Become a Charter City? Council Takes a Look

Should El Cerrito join the growing minority of California cities that have opted for more self-government as a charter city? That's the question before the City Council tonight, Monday.

El Cerrito, like 361 other cities in California, is a "general law" city, meaning that it is guided by state law to a greater degree than the state's 120 "charter cities" are. A charter city is guided by its own "charter" and has greater control over local elections, city contracts and finances, though the local autonomy remains limited by state and federal law.

Proposed by Councilman Jones

At the June 7 council meeting, Councilmember Bill Jones made an extended plea for conversion to charter-city status, and the council agreed to study the issue at Jones' request.

"The state has demonstrated in the last few years its attempt to increase its influence and control over municipal affairs of general law cities and, in some cases, all the cities in California," Jones told fellow council members at the time.

He cited state moves that he said seek to control local libraries and to require cities in essence to obtain state permission before declaring bankruptcy. On the bankruptcy measure, he said: "In my opinion this like a student having to ask permission of its parents to go on a field trip. Only, cities are not juvenile children of the state. It's a direct interference of municipal affairs."

On council menu

Tonight's council agenda calls for a presentation about charter-versus-general law cities and for the council to "discuss the benefits and detriments of becoming a Charter City and provide direction to staff." The council packet provides a detailed description of the differences.

A charter city, for example, has greater flexibility in determing the make-up and compensation of its city council and whether to have a "strong mayor" form of government. It can also enact a property transfer tax, which is imposed when real estate is sold. General law cities are banned from imposing such taxes.

The report in tonight's council packet says a real estate transfer tax could generate approximately $1 million and that neighboring charter cities have such a tax.

Other charter cities in the East Bay include Richmond, Albany, Berkeley, Oakland, Alameda, Piedmont, San Leandro, Hayward, Vallejo and San Ramon.

The number of charter cities in the state has grown from 84 in 1989 to 120 today, while general law cities have decreased from 379 to 362 in the same period, according to the League of California Cities.

Simple majority approval by a city's voters is required to approve a charter and become a charter city. The charter can be drafted by the City Council or by a commission selected by a council-called election.

The council packet outlines disadvantages and advantages of being a charter city:

Disadvantages to Chartering

• Transition period
• Use of staff time and City resources
• Uncertainties
• Legal challenges
• Limited case law
• Charter amendments require vote
• May be divisive in community (e.g., Bell)
• Municipal affairs may erode over time due to state legislation and subsequent judicial review
• Charter cities have not been spared State revenue takeaways

Advantages to Chartering

• Could allow additional revenue measure for operations or capital projects (e.g., operations, library, public safety building)
  + Neighboring charter cities maintain a real property Transfer Tax (RPTT)
  + El Cerrito had an RPTT until a few years ago — repealed as a general law city
  + RPTT would generate ~ $1 million
  + Traditionally split between buyer and seller
  + Seller's share could be rebated for seismic and conservation upgrades
• More flexibility in elections
• May provide more local control

At the June 6 council meeting, Councilwoman Rebecca Benassini said she would like to know more about the possibility, and Mayor Ann Cheng expressed concern that devotion of resources to the proposal could rob more pressing needs of attention and funding.