Today is a significant day for our city as the budget deliberations come to a head. Over the past months, citizens have followed the budget process diligently, yet there remains a sense of uncertainty about the council’s overarching goals and priorities. As we dive into the discussions, several pressing questions need clear answers from our city leaders.
What are the Council’s Goals?
1. Reserve Goal: Last year, the council aimed for the GFOA minimum of 17% unrestricted reserves. This year, the goal has been reduced to 10%. With the state median for unrestricted general fund reserves over 60%, can the council explain why the goal has been lowered and how this aligns with our long-term financial stability?
2. Pension Liability Goal: The city’s unfunded actuarial liability (UAL) pension liability rose from $57.8 million to $85 million last year, with annual payments nearing $10 million. With CalPERS earning 5.8% instead of the 6.8% goal in FY 2023, our pension liability is likely to increase. Furthermore, a potential reduction in the CalPERS discount rate could add millions in new debt. What is the council’s strategy to manage this growing liability?
3. Credit Rating Goal: Our city currently holds a BBB credit rating, a downgrade from AA- a decade ago and A- in January 2019. With the aspiration once being an AAA rating, what is the current credit rating goal? How does this align with our reserve and pension liability goals?
Budget Transparency and Mid-Year Expenses
There is a recurring issue of significant expenses not being included in the budget, only to resurface unexpectedly mid-year. For instance, several one-off construction expenses in FY 2024 were not initially budgeted. Additionally, public relations campaigns for Measure R and the new library were not explicitly discussed in the budget context. How does the council plan to improve transparency and accountability in budget planning to avoid such surprises?
Measure R and Library Campaigns
The dual narratives of the Measure R renewal campaign and the library funding approval raise questions about consistency and honesty in public relations. The Measure R campaign seems to focus on fear, suggesting the necessity of the tax renewal to avoid fiscal disaster. Meanwhile, the library campaign paints an optimistic picture, implying we can afford substantial new debt. How does the council reconcile these seemingly contradictory messages?
Specific Inquiries
• What is the story with charging for parking, and where does it appear in the five-year budget?
• Can the council unify the optimistic library campaign to present a cohesive and transparent financial strategy to the public?
A Call for Clear Goals
Citizens need clarity on the council’s goals, particularly regarding the reduction in reserve goals, the approach to managing pension liabilities, and the realistic credit rating objectives. It’s essential for the council to provide a clear and honest explanation of these goals and how they plan to achieve them amidst the current financial challenges.
Tonight, let’s hope the council addresses these questions with the transparency and accountability that the citizens of our city deserve.
As the City Manager presents yet another budget that pushes El Cerrito closer to insolvency, serious concerns about the city’s fiscal health persist. Six years ago, the State Auditor flagged issues related to ongoing overspending, but the City has yet to curb its excessive expenditures.
Emergency reserves, intended for natural disasters or pandemics, may soon be needed to cover budget shortfalls. Unrestricted reserves fall short of both city policy and Government Finance Officers Association (GFOA) recommendations, and the city will soon deplete these reserves. This financial strain may also force the city to use Section 115 funds to meet annual pension payment requirements.
The State Auditor’s report highlights another critical issue: El Cerrito boasts the largest police staff per capita in the region, and potentially in California. However, having more officers does not necessarily mean a safer community. El Cerrito grapples with both rising staffing costs and an escalating crime rate.
The crime rate in El Cerrito is alarmingly high, with 44 incidents per thousand residents, making it one of the most crime-ridden communities in the region. Residents face a 1 in 23 chance of being victims of violent or property crime, significantly higher than the national average.
In stark contrast, Hercules, California, a city of similar size and population, experiences much lower crime rates despite having roughly 60% of the police staff of El Cerrito. In Hercules, the likelihood of encountering violent crime is 1 in 900, and property crime is 1 in 92. Hercules’s violent crime rate is 10.8, well below the U.S. average of 22.7, and its property crime rate is 22.5, compared to the national 35.4. These statistics highlight Hercules as a safer community within Contra Costa County.
El Cerrito maintains a ratio of 1.45 officers and civilian staff for every 1,000 residents, whereas Hercules has 0.89 officers and civilian staff per 1,000 residents. Despite this disparity, Hercules enjoys a much lower crime rate. This suggests that crime rates are influenced by more than just staffing numbers.
The Police Officers Standard and Training (POST) emphasizes that effective law enforcement and community policing efforts significantly impact crime rates. Strong, collaborative relationships between law enforcement agencies and communities deter crime and enhance safety. Successful law enforcement hinges not only on staffing numbers but also on the quality of community policing strategies, which focus on building trust and cooperation between officers and the community.
El Cerrito’s reluctance to embrace the principles of 21st Century Policing differentiates it from more successful policing models. This modern policing philosophy emphasizes treating all individuals with dignity and respect, utilizing empathy and compassion, and ensuring courtesy and grace, even in situations requiring physical force.
A police department aligned with 21st-century principles commits to transparency, regularly disclosing crime statistics and addressing issues related to race and gender within the community.
El Cerrito has maintained the same budgeted headcount over the past decade without conducting a needs analysis or performance expectations. The city’s financial health and sustainability are closely tied to the effectiveness of its police force.
Rising Pension Costs
El Cerrito faces an unfunded liability reported at $85 million, an amount surpassing its annual budget. The unfunded liability represents the amount owed for pension costs that El Cerrito has not paid. With the California Public Employees’ Retirement System (CalPERS) applying a 6.8% charge on this unfunded portion, the financial burden is set to grow substantially unless El Cerrito takes prompt action. The State Auditor has repeatedly warned El Cerrito about rising pension costs.
Calimesa Leads the Way: A Bold Solution to El Cerrito’s Fiscal Crisis
As El Cerrito edges closer to financial peril, the small city of Calimesa emerges as a glimmer of hope, demonstrating a bold approach to tackling the looming pension expense crisis. This initiative not only challenges the status quo but also sets a precedent for fiscal responsibility that other cities might follow.
The Looming Fiscal Challenge
El Cerrito’s in a tight spot. Spiraling pension costs are consuming ever-larger portions of our municipal budget, forcing the city into difficult choices: cutting services, raising taxes, or both. Despite the stock market’s robust performance and any gains for the state’s pension funds, the sustainability of these financial strategies in the event of an economic downturn remains a question mark. The California Public Employees’ Retirement System’s (CalPERS) reassurances do little to quell concerns, especially as it contemplates further fee hikes for already strained cities.
The Calimesa Model: Innovation in Public Service
Enter Calimesa, a small city in Riverside County that dared to think differently. Faced with the daunting task of managing public safety expenses, which consumed 60% of its general fund budget, Calimesa chose action over inaction. Under the leadership of Mayor Jeff Hewitt, the city reduced its reliance on costly union contracts by ending its contract with Cal Fire and establishing its own fire department. This move allowed Calimesa to set its own staffing levels and transition from a traditional pension plan to a more sustainable 401(k)-style retirement plan.
This strategic shift was not just about cost savings; it was about taking control and innovating for the betterment of the community. By doing so, Calimesa has enhanced its firefighting services, including building a new fire station and acquiring a state-of-the-art fire truck, all while navigating away from the financial brinkmanship that threatens many Californian cities.
A Path Forward
The success of Calimesa’s approach serves as a beacon for El Cerrito, where leaders are also grappling with similar fiscal challenges. The city’s ability to implement these reforms without sacrificing service quality or public safety highlights a critical lesson: flexibility and innovation in public service can lead to both financial stability and enhanced community welfare.
El Cerrito’s Fire Department exemplifies inefficiency, with four battalion chiefs, and a staffing level unmatched by any other California city of similar size, even those facing wildfire concerns. Arguably, battalion chiefs do not directly impact service levels, highlighting the need for a strategic reassessment of resource allocation.
While the median total compensation for firefighters in El Cerrito skyrockets, Calimesa’s model demonstrates that it is possible to balance fair compensation with fiscal responsibility. The city’s experience also underscores the importance of local control and the potential for municipalities to craft solutions tailored to their unique circumstances.
Engaging with Fiscal Responsibility
The journey of Calimesa is more than a local success story; it is a call to action for cities across California and beyond. As we face the twin challenges of fiscal sustainability and public service quality, Calimesa’s example encourages a reevaluation of entrenched systems and the exploration of innovative solutions.
