Jennifer Greel answers the budget questions

As I wrote recently ECCFRG asked all of the candidates a series of questions in regards to the budget crisis. Jennifer Greel sent in her response today. We did allow each candidate a brief bio space also. The words below are all the candidate’s except for when I repeat the question. We thank Jennifer Greel for taking the time to answer our questions.

Brief Bio

Hello Everyone, and the especially the City of El Cerrito. I have lived in this community for the past 8 years, a proud member of the LGBTQIA+, and a mix of nationalities including my heritage of being Filipino and Native American. I am a graduate of San Francisco State University with a Degree in Criminal Justice and Political Science. I worked in a Rehabilitation Facility for Parolees aging from 18 to 80 years old. I taught Anger Management and Coping Skills to a group of 15-20 twice a week. Working for this organization in San Diego I was able to gain insight on what it is like for people of the community after they have left the prison system. Moving to El Cerrito I wanted to continue my passion of helping the justice system by volunteering for the California Re-Entry Program at San Quentin State Prison. There I was able to help inmates with life sentences that had earned the right to parole. Our program provided resources to life outside of prison such as rehabilitation, housing, education, building resumes, gaining proper paperwork to file for birth certificates, drivers licenses, social security cards, etc. My background to the criminal justice system is believing and understanding what works to help slow down or stop the rates of recidivism everywhere including my city of El Cerrito.


Seeing our city be in a deficit is a problem that needs to be addressed and different options need to be put onto the table. I stand with the community by supporting the Black Lives Matter movement. El Cerrito is a low crime city, but it does not mean that it hasn’t seen the same racial injustices from our police department such as the rest of the nation has. We need to talk about reworking and renaming our police division. Thirty percent of the total of a 40 million dollar budget goes to the policing and fire divisions in our community. In the city council meeting on June 16th Black Lives Matters issues were addressed but not with and an open heart and an open mind. Our police division is not trained in mental health service, substance abuse services, and they are not required to have training to deal with these types of situations. El Cerrito has a population of about 25,000 people, 13% of the population being Black and still a higher percentage of this race being scrutinized by our police division. Our police division stated they have changed in which they arrested half of the thousand arrests that they typically do in a year, but that the crime rate did not change. In order to receive this change we have to be willing to look into different avenues in this community and not just depend on the county to provides resources. These people are in our community and apart of it everyday they should not have to go to Richmond, San Pablo, or Martinez in order to receive proper resources.


Our Community involvement is so important in how our budget is worked. We are looking at cutting more resources from the community in order to have a uniformed officer with a gun show up to calls that they are not necessarily trained for. It is time for reform and I will be the voice in the City Council for a progressive change from a younger generation if I am elected.

1. What is your analysis of how the city became insolvent and what changes will you make to ensure it does not happen again?

El Cerrito has gone into a deficit because of changes that were made by our past council’s but back fired. It is described in council meetings that consideration of immediate change specifically to the majority of the budget that change cannot be a simple fix, but an elongated process. We are being asked questions by the community and we are being told that we will look at training instead of decreasing police pay or the department overall. We should have public access and live updates to know where and what the city is spending their money on, in not just the police and fire department, but every single department. I believe that in order to make a significant change we should be listening to the community and decrease all chances of systemic racism. We should not look down upon people coming into our community to have a better life. We should be a community that stands together for people because we are all human beings. We should hold the county available as well as reach out to non-profit organizations that have the training and knowledge to deal with mental health, substance abuse, and homelessness. We need cut the overtime from the fire department as well as cut the police department in half. I will fight for the answers to the community questions on why Public Building has not resumed in a timely fashion to increase building throughout our city. We should be allowing these permit to help drive our communities economic crisis.

2. How will you independently verify staff budget projections and analysis?

I will do my own research and speak to the heads of the commissions to get answers for myself and the community. I have seen all of the budget projections as well as break downs for our city’s budget from the past as well as the present. They are all ball park numbers and estimations on what should be allotted to every department in our city. Our city has come into a deficit from borrowing money to keep it afloat during the pandemic. Many issues have arisen during the pandemic that have brought into light to changing the ways in which the community feels that the money should be taken out of both the police, and fire department I plan on asking the city to enforce the police department to provide the community with live updates on all arrests, citations, or calls being made and answered. The people in our community want answers and they are constantly being deflected over the last couple of months of council meetings. I want to figure out why our fire department is recording $1.2 million in overtime and how that can be changed as quickly as possible. I do not want to cut money from recreation, and to my understanding the fees will be increased in this department in order to not have cuts. I do not personally have children, but I do understand price increases in order to keep up with the demand of the community. I mentioned in the previous question that the Public Building budget would not be a cut that would be beneficial to the city because we are denying building permits to go out, we are just cutting our community short overall.

3. Describe what you understand to be the working relationship between the City Manager and the City Council. Are there any changes you would like to see in the current culture, and if so, how would you go about it?

The City Manager to my understanding is the middle man to the city departments and the city council. I have gotten the chance to speak with Karen Pinkos our current city manager. I have listened and understood why our city is in its current state. Understanding that the pandemic shut down our city for a couple of months at minimum. Our city has been through deficits in the past, but this is causing a long lasting impression on how we have to actively make decisions on where the money is going in the budget. The community continues to ask why our city is not able to make major changes to singular departments in the budget. I stand to challenge persistently with getting more exact numbers and broken down analysis for the budget. The community deserves to be able to follow the work of the relationship between the council and and the city manager. The culture is concern and fight for the best possible outcome with inclusion of all. It is time for answers, it is time to hold everyone accountable in all departments. If the community wants to seek the knowledge of where their tax dollars are being spent they should be able to receive clear accurate answers. The City Manager and the Mayor are the heads of being the voice for the council, but I will continue to ask for progressive ways that the council can help the budget in the best ways for our community.

4. How will you evaluate the city manager’s performance and hold them accountable?

I will be consistently asking and enforcing that the City Manager be held accountable of more frequent reports of live numbers reviewed throughout every quarter of the year. We need to be able to view what is being spent per quarter and why? Our city manager is connected to every single department so she should have the best understanding as to what changes are possible and how to execute the needs for change. More conversations with Karen Pinkos directly about what the community is asking for. I am not afraid to do the research myself to figure out how to get the City Manager on board with changing the deficit, and the departments that will be effected. I will continue to be the voice of the younger generation and the question of why we cannot have the changes that the community is asking for.

5. What role do you you think short-term borrowing has in the budget? If there is no role then what is your plan to eliminate it? If there is a role then what do you see as the impact on the city’s bond rating, borrowing costs and our ability to finance other capital projects?

My understanding is that El Cerrito has borrowed 8 million to cover the budget from overspending and now to fund the city during this pandemic. To put the city into more of a deficit would not be capital gain. The role of short-term bonding does not seem realistic in the present economy. The council is currently working on a budget by cutting forecast numbers across the department by 4 million dollars off of the 40 million projected for the next year. The community is asking to cut funding from both the police and fire departments. I am in full support of making these financial changes over borrowing more money to put our city into more of a deficit during these uncertain times. During the town hall meeting is was discussed that the Public Building department had stopped during the beginning of covid and is now behind on being able to get inspections done in a timely manner. This is slowing down the building of our community and potential capital gains to replenish the funds for our city. We should concentrate on how we can adjust without contracting more positions to fill these roles, but to find the money in other departments to fund our community building. Instead of spending a million dollars on over time for the fire department we could have given more jobs to people that are certified to do building inspections, so that we can submit and approved more building permits.

6. What are the details of your plan for El Cerrito getting out of the financial situation we are in?

If I am elected to city council I plan on asking my council members why we cannot cut the pay of our police department in half, as well as rework the department with non-violent respondents to dissolve crime in our community. Why we do not have specific reports about where the money is being spent in both the police and fire departments. Why do these departments deserve to get paid more than the educators of our youth in our community? They do not and this is why I plan on cutting the police department budget in half. Cutting all overtime spending for both the police department and fire department to alleviate having to borrow more money eventually to cover the costs. Having active reports from both the police department as well as the fire department will give better insight as to how we can change both of these at a faster rate to replenish our general fund. We have to talk about necessity and follow it with numbers to support that it is essential. I am looking to give the community answers in a faster turn around time.

