objectives for the El Cerrito City Manager
The role of the City Manager in El Cerrito is multifaceted and crucial for the effective administration and progress of the city. Here are key goals and objectives for the City Manager:
Economic Development:
Foster economic growth by attracting new businesses and supporting existing ones.
Promote job creation and workforce development initiatives.
Enhance the city’s financial health through strategic planning and efficient resource management.
Public Safety:
Ensure the safety and security of residents by supporting police, fire, and emergency services.
Implement programs to reduce crime and improve community policing.
Enhance disaster preparedness and response capabilities.
Infrastructure and Urban Planning:
Oversee the maintenance and development of city infrastructure, including roads, public transportation, and utilities.
Promote sustainable urban development and smart growth strategies.
Ensure effective land use planning and zoning regulations.
Community Engagement and Public Relations:
Foster transparent communication and strong relationships with residents, businesses, and community organizations.
Promote citizen participation in city governance through public meetings and forums.
Manage the city’s public relations and ensure timely dissemination of information.
Environmental Sustainability:
Implement policies and programs to protect and enhance the city’s natural environment.
Promote renewable energy, waste reduction, and conservation initiatives.
Ensure compliance with environmental regulations and standards.
Budget and Financial Management:
Develop and manage the city’s budget, ensuring fiscal responsibility and transparency.
Optimize revenue generation while maintaining efficient expenditure practices.
Oversee financial reporting and ensure compliance with financial regulations.
Operational Efficiency:
Improve the efficiency and effectiveness of city services and operations.
Implement performance measurement systems to monitor and enhance service delivery.
Foster a culture of continuous improvement and innovation within city departments.
Housing and Community Development:
Support affordable housing initiatives and programs to reduce homelessness.
Promote neighborhood revitalization and community development projects.
Ensure equitable access to housing and community resources.
Human Resources and Workforce Development:
Oversee the recruitment, development, and retention of city staff.
Promote diversity, equity, and inclusion within the city’s workforce.
Implement training and professional development programs for employees.
Legal and Regulatory Compliance:
Ensure the city’s compliance with all local, state, and federal laws and regulations.
Oversee the management of legal matters, including contracts and litigation.
Develop and implement policies to mitigate legal risks.
Questions for Residents
Economic Development:
How effectively has the City Manager fostered economic growth and supported local businesses?
Have you noticed any significant improvements in job creation and workforce development initiatives?
Public Safety:
Do you feel safer with the current measures in place for police, fire, and emergency services?
Are there noticeable improvements in crime reduction and community policing?
Infrastructure and Urban Planning:
How would you rate the maintenance and development of city infrastructure such as roads and public transportation?
Are the urban development and land use planning strategies meeting the needs of our community?
Community Engagement and Public Relations:
Is there transparent communication and strong relationship-building between the city administration and residents?
How well is the city managing public relations and disseminating information?
Environmental Sustainability:
Are you satisfied with the policies and programs aimed at protecting our natural environment?
How effective are the renewable energy, waste reduction, and conservation initiatives?
Budget and Financial Management:
How transparent and responsible has the city been in managing its budget?
Are revenue generation and expenditure practices optimized effectively?
Operational Efficiency:
Have you observed improvements in the efficiency and effectiveness of city services?
Is there a noticeable culture of continuous improvement and innovation within city departments?
Housing and Community Development:
How well is the city supporting affordable housing initiatives and reducing homelessness?
Are there significant efforts towards neighborhood revitalization and equitable access to resources?
Human Resources and Workforce Development:
How effective has the city been in recruiting, developing, and retaining staff?
Are diversity, equity, and inclusion promoted within the city’s workforce?
Legal and Regulatory Compliance:
Is the city adhering to all local, state, and federal laws and regulations?
How well are legal matters such as contracts and litigation managed?
Conclusion
A compensation scorecard is a powerful tool that can transform how El Cerrito manages and evaluates the City Manager’s performance. By focusing on transparent, strategic metrics, the city can ensure that its compensation strategy aligns with its broader goals, leading to better management of one of its most critical roles.
