Hercules City Council
June 13, 2023

Tuesday, June 13, 2023
7:00 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Alex Walker-Griffin
Vice Mayor Dan Romero
Council Member Dion Bailey
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Eibleis Melendez, City Clerk
Meeting Agenda
In-Person in Council Chambers or
Zoom ID: 820 5722 7544
Zoom Passcode: 991542
Zoom Phone Number: 1-669-444-9171
1 City Council Meeting Agenda June 13, 2023
See last pages of agenda for information regarding meeting procedures To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. CLOSED SESSION – CALL TO ORDER - ROLL CALL

NO CLOSED SESSION
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
NONE
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

NO CLOSED SESSION
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL [7:00P.M] V. A. REPORT ON ACTION TAKEN IN CLOSED SESSION-

NO CLOSED SESSION
B. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO

PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-563 Proclamation Recognizing June 19, 2023 As Juneteenth Attachments: Proclamation - Juneteenth 2023

2. 22-564 I-80 Pavement Rehabilitation Project
Attachments: Presentation- Caltrans I-80 Pavement Rehabilitation Project IX. AGENDA ADDITIONS/DELETIONS
City of Hercules Page 2
2 City Council Meeting Agenda June 13, 2023
X. PUBLIC COMMUNICATIONS
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

Individuals wishing to address the City Council are asked to complete a form indicating the name and address of the speaker and the general topic to be addressed. Speakers must make their comments from the podium and will be allowed 3 minutes to discuss their concerns. All public comments are recorded and become part of the public record. A limit of 30 minutes will be devoted to taking public comment at this point in the agenda. If any speakers remain at the conclusion of the initial 30 minute period, time will be reserved at the conclusion of the meeting to take the remaining comments.

XI. PUBLIC HEARINGS

1. 22-565 Public Hearing on Proposed FY 2023-24 City of Hercules Annual Budget Plan including the First Year of the
Ten-Year 2023-2033 Capital Improvement
Plan(CIP) Budget
RECOMMENDATION:

Open the Continued Public Hearing, receive a Staff Report, Take Public Testimony, Close the Public Hearing, and Adopt the following resolutions (Attachments 1-3):

1. Approving the FY 2023-24 City of Hercules Budget Plan which includes the First Year (2023-24 Fiscal Year) of the Ten-Year (2023-2033 Fiscal Years) Capital Improvement Plan (CIP) Budget and making certain designations and fund balance adjustments, approving annual contracts for services in a total amount of $4,918,162.

2. Approving the FY 2023-24 Hercules Public Financing Authority Budget Plan Consisting of Debt Service in the amount of $2,025,414.

3. Establishing the Appropriations Limit for the FY 2023-24 in accordance with Proposition 111 and Article XIII B.

Staff Report - Budget Public Hearing & Adoption
Attach 1 - Resolution City Budget FY 2023-24
Attach 2 - Resolution PFA FY 2023-24
Attach 3 - Resolution GANN Limit FY 2023-24
Attach 3.A - GANN Limit Calculation
Attach 4 - FY 23-24 ANNUAL BUDGET_ELECTRONIC
Attachments:

City of Hercules Page 3
3 City Council Meeting Agenda June 13, 2023

2. 22-566 Design Review Permit (DRP #23-02) to relocate the existing on-street garbage pick-up location for The Exchange on John Muir Pkwy.

RECOMMENDATION:

That the City Council:

1. Request planning staff present the staff report;

2. Open the public hearing;

3. Invite the applicant to make a presentation or statement;

4. Receive comments from the public;

5. Offer the applicant or their consultant team the opportunity to answer questions;

6. Close the public hearing;

7. Request clarification from staff or the applicant on any issues related to the project;

8. Take one of the following actions:
a. Approve the Resolution approving the Design Review Permit (Attachment 1), making any desired modifications to the findings for approval; or
b. Continue the item and provide direction to staff to prepare findings for denial; or
c. Refer the matter back to the Planning Commission for further consideration, in which case the referral shall be investigated as advisable and conclusions reported back to the Commission or Council.

Staff Report - DRP 23-02 - 2525 Bayfront Blvd -Relocation of Garbage Pickup Attach 1 - CC Resolution
Attach 2 - Republic Services correspondence
Attach 3 - Resolution 17-02 Signed
Attach 4- DRP 17-02 Design Review Facts and Findings
Presentation
Attachments:

3. 22-567 Mandatory Garbage/Solid Waste Disposal - Delinquent Accounts RECOMMENDATION:

Conduct a Public Hearing and upon conclusion, consider adopting a Resolution confirming the report of delinquent accounts and placing liens on said properties and special assessments upon property taxes pursuant to City of Hercules Municipal Code Section 5-2.01 to 5-2.16, Mandatory Garbage/Solid Waste Disposal.