As El Cerrito residents, it is crucial to engage with these issues, whether by participating in local governance, supporting reform initiatives, or simply staying informed about the fiscal health of our communities. The path Calimesa has charted offers a way out of the fiscal morass, displaying that sustainable solutions are within reach with creativity, courage, and community engagement.
Conclusion
In a city where fiscal challenges loom large, the story of Calimesa stands out as a testament to what can be achieved when cities dare to reimagine the status quo. As we look to the future, let us draw inspiration from others’ bold steps towards fiscal health and public service excellence. It is time for El Cerrito residents to demand more from their cities, insisting on innovative, sustainable approaches to governance that put the needs of communities first. Calimesa may be a small city on the map, but its impact on the discourse around fiscal responsibility and public sector innovation is profound.
How You Can Help:
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Attend the monthly Financial Advisory Board meetings in person.
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Contact Information for City Officials:
Karen Pinkos, City Manager: kpinkos@ci.el-cerrito.ca.us
Councilperson Gabe Quinto: gquinto@ci.el-cerrito.ca.us
Creating a high-performing department in a toxic department presents numerous challenges, especially when serious issues like sexual harassment remain unaddressed. The difficulties in hiring and retaining qualified officers in such a climate are compounded by a culture that fails to protect its employees. Unfortunately, this is the reality in El Cerrito, where rising crime rates and a growing budget have placed additional strain on the community.
The Impact of Sexual Harassment on Department Performance
In 2019, Sarah Perez, a former officer of the El Cerrito Police Department (ECPD), sued the department for sexual harassment and retaliation. She alleged that her supervisor, David Wentworth, sexually harassed her and that retaliation began after a colleague filed a complaint on her behalf. This situation ultimately led to her resignation, highlighting a pervasive issue within the department.
A public records request revealed that Ms. Perez received back pay and a settlement of $544,341. The settlement included no admission of liability, but the size of the settlement raises questions about the merit of the lawsuit. Three current council members (Fadelli, Quinto, and Abelson) were part of the council that approved this settlement. Given the level and length of sexual harassment that was allowed to occur, the settlement may have been appropriate.
Financial Implications and Misplaced Priorities
The financial implications of such settlements are significant. The city previously reduced the library budget by $58,000, yet it wrote a check for over half a million dollars to settle a lawsuit involving the police department. Additionally, the city is asking the community for a $300 “forever” tax, ostensibly to support the library, but it is clear that these funds will likely be funneled into the operating budget to cover over expenditures. This settlement was attributed to the Human Resources budget, but it arguably should have been taken from the police budget.
Taxpayers are left to shoulder the burden of these settlements, with no guarantee that similar allegations won’t arise again. The settlement specifies that Sergeant Wentworth will not pay any part of the settlement, leaving taxpayers to foot the entire bill. The lack of professional accountability has consistently fallen on the shoulders of the El Cerrito residents.
Rising Crime Rates and Blame Shifting
Amid these issues, crime rates in El Cerrito continue to rise. Despite this, Chief Keith blames the surrounding communities for the city’s woes, even though these communities have lower crime rates than El Cerrito. This discrepancy raises concerns about the effectiveness of the ECPD and its leadership.
Challenges in Hiring and Retention
The toxic environment within the ECPD makes it not only difficult to hire highly qualified women but also to hire and retain qualified men. The culture of harassment and retaliation discourages talented professionals from joining or staying with the department, further exacerbating staffing challenges and undermining the effectiveness of the police force.
Addressing the Root Causes
It’s crucial for the city to address the root causes of these issues. City staff and council members may be reluctant to discuss ongoing legal matters, but the community deserves to know what policies and systems have been implemented to prevent such incidents from recurring. The City Manager and the governing Council should have required that the Chief develop and implement policies to safeguard all employees, including their most vulnerable officers. Chief Keith should be transparent about the number of female officers currently employed (only 4 out of 40 in 2019) and the measures in place to protect them from sexual harassment.
Conclusion
The dysfunction within El Cerrito’s leadership and police department is deeply disturbing. The allegations of sexual harassment, the financial burden of settlements, and the rising crime rates all point to a need for significant reforms. The community must demand accountability and transparency from its leaders to ensure a safer, more equitable environment for all employees and residents.
El Cerrito deserves better. It’s time for real change.
As some council members conclude their terms, it’s important to revisit the city’s past budgets and see how well the predictions held up against reality. Let’s take a community-focused look back at our financial forecasts.
FY 2021 Budget Predictions
The FY 2021 budget, detailed on Page 36, Chart 2-3, projected small surpluses for the next few years, including a $2.5 million surplus for FY 2024 and FY 2025, and a $3.8 million surplus for FY 2026.
Changes in the FY 2022 Budget
Page 35 of the FY 2022 budget outlined the FY 2021-2026 General Fund Long Term Financial Forecast Assumptions:
No changes to service delivery.
A goal to restore pre-2016 credit ratings by FY 2023.
At one time, the city had an AA- credit rating, which dropped to A- by the end of 2018 and currently stands at BBB. The financial outlook flipped, with deficits predicted for FY 2024, FY 2025, and FY 2026. Expenditures were initially forecasted at around $45 million per year, but current projections exceed $50 million annually.
FY 2023 Budget Predictions
Table 2-8 in the FY 2023 budget forecasted surpluses for the General Fund, predicting that the city wouldn’t reach $50 million in expenditures until FY 2027.
Community Observations and Insights
Before the passage of 2018 Measure V, the city saw continuous tax increases without corresponding service enhancements. Post-Measure V, there has been a reduction in services, including the permanent closure of the senior center despite promises that the real property transfer tax would enhance services.
During the COVID years, a new tax generated $4 million annually, alongside $6 million in ARPA funds, significant staff reductions, and service cuts. This mix temporarily prevented overspending. However, with the depletion of ARPA funds and the city nearing full staffing levels, balancing the budget has become increasingly challenging. Predictions for the 2020s indicate three surplus years during Covid and seven deficit years otherwise.
Looking at the General Fund budgets for the next two years, they are projected to be essentially even, given the assumptions that were made. This suggests deficits unless there is further degradation of infrastructure or significant cuts to services. Management might be able to defer some expenditures, leading to a major deficit a few years down the road.
The citywide budget is predicted to have a deficit of about $3.5 million for next year, with FY 2026 facing about a $1 million deficit. FY 2024 is finishing up with about a $13 million deficit citywide that no one is talking about.
The Financial Advisory Board (FAB) did not provide substantial recommendations on the budget and was not consulted on many items, raising questions about its effectiveness and the potential need for its disbandment or whether they should all resign.
Moving Forward: A Call for Meaningful Change
As the community moves forward, the critical question is whether the council will vote for the budget without making meaningful changes during their tenure. Reflecting on past budgets and their outcomes is essential for making informed decisions that will shape El Cerrito’s financial future.
Community members are calling for a closer alignment between financial planning and actual outcomes to avoid future deficits and enhance service delivery. It’s time for the leaders to address these concerns and ensure that El Cerrito’s financial health is secured for the benefit of all residents.
Influenced by concerned community member’s public statements.
Tuesday’s FY25/26 budget presentation of the preliminary budget by Claire Coleman marks a significant step forward. The extensive outreach efforts and increased transparency throughout the budgeting process are impressive and commendable, laying a strong foundation for informed decision-making and fiscal responsibility. Claire’s talent is evident, as she overshadowed the Finance Director (who hasn’t presented during this budget cycle) with her clear articulation of the budget and ability to answer most questions. However, the limitations of the Finance Director and City Manager dim Claire’s light, preventing her from implementing the necessary cost-containment measures to stop the consistent use of reserves to make midyear budget adjustments to revenues and expenses.
During the city manager’s introduction, she emphasized that her consultants were trusted because they consistently provided accurate information. However, earlier this year, they had to reduce the property tax by $1 million due to a significantly inaccurate forecast. The shortfall was covered by a reduction to the general fund balance.
The city manager has convinced the city council that any budget cuts will inevitably lead to service reductions, which is essentially a fear tactic. Moreover, she lacks an understanding of the operational impact, as the city manager has not conducted the study requested by the state auditor four years ago to determine the appropriate staffing levels and operational impacts.