Your feedback is vital in ensuring our city’s leadership is held accountable and is continuously striving to improve. Please share your thoughts on how the City Manager and City Council have performed against these metrics and goals.
In a letter dated March 2024, the City of El Cerrito claims it has addressed all recommendations from the California State Auditor’s Report (Report No. 2020-803) in 2021 and has requested removal from the Local High-Risk Program. However, a deeper look into the city’s letter to the State Auditor and the progress report reveals several crucial omissions that raise concerns about the city’s actual adherence to some of the recommendations. These areas of concern are essential for the city’s long-term financial and operational well-being.
As you may recall, Karen Pinko’s initial response was to discredit the State Auditor by saying the report was wrong. Then she said the recommendations were not binding – in other words she was not required to comply
She later wrote a 16-page response agreeing to only some of the recommendations. However, after public outcry and newspaper articles illuminated the auditor’s report, she finally began taking the findings seriously. Here are a few outstanding recommendations:
1. Dependency on Reserves
One of the key recommendations from the State Auditor was to eliminate the city’s reliance on reserves to cover over expenditures. While El Cerrito reports a General Fund reserve of $16.3 million, representing 32% of expenditures, it is essential to note that this figure includes $9 million in restricted funds in the Emergency Disaster Relief Fund (EDRF), which can only be used in severe economic downturns or disasters, and an additional $1 million set aside for the Section 115 trust.
The city claims to have exceeded revenue targets and met expenditure targets for two consecutive fiscal years. However, this claim omits the significant increase in expenses during this period. It is crucial to consider that a substantial portion of this apparent success stems from an unusually robust real estate market, as the city relies heavily on real property transfer taxes. This dependency on a volatile revenue source does not fully align with the recommendation to avoid using reserves for ongoing operational costs, posing a risk to financial sustainability if market conditions change. Which is why shortly after the letter was issued, the city used $1 million in reserves to cover the RPTT shortfall.
Moreover, in June 2024, the City Council passed an operating budget of $68.3 million, with unrestricted reserves standing at $6.3 million, which falls short of what the Government Finance Officers Association (GFOA) recommended 17% of operating expenditures. El Cerrito has set a 10% target for its unrestricted fund balance, but this is less than ideal for ensuring financial resilience, especially given the city’s history of relying on reserves to balance its budget.
2. $85 Million Unfunded Liability with CalPERS
El Cerrito has established a Section 115 Trust and allocated $1 million as an initial deposit to address its unfunded pension liability with CalPERS. However, the city’s approach lacks a concrete long-term funding plan to address the substantial $85 million unfunded liability. Without a strategic plan for ongoing funding and employee contributions, the city’s ability to meet its pension obligations remains uncertain. The city mentions efforts to negotiate increased employee contributions to CalPERS, but this alone may not be sufficient to address the looming financial obligation that could jeopardize the city’s financial stability and ability to provide services.
3. Staffing Analysis Study
The State Auditor recommended that El Cerrito conduct a staffing analysis study to identify overlapping responsibilities and inefficiencies within the city’s organizational structure. While the city completed a classification and compensation study, it primarily focused on aligning job classifications and compensation with market rates. The report suggests implementing the study’s recommendations over time, subject to resource availability. However, could not have a report on overlapping expenses or staffing levels because the city has shelved the study in favor of other studies.
The lack of detailed evidence in the progress report on eliminating redundancies or optimizing staffing raises questions about the effectiveness of the city’s efforts to achieve operational efficiency and cost reduction.
Conclusion
While El Cerrito has made strides in addressing some recommendations from the State Auditor, the city’s claims of having fully implemented all recommendations are woefully incomplete. The critical areas of dependency on reserves, unfunded pension liabilities, and thorough staffing analysis require more transparent and strategic planning. These elements are crucial for ensuring the city’s long-term financial health and operational efficiency.