7. What do you see as the issue behind the over 1 million dollar amount of overtime for the Fire Department? How would you resolve this issue and keep El Cerrito fire safe.

We have to take direct action on the overtime money spent for the fire department. The percentage of money that is expended from the cities general fund is already high, it is part of the reason that our city had to borrow money. I have stated in previous questions I believe that the money could have been spent on getting the public building division into a fast turn over for our city to start generating money sooner. There are so many other departments that take the bare minimum to pay for both the fire department and the police department budget. It is time to get to to the answers of why? If I become elected to city council I am not going to take a back seat to getting answers for the community, by looking to stop overtime in both the fire and police division, as well as rework the budget for both.

8. What changes would you make with the police budget?

The police budget is too high for this small/big city of El Cerrito that we live in and the crime rate that has continued to stay the same. I am with the community that it is time for an answer to racial justice. The Police Chief is open to training, but why does it have to be trained after the fact that the person has already been hired? Should the people we have protecting our city already be screened to have this schooling and specific training to understand mental health, substance abuse, and racial justice? I will stand with reworking the police department to be lead by non-violent respondents to calls throughout the community. If the crimes are based around theft primarily because of poverty throughout the city it is time to look at how we can be held accountable to help change this in a progressive way. We are a strong community and we have been standing for our rights and beliefs against the money being spent for our police division. It is time to cut the police budget in half, if not all together. To spend 12 million dollars for an active 39 staff members of the police department is not just going to the pay checks of these members. New police cars, new military armory, or unnecessary positions being held; are these necessary purchases to be included into the cities budget? My answer to the community is no. I hope to be the steps towards immediate change for decreasing the money expended on El Cerrito’s police division.

El Cerrito Staff continue to show lack of transparency with the budget

Tomorrow September 1st at 430pm El Cerrito City Council is having a special budget meeting. They have not yet completed their 20/21 budget which started in July. For information on the meeting click here. The meeting is once again scheduled at a time that is not accessible for many residents. While I understand that some of this scheduling is due to council members’ day jobs these budget meetings must be held when people can attend them. To not do so adds to the feelings that the City Staff and Council do not want an active citizenry.

The agenda and the packet only were issued for the meeting this afternoon (August 31st). Normally these packets are issued the Thursday before the meeting. Once again a ” budget study session” is on the agenda for the meeting and once again any slides that the consultant or staff have prepared ARE NOT in the packet. So El Cerrito residents do not have adequate time to prepare comments. They have to watch the meeting and comment during the meeting.

We have long been requesting that residents see the current financial status at each meeting or at least monthly. We have also been requesting a more transparent budget process. A meeting at an inaccessible time with a packet that has no actual information in it is NOT TRANSPARENT.

I urge those that care about this city and its financial situation to send in a public comment tomorrow (better yet if you can attend and comment during the meeting). Comments can be sent to cityclerk@ci.el-cerrito.ca.us and you should state public comment agenda item 3A if you want to discuss the budget.

I would also encourage you to send comments to the City Manager and the entire City Council. If they don’t hear from us they assume we are not longer paying attention.

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

Greg Lyman-Mayor glyman@ci.el-cerrito.ca.us

Paul Fadelli Vice Mayor pfadelli@ci.el-cerrito.ca.us

Councilperson Pardue-Okimoto rpardueokimoto@ci.el-cerrito.ca.us

Councilperson Janet Abelson jabelson@ci.el-cerrito.ca.us

Councilperson Gabe Quinto gquinto@ci.el-cerrito.ca.us

Paul Fadelli Response to Budget Questions

As I wrote in my last post ECCFRG has asked all of the candidates a series of questions in regards to the budget crisis. Paul Fadelli sent in his response today so he is the first post to go up. We did allow each candidate a brief bio space also. The words below are all the candidate’s except for when I repeat the question. Mr. Fadelli has been on the council for 4 years and is currently Mayor Pro-Tem which means if he is re-elected he will be the Mayor. We thank Mayor Pro-Tem Fadelli for taking the time to answer our questions.

Brief Bio

I grew up in West County, going to school in El Cerrito and Richmond, and graduating from Kennedy High. I graduated college from UC Davis and got a Masters of Journalism degree from UCLA.

For more than two decades I worked for progressive Democratic legislators in the state and national capitols on a variety of policy issues. For ten years in Sacramento I was the staff director on the State Senate Committee on Energy & Public Utilities. Moving back to the Bay Area in the nineties, I was the VP at Kearns & West, a collaborative planning firm in San Francisco. Before becoming a City Councilmember in 2016, I worked for 11 years as the Manager of State & Federal Legislation at the San Francisco Bay Area Rapid Transit District (BART).

I am married and have two daughters — one that just graduated from high school, and the other who will be entering UC graduate school in the Fall.

1. What is your analysis of how the city became insolvent and what changes will you make to ensure it does not happen again?

El Cerrito is a small community that has been proud of being a “full service” city for many years. But the City didn’t necessarily respond adequately after the recession of 2008 with service, salary or staffing cuts to stay economically viable over the long term. With few new revenue sources, important reserves were often used and eventually depleted in order to keep services and staff at status quo levels. In addition, in later years, while maintaining positive economic outlooks, the council approved (sometimes unwittingly) expenditures to pay with reserves for:
• costs associated with the abolishment of Redevelopment Agencies in the State;
• costs associated with El Cerrito becoming a Sanctuary City when the county Sheriff, in retaliation, forced the City to seek more costly dispatch service; and
• costs to establish a new temporary Senior Center when the WCCUSD would not renew the lease at the existing site at discounted rate.
Obviously more scrutiny by Council over the past decade could have brought the question of reserves and budget sustainability forward. Over many years, the past city staff leadership had developed a somewhat insular budgetary process that resulted in little scrutiny or review, until new auditors blew the whistle. I have mentioned publicly that it is not only important to have transparency on budget issues for the public, but also better transparency between staff and Council as well. There was a culture of not wanting to give councilmembers bad news.

This Council and a new City Manager have been outspoken in acknowledging the need to structurally change the budget process to grow critical reserves over time. With the additional problems associated with Covid-19, this has resulted in changing from a two-year budget process to a one-year effort where amendments can occur to respond to changing economic circumstances.

2. How will you independently verify staff budget projections and analysis?

Working my whole life for elected officials I have often dealt with budgets – mostly dealing with specific policy programs and whether or not funding amounts were appropriate or adequate with respect to my member or agency’s needs. However, with issues involving El Cerrito’s solvency I have learned electeds, need to be even more detailed in reviewing and approving city budgets. There is much to do as a councilmember. I am not an accountant and will have to still rely on professionals, staff and the public scrutiny for questions and answers. As one of the two newest Councilmembers, I believe we both felt we asked many of the right questions during council meetings (especially about Measure V revenue and the impact on reserves), but often didn’t get a detailed helpful response back at the time.

3. Describe what you understand to be the working relationship between the City Manager and the City Council. Are there any changes you would like to see in the current culture, and if so, how would you go about it?

While City Councilmembers play important roles in their cities (setting policy, voting for budgets and ordinances and ceremonial obligations), it is important to remember that most of the authority by ordinance for production of reports, draft legislation and implementation of policies belongs to the city manager. It is a significant job with many management obligations. In addition, the Brown Act, dramatically limits any discussion among Councilmembers about policy matters and often keeps councilmembers out of the loop as to what’s occurring on certain events and issues. Often Councilmembers will only hear of a problem or another councilmember’s views on a key issue at the actual meeting. It is courtesy, too, for council to notify the City Manager know ahead of time of any issues that might be brought up. So that is to their advantage.
But the separate relationship between a Councilmember and the City Manager is important. Not just in El Cerrito, but in most cities, the City Manager is the conduit through which a Councilmember must go to meet with and discuss issues with staff. A good relationship can lead to more freedom in that direction, or less if not so good. When a Councilmember rotates to being Mayor, there is more to discuss and finalize as usually the mayor gets to prioritize what will be on agendas for Council to consider. But even agendas must be based on status of staff concerns, workloads and progress. Historically too, the city manager is responsible for public safety (fire and police) and hiring and firing all staff. There is not much changing this relationship as it is in ordinance. If a council/city manager sours, councilmembers can publicly criticize staff and management and eventually bring those concerns back to any rehiring process. But this would be a failure of the system.