Meanwhile, the City Manager lacks confidence in the new Finance Director, who remains silent at the dais while others present and answer budget-related questions during each presentation. However, her Executive Assistant, Will, has taken a lead role with Claire in outreach and budget presentations, while Crystal simply sits and smiles. The city doesn’t need Crystal, Claire, and Will. Additionally, there is an Assistant City Manager and four Battalion Chiefs, none of whom directly impact service delivery.
With only $7.8 million in unrestricted reserves, the reliance on reserves to balance the budget will drain the bank quickly – remember they used over five million in reserves to balance shortfalls this year.
Here’s the history to substantiate the six + year fiscal mismanagement:
In 2019, the El Cerrito Committee for Responsible Governance (ECCRG) reported significant financial concerns. As you will see, except for the financial bailout from the federal government during the pandemic, the financial situation has been dismal. In November 2018, the City of El Cerrito found itself in a precarious financial position when the independent auditor issued a “going concern” statement for the second consecutive year. This declaration, appearing in the Comprehensive Annual Financial Report (CAFR), highlighted serious doubts about the city’s ability to continue its operations without significant fiscal restructuring. Six years later, in 2024, the ramifications of these early warnings are still being felt.
During the June 4, 2019, city council meeting, the city’s then Finance Director, Mark Rasiah, and City Manager, Karen Pinkos, presented a more hopeful financial outlook. Rasiah confidently expressed that the “going concern” statement would likely be removed by the end of the fiscal year, supported by Pinkos’s reiteration of their conservative budgeting practices. Pinkos stated, “We are being cautious and conservative,” and emphasized efforts to increase the fund balance reserve. Rasiah added, “We have proved [the independent auditor] wrong. So, I think the going concern concept will be removed at the end of fiscal year 19.” This sense of improvement was further endorsed by a council member’s observation of Rasiah’s positive demeanor: “It’s nice to see you smiling because that means we should worry less.”
However, this optimism was short-lived. Just a few months later, in January 2020, it was disclosed that there had been a $2.9 million cost overrun, and the “going concern” statement reappeared for the third consecutive year. This raised serious questions about the city’s financial oversight and management. How could the city council have been assured of financial stability in June 2019, only to face a starkly different reality by October 2019, when El Cerrito was identified as the 7th most at-risk city for bankruptcy in California?
For years, the City sought municipal payday loans to meet payroll obligations.
Federal Bail Out/ RPTT
El Cerrito’s coffers received a significant boost with $18 million from Real Property Transfer Tax and an additional $6 million from the federal American Rescue Plan Act (ARPA) funds. Despite this $24+ million influx, the city attributes its avoidance of municipal payday loans to fiscal expertise. It’s time for them to acknowledge that paying off the loans was significantly aided by external financial support and the increase in home sales, rather than just great management.
Detailed Financial Assessment
By 2024, El Cerrito’s financial situation remained dire, despite reported reserves of $15.7 million. A closer examination revealed that these reserves were largely restricted funds, masking the true severity of the financial crisis. The city started the fiscal year with $22.14 million in unrestricted reserves, allocating significant portions to emergency reserves and the Section 115 Trust for pension benefits. After accounting for overspending and other allocations, the remaining unrestricted 10% of general fund reserves are dangerously below the Government Finance Officers Association’s (GFOA) minimum recommendation.
Fiscal Mismanagement and Overspending
El Cerrito’s chronic overspending exacerbated its financial woes. In FY24 alone, the city overspent by $5.4 million. This pattern of exceeding budgeted expenditures without corresponding revenue increases indicates a lack of sustainable financial practices, putting the city at continuous risk especially given another federal bailout is unlikely.
State Auditor’s Findings
The State Auditor’s findings underscore ongoing systemic issues within El Cerrito’s financial management. Key concerns include the excessive reliance on reserves, the handling of pension liabilities, revenue projections, and overall financial sustainability. El Cerrito has a significant pension liability of $85 million but has only set aside $1 million+—just 1.6% of the total owed to CalPERS. This underfunding poses a long-term risk to the city’s financial health. Additionally, the city’s fluctuating revenue streams and reliance on unsustainable sources have led to a low rating from the State Auditor for revenue trends.
Compliance with Recommendations
Despite claims from city management that all State Auditor recommendations have been addressed, the continued fiscal mismanagement suggests otherwise. The recommendation to reduce ongoing expenses has not been adequately implemented, as evidenced by the city’s persistent dependence on the general fund to cover over-expenditures.
Conclusion
El Cerrito’s financial trajectory from 2018 to 2024 highlights significant fiscal management and oversight missteps. While city officials have projected confidence and improvement, there has been a cycle of overspending, and inadequate planning for future liabilities. Addressing these deep-seated issues is crucial for ensuring long-term financial sustainability and restoring public trust in the city’s governance. The path forward must involve stringent fiscal discipline, transparent financial reporting, and a commitment to sustainable budgeting practices.
After more than six consecutive years of financial mismanagement, just one Council Member challenged the assumptions and notes the discrepancies in the budget inferring that there’s no room for over spending or less revenue than projected – which of course, hasn’t happened during Karen’s tenure.
Yet the City Council continues to renew the City Manager’s contract. As election year approaches, it’s time to vote for leaders who will be fiscally responsible and committed to delivering the essential services our city needs.
Council members who vote No on a budget destined for the use of reserves are our most courageous members.
Make your vote count for a better future for El Cerrito.
Here’s how you can help.
Share this post with other residents.
Comment on the post
Attend the monthly Financial Advisory Board meetings in person.
Post on Social Media
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:
A long-time El Cerrito resident attending Tuesday’s City Council Proposed Budget Hearing, shared some concerns. While not an expert in city government or fiscal policy, their interest was piqued when Measure B appeared on the ballot. Desperately desiring a new library, they were disappointed to vote against it after seeing how efficiently nearby cities managed their libraries and seized creative opportunities to minimize costs.
Concerns grew when the State Auditor’s reports highlighted El Cerrito’s severe financial danger, partly due to pension debt. Fiscal sustainability has become a pressing issue. The latest City Manager’s report provided a lengthy explanation of stagnant revenues against rising costs, attributing the latter to factors beyond the city’s control. While there may be some truth in this, there is a notable lack of accountability for the city’s escalating expenditures.
The intention to make “expenditure reductions while providing the level of service our community expects” was evident. However, the City Manager’s invitation to “Join the El Cerrito Safety and Fiscal Sustainability Conversation” seemed disingenuous. It appeared to frame service cuts as the only solution to the financial shortfall, asking residents to choose between public safety, park maintenance, or library hours.
The public safety narrative pits essential services against each other under the guise of achieving fiscal stability. The community’s input was solicited through a brief survey, asking them to rank eight pre-selected options for a “strong, self-reliant El Cerrito,” without providing specific information about the implications of each choice.
A true community conversation about fiscal sustainability must be broader and deeper than this simplistic and predetermined framework. This resident felt insulted by being asked to prioritize without understanding the trade-offs. For instance, fire protection is crucial, but do we need four battalion chiefs? Public safety is vital, but can the funding be used more effectively? What weighs more: library hours or the cost of a city manager and an extensive administrative staff which consists of an Assistant City Manager and an Assistant City Manager?
It might have been wiser to use funds allocated for public surveys about a new library to improve the existing one, even with simple upgrades like comfortable seating. Is the city genuinely exploring how to best support library services?
The City Manager’s focus on accepting service cuts as inevitable overlooks the service reductions that have already occurred. One resident lamented, “Services have been reduced while expenditures have soared. We have fewer police officers, higher crime, no bike patrol on the greenway, no senior center, no passport service at city hall, no city funding for the July 4th festival, which now relies on donations. The free summertime kids’ activities, like the ‘girls’ sports day’ and ‘play in the streets day,’ are gone. We no longer have a city staff person for economic development. What are we getting for this increased spending?”
It seems the City Manager is using a PR strategy to foster uncritical acceptance of service cuts and distract citizens from the real fiscal sustainability issues. They hope that the council will ask tough questions about pension debt, rising costs, adequate reserves, and genuine changes to stabilize the city’s finances. The council must recognize that a new budget proposal should commit meaningfully to El Cerrito’s fiscal sustainability.