Staff Report - Garbage Liens 6-13
Attach 1- Resolution
Attach 2 - May- December 2022(October batch)
Attach 3 - January-March 2023
Attach 4 - Hercules Cover Letter
Attachments:

City of Hercules Page 4
4 City Council Meeting Agenda June 13, 2023
XII. CONSENT CALENDAR

1. 22-560 Meeting Minutes for the Regular Meeting on May 23, 2023 Attachments: Meeting Minutes for the Regular Meeting on May 23, 2023

2. 22-561 Establishment of Pre-Qualified Vendor lists through June 2026 RECOMMENDATION:

Staff recommends the Council approve a resolution approving pre-qualified vendor lists for planning and engineering services through June 2026, based on qualifications received in response to the City’s February 2023 Request for Qualifications.

Staff Report - Establishing Pre-Qualified Vendor Lists - Planning Engineering Services Attach 1 - Resolution Establishing Pre-Qualified Vendor Lists Attach 2 - Pre-Qualified Vendors - Planning Services
Attach 3 - Pre-Qualified Vendors - Engineering Services Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-569 Amendment No.2 with Gray Bowen Scott for a Not to Exceed Amount of $312,169 to Provide Project Management and Advance the Funding Plan for The Hub for a Total Not to Exceed Contract Amount of $902,501
RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute Amendment No.2 with Gray Bowen Scott (GBS) for a not to exceed amount of $312,169 to continue project management and advance the funding plan for The Hub for a total not to exceed contract amount of $902,501.

Staff Report - GBS Amendment Staff Report
Attach 1 - GBS Reso
Attach 2 - Amendment No.2
Attach 3 - GBS Team Key Staff Bios
Attachments:

City of Hercules Page 5
5 City Council Meeting Agenda June 13, 2023

2. 22-570 Expiration of Solid Waste Collection Franchise Agreement in 2025 and Discussion Regarding Potential Strategies Moving Forward Recommendation:

Receive a report from staff regarding the expiration of the City’s solid waste collection franchise agreement with Republic Services in 2025 and discuss potential strategies for solid waste collection services moving forward including securing the services of a solid waste consultant to provide expertise and strategic guidance.

Staff Report - Franchise Agreement
Attach 1 - Republic Letter 05112023
Attach 2a - Republic Letter 06052023
Attach 2b - Republic CASP Presentation
Attach 3 - Republic Franchise Agreement
Attachments:

3. 22-571 Business Attraction Grant Program
RECOMMENDATION:

Staff recommends that the City Council approve a resolution approving the establishment of a pilot business attraction grant program and approving the business attraction program guidelines.

Staff Report - Business Attraction Grants
Attach 1 - Resolution
Attachments:

4. 22-572 "Eat Local Hercules” Catering Incentive
RECOMMENDATION:

Staff recommends that the City Council approve by minute order the Eat Local Hercules program guidelines and adopt a resolution approving the second amendment to an agreement with the Yiftee Digital Gift Card program in the amount of $50,000 to establish the Eat Local Hercules catering incentive program.

Staff Report - Eat Local Hercules Catering Incentive
Attach 1 - Resolution
Attach 2 - Second Amendment to the Original Agreement
Attach 3 - First Amendment to the Original Agreement
Attach 4 - Original Agreement
Attach 5 - Large Employers List
Attachments:

City of Hercules Page 6
6 City Council Meeting Agenda June 13, 2023

5. 22-568 Adopt a Resolution authorizing Council Members not currently enrolled in the ICMA deferred compensation plan to participate in the plan to provide parity among Council Members.

RECOMMENDATION:

Staff recommends the following:

1. Adopt a Resolution authorizing Council Members not currently enrolled in the ICMA deferred compensation plan to participate in the plan to provide parity among Council Members.

2. Discuss and provide directions to staff for a possible salary increase.

Staff Report - City Council Compensation Report
Attach 1 - Resolution
Attach 2 - City Council Compensation Comparison with surrounding cities Attach 3 - City Council Monthly Pay & Benefits
Attach 4 - Resolution 11-119 Terminate PERS Benefit
Attach 5 - RES.17-054-Reinstating Limited Health Care Benefits for City Council Members Attachments:

XIV. PUBLIC COMMUNICATIONS
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

AND FUTURE AGENDA ITEMS
This is the time for brief announcements on issues of interest to the community. In accordance with the provisions of the Brown Act, matters which do not appear on this agenda but require City Council discussion may be either (a) referred to staff or other resources for factual information or (b) placed on a future meeting agenda.