4. How will you evaluate the city manager’s performance and hold them accountable?

This Council set 3-4 goals for the new City Manager. We will review progress on achieving those goals when the option to renew her contract comes before us in the future.

5. What role do you you think short-term borrowing has in the budget? If there is no role then what is your plan to eliminate it? If there is a role then what do you see as the impact on the city’s bond rating, borrowing costs and our ability to finance other capital projects?

It would be great not to have to have seek and utilize short-term borrowing. It turns out that to pay the bills, El Cerrito has been using this method for some time. The negative budgetary aspect of this tool only became apparent to me and others when our new auditor raised concerns about it. It was necessary to seek another short term loan this year, and probably for one or two more years, until our budget straightens out with recent actions. It is a goal of Council not to have to seek short-term loans in the future. Bond ratings will improve for El Cerrito with that reality.

6. What are the details of your plan for El Cerrito getting out of the financial situation we are in?

Council has set the course for El Cerrito’s finances with a strategy that will eventually begin accruing reserves by 2023 or 2024 depending upon circumstances with the recession and Covid -19. The approach focuses on cuts and a 3-year recovery, so that important services residents like will not be decimated. Council approved over $600k in cuts for FY 19-20 and, for FY20-21, over $4 million has been cut from 10% across-the-board cuts in all departments, negotiated cuts with represented and unrepresented labor groups, no COLAs, a hiring freeze, keeping vacancies open, increasing management contributions to PERS, freeze car allowance payments. The next few years will be tough and lean. Council must still cut $1.5 million or more from programs before October. To me everything is still on the table as we determine what the future economic forecast looks like. I have publicly said I want to permanently get rid of the monthly car allowances. Additional services and management salaries are likewise still on the table. I have raised the concern that we can’t just cut expenditures, but have to also think about building/seeking new revenues:

  1. assisting our permit office to expedite building projects and restart housing development along San Pablo Avenue;
  2. encourage retail and workspace development at BART Plaza TOD development;
  3. determine potential revenue to have fire department charge for EMS calls to El Cerrito and Kensington residents;
  4. conduct regional lobbying to state and federal officials to secure needed local funds;
  5. consider increasing recreational fees for certain programs without reducing accessibility;
  6. consider the possibility of another cannabis dispensary (first one is still not open).

    7. What do you see as the issue behind the over 1 million dollar amount of overtime for the Fire Department? How would you resolve this issue and keep El Cerrito fire safe.

    Out of control fire overtime is an issue we have to resolve. I was hoping the state auditor would have done her review and presented facts and procedure on how to deal going forward. But the audit will not start for some time and, in the meantime I and other councilmembers, have asked for a full report and recommendation from our fire chief and city manager. Overtime when used correctly and prudently can save money when the full costs of hiring and employing personnel is considered. I think in El Cerrito overtime became a systemic way of doing business because certain employees benefitted. With circumstances in El Cerrito changing (new retirees, new PEPRA rules for PERS etc.) it may be advantageous to consider filling the vacant fire slots, which could assist fire efforts and lower overtime costs. But we will have to see what is reported back and what recommendations are made

8. What changes would you make with the police budget?

I am hoping the police budget will be an ongoing issue for some time as we move toward a broader discussion and evolution of changes in how we provide and assure safety for El Cerritans. As with every El Cerrito department, the police budget has been reduced by 10 %. In addition to the elimination of SROs, Council has reviewed other police operations which could result in the reduction of staff during the budget process. Other changes with respect to how we handle 911 calls and mental health calls may not actually help to reduce the budget…but I want to learn from other cities and be open to positive changes that encourage less confrontational incidents wherever we can.

What are our City Council Candidates thoughts on the budget crisis?

For the first time in a long time, we have an election with mostly outsiders running. There is one incumbent running, Paul Fadelli, who is endorsed by the El Cerrito Democratic Club, but there are 7 additional candidates. In no particular order they are:

Isis

 Tessa Rudnick

 Matt Burnham

 Jennifer Greel

 Lisa Motoyama

 Arthur Yee

 William Ktsanes

To see their nomination papers you can click here

El Cerrito Committee for responsible government sent each candidate a list of 8 questions. We want the community to be able to assess the candidate’s understanding of the fiscal crisis and what each candidate sees as potential solutions for the issues.

The questions are as follows:

  1. What is your analysis of how the city became insolvent and what changes will you make to ensure it does not happen again?
  2. How will you independently verify staff budget projections and analysis?
  3. Describe what you understand to be the working relationship between the City Manager and the City Council. Are there any changes you would like to see in the current culture, and if so, how would you go about it?
  4. How will you evaluate the city manager’s performance and hold them accountable?
  5. What role do you think short-term borrowing has in the budget?-Follow up: If there is no role: what is your plan to eliminate it. If there is a role then: what is the impact on the city’s Rating, borrowing costs, and our ability to finance other capital projects.
  6. What are the details of your plan for El Cerrito getting out of the financial situation we are in?
  7. What do you see as the issue behind the over 1 million overtime for the Fire Department each year? How would you resolve this issue and keep El Cerrito fire safe?
  8. What changes would you make with the police budget?

We have asked the candidates to respond by Monday, August 31st. Whoever does respond we will post their answers here in a blog post. We may then do some analysis in other posts but each candidate will get a post that is their words to our questions.

El Cerrito is a city in crisis. We all know the November election is one of the most important elections this country has ever had. But we cannot forget our local issues we must pay attention to both. We encourage voters to educate themselves. Sign up for updates to this blog to get each blog post for the candidates. Join our IO group for updates.

El Cerrito Progressives along with El Cerrito Fire Safe are sponsoring a candidate forum on September 12th from 3-5 pm. They will be posting the video so it can be watched later and ECP will do a scorecard for candidates.

So there are many places you can get information about these candidates please take the time to do so!

Is El Cerrito Making Data Driven Financial Decisions?

This coming Tuesday, August 11th El Cerrito is having another meeting to discuss the budget. The consultants are recommending at least an additional 1.5 million dollars in cuts occur. Their recommendations are as follows:

The problem with both the 1.5 million dollar number and the recommendations that are made is that there is no specificity to them. We don’t know where the 1.5 million dollar number came from. What were the assumptions that created that number? How long are they predicting the shelter in place order will last? Are they looking at the latest economic numbers which were horrific? Given that we just took out an 8.5 million dollar loan to stay afloat all decisions moving forward be both data-driven and transparent. Having a packet of vague information does not allow residents to make adequate public comments for the meeting.

Some of us have been trying hard to analyze the budget and how decisions are made. We have been focusing on the Fire and Police Departments since those are half the city’s budget. I made several information requests to see how the city decided to not hire additional fire personal but rather pay overtime. I also requested information on how the amount of money to charge Kensington for their fire protection contract was determined.

For the Kensington contract, I was told there were no records responsive to my request. Which means there is no financial analysis of how El Cerrito determines the cost of the Kensington contract. The city could be benefiting greatly or being hurt financially-we simply do not know without financial analysis.

Regarding the OT I was given the chart below. It tells me how much a fire department employee costs the city. It does not have any analysis of OT hours and what they cost. I independently gathered data on fire department OT and put it together. Something that I believe the city staff should have been doing to decide to hire more staff or not. Again, the city may have made the correct decision but without data, we do not know.

Another person put in a request for information on the police department which is still pending. The request was for information on all police incidents over the past two years breaking them down into the type of incident and categories along with resolutions. We thought this would be an easy request that this data would be tracked. This is not the case. We were told there were numerous records to go through in order to obtain the information. Further upsetting was that the response was from an outside lawyer. Which means this request is costing the city money to obtain. Not the intention of our group.

I hope people will again make public comments at the meeting. The information on how to attend and make comment is at the bottom of this post. Please note this is a 4:30pm meeting.

I am suggesting
1. A monthly financial report given to the city council and published online. This should be an easily readable document summing up income and expenses and how they are tracing for the fiscal year. This way if the estimate of the 1.5 million is to late there can be quick action taken. It also increases transparency.


2. When there are recommendations put into slides they be very specific. What are these PD and FD staffing changes? What is this reduction in city administration? Are they job losses are something else.


