In January 2024, the City of El Cerrito acquired the Assemblies of God Church property on San Pablo Avenue for $1.5 million, incurring an additional $60,000 in commissions and waiving all contingencies. This decision has ignited discussions among residents about the city’s financial management and transparency. Financial Oversight and Transparency Concerns In response to aContinue reading “El Cerrito’s $1.6 Million Church Purchase: A Call for Financial Transparency and Strategic Planning”
Category Archives: Financial Crisis
Understanding El Cerrito’s Special Tax Bond Risks
A concerned citizen recently raised critical points about El Cerrito’s proposed $21 million bond issue for a new library, and these concerns deserve serious attention. Many residents might assume that a financial analysis of the city’s creditworthiness is required for this bond approval—but that’s not the case. Here’s why: The Reality of Special Tax &Continue reading “Understanding El Cerrito’s Special Tax Bond Risks”
Why El Cerrito Needs Better Financial Analysis
We are deeply concerned about the lack of financial transparency and decision-making in El Cerrito’s government, particularly regarding the Plaza Library effort. When we visit the city’s homepage, we see that a potential new library is being promoted. Yet, just yesterday, we received a document—an RFP for a contractor to run the library campaign. ThereContinue reading “Why El Cerrito Needs Better Financial Analysis”
El Cerrito’s Budget Crisis: A Call for Financial Leadership
Many of us remember last year’s budget cycle when Claire Coleman and Will Provost led the outreach and budget presentations. Although their presentations lacked substantial community input, they were both articulate easy to understand and extemporaneous. This year, the City Manager decided to shift the spotlight, offering the Finance Director, Crystal Reams, additional stage time.Continue reading “El Cerrito’s Budget Crisis: A Call for Financial Leadership”
The Path to Fiscal Sustainability: Moving Beyond Short-Term Fixes
As the El Cerrito City Council considers steps to address our budget challenges, we must confront a hard truth: continuing to rely on the General Fund’s unrestricted balance as a form of overdraft protection is not sustainable. History has shown us the risks of this approach, and without meaningful action, we risk depleting the veryContinue reading “The Path to Fiscal Sustainability: Moving Beyond Short-Term Fixes”
The Story Behind El Cerrito’s Budget Projections
El Cerrito’s financial projections paint a concerning picture for fiscal responsibility. The city’s unrestricted reserves are set to decrease from a beginning balance of $12.4 million to an ending balance of $11.4 million—a $1 million drop. A deeper dive reveals a troubling pattern of financial maneuvering that obscures the real state of fiscal health. TheContinue reading “The Story Behind El Cerrito’s Budget Projections”
Progress Made, Challenges Remain
Five years ago, the California State Auditor identified El Cerrito as one of the 18 cities in California most at risk of bankruptcy due to fiscal mismanagement. Among nearly 500 cities, El Cerrito ranked seventh from the bottom in financial health and was placed in the state’s “Local Government High Risk Program.” Despite some progress,Continue reading “Progress Made, Challenges Remain”
Financial Statements: El Cerrito’s Unexplained Expenses
The Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2024, was released this week and is available on the Financial Advisory Board website under reports. The 141-page document details the city’s financial position, revealing both a $2.7 million increase in revenue over expenses and the use of $250,000 in reserves lastContinue reading “Financial Statements: El Cerrito’s Unexplained Expenses”
El Cerrito’s Credit Rating Crisis: From A- to BBB
When El Cerrito’s current city manager assumed office, the city held an A- credit rating, a mark of financial stability and prudent management. Fast forward to today, and the city is hanging on to a BBB rating, a stark drop that raises serious concerns about financial governance and the city’s economic future. This decline notContinue reading “El Cerrito’s Credit Rating Crisis: From A- to BBB”
Assessing Kensington’s Fair Share in Fire Services
When it comes to fire services, fairness and equity are essential to maintaining trust between neighboring communities. The El Cerrito-Kensington Fire Department, which provides critical fire protection and emergency medical services, serves both the city of El Cerrito and the smaller, affluent community of Kensington. However, questions have arisen about whether Kensington, with its populationContinue reading “Assessing Kensington’s Fair Share in Fire Services”
2025 El Cerrito Budget Priorities: No Meeting Scheduled