Call to Action
El Cerrito residents deserve a transparent and responsible approach to fiscal management. We urge all stakeholders, from community members to oversight bodies, to demand accountability from city leadership. Attend city council meetings, ask questions, and insist on clear answers about our financial future. Your voice matters in shaping a sustainable path forward for El Cerrito.
In the complex landscape of municipal governance, accountability is paramount. As El Cerrito faces persistent fiscal challenges, creating a system of accountability for the City Manager and their direct reports is crucial to ensuring transparent and effective decision-making. Data-driven leadership can play a vital role in establishing this accountability, driving improved performance, and regaining public trust.
Establishing Clear Metrics and Performance Indicators
A critical component of accountability is setting clear, measurable goals for city leaders. By establishing key performance indicators (KPIs) for the City Manager and their direct reports, El Cerrito can create a framework for evaluating the effectiveness of leadership. These KPIs should encompass financial management, community engagement, service delivery, and other areas critical to the city’s success.
For example, financial KPIs could include budget adherence, reserve fund levels, and pension liability reduction. Service delivery metrics might assess the quality and timeliness of public services, while community engagement KPIs could measure resident satisfaction and involvement. By using data to track these metrics, the city can hold leaders accountable for their performance and make data-informed adjustments as needed.
Regular Reporting and Transparency
To ensure accountability, it is essential to have regular reporting and transparency in decision-making processes. The City Manager and their team should provide frequent updates on their progress toward achieving established goals, supported by data and analysis. This transparency allows stakeholders, including residents and the city council, to monitor performance and hold leaders accountable for their actions.
Public reporting of data can also foster greater trust between city leadership and the community. By making data accessible and understandable, El Cerrito can engage residents in the governance process, empowering them to ask informed questions and participate in decision-making. This openness is vital for building a culture of accountability and responsiveness.
Performance-Based Incentives and Consequences
Accountability also involves aligning incentives with performance. In El Cerrito, this could mean implementing performance-based incentives for city leaders who meet or exceed their goals. Conversely, there should be consequences for failing to achieve established objectives. By linking performance to rewards and consequences, the city can motivate leaders to prioritize data-driven decision-making and accountability.
These performance-based systems encourage leaders to adopt a proactive approach to problem-solving and continuous improvement. They also create a clear connection between leadership actions and outcomes, reinforcing the importance of accountability in governance.
Mayor Tessa Rudnick’s Lack of Commitment to Data-Driven Decisions
While data-driven decision-making offers significant benefits, El Cerrito has struggled to embrace this approach under the leadership of Mayor Tessa Rudnick. Despite her verbal commitment to using data and the city’s ongoing fiscal challenges, there has been a notable lack of commitment to using data as a foundation for decision-making.
Ignoring Data in Fiscal Management
Mayor Rudnick has faced criticism for not prioritizing data-driven strategies in managing El Cerrito’s finances. The city’s $85 million in unfunded pension liabilities and chronic budget deficits highlight the need for informed decision-making. However, there has been little evidence of a systematic approach to using data to address these financial challenges.
For example, rather than using data to identify and implement cost-saving measures, the city has continued to rely on reserve funds and other unsustainable practices. This approach has exacerbated financial woes, leading to a loss of confidence among residents and stakeholders.
Resistance to Transparency and Public Engagement
Another area of concern is the resistance to transparency and public engagement in decision-making processes. Under Mayor Rudnick’s leadership, there has been limited access to data and information about the city’s financial status and strategic plans. This lack of transparency undermines accountability and prevents residents from fully understanding and participating in governance.
Without a commitment to open data and public reporting, El Cerrito’s leadership misses the opportunity to engage the community in meaningful dialogue. By contrast, a data-driven approach would promote transparency and empower residents to hold leaders accountable for their decisions.
Fostering a Culture of Data-Driven Leadership
To move forward, El Cerrito must foster a culture of data-driven leadership that prioritizes accountability, transparency, and informed decision-making. This shift requires a commitment from city leaders, including Mayor Rudnick, to embrace data as a central component of governance.