3. Whenever there are staff predictions on how the finances are going we need written assumptions that go along with them. For example 1.5 million in cuts is based on a reduced sales tax income of 2% until June 2021. Etc. This allows us to see if the predictions are going far enough forward in time. I understand that things are fluctuating faster than usual and that assumptions may change over time and even quickly but the residents deserve to know what is behind each assumption.

To watch the meeting

JOIN VIA WEBEX:
  1. https://elcerrito.webex.com/elcerrito/onstage/g.php?MTID=e2bff40274a0e7adaa22507ff7a016ddf

Event Number:146 528 6824
Event Password: Jfq2ZS

or

Dial In: 1­-408­-418­-9388
Access Code:
146 528 6824

To make public comment for the meeting

If you are watching live using WebEx you can use the “Raise Hand” feature to request to speak. Each period of public comment will be announced.

To send in comment do the following-If the comment gets there 3 hours prior to the meeting it is submitted to the council in writing ahead of the meeting. If it is later than that the council will get the written comment in the supplemental packet. The city clerk is no longer reading the comments into the record, later. The agenda item for this financial item is 3A.

Via email to cityclerk@ci.elcerrito.ca.us. Email must contain in the subject line public comments – not on the agenda or public comments – agenda item #. The agenda item for this financial item is 3A.

Take action-budget meeting August 1st

The City of El Cerrito will be hosting a virtual town hall on the budget on Saturday, August 1st From 10-12. For information on joining the Town Hall click here.   We urge you to participate, and this is why:

  1.  The city is facing a 5.5 million dollar budget deficit.
  2. The city has been very slow to take action and COVID  is exacerbating what was already a crisis situation. The longer the city takes to act the worse situation we will be in. 
  3. The city is paying consultants thousands of dollars for them to suggest cuts in services, including library, recreation and senior services. 
  4. The city has not addressed the extreme amounts of overtime paid to the fire department (over 1.5 million last year). This is an issue that was called out by the state auditor. While we all agree we want El Cerrito to stay fire safe it seems it might be prudent to look at ways to control expenses. 
  5. Public safety is 50% of the budget. Members of the public need to decide what the priorities of the city should be and let their elected representatives know what they are. Cuts need to be made. Do you want to prioritize police or the recreation center? Let the council know. 
  6. The City has poorly managed the budget for years. We need to hold them accountable for this mess and they need to get a reserve built and stop taking out pay day loans. They will tell you the crisis is COVID related but the State Auditor called the city out in October well before the current crisis.


The City Council and staff need to know that the community is paying attention and is going to hold them accountable. We need a more transparent process.Please participate in the meeting. You can send in questions via email to cityclerk@ci.el-cerrito.ca.us.  Please note that all questions will not be answered and they are not guaranteeing answers subsequent to the meeting. If you email please encourage them to answer all questions in writing on the city website. 

23k paid to consultants who advised cutting the library hours.

Management Partners, the consultants used to advise on budget issues, were first hired for a 25k contract to help revise the Strategic Plan. The original contract was for between $25,900 and $32,500 depending on whether the city had Management Partners do the public workshop or not. About half way through that contract the city modified the contract to have them to provide financial advice to the city. The scope of work includes the following:

You will note in the activities that there are several check ins with the City Manager before the report was to go to the City Council. The revised contract used $10,500 from the original contract and added an additional $12,500 to cost the city $23,000 for the consultants to bring up recommendations like cutting library hours that had already been voted on by the Council. The consultants did not have information to present on compensation rates comparisons between El Cerrito and comparably sized cities. We are left to suspect that the consultant prioritized only cuts suggested to them by City Staff.

We need YOU to run for City Council!

Three City Council Seats up for Election in November 

If you have felt like the City Council has not been representing you and the interests of the city now is the time to step up and run for council. In El Cerrito. traditionally the El Cerrito Democratic Club (which includes members that don’t live in El Cerrito) has designated the next council members. They do an endorsement and send out mailings to those who live in the city. All current members are of the Council are members of the ECDC with Council person Abelson and Mayor Lyman both part of the current leadership. The only declared person running for City Council is Margaret Kavanaugh Lynch and she too is a member of ECDC. It is anticipated that if Mayor Pro Tem Fadelli and Councilperson Pardue-Okimoto run again that ECDC will then again endorse them and it is likely that they will run unopposed. The only way for that to change is for other community members to step up and run. We encourage you to do so! The city information on running is reprinted below.

“In November of 2020, the terms of office for Mayor Lyman, Mayor Pro Tem Fadelli, and Councilmember Pardue-Okimoto will expire. On June 16, 2020, the City Council called an election for the purpose of electing three members to City Council. The term for each seat shall be four years, from November 2020 to November 2024. The nomination period for these offices will begin on Monday, July 13, 2020 and close on Friday, August 7, 2020 at 4 p.m. 

If nomination documents from any of the three incumbent officers of the city are not filed by Friday, August 7, 2020, the nomination period will be extended until Wednesday, August 12, 2020 at 4 p.m. During this extension period, no incumbent is allowed to file nomination documents.


To be eligible to run for City Council, a candidate must be a resident of El Cerrito and a registered voter at the time nomination documents are issued. The City Clerk is the Elections Official and primary contact for El Cerrito candidates. To best serve candidates, individuals interested in running for office are encouraged to contact the City Clerk to ask questions. Appointments will be required for issuance, review, and submission of nomination documents. For more information or to schedule an appointment, please contact the City Clerk at cityclerk@… or (510) 215-4305. Election information is also available online at http://www.el-cerrito.org

The struggle for transparency in El Cerrito

I wrote previously about the TRAN loans that have been keeping the city afloat since 2011. On May 21, 2020, I sent a request for information on the costs of these loans. It specifically said

“I saw in the supplemental slide set some info about the trans.

What I would like to know is

1. What year did the city first start getting trans? That year how much was it for, what was interest rate, and actual dollars of interest, and cost of obtaining the Tran (such as what is indicated in the contract you sent me for NBA) 2. From 2012 to current date the same info, interest rate, actual dollars paid in interest, and cost to obtain the loan.“

A week later I got a response from the City Clerk

“This information is available by searching the archives of agenda materials on our website at http://el-cerrito.org/Archive.aspx?AMID=43. “

That is the link to all agendas and minutes for El Cerrito City Council meetings. I was expected to go through them all. Many of them are over 100 pages long.

I unhappily replied

“With all due respect that is a ridiculous response. I am expected to go through years of agenda items to find this? Information that should be easily gotten from the finance department. This is not transparent government. ”

I recevied the following responses

“All of the information you are requesting is contained in the staff reports and resolutions. The results in the first two pages provide all the information you requested”

She then immediately sent this reply

‘My apologies, I tried to paste a link and accidently hit send. The results in the first two pages provide all the information requested.”

If you click on that link there are 2560 links below it.

I actually tried to dig through the materials. But I could not find the information for 2011 and 2014. (Though with further digging later I did find 2014) so on May 29, 2020, I sent the following reply

“I did dig through this. I am unable to find the cost of the loans (fees to obtain) for 2011 and 2014. And also wanted to confirm if WestAmerica had them.

I found this for 2014 listed but it seems like there was further action taken. I did search agendas for a few meetings past this with no luck. 

http://www.el-cerrito.org/DocumentCenter/View/3913/cc140819-7b?bidId=

All I found for 2011 was this

http://www.el-cerrito.org/DocumentCenter/View/1040/cc111121-5d?bidId=

If you could fill in these pieces I would appreciate it.”

I never received a reply to that email.

Others have also tried and not fared any better. I have let the Mayor and some city council members know and still not gotten a response.

I have been connected with some policy wonk researchers in the community. One of them did a dive into California Debt and Investment Advisory Commission (CDIAC) data that is available on the State Treasurers website. He complied the data in an excel worksheet and sent it to me. I have linked to it here. It shows TRANS for lower amounts going back to the 1990’s. Which as you remember was one of the questions I had in the original request-how long has this been going on for?

This experience is the epitome of what has been happening in El Cerrito. There is no transparency. The law requires that the city give information to its constituents. That obligation is clearly not being met by sending pages of thousands of links. It also says something that the city council members and mayor I reached out to over the past weeks were not able to get the information to me either.

