Big Budget Items

A crack in the El Cerrito pool is covered with a black patch.

This report was updated on Oct. 28 to clarify that the council did not approve spending of $6.1 million at its Oct. 21 meeting. It endorsed a scenario that calls for the city to spend the $6.1 million. It gave final approval to spending $1.6 million on a new fire engine. For details, see the story below.

The City Council has endorsed spending $6.1 million on the swim center, a new fire engine, and a new audio-visual system – a decision that would cause the city to dip below its target of 17% in general fund reserves for about a decade if nothing else changes. The entire amount would not be spent in this fiscal year.

The $6.1 million plan was endorsed as part of a scenario presented by the city staff. That scenario is shown in this chart created by the city.

The council directed staff to develop more information about how to fund the swim center spending so some of the work could be included in the next biennial budget.

At the Oct. 21 meeting, the fire chief, city clerk, and recreation director explained why the spending is urgently needed. Budget Director Claire Coleman explained how different spending options would affect the city’s general fund reserves.

City's Financial Health Has Improved

The issue of dipping into general fund reserves may be more controversial in El Cerrito than in other cities because of recent local history.

After several years of being designated a city at high risk of being unable to meet their financial obligations, the state auditor announced in December 2024 that “El Cerrito has taken corrective action to address its risk areas, and the state is removing its high-risk designation.”

The city made changes to improve its financial health. One of the steps taken over the past few years was establishing a 17 percent unrestricted general fund reserve. Another was creating a $9 million emergency fund.

Estimated Cost of Swim Center Repairs is $4.2 million

Under the scenario endorsed by the council on Oct. 21, a total of $4,234,000 would be spent on the swim center but all of it would not be spent in this fiscal year.

Replastering the lap pool was part of $2.3 million in swim center work that was approved Aug. 19. A request for bids will go out soon and the work should start in January, Recreation Director Chris Jones said in an interview.

The winter start is important because the pool will need to close. Parking lot improvements were part of that package, but the start date for that work is not known.

Council approval of spending on the next $2 million of pool work – including pool deck replacement, locker room upgrades, and installation of a new slide – will be put off until the next budget period.

Tough Spot for Council Members

Council members said the city can’t afford to spend $4.2 million on the swim center, but it is out of the question to let the pool fall into disrepair or close.

“It’s all bad options,” said council member Rebecca Saltzman.

Other Urgent Spending

In addition to the swim center spending, which has been under discussion since the summer, spending on a new fire engine and a new audio-visual system is urgent, the council was told.

Although these items had not been placed on the council’s agenda, they were bundled into a motion that City Attorney Sky Woodruff said would satisfy the state’s open meetings law.

Engine 51 was recently replaced.

Fire Engine Bid About to Expire

Fire Chief Eric Saylors said signing a contract to buy the fire engine suddenly became urgent when the vendor told him it will raise its rates after Oct. 31, 2025. Engine 52 is older than its expected 15-year expected lifetime.

Saylors had received a bid of $1.6 million which was restated several times over the past few months.

A 15% increase on a $1.6 million fire engine would be about $240,000. If bought now, payments could be completed and the engine delivered by 2027.

The council approved buying a new fire engine for $1.6 million.

AV System Failing

Moving forward with a new audio-visual system was endorsed after City Clerk Holly Charlety said that components, including a camera and a control panel, have failed recently. Another consideration is that a new law, SB 707, requires cities to provide hybrid meetings with public participation by July 1, 2026. The council chamber doubles as the city’s emergency operations center.

The vote to move forward with the bundle of spending items was 4-1, with council member William Ktsanes dissenting.

Ktsanes Emphasizes Dip in Reserves

Ktsanes said charts presented at the meeting showed the spending would cause the city to dip below its target of 17% in general fund reserves for at least a decade if nothing else changes. He also said the dip could be larger and longer than what was shown if any other unforeseen expenses arise in the next ten years.

Budget Director Coleman said the projections were based on current information.