By investing in data analytics capabilities, promoting open data initiatives, and engaging residents in the decision-making process, El Cerrito can create a more accountable and effective leadership framework. This commitment to data-driven leadership will enable the city to address its challenges more effectively and build a brighter future for its residents.
Conclusion
Data-driven decision-making is not just a management tool; it is a catalyst for accountability and transparency in governance. For El Cerrito, adopting this approach can transform the way city leaders operate, ensuring they are held accountable for their actions and decisions. By prioritizing data and fostering a culture of openness, El Cerrito can rebuild trust with its residents and navigate its challenges with confidence and clarity. Embracing data-driven leadership is essential for the city’s success and sustainability.
In the heart of our diverse and vibrant community, a troubling trend persists within El Cerrito’s city leadership—a trend that raises questions about loyalty, vested interest, and the real cost to our city’s future. At the helm of this trend is the City Manager, whose ability to cultivate unwavering loyalty from her staff comes at a steep price to our community.
The leadership team, composed largely of individuals who do not reside in El Cerrito, appears more aligned with the City Manager’s narrative than with the pressing needs of the community they are meant to serve. This allegiance, while beneficial for maintaining internal cohesion, comes with significant drawbacks for the city’s fiscal health and service delivery.
The stark reality is that our city’s leadership, whose high salaries contribute substantially to the financial strain, is driving us toward another round of near-bankruptcy.
Rising Salaries in El Cerrito
The salaries of El Cerrito’s leadership have seen substantial increases over the past few years, straining the city’s already precarious financial situation. According to Transparent California, key positions within the city’s administration have experienced significant compensation growth:
Assistant City Manager: From $241,834 to $330,863, a 36.8% increase.
Finance Director: $282,482 (latest figure).
Public Works Director: From $269,537 to $331,407, a 23.0% increase.
Community Development Director: From $264,396 to $300,921, a 13.8% increase.
Recreation Director: From $260,745 to $299,816, a 15.0% increase.
City Clerk: From $203,716 to $276,276, a 35.6% increase.
Fire Department Salaries
Additionally, the compensation for El Cerrito’s fire department’s top earners has reached staggering levels, with overtime payments contributing significantly to their total earnings:
Fire Captain: $481,284
Fire Captain: $441,487
Fire Lieutenant: $424,795
Fire Chief: $412,926
Fire Lieutenant: $376,071
Fire Engineer: $375,981
Fire Captain: $367,875
Fire Engineer: $365,817
Fire Engineer: $362,828
Fire Engineer: $345,385
El Cerrito now employs four battalion chiefs, while neighboring cities such as Albany and Hercules, which are of similar size, operate with none. The total compensation for fire captains and battalion chiefs in El Cerrito is approaching $600,000, with six top earners receiving over $100,000 in overtime—the highest being $203,490.
Comparison with Nearby Cities
El Cerrito’s financial practices stand in stark contrast to nearby cities. Albany, for instance, maintains an excellent standard of public safety without incurring such high costs. Kensington, which contributes about 30% of El Cerrito’s fire department budget, highlights the imbalance in our spending. Moreover, El Cerrito city staff earn considerably more than their counterparts in cities of comparable size, raising questions about the sustainability and equity of our city’s compensation policies.
State Auditor’s Report
The California State Auditor’s report emphasizes the fiscal challenges El Cerrito faces due to chronic overspending. The need to review staffing levels and compensation is more pressing than ever. Our financial management has resulted in El Cerrito being ranked as the 13th most likely California city to face bankruptcy. The excessive reliance on reserves and the handling of pension liabilities further exacerbate our financial woes.
The Story of Compliance with State Auditor’s Recommendations
The leadership team recently has been vocal about their commitment to meeting the State Auditor’s 2021 recommendations, painting a picture of progress and stability. However, the facts tell a different story.