I just just sent a new request for information on Fire Department Data. Some of this data has been long requested by others. It is hard for any of us to do an analysis on the Fire Department without data on overtime usage. We have not gotten data on how the city decided to not hire new staff but instead pay OT. Or how much the Kensington contract costs the city. Or how much we were reimbursed by the state for OT for state fires. Or how much OT was given for the fire fighters that stayed in our community when others were fighting state fires. It shouldn’t be this hard to get information from the city. If I, someone who knows how to dig and push, can’t get it, how is an average citizen suppose to get information? I have documented my efforts in both the TRAN request and this new request. I recently learned that there are lawyers that love this type of case. Because if the city refuses to give information and loses they pay lawyers fees. I feel like a city bordering on bankruptcy should not put itself in the position of a citizen having to take such severe action to get results.

Looking backwards-El Cerrito did not get into a 5.5 million dollar hole yesterday. Part Two of Two

El Cerrito is in the midst of a major financial crisis. This the second of two blog posts addressing four issues we have found with how El Cerrito has managed it’s financial issues for years. Please refer back to the first post here and that post has the references used here also. 

NO LONG TERM PLANNING BY STAFF

Although there were cautionary tales about limited revenues, etc. the city took a very short-term approach and narrow course of action when it came to growing reserves or managing costs. The City turned to the community for new taxes, but expenditures continued to rise.  

EVIDENCE

Since 2013 every year the report has named General Fund Budgets, Cash and Available Fund Balances as an issue. While the auditors did not begin stating that the city was at risk of not remaining a going concern (not going bankrupt) until 2017 the four years prior they called the lack of financial resources an issue and often recommended cost cutting measures. The City typically responded by stating that they anticipated a growth in revenues and would be monitoring expenditures.  

Since 2011 the city has been borrowing money to keep the city afloat. It started with 3.5 million dollars in 2011 and in 2019 last year was 9 million dollars. The interest in 2019 last year was $197,100 and the costs for the loans were an additional $33,000.

In 2014 when revenues were dropping the city decided to not look at budget cuts but to instead put a tax measure on the ballot (2014 CAFR page 32). They successfully passed Measure R, extending and RAISING the sales tax in El Cerrito. Many felt that the city was deceptive in their outreach for this tax and the city was warned by the California Fair Political Practices Commission for irregularities in a mailer backing Measure R. Many voters thought it was an extension of an existing tax, not a raise in taxes. 

Again at the close of 2017, the report issued to the city recommends a move toward cuts in order to bring spending in line with revenues.  The City response suggests otherwise, noting they are planning to launch another tax that will shore up revenue and reserves.  

And as recently as June 2019, when the independent auditor called out the city’s ability to continue as a going concern for the third straight year, the City Manager and Finance Director went before City Council and said everything was fine. The City Manager told the Council, “The City will be taking steps to restore a positive fund balance position through the upcoming biennial budget cycle and expects to successfully achieve this by FY 2021.”

 This was just 4 months before the state auditor called out that El Cerrito was 7th on the list of CA cities most likely to go bankrupt. 

BELIEF THAT STAFF WAGES NEED TO BE HIGH FOR STAFF RETENTION

There appears to be an assumption that in order to have quality staff, we have to compete with wages paid in larger metropolitan communities, wherein other communities of comparable populations have significantly lower costs. This has been repeated at numerous community meetings and most recently at City Council regarding education. As a result our expenditures in salaries and benefits increase even when not prudent to make such increases.  

EVIDENCE

Our city has 25k residents and 384 city employees of which 159 are full time. The cost per resident is $1,163, which is $328 per resident more than the next closest city of Albany. Our city has 132 more employees than San Pablo which has 5k more residents. 

Per Transparent CA in 2018, employee compensation rose almost 5 MILLION dollars from 2017 to $29,323,885 for 384 positions 159 of which are full-time. In 2017 there were 375 total positions and 138 were full time year round. These raises and additional positions were added even though the auditor had for two years warned the city about their ability to continue as a going concern. 

In the most recent negotiations with public safety staff COLAS were suspended for 2020 but promised for 2021.

In the City Council meeting on May 19th it was revealed that 25 staff members received car allowances of $300 a month. This is an outrageous number of staff with this benefit when a simple reimbursement for mileage for required travel could be implemented. This was costing the city 90K a year

When citizens have sent in public comments questioning the high staffing numbers they have heard council statements full of praise for their excellent staff. They have said that no comparisons to other cities can be made because we are a full service city. This definition has yet to be adequately described as most local cities also have their own police and fire departments, recreation departments and senior services. Albany has all of the above and runs on half the budget El Cerrito does.

So is it time for El Cerrito to take a deeper look at how it provides services? The personnel classification system? The number of management positions? Since 50% of our budget is dedicated to public safety, we may want to start there.  

There is a budget meeting June 9th at 1pm. Please send public comments in with your thoughts on the budget crisis. It is agenda item #2

To make a public comment

Public Comments may be submitted one of two ways:

Via email to Cityclerk@Ci.El-Cerrito.ca.us Email must contain in the subject line Public Comments ­ Not on the Agenda OR Public Comments ­ Agenda Item #.

Via Voicemail at (510)­306-­2558. The caller must start the message by stating Public Comments ­ Not on the Agenda OR Public Comments ­ Agenda Item # followed by their name and city of residence, followed by their comments

Looking backwards-El Cerrito did not get into a 5.5 million dollar hole yesterday. Part One of Two

El Cerrito is in the midst of a major financial crisis. In October 2019 the State Auditor stated that El Cerrito was #7 on the list of CA cities most likely to go bankrupt. The issue was so serious that the auditor got state approval to do a full audit of El Cerrito. Unfortunately due to COVID-19 the audit is currently on hold. If you read the City Manager’s reports you would think that prior to COVID-19, the city’s finances were smooth sailing. While COVID-19 certainly exacerbated an existing problem, the problem with El Cerrito’s financial issues is long standing. 

After reviewing the Comprehensive Annual Financial Reports, The Memorandum of Internal Controls (MOIC), City Council Meeting Minutes, and press coverage from the last decade, we see a City that fails to analyze and anticipate the outside threats to City finances, or chooses to simply ignore them.

We have identified four issues that warrant further analysis. 

They are 

  1. Staff not competent with governmental budgeting
  2. Interfund Borrowing
  3. No long term planning by staff
  4. Belief that staff wages need to be high for staff retention

These posts are meant to give us additional depth to this crisis but the issues we have identified are not the only issues. This will be part one of the post and part two will cover the second two issues. 

STAFF NOT COMPETENT WITH GOVERNMENTAL BUDGETING

Looking at past audits, clearly the staff were not experienced with governmental budgeting, having a particularly hard time when revenues were on the decline. 

EVIDENCE

There is a document called the Memorandum on Internal Control and Required communications. (MOIC) This report is one that the auditor prepares as a part of the Comprehensive Financial Report (CAFR) every year. What has become clear in reviewing them is that the city has been financially mismanaged for years. During the period between 2013 -2016, records indicate that the Finance Department experienced high turnover with many positions filled with temporary workers or staff with little or no governmental accounting experinece.  

The MOIC’s from 2013-2018 repeatedly cited evidence of accounting practices that were either missing or misinformed. The report basically stated a lack of financial controls that ultimately resulted in the city’s inability to fully close out a fiscal year and start a new fiscal year with accurate accounting. Although they repeated this as a problem, and the city made new hires in the Finance Department problems persisted.  

Overall, a city agency that cannot successfully close out its books, collect reimbursements, and manage grants ultimately impacts the health of the general fund and hinders decision making on clear facts. 

Interfund Borrowing

For at least the past 8 years, the other funds borrowed from the General Fund with the intention of replacing funds the next fiscal year, but never doing so. Funds were borrowed from the General Fund and the debt was listed as an asset even though the other funds had no funds to pay back the General Fund. 

EVIDENCE

The 2015 MOIC reported that the General Fund and Capital Improvement Fund had borrowed $2.2 million from other funds as of fiscal year end, including borrowing from restricted funding resources such as the Integrated Waste Management Enterprise Fund and the Municipal Services Corporation Special Revenue Fund. “ (MOIC 2015 page 5) This interfund borrowing depleted the General Fund. 