La Force Cites Pool Tax Measures

At one point in the meeting, Ktsanes was on the receiving end of heated words from former council member Norman La Force, a dedicated swimmer.

La Force said that in 1999 a decision was made by El Cerrito voters to fund a special tax and rebuild the pool. In 2019, he said, voters passed Measure H to extend the pool tax.

“This community made a decision in 1999 to rebuild the pool,” La Force said. “We could have closed it. We could have bulldozed it, Mr. Ktsanes, and had no pool. And we made the decision not to do that. In 2019 we put a tax measure to help fund the pool for this very purpose and that won by 79% of the vote. And it was a permanent tax at $60 a parcel. So this is a pool that is important to this community,” La Force said.

Why Funds Aren’t Available

Ktsanes thanked La Force for his comments and said they reveal a deeper issue.

“If there’s a permanent $60 a year parcel tax that people have voted on and approved to go towards a cost like this, why aren’t those funds here to use for this?” Ktsanes asked.

City Manager Explains Measure H Scope

City Manager Karen Pinkos said, “Remember that Measure H did expand the scope of what the funds could be used for (beyond the pool).”

She said Measure H generates about $600,000 a year and is currently being used for swim center maintenance and for park and recreation operations and maintenance. Recreation Director Chris Jones said later that the funds have also been used for maintenance in the Hillside Natural Area.

Pinkos added that if all Measure H funds generated since it passed in 2019 had been reserved only for pool use, there still would not be enough to pay for all the needed swim center work.

Saltzman Laments Delay

After viewing the city budget director’s slides, council member Rebecca Saltzman said of the full scope of pool work, “This is telling us no, we’re never going to have the money to do it. Is it recommended that we’re not going to do it until we identify some other funding source?”

Pinkos said she recommends that work beyond replastering and the parking lot gets listed in the city’s capital improvement program “so that we can identify funding.”

Saltzman said waiting “just makes me nervous because the cost will go up so it could just be that this chart gets worse. Another thing that’s worried me the whole time is what if we have to shut down the pool (because of an emergency problem).”

Pinkos replied, “We know that we need to fund this…We recommend that in the next fiscal year and next biennial budget we will indeed be planning for it.”

Saltzman agreed and said, “I don’t think we can defer it beyond the next budget. Even if things look bad I think we’re just going to have to find other things to cut.”

Motoyama Points to Improvements

Council member Lisa Motoyama said she appreciates the staff work that went into developing charts about the impact on the general fund, and hopes those are “a worst case scenario.”

She noted that in addition to the 17% reserve goal, the city has $9 million in an emergency fund (EDRF). She said when she first joined the city council the general fund reserve was negative $120,000 and there was no EDRF.

“I’m not thrilled that our general fund balance is going to dip but we do have that safety cushion,” she said.

“To stay above 17% we will have to make changes,” Motoyama said. “That’s exactly what we want the time to be able to do…within our capital improvement program… I can’t imagine a scenario where we would close the pool.”

Service Delivery Study Could Help

Motoyama added that the council has funded a service delivery study that she hopes will save the city money.

“Find us that million dollars of structural deficit,” she said.

“A No-Win Situation”

Wysinger said she is always uncomfortable with deferred maintenance.

“I know that we can’t afford it but at the same time the pool is one of the biggest money makers in this city,” she said. “We can’t afford to not have the pool be functional. We can’t afford to not have the pool be safe…It’s a no-win situation. None of these things are fun.”

Council member Gabe Quinto agreed, saying it was hard to balance “the importance of doing this right but also making sure that we do have the funds to do this and we really don’t…In January when we speak about our budget we can look at what we can do and get some sacrifices to get this work done.”

Ktsanes acknowleged that keeping the pool open is a high priority. “I don’t have any doubt that the pool is important. I’m not suggesting closing the pool. Unfortunately, spending $4.2 million on pool repairs means having to weigh priorities and make difficult decisions to cut other spending.”