Despite assurances, we have not seen meaningful compliance with these recommendations, particularly those focused on fiscal responsibility and sustainability. The staffing level study, which is crucial for aligning resources with community needs, has been shelved, leaving us without a clear roadmap for managing our most valuable asset—our people.
Depleting Reserves and Looming Debt
One of the most alarming aspects of our current situation is the continued reliance on reserves to cover operating expenses. This practice is unsustainable and indicative of deeper fiscal mismanagement. Our general fund reserves are being depleted at an alarming rate, leaving us vulnerable to financial shocks and limiting our ability to invest in vital community services.
Moreover, the city grapples with a staggering $85 million in unfunded pension liabilities with CalPERS. This debt is not merely a distant concern; it is a pressing issue that accrues interest at a rate of 6.8% annually. The financial burden of this liability threatens to overshadow other essential budgetary needs and places a heavy strain on future budgets.
Lack of Vested Interest
A significant portion of our leadership team does not reside in El Cerrito, which raises questions about their vested interest in the long-term success and service delivery of our city. Without the perspective of a resident, can they truly understand the impact of their decisions on the community they serve? This disconnect contributes to decision-making that often prioritizes internal loyalty over community well-being.
Conclusion
As we navigate these challenging times, it is crucial to critically assess the leadership dynamics within our city. We must demand transparency, accountability, and a genuine commitment to the well-being of El Cerrito. Our community deserves leaders who are not only loyal to one another but also deeply invested in the success and sustainability of the city they are entrusted to serve.
The path forward requires us to confront these challenges head-on, advocating for leadership that reflects the diversity and dynamism of El Cerrito. We must push for solutions that prioritize the fiscal health of our city and ensure that our community remains a thriving and vibrant place for generations to come.
The City of El Cerrito General Municipal Election will be held on November 5, 2024, to fill three seats on the City Council. Terms are for four years, and successful candidates will be sworn into office at a City Council meeting held in December 2024.
Candidate information will be populated during the nomination period, which will be open from Monday, July 15, 2024, to Friday, August 9, 2024. If one or more incumbents do not file by this deadline, the nomination period will be EXTENDED to Wednesday, August 14, 2024.
Appointments for obtaining and filing nomination papers are required and can be requested by emailing cityclerk@ci.el-cerrito.ca.us. Appointments will be scheduled during regular business hours of 8:00 a.m. to 4:00 p.m. Monday, Wednesday, and every other Friday, and between 8:00 a.m. and 6:00 p.m. Tuesdays and Thursdays. More information | Campaign Disclosure
Candidate Overview
Tessa Rudnick
Key Votes:
FY 2022: Voted NO on the budget.
FY 2023, FY 2024, FY 2025: Voted YES on the budget.
Tessa Rudnick has shown strong opposition to certain amendments and proposals. Notably, she opposed the Motoyama amendment and voted favorably renting out the senior center. Despite frequently advocating for data-driven decisions, she has not indicated that she uses data or information derived from data objectively. Her leadership faced significant scrutiny during her tenure as mayor in the second half of FY 2024, a period marked by a deficit exceeding $6 million. When Tessa ran in 2020, she emphasized her belief that the current city manager was doing an excellent job. This stance has raised questions given the city’s ongoing financial challenges.
If re-elected, Tessa Rudnick needs to ensure the city manager demonstrates sustainable reductions in spending and stops relying solely on new taxes and using reserves to meet payroll.
Lisa Motoyama
Key Votes:
FY 2022, FY 2023: Voted NO on the budget.
FY 2024, FY 2025: Voted YES on the budget.
Lisa Motoyama proposed an amendment to reduce extra library hours, which was initially passed by the council but reversed before the final vote. Like Tessa Rudnick, she also voted to rent out the senior center. As mayor during the passage of the FY 2024 budget, the city experienced a $6 million deficit. In her State of the City message, given as her last act as mayor, she asserted that the council and management have worked hard and that the city has mostly resolved the budget crisis.