*This blog was heavily influenced by a public letter to the City Council
This concerned citizen wrote to the city council. EECRG hopes you want to help as well.
Share this post with other residents.
Comment on the post
Attend the monthly Financial Advisory Board meetings in person.
Post on Social Media
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:
Welcome to El Cerrito, California – a vibrant community nestled in the East Bay region, home to approximately 25,000 residents. As El Cerrito strives to provide services to its inhabitants, it’s essential to evaluate its operational structure to ensure optimal resource allocation. Recent observations suggest that El Cerrito’s management hierarchy may be disproportionately top-heavy compared to similar-sized cities like Hercules, CA, potentially leading to inefficiencies and unnecessary costs.
The Imperative for Evaluation
El Cerrito’s current staffing configuration, including positions like an assistant city manager, four battalion chiefs, and an assistant to the city manager, raises questions about resource allocation. Given the city’s size and comparable municipalities, a thorough evaluation of staffing and span of control is warranted.
Understanding the Context
El Cerrito’s management composition appears to be more extensive than other cities of similar size in California. This deviation from the norm suggests an opportunity to streamline operations and achieve significant cost savings without compromising service quality.
Advantages of Staffing Evaluation
Cost Savings
Evaluating staffing levels has the potential to save El Cerrito millions of dollars annually without diminishing service quality. By optimizing resource allocation, the city can achieve greater efficiency and cost-effectiveness in its operations.
Enhanced Employee Engagement
Adequate staffing levels foster employee engagement and satisfaction. By preventing overwork and burnout, El Cerrito can cultivate a motivated workforce committed to delivering high-quality services to the community.
Improved Quality of Work
Proper staffing allows employees to dedicate sufficient time and attention to their tasks, resulting in higher-quality outputs and increased customer satisfaction. This commitment to excellence strengthens El Cerrito’s reputation as a responsive and reliable municipal provider.
Advantages of Span of Control Evaluation
Efficiency
Assessing span of control ensures that managers have a manageable number of direct reports, promoting operational efficiency and productivity. By streamlining management layers, El Cerrito can optimize decision-making processes and resource utilization.
Improved Communication
A narrower span of control fosters clearer communication channels between managers and their direct reports, facilitating collaboration and alignment of objectives. This open dialogue enhances coordination and effectiveness within city departments
In conclusion, evaluating staffing and span of control in El Cerrito presents a significant opportunity for efficiency gains and cost savings. By aligning its workforce structure with operational needs, the city can achieve millions of dollars in annual savings without compromising the quality of services provided to its residents. Through strategic evaluation and adjustment, El Cerrito can position itself as a model of effective governance, delivering exceptional services while maximizing taxpayer value.
After more than three years since the state auditor’s report, the City has finally acknowledged the need to spend fewer taxpayer dollars. Unfortunately, El Cerrito will not conduct the evaluation in the foreseeable future. This starkly indicates that the City continues to drag its feet on the necessary adjustments needed for financial stability.
Your Thoughts? What are your experiences with city services in El Cerrito? Do you see similar issues, or do you have a different perspective? Share your stories and suggestions for how our city can improve. Let’s start a conversation for change.
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.
Post on Social Media
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:
The City of El Cerrito has released its FY 2025 budget document, providing a detailed look at the fiscal year 2024 financial data. A quick glance reveals a concerning trend: the city’s spending continues to outpace its revenue, leading to significant deficits. Notably absent from the budget is any mention of how the city plans to address its substantial $85 million pension liability.
The data presents a stark picture of fiscal mismanagement. The General Fund Budget has seen an 88% increase from 2015 to 2024, rising from $29,252,065 to $54,992,117. This equates to an annualized increase of 7.3%. In comparison, the Consumer Price Index (CPI) for the same period increased by only 39.7%, with an annualized increase of 3.4%.
To put this into perspective, if the 2015 General Fund Budget had only grown by the CPI’s 39.7%, the 2024 budget would be $40,865,135. However, the actual 2024 General Fund Budget stands at $54,992,117, significantly higher than what could be justified by inflation alone.
A deeper dive into specific expenditures reveals an even more troubling trend. The budget for Professional Services has ballooned from $2,446,700 in 2015 to $7,375,364 in 2024, marking a 115.8% increase and an annualized increase of 8.9%. If the Professional Services budget had only grown by the CPI’s 39.7%, it would be $3,418,040 in 2024, less than half of the actual figure.
This unchecked growth in spending has resulted in a substantial deficit. For FY 2024, the General Fund Revenues are projected at $48,682,963, while expenditures are expected to be $54,992,117, resulting in a deficit of $6,309,154. The citywide financial picture is equally bleak, with revenues of $76,510,997 and expenditures of $89,300,458, leading to an equally concerning trend of deficit spending.
Looking at specific FY25 department budgets, the Fire Department budget has increased by 82.3% since 2014, reaching $14,873,622. The Community Development budget has skyrocketed by 228%, and the Police Department budget has seen a 31.6% increase, now at $3,279,542. Alarmingly, this increase in the police budget has coincided with a rise in crime during the same period.
Despite these increases, there is no clear solution for the city’s continued reliance on General Fund reserves to balance the budget. The FY 2025 projections indicate slight improvements, but the fundamental issues remain unresolved. The General Fund projections for FY 2025 estimate revenues at $51,518,444 and expenses at $51,484,492. While this suggests a balanced budget, it does not address the accumulated deficits or the looming pension liabilities.
The explosive growth in spending, particularly in Professional Services and specific department budgets, raises serious questions about fiscal responsibility and sustainability. Without a clear plan to manage the pension liability and control spending, El Cerrito faces an uncertain financial future.
This financial mismanagement is attributed to the City Manager and City Council, whose delayed response to the state auditors’ recommendations and residents’ pleas for engagement and cost containment has exacerbated the city’s fiscal woes. Despite a budget season marked by significantly increased public engagement and thoughtful deliberation, the City Manager and Council waited over three years to begin addressing these critical issues.
Their reluctance to act swiftly has contributed to the unsustainable growth in expenditures and reliance on General Fund reserves, further jeopardizing El Cerrito’s financial stability.
For more detailed information, the budget document can be accessed here.
This analysis underscores the need for comprehensive fiscal reform in El Cerrito to ensure long-term financial stability. Addressing the root causes of the spending increases and implementing stringent budget controls will be crucial steps in this process.
The Next City Council meeting is Tuesday, June 4th. Please attend or share your thoughts remotely.
Note: This blog post draws heavily on insights conducted by a concerned citizen. Any errors and omissions are ours.
In any organization, managing employee compensation is crucial, and the role of a City Manager is no exception. For El Cerrito, ensuring that the City Manager’s performance is measured effectively not only enhances transparency but also aligns with the city’s strategic goals. One powerful tool to achieve this is the compensation scorecard. Let’s explore how El Cerrito can leverage this tool to manage and evaluate the City Manager’s performance.
Understanding the Importance of a Compensation Scorecard
Employee compensation is one of the largest expenses for any organization, and it often goes unmanaged. The lack of transparency and proper evaluation can lead to significant issues such as inconsistent pay for performance and disparities in compensation. The City Manager, having a pivotal role in El Cerrito’s administration, requires a clear, transparent, and effective evaluation mechanism.
A compensation scorecard is a comprehensive tool that collects and displays key metrics to monitor and compare compensation. This tool helps identify problems, improve decision-making transparency, and enhance the overall quality of compensation-related decisions. For El Cerrito, using a compensation scorecard can significantly increase the effectiveness of managing the City Manager’s compensation.
Designing a Compensation Scorecard for El Cerrito
To create an effective compensation scorecard for the City Manager, the El Cerrito City Council should follow a strategic approach:
Confirm the Compensation Strategy: The compensation strategy should align with El Cerrito’s overall business strategy and employment value exchange. This includes a blend of intrinsic and extrinsic rewards and clear performance expectations. Senior leadership, with guidance from Human Resources, should define this strategy.
Review Key Elements: Key elements of the compensation strategy include the role of pay, funding criteria, job valuation, competitive positioning, and the mix of pay. These elements help determine what metrics to include in the scorecard and how to measure them effectively.