1. Regional Committees

2. City Council Committees and Subcommittees

3.Commission Liaisons
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7 City Council Meeting Agenda June 13, 2023
XVI. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, June 27, 2023 at 7:00p.m. in the Council Chambers.

Agendas are posted in accordance with Government Code Section 54954.2(a) or Section 54956.

Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an e-notice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the Administrative Services Department at (510) 799-8208 (Posted: June 8, 2023)

INSTRUCTIONS ON HOW TO PARTICIPATE AND WATCH THE HERCULES CITY COUNCIL AND PLANNING

COMMISSION HYBRID MEETINGS
Attend in Person: Hercules City Council Chambers – 111 Civic Drive, Hercules, CA 94547 Attend via Zoom Teleconference: Details provided below and zoom webinar login, passcode and phone numbers provided on the agenda cover.

City of Hercules Page 8
8 City Council Meeting Agenda June 13, 2023
How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.

Via Zoom: Members of the public may submit a live remote public comment via Zoom video conferencing.

Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to: https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833 or +1-929-205-6099 or +1-253-215-8782. • Speakers will be asked to provide their name and city of residence, although providing this information is not required for participation.
• Each speaker will be allowed up to 3 minutes to speak and provide comment. A limit of 30 minutes will be devoted to taking public comment during the first public comment period on the agenda. If any speaker comments have not been accommodated prior to the initial 30 minute period, time will be reserved at the conclusion of the meeting for the remaining public comments. • Speakers will be muted until their opportunity to provide public comment.

When the Mayor opens the comment period for the item you wish to speak on, please use the “raise hand” feature (or press *9 if connecting via telephone) which will alert staff that you have a comment to provide and press *6 to unmute.

Written Comments Submitted Electronically: All comments received before 3:00 p.m. the day of the meeting will be provided to the City Council prior to the meeting and posted to the City’s agenda website and located by clicking on the “meeting details” tab. Written comments received after 3:00 p.m. will be provided to City Council and posted to the agenda website the following day. Written comments will not be read aloud during the meeting. Email comments to [email protected]. Please indicate which item on the agenda you are commenting on in the subject line of your email.

Written comments submitted in person or via mail: Additional ways to provide your public comment is to either drop off your comment in person to the front desk receptionist located in the City Hall lobby or to mail your comment to City of Hercules, ATTN: City Clerk – Public Comment (Meeting Date), 111 Civic Drive, Hercules, CA 94547 in time to reach the City Clerk no later than 3:00 p.m. on the day of the meeting or you can submit your comment by telephone by calling (510) 799-8208 no later than 3:00 p.m. on the meeting date.

If you need assistance with public comment, please contact: Eibleis Melendez City Clerk at [email protected] or by calling (510) 799-8208.

All public comments will become part of the official meeting record. The City cannot guarantee that its network and/or the website will not be uninterrupted. To ensure that the City Council receives your written comments, you are strongly encouraged to submit your comments in writing in advance of the meeting by 3:00 p.m. on the day of the Council or Commission meeting.

City of Hercules Page 9
9 City Council Meeting Agenda June 13, 2023

OTHER WAYS TO WATCH THE MEETING
Live on Channel 28: City Council meetings will replay the following Thursday at 7:00 p.m. and Saturday at 1:00 p.m.

Planning Commission meetings will replay the following Wednesday at 7:00 p.m. and Saturday at 9:00 a.m.

Video Streamed Live on the City’s Website:

To view City Council and Planning Commission meeting videos online go to: Hercules Meeting Videos.

Instructions to view Live or On-Demand Videos from the City’s website:

1. Go to: Hercules Meeting Videos or https://hercules.legistar.com/calendar.aspx.

2. Locate the desired meeting and date.

3. Click the associated “Video” link (Video status is as follows):

Video = Video is available for on demand viewing.

In Progress = Video is available for viewing during live recording.

Not Available = Video is either unavailable or has not been recorded.

City of Hercules Page 10
10 City Council Meeting Agenda June 13, 2023

THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,

PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS

1. SPECIAL ACCOMMODATIONS: In compliance with the Americans with Disabilities Act, if you require special accommodations to participate at a City Council meeting, please contact the City Clerk at 510-799-8208 at least 48 hours prior to the meeting.

2. AGENDA ITEMS: Persons wishing to add an item to an agenda must submit the final written documentation 12 calendar days prior to the meeting. The City retains the discretion whether to add items to the agenda. Persons wishing to address the City Council otherwise may make comments during the Public Communication period of the meeting.

