As residents of El Cerrito, it’s important that we take a hard look at our city’s fiscal health and understand the broader context within which we’re operating. The recent ranking by the California State Auditor places El Cerrito in a precarious financial position—13th most likely city in California to face bankruptcy. But what does thisContinue reading “A Tale of Two Cities: How El Cerrito Can Learn from Hercules’ Financial Struggles”
Category Archives: Financial Crisis
El Cerrito’s Financial Mismanagement: A Legacy of Deficits, Missed Promises, and Depleted Reserves
El Cerrito has faced budget deficits in 18 of the last 21 years. Since 2003, the city has been plagued by financial shortfalls, repeatedly dipping into emergency reserves and relying on short-term loans, known as “TRANS” (Tax Revenue Anticipation Notes), to stay afloat. By 2017, the reserves were fully depleted, leaving the city with noContinue reading “El Cerrito’s Financial Mismanagement: A Legacy of Deficits, Missed Promises, and Depleted Reserves”
Examining the City Manager’s Financial Report – What’s the Real Picture?
At the September 17 City Council meeting, the City Manager presented the 4th Quarter General Fund Update, painting a rosy picture of El Cerrito’s financial health. While the report claims fiscal prudence and a surplus in the General Fund, we believe the City Manager’s interpretation of the numbers may be misleading. Misleading Use of “GeneralContinue reading “Examining the City Manager’s Financial Report – What’s the Real Picture?”
El Cerrito City Manager Newsletter: A Concerned Citizen’s Observations
The El Cerrito City Manager recently published her monthly newsletter, and as concerned citizens, we believe it’s important to take a closer look at the finance section she provided. For your convenience, here is the El Cerrito September City Manager Newsletter. But before diving into the city’s narrative, some key pieces of information are missingContinue reading “El Cerrito City Manager Newsletter: A Concerned Citizen’s Observations”
Accountability on the Agenda: Electing El Cerrito City Council Members Committed to Oversight
With election season here and three out of five City Council seats up for grabs, it’s a critical time for El Cerrito residents to cast their votes for representatives who will rigorously hold the City Manager accountable for her performance. After serving 12 years as Assistant City Manager, Karen Pinkos took over the role ofContinue reading “Accountability on the Agenda: Electing El Cerrito City Council Members Committed to Oversight”
The Truth Behind El Cerrito’s Financial Position: Misleading Reserves Reporting
Both Lisa Motoyama and Karen Pinkos consistently claim that El Cerrito is in a strong financial position. However, they often blur the line between restricted and unrestricted reserves, combining them to paint a rosier picture. What they don’t mention is that approximately $10 million of these reserves are restricted, meaning that they cannot be usedContinue reading “The Truth Behind El Cerrito’s Financial Position: Misleading Reserves Reporting”
The Problem of Splitting Purchase Orders: A Disturbing Practice in El Cerrito’s City Management
In recent years, many El Cerrito residents have grown increasingly concerned about our city’s transparency and fiscal management. One troubling practice that has repeatedly surfaced is the use of “split purchase orders” (POs) by city management to circumvent the approval process. This approach raises serious ethical questions and undermines the checks and balances designed toContinue reading “The Problem of Splitting Purchase Orders: A Disturbing Practice in El Cerrito’s City Management”
El Cerrito’s Troubling Financial Journey: A Timeline of Decline and Efforts for Recovery
In the past decade, El Cerrito has experienced a tumultuous financial journey, marked by repeated warnings from the State, declining credit ratings, and a high risk of bankruptcy. This blog will outline the significant events that have shaped the city’s fiscal landscape, highlighting the key figures and decisions involved. Early Warnings and Declining Ratings DecemberContinue reading “El Cerrito’s Troubling Financial Journey: A Timeline of Decline and Efforts for Recovery”
Is Measure R Being Overlooked in El Cerrito?
While reviewing past agendas for the Financial Advisory Board (FAB) meetings, we discovered that Measure R has not been on the agenda for FAB review in several years. This raises questions about the oversight and management of this critical source of funding for our city. Understanding Measure R In November 2014, El Cerrito voters approvedContinue reading “Is Measure R Being Overlooked in El Cerrito?”
How Has Karen Pinkos Made the Lives of Seniors Better?
A recent post from a member of our senior community raised a critical question: How has El Cerrito City Manager Karen Pinkos made the lives of seniors better? This inquiry was sparked after seniors in our city experienced firsthand the closure of the Senior Center—a space once dedicated to them, now rented out to Kensington.Continue reading “How Has Karen Pinkos Made the Lives of Seniors Better?”