The last Priority Setting and Budget Kickoff for El Cerrito took place on January 13, 2024. Facilitated by consultants at a significant cost, the meeting was billed as an opportunity to shape the city’s goals and budget priorities. However, it left many community members disappointed. Concerns about insufficient advertising, minimal participation from city staff, andContinue reading “2025 El Cerrito Budget Priorities: No Meeting Scheduled”
Why El Cerrito’s Taxpayer Value is in Question
As the new year begins, residents of El Cerrito may notice a stark contrast between their city’s operations and those of neighboring municipalities. While cities like San Pablo, Richmond, Albany, and Hercules are conducting city council meetings during the first full week of January, El Cerrito’s City Hall remains closed, with staff on a two-weekContinue reading “Why El Cerrito’s Taxpayer Value is in Question”
El Cerrito Budget: Rising Costs, Fewer Services
Over the past decade, El Cerrito’s city budget has grown from $54.8 million in FY 2015-16 to $65.3 million in FY 2024-25—an increase of $10.5 million, or 19.1%. Despite this significant rise, residents have seen fewer services instead of the expanded programs or enhanced infrastructure one might expect from such a budgetary increase. The closureContinue reading “El Cerrito Budget: Rising Costs, Fewer Services”
City Services vs. Staffing: A Call for Efficiency
The city faces an undeniable challenge: its staffing levels and payroll far exceed what is necessary to deliver essential services. Basic responsibilities like street maintenance, park upkeep, and permitting are falling short, while the workforce and associated costs continue to grow unchecked. Adding to the frustration, public information requests are often delayed or denied, leavingContinue reading “City Services vs. Staffing: A Call for Efficiency”
Why El Cerrito’s High-Risk Removal Doesn’t Mean Financial Stability
The City of El Cerrito has recently announced its removal from the California State Auditor’s High-Risk Local Government Agency Audit Program. While this may sound like a victory, it’s important to understand what this actually means. The “high risk” designation applies to only the worst 3% of cities in California. Being removed from this listContinue reading “Why El Cerrito’s High-Risk Removal Doesn’t Mean Financial Stability”
El Cerrito Holiday Closure: A City on Pause, But Not Its Paychecks
This holiday season, El Cerrito residents will find city offices closed from Friday, December 20, 2024, through Friday, January 3, 2025. While City Hall resumes regular business hours on Monday, January 6, 2025, the question remains: Why does a small city like El Cerrito shut down entirely for two weeks, leaving no coverage for publicContinue reading “El Cerrito Holiday Closure: A City on Pause, But Not Its Paychecks”
El Cerrito Leadership: Focus on True Community Progress
Leadership is about setting goals, taking responsibility, and achieving meaningful results. But sometimes, leaders get caught up in celebrating small successes rather at the cost of focusing on the larger challenges ahead. This seems to be the case in El Cerrito, where recent social media posts suggest a disconnect between modest progress and the hardContinue reading “El Cerrito Leadership: Focus on True Community Progress”
Examining Citizen Participation in El Cerrito City Council Meetings
Public participation is a cornerstone of local government, ensuring transparency and accountability. However, recent practices in El Cerrito City Council meetings raise questions about how well the city’s processes align with its ordinances and the principles of open governance. Consent Calendar and Public Input One key issue lies with the Consent Calendar. This section ofContinue reading “Examining Citizen Participation in El Cerrito City Council Meetings”
El Cerrito Leadership: The Risks of Selective Transparency
In her recent State of El Cerrito address, Mayor Tessa Rudnick touted the city’s “large fund balance” as a sign of strong fiscal management. However, this narrative failed to acknowledge a critical detail: most of this fund balance is restricted, earmarked for specific uses, and unavailable to address broader community needs. Moreover, the city hasContinue reading “El Cerrito Leadership: The Risks of Selective Transparency”
El Cerrito’s Fire Service Staffing: A Costly Miscalculation
El Cerrito stands out among its neighboring cities for its unusually high concentration of fire services relative to its population and geographic size. The California State Auditor previously recommended that El Cerrito conduct a staffing analysis to determine the appropriate staffing levels for each classification. However, nearly four years later, the city has disregarded thisContinue reading “El Cerrito’s Fire Service Staffing: A Costly Miscalculation”
El Cerrito Committee for Responsible Government (ECCRG) 