A review of the years 2015-2017 demonstrates that management ignored warnings and continued to make transfers that resulted in inaccurate accounting and budget information. As a result, the “so called” balance budget reported by the City staff, and passed by the Council, is by no means balanced. When funds were transferred out of the general fund it was done without action by the Council and without a plan for repayment. The auditor also reported most of those agencies did not have any identifiable ways to pay back the money.” In short, these were not loans, but a debit. 

Who should we attribute or hold accountable to a continued pattern of what appears to be accounting practices that ultimately defer the inevitable situation that bring us to our situation today?  The Finance Director?  The City Manager? The City Council? In other words, who was reading the reports and who was holding City Management accountable to the promises made to redress these issues? 

Please refer to part two here. 

REFERENCES

2013 Memorandum of Inner Control 

2014 Memorandum of Internal Control

2015 Memorandum of Internal Control

2016 Memorandum of Internal Control

2017 Memorandum of Internal Control

2018 Memorandum of Internal Control

2019 Memorandum of Internal Control

List of all the CAFRS

El Cerrito is in a major financial crisis-major cuts proposed

Today the city of El Cerrito put out a packet for the planned budget meeting June 9th at 1pm. The Consultants were brutally honest. The link is here. I will copy some slides below but it is really important to view the entire packet. The consultants call out that El Cerrito was in a fiscal crisis before COVID contrary to what the City Council and City Manager have been stating. See the slide above.

The cuts proposed are dramatic. LIBRARY HOURS are back on the table. Reduced fire station services at station 72 are on the table.

If you care about the library or any of these other services please send comments in for the meeting.

So what is confusing to me is that the first priority of cuts is service delivery cuts. There is no mention at looking at staff compensation which has been increased an astronomical amount over the past few years.

To make a public comment

Public Comments may be submitted one of two ways:

Via email to Cityclerk@Ci.El-Cerrito.ca.us Email must contain in the subject line Public Comments ­ Not on the Agenda OR Public Comments ­ Agenda Item #.

Via Voicemail at (510)­306-­2558. The caller must start the message by stating Public Comments ­ Not on the Agenda OR Public Comments ­ Agenda Item # followed by their name and city of residence, followed by their comments

El Cerrito’s history of loans to keep afloat

El Cerrito has been using Tax Revenue Anticipation Notes (TRANS) since 2011 to keep the government afloat. Someone online calls them payday loans and to a large extent that is what they look like. Each year more is borrowed. It started in 2011 with 3.5 million and in 2019 it was 9 million which was a 3 million dollar jump from 2018.


At the next City Council meeting on June 2, 2020, this will be discussed. What is very significant is that since the start of these loans the majority of years (still confirming every year) West America Bank has taken the loan on. As the City staff said in their reports “By selling the TRAN directly to a single investor, the City avoids the costs associated with rating agencies, disclosure counsel, and underwriting firms.” You will see in the chart below how the cost of the loan is in the $17,000-$37,000 range.
This year West America declined to take on the $8,5000,000 loan. This means that the loan will be offered to the public and the estimated cost of OBTAINING the loan will be $105,000. Interest at the 2-3% rate will cost somewhere between $170,000 and $255,000.


This is yet again an example of how El Cerrito’s financial mismanagement has cost the city over a million dollars since 2011. If the city had not allowed their bond rating to drop (before COVID) perhaps West America would have taken the loan again and saved the city at least $70,000 this year alone. Nowhere in any of the many financial documents that I have reviewed is anything stated about working towards not needing a TRAN annually. The additional concern is that if it is more challenging to get the TRAN this year what about next when COVID effects and the effects of the recession will deepen? If a TRAN is not issued either this year or next then how does the city avoid bankruptcy?

If you are interested in learning more please join our IO group for El Cerrito residents concerned about these issues found here https://groups.io/g/ECCfRG

Please also consider making a public comment on this agenda item 7A before the meeting on Tuesday. If you send in your comments after 1pm they have to be read into the record. It is important for the City Council to understand that people are watching.

To make a public comment

Public Comments may be submitted one of two ways:

Via email to Cityclerk@Ci.El-Cerrito.ca.us Email must contain in the subject line Public Comments ­ Not on the Agenda OR Public Comments ­ Agenda Item #.

Via Voicemail at (510)­306-­2558. The caller must start the message by stating Public Comments ­ Not on the Agenda OR Public Comments ­ Agenda Item # followed by their name and city of residence, followed by their comments

References

TRAN Chart-some information on the cost of 2011 and 2014 loans I have yet to access. The chart will be updated when I obtain the information. The interest rate estimate for 2020 was put into the spreadsheet at the higher 3% rate.

The packet for. the June 2, 2020 meeting has a lot of information on the 2020 TRAN found starting on page 68. Information on past TRANS were found here.

El Cerrito was giving over 100K in car allowances

Post Updated with information from public records request June 2, 2020. I have added the employee positions that received this benefit. I have also clarified that the benefit for everyone except the city manager is $300 (I was told the prior number from a Council Person so I apologize for the error). The City Manager receives $323.08

In the May 19, 2020, City Council meeting at around the 3:16 mark, it comes up about the city staff car allowances. The City Manager suspended those April 5th right before she tried to cut the library hours. At that time we did not get full details as to the amount and extent of those allowances. In this meeting Councilperson Fadelli asked more questions. It is worth watching how both the City Manager and Assistant City Manager evade the question of what the monthly amount was ($300). The Assistant City Manager does say that it is $100K savings. When Councilperson Fadelli pushed the City Manager stated that 25 people received this allowance. Which comes out to $105K. I have a public information request pending as to what positions were receiving this benefit.

The positions receiving this benefit are as follows

City Manager

Assistant City Manager

Assistant to the City Manager

City Clerk

Three Employees in the Finance Department including the Director

Two Employees in Information Technology Department

One employee in Environmental Science

Three Public Works Engineers

Two Employees Public Works Maintenance

Two employees in Community Development/Admin

One Employee from Community Development Planning

One Employee from Community Development Building Services

Two Employees from Recreation-Adults

One Employee Recreation Staff-Childcare Admin

One Employee Recreation Swim Center

One Employee Recreation Senior Services

One Employee Recreation Youth

It appears from the document I received that all senior management is getting this benefit. That is not confirmed.


The point here is that these benefits for those many staff members is outrageous. This is yet another example of the ongoing fiscal irresponsibility that got us into this crisis. The current IRS reimbursement rate is 57.5 cents a mile. This means the staff has to travel over 600 miles a month every month for the city to break even. Also, in the conversation, the City Manager stated that there are city cars available. Both the City Manager and Assistant City Manager minimized the benefit saying that it saved the reimbursement paperwork and the City Manager calling it a moot point right now as there is no travel.

I appreciate Councilperson Fadelli pushing back on the issue and hope he continues to be vigilant as I would expect as soon as the crisis is over that staff will try and get that benefit again. With the exception of the Fire Department and Police Chiefs who may have to respond to emergencies in their personal cars I have no understanding of why this benefit was necessary on top of staff’s already high salaries.


I also want to note that Councilperson Pardue-Okimoto was questioning the benefit packages of the management staff and requested that a comparison be done with other cities. Thank you for that.

May 19 meeting

El Cerrito Staff Compensation compared to other local cities

Transparent CA has great information on salaries and pensions for all of CA.

There has been much discussion on different forums about the compensation of El Cerrito city employees so I did a quick check on Transparent CA for 4 cities. El Cerrito, Albany, San Pablo, and Pinole. All are reasonably close in size from 19k residents in Albany to 30K in San Pablo compared to El Cerrito’s 25k.

Albany

Albany has a little less than 20k residents. They have 208 total city employees, 76 of whom are full-time. The cost per resident for these employees is $835

Pinole

Pinole has close to 20k residents. They have 151 city employees and 68 of them are full-time. The cost for the employees per resident is $683.

San Pablo

San Pablo is the largest of the cities I looked at with almost 31k residents. They have 252 employees of which 114 are full time. The cost per resident for the employees is $704 per resident

El Cerrito

Our city has 25k residents and 384 city employees of which 159 are full time. The cost per resident is $1,163, which is $328 per resident more than the next closest city of Albany. Our city has a 132 more employees than San Pablo which has 5k more residents.

