Resolution 22-
HERCULES CITY COUNCIL
RESOLUTION 22-
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
EXTENSION WITH THE LEW EDWARDS GROUP AND FM3 RESEARCH FOR AN AMOUNT NOT TO EXCEED $131,250 FOR TAX MEASURE ADVISORY WORK
WHEREAS, the City of Hercules relies on a voter-approved Utility Users Tax (UUT) measures to provide sufficient ongoing revenues to sustain our current reduced levels of service; and
WHEREAS, the UUT measure, sunsets in January 2025; and
WHEREAS, the UUT measure is estimated to generate over $3.5 million in revenue in the fiscal year which ends June 30, 2022; and
WHEREAS, without the UUT Hercules would not be in the position to continue to provide the services important to our community even at our current reduced levels; and
WHEREAS, Hercules still receives a low share of property taxes relative to other cities in the County, and the City’s retail tax base is not currently enough to cover the cost of providing basic services to City residents; and
WHEREAS, ongoing efforts to generate revenue through economic development and to reduce expenditures by becoming more efficient will not result in sufficient increases in revenues to replace revenues generated by the voter-approved measures prior to the sun setting; and
WHEREAS, the City of Hercules is a general law city and would like to explore becoming a charter city for the purpose of increasing the Real Property Transfer Tax; and
WHEREAS, it is highly beneficial and advisable to engage the services of a professional consultant that specializes in public outreach and strategic planning for local revenue measures; and
WHEREAS, the consulting team comprised of Lew Edwards Group and FM3 Research was chosen by the City through a competitive interview process to provide Polling and Strategic Communications for the UUT and RPTT initiatives; and
WHEREAS, the Lew Edwards Group was effective in successfully assisting the City with several prior ballot measures.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules as follows:
Resolution 22-
1. That the City Council hereby authorizes the City Manager to execute an agreement extension with Lew Edwards Group and FM3 to provide professional consulting services related to possible revenue enhancement measures for a future ballot.
2. That the City Council hereby authorizes the expenditure of an amount not to exceed $131,250 from the approved general fund for consultants to the City Manager.
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 22nd day of February, 2022 by the following vote of the Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________
DION BAILEY, Mayor
ATTEST:
________________________________
LORI MARTIN, Administrative Services Director/City Clerk