Select Appropriate Measures: The measures used in the compensation scorecard should reinforce the desired compensation strategy. For the City Manager, these might include:
Average Performance Rating: An evaluation of the City Manager’s performance on a scale from 1 to 5.
Merit Increase: The percentage increase in the City Manager’s salary based on performance.
Comp Ratio: The ratio of the City Manager’s actual salary to the midpoint of the salary range for cities of similar size.
Incentive Correlation: The correlation between the City Manager’s incentives and the city’s profit growth or financial health.
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.
Implementing the Compensation Scorecard
To implement the compensation scorecard effectively, El Cerrito should ensure that the scorecard is transparent and accessible to relevant stakeholders. This transparency fosters accountability and encourages the City Manager to align their actions with the city’s strategic goals.
The City Council should issue the scorecard once a year, typically after the annual compensation review. This timing allows for a less prescriptive and more natural integration into the overall performance evaluation process.
Benefits of a Compensation Scorecard
Using a compensation scorecard for the City Manager’s performance in El Cerrito offers several benefits:
Improved Transparency: Managers and stakeholders can see how compensation decisions are made, fostering trust and accountability.
Better Decision-Making: With clear metrics, compensation decisions are more informed and aligned with performance.
Enhanced Performance Alignment: By linking compensation to specific performance metrics, the City Manager is incentivized to meet and exceed strategic goals.
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. What gets measured gets done, and with a compensation scorecard, El Cerrito can effectively measure and manage its City Manager’s performance to achieve the desired outcomes.
A concerned citizen reported that during the council meeting on November 19, 2019, there was a discussion about providing 63 parking spaces for the new library. This figure was referenced in the RFQ (Request for Qualifications) that developers had to respond to, and it seems that it was the city’s consultants who came up with this number. A response to an open records request indicated that there may be a winning proposal from the developers. Let’s see what happens next.
The Vision: Pedestrian Paths and Parking Provisions The plan for the new library includes a clear pedestrian path linking library patrons to the dedicated parking on Parcel B. The Holliday/Related team has shown openness to considering Parcel D for the construction of a future library adjacent to the Ohlone Greenway. This location is large enough to accommodate a 21,000-square-foot library on a single level, with a wide terrace opening towards the Greenway. Dedicated parking would be provided in the public garage, similar to the base design option.
Parking for commuters and library patrons is to be accommodated in a centrally located public parking garage accessed from Central Avenue. This garage will hold 400-500 vehicles in an efficient configuration that can be wrapped by residential uses or stand alone. Public parking will include 250 spaces for BART riders, 63 dedicated spaces for library patrons, and car share spaces on the first level for easy street and public space access. Additionally, the garage will have 120-140 spaces for residential uses.
Community Concerns and Replacement Parking The Development Team recognizes the significant concerns around the reduction of parking at El Cerrito Plaza and has consulted with Urban Planning Partners (UPP) to engage the community effectively. Parking discussions will focus on trade-offs, ensuring the public understands the economic, environmental, spatial, and social implications of each parking space. UPP has previously used this approach successfully during the planning phase of the Irvington BART Station. By discussing the financial cost per parking stall and the correlation between the number of parking spaces and increased car traffic, many residents became amenable to reduced station parking through robust community engagement.
Determining the Final Number of Parking Stalls How will the final amount of parking stalls be determined? This question is critical, requiring significant time and financial investment to answer. Maintaining access for patrons while determining the right balance of parking stalls is crucial. A big question is who will pay for this parking. Previously, the developer would replace the parking, and BART would cover the costs through lease credits to the developer, along with state and redevelopment funds. Currently, available funds are limited, making funding a key consideration in determining the number of available parking stalls.
Parking and Housing: Upcoming Decisions Will the access study govern parking related to housing? BART is bringing a transportation demand management (TDM) requirement to its board on August 27th, mandated by AB2923. More information on the TDM requirements will be available in the August 27th board meeting packet. BART and the city’s zoning regulations will dictate the parking requirements for housing.
Questions and Concerns Are the library’s 63 parking spaces part of the 250 total? No, the 250 are BART patron replacement spaces and are not meant to be shared. What is the projected lease cost to the city for the library’s 21,000 square feet? These costs, including parking spaces and the library itself, would be borne by the city.
Reflecting on the Changes At the project’s start (2019-2020):
A 21,000 square foot library.
Significant parking (63 dedicated spaces plus additional parking).
A promise of significant community engagement.
Current situation:
A 20,000 square foot library.
El Cerrito donates parking valued at a significant amount.
A lack of meaningful community engagement while concessions are made.
Community Impact Who in their right mind would agree to pay for parking that has always been free in El Cerrito Plaza? There may be plans to ticket people actively and install meters. For the average homeowner, $300 per year is just a minimum cost. Those who drive may face additional costs in terms of money, time, and inconvenience. This project will likely have a substantial impact on quality-of-life issues.
Lack of Transparency and Community Response We are not aware of management openly discussing the many concerns people have. The El Cerrito community appears to be accepting these changes without any organized effort to oppose them. When asked, city management deflects questions to BART, while BART managers advise citizens to contact the city. Are other people reaching out to BART or the city?
Stay tuned for further updates as we continue to navigate this complex and evolving situation.
Preparedness for Running for El Cerrito City Council
Embarking on a political campaign requires not just passion and dedication but also a solid foundation of skills and knowledge. If you’re contemplating a run for the El Cerrito City Council, taking the time to properly prepare yourself can make a significant difference in the effectiveness and impact of your campaign. Here are some tips to enhance your preparedness:
Consider Formal Training
Emerge Training Program: Organizations like Emerge California offer comprehensive training programs for women who are considering entering politics. Their curriculum is designed to equip you with the necessary tools, strategies, and network to run a successful campaign. Check out their offerings at Emerge California for detailed information on how their program can support your aspirations to serve on the El Cerrito City Council.
Immediate Steps for Readiness
If you’re ready to jump into the political arena now, here are actionable tips to get you started on the right foot:
Educate Yourself on Local Governance: Familiarize yourself with the current structure, policies, and challenges of El Cerrito’s city government. Understanding the intricacies of local issues will inform your campaign strategy and policy positions.
Networking: Start building relationships with local leaders, current and former city council members, community activists, and relevant organizations. These connections can provide valuable insights, endorsements, and support for your campaign.
Public Speaking: Enhance your communication skills, especially public speaking. Being able to articulate your ideas clearly and persuasively is crucial in convincing voters and stakeholders of your vision for El Cerrito.
Campaign Management Basics: Learn the fundamentals of campaign management, including voter outreach, volunteer coordination, fundraising, and digital marketing. There are numerous online resources and workshops available for prospective candidates.
Develop a Strong Campaign Plan: A well-thought-out campaign plan should outline your goals, target demographics, key messages, fundraising strategy, and a timeline of activities leading up to the election.
Legal and Ethical Compliance: Ensure you understand the legal requirements for running for office in El Cerrito, including campaign finance laws. Adhering to these regulations is crucial for a transparent and ethical campaign.
Embrace Technology: Utilize digital tools and social media platforms to maximize your reach and engagement with constituents. A strong online presence can complement traditional campaigning methods effectively.
Feedback and Adaptation: Be open to feedback from constituents, advisors, and team members. Adaptability is key to addressing the evolving landscape of local politics and community needs.
By focusing on these areas of preparedness, you’ll not only enhance your candidacy but also increase your potential to make a lasting impact on the El Cerrito community through your service on the City Council. Whether you choose to pursue formal training or dive straight into campaign activities, the key is to approach your run with both confidence and a willingness to learn and grow.
Three out of the five council members’ terms are set to expire this year. As the election season approaches, our community stands at a pivotal juncture, reflecting on the performance of our sitting city council members who are seeking re-election. Their tenure has been marked by numerous responsibilities, each critical to the well-being and progress of our city. Now is the opportune moment to evaluate how well and responsibly they have performed these duties. Let’s delve into the core responsibilities that have defined their roles and assess their accomplishments and areas needing improvement.
Legislation and Policy Making
At the heart of city governance, legislation and policy-making are paramount. Our council’s ability to craft, pass, and amend local laws and ordinances directly impacts every resident. This includes essential zoning laws, health and safety regulations, and other policies that influence our daily lives.
