Spring is here, and for our City staff team that means it’s Budget season! Our Department Directors and Finance Team are deep in the process of sharpening their pencils, firming up projections, and preparing the draft Two-Year Budget for Fiscal Years 2024-25 and 2025-26.

I want to thank everyone who has participated in the budget process so far, including answering surveys and attending the Community Budget Workshop earlier this month. As we noted during the workshop, this budgeting process really began late last year with the development and adoption of the City's Strategic Plan 2024-2029. Following a robust community engagement process that included focus groups, surveys, in-person outreach, and public meetings, the Strategic Plan articulated Mission, Vision, and Values statements for the organization, and identified specific goals and strategies for the City to pursue in the next 5 years. Using the Strategic Plan as our foundation, and incorporating additional input we're receiving along the way, our team is better positioned than ever to align the Budget with the Strategic Plan approved by the City Council.

One thing we're confirming as we develop the budget, however, is that the next couple of years will require us to stay watchful and cautious with our expenditures. As reported at the March 5 City Council meeting, our General Fund reserves total more than $15 million dollars, meaning our financial position is stable and we are prepared for emergencies. However, revenues are projected to remain stagnant during the near term, due in part to a slow down in the housing market and high interest rates. This means in order to maintain our strong and healthy reserve levels, expenditures too will have to remain largely flat, despite inflation and other cost pressures.

In terms of next steps, there are more opportunities to learn about and provide input on the budget. The community is invited to attend another budget workshop at the upcoming Financial Advisory Board (FAB) Meeting on Tuesday, April 23, at 6:30pm at City Hall. In May, departments will be providing presentations to the City Council at the City Council Meeting on May 21, and the City staff team intends to have the draft budget document available for the City Council, FAB, and public to review by May 24.

We're encouraging community members to stay engaged throughout this process. All information from past and future meetings can be found at

el-cerrito.org/BudgetProcess. Thank you again for your feedback and participation!

As always, please take care of yourselves and each other.

Karen Pinkos

City Manager

City of El Cerrito