The question is why does El Cerrito have so many more employees than other cities the same size? Are we in El Cerrito getting services that residents in other cities are not receiving? I have listened to El Cerrito City Council speak of how high quality our staff is and how they need to be compensated well in order to keep them. In theory, I would agree with rewarding high quality employees with high compensation. The question I have is are we paying our employees wages that are not sustainable for our city? Why were wages raised dramatically in 2018 at a time that the city did not have adequate reserves? And if some employees have lead us into this financial disaster( that predates COVID) are they the high quality employees that we want?

El Cerrito total employee compensation over the last three years (2019 data is not yet available)

2016

Per transparent CA El Cerrito total employee compensation in 2016 was $23,427,687. This was for 354 positions 141 of which were full-time.

2017

For 2017 employee compensation rose to $24,639,703 for 375 positions 138 of which were full-time

2018

In 2018 employee compensation rose almost 5 MILLION dollars to $29,323,885 for 384 positions 159 of which are full-time. There were 9 added positions and 21 additional full-time positions.

Please also check out the related post below

El Cerrito City Compensation

The City takes some budget actions

At the City Council meeting on May 5, 2020 some budget announcements were made. The link to the video is below and the budget discussion started 4 hours in.

The city announced furloughs for management and SEIU staff. That is 45 SEUI staff and 25 Management staff. They will be furloughed one day every two week pay period after the noticing period. Essentially it looks like this will manifest as now having every Friday closed at city hall as this is the easiest way to manage the time. This furlough will last at least through the end of the calendar year and is projected to most likely go on through the end of the next fiscal year (June 2021) Management staff will also now pay in 1% of the employer part of their CAL-PERS contribution. The City Management will take the same furlough and pay in 3% of her CAL-PERS contribution.

I have copied the some of the slides from the presentation and put them below.

This cost savings is if the furloughs go on through the end of the next fiscal year (June 2021)


There have now been 4 million dollars in budget cuts for next year

I am happy to see the council and staff begin to take the aggressive actions needed to address this situation. Much more needs to be done and they do seem to be accepting that. I still have a few areas of concern

  1. We will be ending this fiscal year with a deficit in the 2 million dollar range (subject to change) While these cuts are working on balancing the budget for 20/21 nothing is being done to reduce that deficit as of yet. The Mayor said that not addressing it would make getting the TRAN loan more challenging next year. Without these TRAN loans the city cannot pay it’s bills.
  2. The Finance Manager is not making projects of a recession which seems pretty well guaranteed now. The Mayor did bring up the need for better forecasting using different models. The city has engaged Management Partners to further assist in that. While I have been critical of use of consultations Management Partners does seem to have expertise in this area.
  3. CAL-PERS costs will rise. The Mayor did also say in his remarks that this needed to be factored into projections in the future. This could leave a HUGE hole in the budget.
  4. The Fire Department overtime budget still has not been publicly addressed. The Fire Chief spoke at the meeting and was not enthusiastic about charging for EMT services for those with insurance. Councilperson Quinto did push hard on this issue so hopefully that will move forward. Most local cities do this.
  5. The data accessible to the public is still confusing in many cases and many of us are spending hours looking for and analyzing data. Councilperson Fadelli pushed for this information to be more accessible and clearer so I am hoping that they will continue to request this. We should not have to be posting these blog posts. The information should be readily available on the city’s website.
  6. We still need more information on the TRAN loan. The City Manager and Finance Director stated that they would be meeting with their financial advisor on May 6th and would report back next council meeting. We need specifics on this loan including the cost of the loan this time and how that compares to last year.

The video of the meeting is found here.

Library Hours on the Cutting Block but not high staff salaries

Notes Regarding City Council Meeting on April 21, 2020

There are two meetings on the 21st. The first is a Labor Negotiations meeting with Service Employees International Union (SEIU) Local 1021; El Cerrito Police Employees Association; United Professional Firefighters Local 1230; Public Safety Management Association ­ Battalion Chief, Fire Chief, Police Chief, and Police Management; and Management and Confidential Employees. The only thing of note here is that the city hired a Labor Negotiator. I am not sure if this is something that they always do or not.

The regular meeting has a few things that are of note. If you are only interested in the library that is item 7D.

Item 5A a presentation by the independent auditor hired by the city.. This firm has been calling out El Cerrito’s financial issues since 2018 and been ignored. Questions I would like council members to ask the auditor include

1. What made you bring up the “going concern” issue in 2018. What does that mean exactly?

2. Do you feel like the city has taken appropriate actions to mitigate that concern? 

3. What actions would you recommend now?

Item 7AFY 2019­20 Third Quarter General Fund Budget Update and Covid­19 Impacts

This is a report found in the packet on page 249.

Revenues are noted to close THIS Fiscal Year with an almost $3.8 million deficit. The reports appears to blame this on COVID and a few businesses closing in El Cerrito.

Property and Sales Taxes

They estimate no change in property taxes for the April payments and estimate a 1.1 million dollar reduction in sales tax. 

Real Property Transfer Tax-One large 600k payment earlier this year helped this situation. A number is not attached to this but staff estimates no significant income here.

Recreation Department revenue down 1.3 million

Utility taxes and some other misc taxes and fees-900k reduction

As a results staff estimates a 3,780,000 decrease and that is not including the transfer tax which did not have a number attached. 

Expenses Cut

$150,000 this is the layoffs of part-time recreation staff which is 100k and 50k by deferring some purchases.

So using the staff’s number is 3.78 million minus 150k =$3,630,000 deficit. This is for this Fiscal Year. The year in which staff knew there were issues and chose not to make any cuts nor build a reserve.

The next steps say that on top of the 2 million in cuts recommended the last meeting that 2 million more need to be made. Which is contrary to the amount of cuts that the consultants said were needed which was 8 million (see this post for the picture)

The city is applying for another loan and they say that without the loan they may be bankrupt (except they say insolvent).

So the staff recommendation given all of this is to NOT COMPLETE A BUDGET PROCESS UNTIL OCTOBER. This means not only FY 19/20 with no cuts but the over the first quarter of 20/21 where we already know we have a deficit of 4-8 million depending on who you listen to.

Items 7B and 7C Union negotiations-starts on page 256

One of these is for firefighters and the other is for Fire Battalion Chiefs of which the city has 4. The Firefighters waived their 3% COLA for 2020 and will get it in 2021. The Battalion Chiefs waived their 2020 COLA but managed to get a retroactive 3% COLA for 2019. So the negotiations with the Chiefs saved us almost nothing because of that cost. Savings is around 16k.

I wonder if they used a paid negotiator for the negotiation.

Item 7D City Council Division Budget DiscussionThis begins on page 281 in the packet. 

Essentially this entire discussion is on cutting only the City Council part of the budget which is a very minor part of the budget, except it includes the library hours and access to city council meetings via video.

So the staff thinks that not cutting any staff people is a great idea while cutting the city-funded 15 library hours for a savings of 129k is a great idea. We have three city managers (Manager, Assistant Manager, and Assistant to the Manager) Richmond which is much larger than us has a City Manager and an Assistant to the City Manager. Reducing one of these positions pays for the library hours. I would encourage people to read this report on the library and its hours found in the last packet starting on page 78.

Those library hours provide for much-needed services for many in the community including the most disenfranchised and to cut that access before cutting almost anything else is a travesty.

So to sum up the main issues

  1. Staff and council continue to not make cuts in this fiscal year
  2. Staff and council continue to not address salary and staff cuts that will be necessary
  3. If we do not get the loan in July we will be bankrupt
  4. The City Manager is recommending that the library hours need to be cut

Please Please Please make a public comment for the meeting. Below is how to do so. If you do it later in the day of the meeting it has to be read into the record and has to be less than 3 minutes. If you send it earlier it goes into the council packet and may or may not be read by the council.

You can submit testimony by emailing the city clerk, at cityclerk@ci.el-cerrito.ca.us. Your email must contain have a subject line which either states

public comments –not on the agenda

or public comments –agenda item #. So for the library, it would be 7D for the general budget it is 7A. You can make comments on both items!

Comments sent up until noon on the day of the meeting will be given to the council before the meeting. Comments sent in during the meeting and up until the public comment period on the relevant agenda item is closed, will be read into the record and will be limited to a maximum of 3 minutes. It is important that comments become part of the public record of the meeting. This creates a record of community concern.

You can also comment via voicemail at (510) 306-2558. The caller must start the message by stating public comments –not on the agenda or public comments –agenda item #followed by their name and place of residence, followed by their comments.