How proactive has the council been in updating these laws to reflect the community’s evolving needs? Have their legislative efforts fostered a safer, more inclusive, and efficient city?
Budget Approval and Financial Oversight
Financial stewardship is a critical gauge of a council’s efficacy. The council’s responsibility to review, evaluate and approve the appropriate amount for the city’s budget, including funding for police, fire departments, and infrastructure, is monumental. Equally important is their role in overseeing the city’s financial health. Have they demonstrated fiscal responsibility? Is taxpayer money being allocated efficiently to services that benefit the community most?
Public Services Oversight
The quality of public services such as water supply, waste management, the library, senior center and parks and recreation significantly affects our quality of life. The council’s oversight in setting policies and ensuring these services meet community needs is crucial. Have our public services improved? Are they accessible, efficient, and sustainable?
Community Development and Planning
City councils play a vital role in shaping the future through urban planning and community development. This encompasses approving development projects, managing land use, and stimulating local economy growth. Has the council facilitated balanced growth? Are development projects considerate of the community’s character and needs?
Representation and Advocacy
Representation matters. City council members are elected to voice the concerns and interests of their constituents. Their engagement with the community through public meetings, hearings, and outreach is fundamental. Have they been accessible and responsive? Are diverse community voices being heard and considered in decision-making?
Inter-governmental Coordination
Collaboration with county, state, and federal governments can bring significant resources and alignment on cross-jurisdictional projects. How effectively has the council worked with other levels of government? Have they secured funding and cooperation for the city’s benefit?
Emergency Response and Public Safety
In times of crisis, the council’s preparedness and response can mean the difference between chaos and order. Their role in emergency planning and public safety is a testament to their commitment to protecting residents. How well has the city been prepared for natural disasters, public health crises, and other emergencies under their watch?
Environmental Stewardship
Environmental sustainability is increasingly crucial. The council’s efforts to reduce pollution, conserve resources, and promote green practices are vital for our city’s long-term health. Have they implemented effective environmental policies and programs?
Ethical Governance and Transparency
Finally, ethical governance and transparency are the foundations of trust between the council and the community. Adherence to open meeting laws, public records management, and transparent decision-making processes are non-negotiable.
Has the council lived up to these standards?
As we ponder these questions, it’s clear that the role of a city council is both broad and deeply impactful. This election year, let’s hold our council members accountable, asking for clarity on their achievements and plans. Our vote is not only a right but a tool for shaping the future of our city. Let’s use it wisely, with an informed understanding of how well our council has performed its myriad responsibilities.
Is it possible that the mere act of thorough performance evaluations by the El Cerrito City Council could lead to significant improvements in city management or prompt changes in leadership? This question comes to mind when considering the recent resignation of Berkeley City Manager Dee Williams-Ridley.
Berkeley’s top city administrator, Dee Williams-Ridley, announced her resignation effective July 10. The announcement was made shortly after the City Council convened to evaluate her performance in a closed session.
Berkeley City Manager
Serving as the principal administrator, Williams-Ridley made her decision public through a joint statement with Mayor Jesse Arreguín, communicated by a city spokesperson. She stated her intention to pursue new opportunities, a decision disclosed just an hour after the City Council’s performance review. The City Council, which holds the authority to appoint the city manager, thus plays a critical role in shaping the leadership within the city’s administration.
The Mayor thanked Williams-Ridley for her dedicated service, while she commended the city workers and residents for their support. Matthai Chakko, a spokesperson for the manager’s office, mentioned that the council is now looking to appoint an interim city manager as they search for a permanent successor.
This sequence of events in Berkeley prompts a reflection on the practices of nearby El Cerrito.
If the El Cerrito City Council were to adopt a similar approach of rigorously assessing their City Manager’s performance, it could lead to one of two outcomes: either it would drive improvements in the management of the city due to the increased accountability or result in a change in leadership if it becomes apparent that new direction is beneficial. Just as in Berkeley, such evaluations can serve as a pivotal mechanism for ensuring the highest standards of governance and administration in city management.
On Tuesday, Will Provost, Assistant to the City Manager, and Claire Coleman, the newly appointed Budget/Financial Services Manager, presented the El Cerrito City Council Budget Study. Their presentation highlighted efforts to solicit community feedback and input and conveyed a robust plan for navigating the next two fiscal years.
The city has notably increased public engagement concerning the budget and its processes, providing more information earlier.
However, it seems the City Manager and her team have not adequately addressed public or State Auditor feedback. Particularly, despite repeated requests from El Cerrito residents for a senior center, it was omitted from the discussion. Moreover, community surveys have consistently opposed a permanent $300 tax for a new library, citing concerns about insufficient parking and unexplained costs in the proposed plan. Despite these concerns and the upcoming November ballot that necessitates prompt decision-making, the library issue was not covered in the presentation. The city has already invested significantly in unsuccessful library initiatives and costly consultations for a few meetings.
The financial segment of the presentation characterized the escalating costs as predominantly beyond control, citing insurance and interest rates as key factors. However, it overlooked substantial controllable expenses like labor and pensions, which are major fiscal challenges. The situation is further complicated by upcoming labor contract renewals, particularly since the city has already approved salary hikes for firefighters that surpass the planned budget. Should these increases be granted to other municipal workers, El Cerrito may encounter significant financial difficulties, with expenditures potentially exceeding revenue growth.
The cost containment strategies suggested were limited to one-time cost reductions, which lack sustainability. However, the State Auditor’s findings highlight the necessity for substantial reforms in El Cerrito’s financial management which include reductions in ongoing expenses to ensure long-term fiscal stability and restore public trust. Furthermore, the city’s organizational structure, which includes an Assistant City Manager and four battalion chiefs for a population of 25,000, may suggest overstaffing. A thorough analysis of staff size and composition could identify inefficiencies and potential cost savings.
To counter these rising costs discussed in the presentation, the city management projects a 10% increase in Real Property Transfer Tax (RPTT) and a 15% rise in sales tax revenue.
The presentation also omitted the topic of Real Property Transfer Tax revenue for services promised in 2018, amid a social media campaign claiming credit for these services. The El Cerrito Committee for Responsible Government is calling for evidence that the increased revenue has enhanced service levels instead of merely compensating for overspending.
Furthermore, the presentation disclosed that unrestricted reserves are projected to dip below 10%. Notably, El Cerrito’s reserves currently stand at $6.4 million, representing 13.3% of the budget, indicating the city’s intention to use general fund reserves to balance the FY25 budget. It’s important to remember from the midyear report that after addressing a $5.4 million overspend for FY24, only $6.4 million remains as unrestricted reserves, which is below the $8 million minimum recommended by the Government Finance Officers Association.
Residents have also criticized the City Manager’s use of city funds for networking trips and meals, highlighting a conflict of interest with the Assistant City Manager approving these expenses.
Buried in the extensive 511-page agenda packet for the meeting, essential information remains hard to access, with hundreds of pages of superfluous details obscuring important content.
In conclusion, while the City Manager and staff claim a strong financial standing, the reality presents a worrying picture of inadequate reserves, habitual overspending, and poor planning for future liabilities, challenging the sustainability of El Cerrito’s fiscal policies.
In the quaint city of El Cerrito, California, a new library proposal is stirring more than just the usual public interest in civic developments. This proposal, reflective of broader urban planning trends, seems to overlook crucial aspects of resident safety and well-being, raising concerns among the community members, especially the elderly and those who depend on private transportation for safety and accessibility.
Understanding El Cerrito
El Cerrito is a diverse community with a population of approximately 25,000 people, boasting a median household income of $116,875 and a significant percentage of residents over 45 years old. About 20% of its population is over 65, highlighting the need for accessible public services. Despite this demographic data, the city’s new library plan includes a surprising omission: zero parking spaces, not even for handicapped individuals.
This decision comes at a time when the median property value stands at a robust $894,600, and most residents drive alone to work, with an average commute time of 33.5 minutes.
Safety Concerns Overshadowed
The proposal appears in the shadow of the broader urban trend towards reducing reliance on personal vehicles. However, this shift seems to inadequately address the existing concerns of El Cerrito residents, particularly regarding safety. With a crime rate where one’s chance of becoming a victim is one in 22—a statistic considerably higher than in 90% of California communities—the lack of parking at key community facilities like the new library and the nearby EC Plaza BART station exacerbates anxiety about personal safety, especially after dark.