If re-elected, Lisa Motoyama needs to ensure the city manager demonstrates sustainable reductions in spending and stops relying solely on new taxes and using reserves to meet payroll.
Rebecca Saltzman
Rebecca Saltzman is a new candidate facing scrutiny regarding her handling of financial matters and public and staff safety related to fare evasion. Her platform will need to address these issues to gain the trust of El Cerrito’s residents. You can find more information about her campaign and reach out to her through her campaign website or via email at rebecca@rebeccaforelcerrito.com.
Lauren Dodge
Lauren Dodge is a fresh face in El Cerrito politics, bringing new energy and perspectives to the council race. Her campaign focuses on transparency, fiscal responsibility, and community engagement. Lauren emphasizes the importance of listening to residents and making decisions that reflect the community’s needs and values.
David Hatton
David Hatton is another new candidate aiming to bring change to El Cerrito’s City Council. With a background in local activism and community service, David prioritizes public safety, economic stability, and environmental sustainability. He advocates for a balanced approach to growth and development, ensuring that El Cerrito remains a vibrant and inclusive community.
Conclusion
The upcoming election in November 2024 is crucial for the future of El Cerrito. With key incumbents like Paul Fadelli not running for re-election, the city will see fresh faces and possibly new directions in its leadership. Residents need to stay informed and engage in the electoral process to ensure that the city’s leadership aligns with their values and needs.
Remember, there is still time to run for council. If you are passionate about contributing to the community, consider filing your nomination papers within the specified period.
Stay informed, stay engaged, and make your voice heard in the upcoming election.
In recent weeks, the push for transparency regarding the El Cerrito library surveys has gained momentum. A concerned citizen’s communication with former council member Greg Lyman highlights the ongoing struggle to obtain the survey data and reports that taxpayers funded.
The Issue at Hand
The surveys in question were conducted to gather community input on the proposed new library. However, despite the investment of public funds, the results have not been made available to the public. This lack of transparency is troubling, particularly for those who advocate for open government and accountability.
A Call for Action
The citizen’s letter to Greg Lyman emphasizes the need for cooperation between different stakeholders to secure the release of this vital information. Whether you support the Plaza library project or believe it is financially unfeasible for the city, the release of the survey data is crucial for informed decision-making. The community deserves to understand the feedback collected, which can significantly impact future planning and proposals.
Greg Lyman’s Response
Greg Lyman, a long-serving former council member and now a leader of the Plaza Station effort, responded to the concerned citizen’s plea. He acknowledged the conversation and the need for incorporating public input in future proposals. However, he also noted that the past surveys pertained to a funding measure that is no longer relevant. His focus is on developing a new proposal that includes more detailed preliminary designs and a clear timeline.
The Path Forward
To ensure the city acts in the best interest of its residents, it is imperative that both sides—those in favor of the new library and those concerned about its costs—unite in demanding the release of the survey data. By doing so, we can foster a more transparent and accountable government.
What You Can Do
Support this effort by writing to the current council members and urging them to vote for the release of the survey data and reports. This information belongs to the taxpayers, and its availability is a cornerstone of open government. Here is a link to contact the City Council: El Cerrito City Council.
Your voice matters. By advocating for transparency, we can ensure that the decisions regarding the new library are made with complete information and reflect the community’s true preferences and concerns.
Sample Email to Council Members:
Subject: Urgent Request for Release of Library Survey Data
Dear Council Members,
I am writing to express my concern regarding the withheld survey data and reports related to the new library proposal. As a taxpayer, I believe it is essential for this information to be made available to the public to ensure transparency and informed decision-making.
I urge you to push for the immediate release of the survey data and reports. This will allow both community members and council members to engage in meaningful discussions based on accurate and complete information.
Thank you for your attention to this matter.
Sincerely, [Your Name]
By coming together and demanding transparency, we can ensure that the future of our community’s library is decided through an open and informed process. Let’s work together to make our voices heard and uphold the principles of open government.