Key decisions coming soon: Make your voices heard!

Today we have a post by another member of the group. Whatever your opinions are we encourage you to make your voice heard! Information on public comment for the April 21st meeting are at the bottom of the page. I will post with information on agenda items prior to the meeting on the 21st.

At the April 7 City Council meeting, we learned a lot about where the city was headed pre-COVID and how the pandemic has impacted its financial trajectory.
The city manager shared the proposed $2MM in cuts, which was requested previously by the council and would have put the city on a better financial trajectory prior to the COVID pandemic.  The largest general fund cuts involved keeping open several police department positions and transferring some park and recreation costs to Measure H.  Many departments also had cuts in areas such as travel, training, and professional services.  The good news was that these cuts largely avoided direct reductions to services for residents.  Without COVID-19, these cuts would have put the city on a much better financial trajectory.  From the Management Partners presentation:

There remain valid questions as to why these cuts were not asked for, proposed, or enacted sooner, given the general fund budget issues that existed prior to COVID-19.  That said, it was good to see that $2MM in cuts was possible without dramatic cuts to city services.
Given the COVID-19 pandemic, there will be huge questions facing the council at the next meeting, and the public needs to make their voices heard prior to the meeting.
Some key questions:

1) What will happen to recreation programs, especially summer camps, swim center, and after school programs?  At the April 7 meeting, there was discussion regarding reducing costs more extensively now (and preemptively cancelling future programs) during shelter in place, knowing that would prevent programs from starting back up as quickly once the shelter in place is lifted.  Councilmember Pardue-Okimoto pointed out (correctly in my view) that these recreation programs represent critical childcare for El Cerrito working families, who have made very difficult sacrifices during the school closures.  Additionally, she pointed to the Management Partners presentation which indicated that El Cerrito residents’ top priority is schools and education.  I would encourage residents who agree with this sentiment to contact the council as soon as possible.

2) What will happen to library hours?  The City Manager verbally indicated she would be recommending scaling back library hours given the newly intensified budget crisis.  However, once again Councilmember Pardue-Okimoto correctly spoke up regarding the residents’ priority on schools and education.  Other council members echoed this concern and suggested more modest reductions in hours.

3) How will negotiations go with city employee bargaining units?  How closely will the city look at its management structure and compensation?  The City Manager already brought up hiring freezes and negotiating to cancel cost of living salary increases, and she also made clear that more will need to be done.  Multiple councilmembers suggested looking more closely at reducing city staffing and salary levels at all levels of management, in hopes of being able to minimize reductions to core city services if possible.  Many residents have been suggesting this as well.  What will the result look like?

4) Can outsourcing help?  Councilmember Quinto made multiple suggestions in this area, most notably suggesting the East Bay Regional Park District take over vegetation management at the Hillside Natural Area, helping reduce our fire department OT costs.  The City Manager also suggested having programs such as CERT rely more on volunteers as opposed to the fire department.  Hopefully more suggestions such as these will be put forward and enacted.

5) What are the statuses of the major development projects on San Pablo Ave?  Prior to COVID-19, many large projects were approved and on track to transform our city’s main thoroughfare (and help our city’s economic situation).
6) Aside from new development, what other revenue is possible?  Multiple suggestions came up at the April 7 council meeting, such as charging for fire department 911 visits, and getting stormwater and lighting district fees in line with expenses.  Will council push for these and enact them?

7) When will proposals be voted on and enacted?  The council and City Manager all appear to appreciate the urgency of the situation, but thus far very little has been voted on and enacted aside from cancelling this year’s 4th of July festival.  Councilmember Fadelli expressed a desire to act soon and not wait for the state auditor.
It appears the April 21 council meeting will have continued focus on these issues. The City Manager appears prepared to do what’s necessary to keep El Cerrito afloat, but the Council and residents need to make their voices heard regarding priorities.

Wherever you stand on these issues the council must hear your voice. I am copying information on how to make a public comment for the meeting below.

You can submit testimony by emailing the city clerk, at cityclerk@ci.el-cerrito.ca.us. Your email must contain have a subject line which either states

public comments –not on the agenda

or public comments –agenda item #. So for the second one refer to agenda item 7A if you are discussing the budget issue.

Comments sent up until noon the day of the meeting will be given to council prior to the meeting. Comments sent in during the meeting and up until the public comment period on the relevant agenda item is closed, will be read into the record and will be limited to a maximum of 3 minutes. It is important that comments become part of the public record of the meeting. This creates a record of community concern.

You can also comment via voicemail at (510) 306-2558. The caller must start the message by stating public comments –not on the agenda or public comments –agenda item #followed by their name and place of residence, followed by their comments

April 7th Council Meeting-More Talk No Real Action

The April 7th El Cerrito City Council meeting had the budget on the agenda. Staff used the $150 an hour consultants to make new slides saying how bad things are. One slide said that we are at risk of an 8 million dollar deficit in the next fiscal year. This is even with the 2 million dollars in cuts discussed at this meeting. @updated note 4/12 I have been told that the green line does NOT integrate the 2 million in cuts while the red line does. This is not what the slides says so it is confusing.

You will notice the green line is the no recession forecast and that was still bad. What I keep hearing council and staff imply is that we would have been okay without this recession. That is simply not true. Notice also that this fiscal year (19/20) it is showing a 2 million dollar deficit with this recession.


That is the reason I continued to be shocked that cuts are not being made in this fiscal year. The proposed cuts discussed at the meeting were for the next fiscal year. I have emailed Mayor Greg Lyman and asked why if this chart indicates an 8 million dollar deficit was he still talking about 4 million in additional cuts for NEXT YEAR. This slide was discussed at 2:15 in the video of the meeting which will be linked to below.


There was some discussion on additional cuts. The City Manager said that management is giving up their car allowances. She also recommended immediately cutting the additional 15 hours of library services that the city pays for. Councilperson Pardue-Okimoto pushed back on that. She asked why a cut that would so affect citizens was a first cut to make. She also pointed out that in the strategic plan residents said education was their #1 priority and the library and recreation services are how those services are provided by the city. Councilperson Fadelli stated he would only support a 5-10% cut in library hours that was more in line with other cut levels. Mayor Lyman stated that it would be about 4 hours and suggested cutting Sunday hours. This decision needs to be finalized at the next meeting as the city needs to let the county know by May 1st what their plans are. If you are a library supporter please email your comments in for that meeting (I will have the agenda up and info on sending in comments before that).

There seems to be a very big reluctance to lay off city management staff. There were 90 furloughed part-time employees. The City Manager said there are policies to follow in regards to lay-offs.

Other issues raised

Councilperson Quinto keeps pushing the out-sourcing of some services especially senior services. He also wants us to let the Hillside area be taken over by East Bay Parks to mitigate our fire prevention responsibilities. He also said he does not like the “attacks” on the city manager.


Councilperson Abelson stated public safety is the #1 priority.


The 4th of July was officially canceled for this year. At this point, it is a much a public safety issue as it is a financial one.


Several people brought up the idea that some funds might be raised by charging for ambulance services for persons with insurance. Staff is also looking at making some increases in the fees charged for services.


The City Manager stated several times that the management staff was small and that is why they needed consultants.

Issues not raised

  1. Fire Department overtime-This was raised only in terms that at this time when a fire department staff person attends a public event (like a CERT meeting) they are always paid overtime. This is because they don’t want a shortage of staff if there is a fire. This is going to be stopped. Fire Department staff will not attend these events. There is a continued ignoring of the FD overtime budget in general.

    2. Higher than normal management compensation. This has been explored here before.

    3. Any cuts for 19/20 fiscal year

    4. Details on the next short-term loan needed. El Cerrito has been using short-term loans to stay afloat and many of us are concerned that if we do not get the next loan bankruptcy is going to happen for sure. I will post more on this issue if/when I get more details. We need to know when this loan is needed, what happens if we do not get it and if we get it what the terms of.
    I have followed up on this issue and will post more if I get more information.

    5. Any discussion of how CAL-PERS issues will be handled. There will be an increase in unfunded liabilities due to the economic crisis. It is unclear to me how much that has been factored into the projections the consultants made.

The meeting can be found here

Supplemental Agenda items (including public comment and the slides from the consultants) can be found here.