Anecdotal evidence suggests a disconnect between city planners and community needs. For instance, at community meetings discussing the EC Plaza BART housing project, when concerns were raised about the lack of parking affecting those who feel unsafe walking home at night, the responses were dismissive, suggesting alternatives like Uber, which may not be a viable solution for everyone, particularly the elderly or those on fixed incomes.
A Call for Inclusive Planning
This scenario brings to light a critical issue in urban planning: the balance between forward-thinking sustainability and the immediate, lived realities of all community members.
Advocates for reducing urban car dependency make valid points about environmental sustainability and urban livability. However, such plans must also consider the diverse needs of current residents, ensuring that changes do not inadvertently marginalize those who rely on existing infrastructures and services.
The lack of parking and considerations for accessibility in El Cerrito’s library proposal is not just a minor oversight; it is indicative of a larger trend that could alienate vulnerable populations. This planning approach might deter a significant portion of the population from voting for the library initiative thus defeating the purpose of such a community resource.
Conclusion
As El Cerrito moves forward with its urban development plans, it is crucial for city planners and representatives to engage more deeply with their constituents, taking into account the voices of those who may not fit the mold of the idealized “urban dweller.”
Urban living should enhance the quality of life for all residents, not just a select few who can adapt to rapid changes. The new library, a beacon of community learning and engagement, should be accessible to everyone, reflecting the diverse needs of the city’s population.
Only through genuine dialogue and thoughtful consideration of all residents’ concerns can El Cerrito truly progress toward a more inclusive urban future.
This edition is heavily influenced by concerned citizen’s public communications.
Parking considerations for the upcoming Plaza Library have become a central issue, especially in light of a proposed $300 property tax measure set for this November. This tax is expected to persist even after the library’s completion, and notably, the city will not own the building that houses the library. Our primary interest lies in ensuring transparency and sound financial management, which prompted delving into and sharing details from various official documents concerning the parking plans. We encourage the community to further explore these documents to gain a clearer understanding and to engage in informed discussions.
Despite repeated attempts to engage with city officials for more clarity, ourinquiries have unfortunately been met with silence.
Here’s a snapshot of how the parking situation has evolved, according to the documents I’ve reviewed:
On August 20, 2020, plans included provisions for 63 parking spaces.
By September 7, 2022, this number was reduced to 40 parking spaces.
Most recently, at the January 17, 2024, El Cerrito committee hearing, the documents revealed a surprising update. There would be no parking spaces allocated for the building that is set to house both the new library and several apartments.
This significant reduction in parking availability, coupled with the ongoing financial commitments posed by the new tax measure, raises critical questions about the planning and decision-making processes behind this community infrastructure project.
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.
Post on Social Media: FB, IG, ND, X
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 continues to face significant fiscal challenges, with a budget that struggles to meet the demands of its residents. 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.
The presence of three Pilates studios, although potentially lucrative in the short term, appears unsustainable for a city of 25,000 people,
Also, the absence of economic development leaves numerous commercial spaces empty and lots vacant. This situation reflects a deeper issue: El Cerrito’s overreliance on tax increases as a primary revenue source, which not only burdens residents but also stifles broader economic growth.
The impact of these challenges is also felt in consumer behavior. Security and safety concerns at key shopping locations, especially near the Del Norte BART station, have reduced their appeal, causing residents to seek better shopping and dining options in neighboring cities like Albany and Berkeley. This outflow of consumer spending highlights missed opportunities that El Cerrito could capture with the right strategies.
Revitalizing San Pablo Avenue
San Pablo Avenue, stretching over 2.5 miles through the heart of El Cerrito, presents a unique opportunity for urban revitalization. Enhancing this key corridor could transform it into a bustling commercial and cultural hub. Proposed improvements include better pedestrian pathways, more green spaces, and the introduction of art installations and community spaces. These enhancements aim to increase foot traffic and make the avenue a destination for both locals and visitors, boosting local businesses and encouraging new enterprises.
One promising approach involves rethinking the use of public spaces along San Pablo Avenue and elsewhere. Enhancing the aesthetic and functional aspects of sidewalks and other communal areas can play a crucial role in revitalizing urban life. Effective placemaking, focused on safety and inclusivity, can transform these spaces into vibrant hubs of activity that attract both people and businesses.
Looking forward, El Cerrito must diversify its business sectors to create a more resilient economy. Potential sectors include:
Professional Services: Incorporating businesses like law firms, accounting offices, and advertising agencies can significantly contribute to the local economy by providing high-value services that attract other businesses and professional clients.
Healthcare Services: By establishing more hospitals, clinics, dental offices, and specialized health facilities, El Cerrito can meet the healthcare needs of its residents while also generating substantial revenue.
Educational Institutions: Developing a range of educational facilities, from primary and secondary schools to vocational training centers and smaller universities or colleges, would enrich the city’s educational landscape and draw families and students to the area.
Automotive Services: Integrating comprehensive automotive services, including dealerships, repair shops, and auto parts stores, would cater to the everyday needs of the community and secure a steady stream of local customers.
Technology and IT Services: Embracing the tech wave with IT service providers, tech startups, and computer repair shops could position El Cerrito at the forefront of the digital economy, attracting young professionals and innovators.
Manufacturing and Industrial: Depending on local industrial capabilities, establishing factories or manufacturing units could significantly alter the economic landscape by providing jobs and producing goods for both local consumption and export.
Beauty and Personal Care: The introduction of more salons, spas, and barber shops can cater to an increasing demand for personal grooming services, enhancing the city’s retail diversity.
To attract and sustain these types of businesses, it’s critical for El Cerrito to prioritize enhancing safety and reducing bureaucratic hurdles. Addressing crime concerns and streamlining licensing and permitting procedures are vital steps toward making the city more inviting and business-friendly. By adopting these measures, El Cerrito can unlock its potential for economic diversity and stability, ensuring a prosperous future for its residents and the business community.
Your Thoughts? What are your experiences with city services in El Cerrito? Do you see similar issues, or do you have a different perspective? Share your stories and suggestions for how our city can improve. Let’s start a conversation for change.
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.
Post on Social Media
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, recognized for its dynamic community, strategic location, and picturesque settings. The City Manager Karen Pinkos maintains that the city’s financial health is strong, but a closer examination suggests a more complicated financial reality.
Detailed Financial Assessment The city’s reported $15.7 million in total reserves masks underlying issues, particularly the distinction between restricted and unrestricted funds.
While the city began the fiscal year with $22.14 million in unrestricted reserves, it allocated $9 million to emergency reserves and $1.4 million to the Section 115 Trust, aimed at pre-funding pension and other post-employment benefits. An additional $4.8 million was earmarked for the general fund reserve. However, after covering $5.4 million in overspending for FY24, only $6.4 million remains available as unrestricted reserves, which is below the Government Finance Officers Association’s (GFOA) minimum recommendation of $8 million, or two months of operating expenses.
Fiscal Mismanagement and Overspending This situation is particularly concerning given El Cerrito’s pattern of annual overspending. The city has dipped into $5.4 million to manage expenditures exceeding budgeted amounts in FY24 alone. This ongoing fiscal behavior does not align with sustainable financial practices and puts the city at risk, especially without the prospect of additional federal aid.
Staffing and Operational Costs The city’s organizational structure, which includes an Assistant City Manager and four battalion chiefs for a population of 25,000, suggests potential overstaffing. An in-depth analysis of staff size and composition, which has been avoided, could reveal inefficiencies and opportunities for cost reduction.
Anticipated Challenges with Labor Costs El Cerrito’s financial outlook is further complicated by upcoming renewals of labor agreements. The city has already finalized agreements with firefighters that include salary increases above the budgeted projections. If similar raises are granted to other city employees, El Cerrito may face a situation where its salary expenditures significantly exceed its revenue growth, exacerbating the financial strain.
Takeaway: The City Manager needs to understand the long term impact of compounded salary increases on the long term stability and pension costs.