Editorial: El Cerrito Isn’t the Center of the Universe
Living in El Cerrito, it’s easy to feel like you’re in a bubble. There’s a prevailing sense that everyone shares the same views on politics, social issues, and how life should be lived. But the reality is that everyone doesn’t see things the same way. El Cerrito, like many small California towns, can become isolatedContinue reading “Editorial: El Cerrito Isn’t the Center of the Universe”
Editorial: Should You Attend the 9/24 El Cerrito Financial Advisory Board Meeting?
If you’ve ever questioned how El Cerrito manages its finances or felt in the dark about important financial decisions, attending the upcoming Financial Advisory Board (FAB) meeting on September 24 might seem like a good idea. But here’s the problem: the lack of transparency at these meetings has become a glaring issue. At the lastContinue reading “Editorial: Should You Attend the 9/24 El Cerrito Financial Advisory Board Meeting?”
The Merits of Moving On: A Strategic Perspective on Long-Term Goals
In the the June budget meeting, the City Manager presented the council with a balanced budget, expressing deep emotion and gratitude toward her finance team. Her voice wavered, almost to the point of tears, as she thanked them for their dedication and hard work. For many, this moment might have seemed like a triumph—a testamentContinue reading “The Merits of Moving On: A Strategic Perspective on Long-Term Goals”
Time for a Change: Why El Cerrito Can’t Afford to Keep This City Manager
Did you know that two years ago, the El Cerrito City Council renewed the City Manager’s contract a full year before it was set to expire? This premature decision not only ignored her ongoing poor performance but also missed a crucial opportunity to bring in new leadership capable of making the tough decisions that ourContinue reading “Time for a Change: Why El Cerrito Can’t Afford to Keep This City Manager”
Vote NO on Tax Measures Without a Sunset: El Cerrito’s Never-Ending Taxation
El Cerrito’s City Council is returning, pleading for more tax revenue from its residents. In 2022, it was the parcel transfer tax. Now, they want to pass Measure G, which means our sales tax will be 10.25%—and make it permanent. Yes, you read that right. Despite the voter mandate to sunset this tax in MarchContinue reading “Vote NO on Tax Measures Without a Sunset: El Cerrito’s Never-Ending Taxation”
The Need for Courageous Leadership in El Cerrito City Council
In recent years, El Cerrito’s City Council has faced numerous challenges, particularly when it comes to the city’s finances. Yet, despite the gravity of these issues, we continue to see a troubling pattern in council meetings: the 5-0 vote. Time and again, council members unanimously support decisions that, to many, seem fundamentally flawed—especially when itContinue reading “The Need for Courageous Leadership in El Cerrito City Council”
The Endorsement Game: Why El Cerrito Deserves Better Than the Status Quo
Greg Lyman’s tenure on the El Cerrito City Council during the economic downturn of 2008 which led to the financial crisis that nearly bankrupted our city between 2012 and 2020 should be a stark reminder of the consequences of poor leadership. Despite these historical failures, it’s more than disappointing—it’s outright irresponsible—that Greg Lyman continues toContinue reading “The Endorsement Game: Why El Cerrito Deserves Better Than the Status Quo”
The Disappearing Act: El Cerrito’s Unclear Capital Improvement Plan
When it comes to planning for the future, one would expect a city to have a clear and coherent capital improvement plan, especially for major infrastructure projects. Unfortunately, the reality in El Cerrito is far from ideal. Around 2010, budget documents pointed to three significant projects: a new senior center, a new library, and aContinue reading “The Disappearing Act: El Cerrito’s Unclear Capital Improvement Plan”
Priorities Misaligned: The Unused Potential of the Life in Christ Property
It’s a common refrain these days that there’s “no money” for essential services in El Cerrito, especially when it comes to our senior community. Yet, just this past January, the City made a substantial purchase, paying $1.5 million for the Life in Christ property on San Pablo Avenue. This site is located between the parkingContinue reading “Priorities Misaligned: The Unused Potential of the Life in Christ Property”
Argument Against El Cerrito Measure G: Making Measure R Sales Tax Permanent
For the past two decades, our city has done little more than tax us. Despite these taxes, we’ve seen a bloated pension plan, an increase in crime and drugs, and businesses leaving our community—except for liquor stores, massage parlors, and dispensaries. Do we feel safer? We don’t, yet the city continues to demand more andContinue reading “Argument Against El Cerrito Measure G: Making Measure R Sales Tax Permanent”
El Cerrito Committee for Responsible Government (ECCRG) 