In the City of El Cerrito, leadership often touts their decision-making as strategic. However, upon closer inspection, it becomes evident that many of these decisions are nothing more than transactional and tactical. True strategy involves long-term vision and comprehensive planning, but the city’s recent actions demonstrate a lack of such foresight.
Short-Term Budget Fixes
One clear example is the city’s approach to budgeting. For the past several years, El Cerrito has balanced its budget primarily through the use of reserves. While this may offer a temporary fix, it does not address the underlying issues of fiscal mismanagement and overspending. Rather than developing a sustainable financial plan, the city resorts to depleting its reserves, which is a tactical move at best. True strategic financial management would involve creating a plan to increase revenues and decrease unnecessary expenditures, ensuring long-term fiscal health.
The Library Relocation Project
Another instance is the proposed relocation of the city library. The city’s decision to move the library to a rented location, despite owning the land at the current site, is puzzling. This move is presented as strategic, yet it overlooks the long-term implications. Renting the new site at market rates, while the sale of the current property is not fully disclosed, points to a lack of genuine strategic planning. A truly strategic approach would involve a thorough cost-benefit analysis and transparency about the financial outcomes of such a move.
Addressing Pension Liabilities
El Cerrito’s handling of its pension liabilities further illustrates this point. The city has over $85 million in unfunded pension liabilities, with only a fraction of that amount set aside. City management’s tendency to downplay this significant economic debt is concerning. Rather than devising a strategic plan to address and reduce these liabilities over time, the city continues to operate without a clear resolution in sight, treating the issue as a distant problem rather than a present and pressing challenge.
Leadership and Diversity
Moreover, the city’s efforts in leadership and diversity also reflect tactical rather than strategic thinking. The current leadership does not reflect the diverse community it serves, which hampers effective decision-making and community engagement. A strategic approach would involve actively recruiting and retaining a leadership team that represents the community’s diversity, thus fostering a more inclusive and innovative environment.
Revenue
While the city has experienced some positive developments in revenue generation, primarily through enhanced sales tax collections from local businesses, the composition of these businesses—including massage parlors, liquor stores, adult stores, and a cannabis outlet—suggests a need for a broader and more balanced economic base. Although potentially lucrative in the short term, the presence of three Pilates studios appears unsustainable for a city of 25,000 people. Additionally, the absence of economic development leaves numerous commercial spaces empty and lots vacant, reflecting the deeper issue of overreliance on tax increases, which burdens residents and stifles economic growth.
Revitalizing San Pablo Avenue, a key commercial corridor, could transform it into a bustling hub. Proposed improvements include better pedestrian pathways, green spaces, and art installations, aiming to increase foot traffic and attract new businesses. Diversifying business sectors is essential for creating a resilient economy. Incorporating professional services, healthcare, educational institutions, automotive services, technology, manufacturing, and beauty services can attract high-value services and generate substantial revenue. To support these efforts, El Cerrito must prioritize enhancing safety, reducing bureaucratic hurdles, addressing crime concerns, making the city more business-friendly, and ensuring a prosperous future for its residents and business community.
Conclusion
In summary, while the City of El Cerrito may label its actions as strategic, a closer look reveals that these decisions are primarily transactional and tactical. True strategic decision-making requires a long-term vision and an integrated problem-solving approach, something the city has yet to fully embrace. Until then, we remain concerned about the sustainability and efficacy of the city’s leadership and financial management.
Join the Conversation
We encourage community members to engage in discussions about how we can drive true strategic change in El Cerrito. Let’s push for transparency, long-term planning, and inclusive leadership that genuinely reflects the needs and values of our diverse community.
Here is how you can help:
Share this post with other residents.
Comment on the post.
Attend the monthly Financial Advisory Board meetings in person.
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Voice your concerns with the Council.
Council meetings are remote and in-person, but public comment is now limited to in-person attendees. If you want to contact City Council Members or the City Managers, all their emails are below:
El Cerrito Committee for Responsible Government (ECCRG) 