State Auditor’s Findings The city has not adequately addressed recommendations from the State Auditor, particularly concerning the reduction of ongoing expenses and management of pension liabilities. The State Auditor’s findings regarding El Cerrito’s financial management provide crucial insights into the systemic issues affecting the city’s fiscal health. These findings highlight several areas of concern, particularly in terms of pension liability management, revenue projections, and the city’s overall financial sustainability. Here’s a detailed exploration of these findings:
Unmet Recommendations
Pension Liability Management One of the most critical issues identified by the State Auditor was El Cerrito’s handling of its pension liabilities. The city has a significant pension liability of $85 million but has set aside only $1 million, which is just about 1.2% of the total debt owed to the California Public Employees’ Retirement System (CalPERS). This underfunding poses a long-term risk to the city’s financial stability. The State Auditor rated El Cerrito 0 out of 10 for its approach to managing this liability, indicating a severe lack of preparation in addressing future pension obligations.
Revenue Management and Projections The State Auditor also pointed out problems with how El Cerrito manages and projects its revenues. The city’s overall revenue was $1 million more than budgeted for the year, but this figure was $2.5 million less than the revenue reported in the prior year. This volatility in revenue projections and actual collections suggests weaknesses in the city’s financial planning and analysis capabilities. Earlier in the year, the city had also reduced its Real Property Tax projections by $1 million based on an overly optimistic assessment, further complicating its revenue estimation accuracy.
Financial Sustainability Ratings Further compounding these issues, the State Auditor gave El Cerrito a low rating of 2.7 out of 5 for Revenue Trends. This rating reflects not only the city’s fluctuating revenue streams but also its reliance on factors that may not be sustainable in the long term, such as the most recent need to reduce the revenue budget by $1 million. Such dependence on variable revenue sources without a stable backup plan undermines the city’s ability to maintain financial health, especially in economic downturns.
Compliance with Recommendations Despite claims from the city management that all State Auditor recommendations have been met, the ongoing financial practices suggest otherwise. The State Auditor’s recommendation to decrease ongoing expenses has not been sufficiently addressed, as evidenced by the city’s continued dependency on the general fund to cover over-expenditures. This indicates a pattern of fiscal mismanagement that fails to align with prudent financial practices.
State Auditor’s findings underscore a need for significant reform in El Cerrito’s financial management practices. Addressing these issues is crucial for ensuring long-term fiscal sustainability and regaining public trust in the city’s financial governance.
Tax Proposals and Public Confidence The proposal for a new $300 tax to fund a library project raises questions about fiscal responsibility and transparency, given the city’s history of diverting earmarked funds to cover general expenditures. This pattern undermines public trust and casts doubt on the city’s commitment to delivering on its promises.
In summary, while El Cerrito’s City Manager claims a strong financial standing, the details of the city’s financial management reveal a troubling scenario of insufficient reserves, chronic overspending, and inadequate planning for future liabilities, all of which challenge the sustainability of its fiscal policies.
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.
Post on Next Door
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’s leadership has consistently made promises to enhance community living through the development of a new library, a senior center, and better overall services. These assurances have come from elected officials who have pledged their commitment to the well-being of El Cerrito residents. However, the reality of these commitments has come into question, particularly concerning the allocation of resources and fiscal management.
The situation with Measure V is indicative of a worrying pattern. Although it amassed over $15 million, not a cent has gone towards the eagerly awaited projects like the new library or the senior center. Initially pledged for these causes, the funds’ allocation was shifted by the council in February 2020. City Leadership announced the redirection of the money toward addressing a $1.5 million overtime expense and reinforcing the general fund’s reserves. However, it now seems that these monies have instead been funneled into addressing what is widely criticized as reckless budgetary decisions. This dilemma isn’t confined to just one individual within the council but points to a more extensive crisis of responsibility and ethical conduct among those elected to serve in El Cerrito. This breach in delivering on promises and undertaking projects is a grave threat to the trust and unity within the community.
Measure R aims to maintain essential services in El Cerrito by funding priorities such as rapid 9-1-1 response times, neighborhood police patrols, fire protection, emergency medical services, disaster preparedness, after-school programs, and the upkeep of city parks and open spaces. Originally approved in 2010 to preserve services from fiscal year 2009-10, Measure R ensures that the city sustains a high quality of life for both residents and businesses.
The allocation of Measure R funds, along with General Fund money, is determined annually through a budget process led by the City Council, which sets service priorities based on community input and estimated resources. This process is open to the public and includes multiple meetings.
Fiscal accountability for Measure R should be enforced through annual independent audits, an annual report to both the City Council and the community, and expenditure reviews by the Financial Advisory Board. Although the website says they do, it should be noted that the city does not involve the Financial Advisory Board in reviewing Measure R expenditures.
A conversation with a city manager from a similarly sized and successful city shed light on a fundamental difference in approach: prioritizing essential needs over personal interests and developing clear funding plans for desired projects. El Cerrito’s leadership could benefit from this perspective, especially considering the city’s significant financial influx from the Real Property Transfer Tax and the American Rescue Plan Act (ARPA) funds, which amounted to more than $24 million. Unfortunately, the absence of concrete action towards the library and senior center projects has led to a growing disillusionment among residents.
The repeated failures to deliver on key community requests have eroded trust in the city’s leadership. The potential for further tax measures to fund these unfulfilled promises without first implementing necessary reforms and ensuring accountability highlights a critical need for change. Residents are encouraged to engage more actively in city governance, attending Financial Advisory Board and council meetings to demand greater accountability and transparency.
Councilmember Quinto’s history of commitments, particularly regarding the library and senior center, underscores a pattern of unfulfilled promises. Despite previous assurances and the significant support for Measure V, based on the promise of funding local needs, the subsequent reduction in the Recreation (Senior Center) budget and the closure of the Senior Center have only added to the frustration and disappointment of the community.
This episode along with others, serves as a stark reminder of the importance of accountability, transparency, and genuine commitment to community needs among elected officials. It is a call to action for El Cerrito’s leadership to not only make promises but also to fulfill them, ensuring that the city lives up to its potential as a clean, safe, and well-maintained community. For residents, it is a reminder of the power of engagement and the role they play in holding their leaders accountable for the promises made. The path forward must be built on a foundation of trust, collaboration, and a shared commitment to the common good of El Cerrito and its residents.
Legislators and taxpayers are less inclined to endorse public funding if they perceive El Cerrito as unreliable stewards of their finances.
El Cerrito, a city known for its vibrant community and scenic views, is currently facing significant financial challenges. In light of the recent budget workshop held on April 6, 2024, and the upcoming Financial Advisory Board meeting on April 23, 2024, it’s crucial for residents to dive deep into the city’s fiscal health. This post will explore El Cerrito’s financial issues, drawing on the state’s latest report and detailed analyses on NextDoor.
Insights from the Budget Workshop
During the budget workshop, various concerns were raised about the city’s financial management. Karen Pinkos, the City Manager, emphasized that the State Auditor’s recommendations were being addressed. However, the specifics, particularly regarding the reduction of ongoing expenses and the findings of the staffing level study, were not adequately disclosed.
There was no mention of a bonafide solution to the $85 million unfounded pension liability.
A point of contention arose around the topic of salary reductions. Karen initially mentioned universal salary cuts but later clarified that this measure was temporary for all staff and primarily applied to non-represented staff. Additionally, details about pay increases in the fire department were conspicuously absent from her presentation, leading to questions about the transparency of the city’s financial dealings.
Call for Transparency and Informed Discussion
The lack of clear information presented during the workshop has sparked a call for more transparency and substantive discussions at the upcoming Financial Advisory Board meeting. Residents are encouraged to engage with the city’s financial data, including the analyses, to prepare for a meaningful dialogue about the budget.
The Road Ahead
As El Cerrito grapples with these financial challenges, the community’s involvement becomes increasingly important. The city’s residents must stay informed, ask tough questions, and demand accountability from their local government. The Financial Advisory Board meeting represents an opportunity for public participation and oversight in shaping the city’s fiscal future.
In conclusion, while El Cerrito faces ongoing financial hurdles, an informed and active community can play a pivotal role in navigating these issues. The upcoming Financial Advisory Board meeting should be more than just a procedural formality; it is a chance for the City to earn trust by allowing residents to influence the city’s budgetary decisions and advocate for a sustainable financial path forward.
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.
Post on Next Door
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) 