3. AGENDA POSTING: Agendas of regular City Council meetings are posted at least 72 hours prior to the meeting at City Hall, the Hercules Swim Center, Ohlone Child Care Center, and on the City’s website (www.ci.hercules.ca.us),

4. PUBLIC COMMUNICATION: Persons who wish to address the City Council should complete the speaker form prior to the Council's consideration of the item on the agenda.

Anyone who wishes to address the Council on a topic that is not on the agenda and is relevant to the Council should complete the speaker form prior to the start of the meeting. Speakers will be called upon during the Public Communication portion of the meeting. In accordance with the Brown Act, the City Council may not take action on items not listed on the agenda. The Council may refer to staff any matters brought before them at this time and those matters may be placed on a future agenda.

In the interests of conducting an orderly and efficient meeting, speakers will be limited to three (3) minutes.

Anyone may also submit written comments at any time before or during the meeting.

5. CONSENT CALENDAR: All matters listed under Consent Calendar are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Council or a member of the public prior to the time the City Council votes on the motion to adopt.

6. LEGAL CHALLENGES: If you challenge a decision of the City Council in court, you may be limited to raising only those issues you or someone else raised at the meeting or in written correspondence delivered at, or prior to, the meeting. Actions challenging City Council decisions shall be subject to the time limitations contained in Code of Civil Procedure Section 1094.6.

City of Hercules Page 11
11 Introductions/ Presentaiton/ Commission Reports
Agenda Items

1. 22-563

2. 22-564
12 PROCLAMATION
RECOGNIZING JUNE 19, 2023 AS JUNETEENTH

IN THE CITY OF HERCULES
WHEREAS, America does not only celebrate our independence on July 4, Juneteenth, coined by combining the words June and nineteenth, also known as “Juneteenth Independence Day,” “Emancipation Day,” “Emancipation Celebration,” and “Freedom Day,” is the oldest African American holiday observance in the United States; and
WHEREAS, Events in the history of the United States that led to the start of the Civil War in 1861 centered on sectional differences between the North and the South that were based on the economic and social divergence caused by the existence of slavery; and WHEREAS, President Abraham Lincoln signed the Emancipation Proclamation on January 1, 1863, declaring the freedom of enslaved persons of the confederate territory and paving the way for the passing of the 13th Amendment to the Constitution of the United States of America; and WHEREAS, on June 19, 1865, almost two and one-half years after President Lincoln issued the Emancipation Proclamation Union soldiers led by General Gordon Granger arrived in Galveston, Texas, informing Thousands of enslaved people in Texas of their liberation and the abolition of slavery; and
WHEREAS, Juneteenth is the best-known and one of the oldest American holidays that celebrates the end of slavery in the United States; it commemorates the date June 19, 1865, when the last African American slaves held in Confederate states were freed and has been observed since June 19, 1866; and
WHEREAS, Juneteenth became a state holiday in Texas in 1980, and a number of other states subsequently followed suit. The day is also celebrated outside the United States, with organizations in a number of countries using the day to recognize the end of slavery and to celebrate the culture and achievements of African Americans; and
WHEREAS, Today, Juneteenth commemorates African American freedom and emphasizes education and achievement as it is a time for reflection and rejoicing and a time for assessment, self-improvement, and planning for the future; and
WHEREAS, Juneteenth symbolizes freedom, celebrates the abolishment of slavery, and reminds all Americans of the significant contributions of African Americans to our society; and WHEREAS, General Granger’s announcement called for “absolute equality,” we know that such a vision was far from complete back then, as it is today. We celebrate how far we have come and take stock of how far we must go; and
WHEREAS, Juneteenth celebrates the significant role that African Americans have played in the history of the United States and how they have enriched society through their steadfast commitment to promoting unity and equality.

NOW, THEREFORE, BE IT PROCLAIMED that I, Alex Walker-Griffin, Mayor of the City of Hercules, on behalf of the entire City Council, do hereby recognize June 19, 2023, as Juneteenth, National Freedom Day, in the City of Hercules.

In witness whereof, I hereunto set my hand and cause the seal of the City of Hercules to be affixed this 13thth day of June, 2023.
________________________________
Alex Walker-Griffin, Mayor
22-563
13 Caltrans I-80 Pavement Rehabilitation Project
Agenda Item

2. 22-564
14 I-80 Pavement Rehabilitation Project
Contra Costa County, Project 3J070
1 15
Project
Location
This project is in Contra Costa
County on Interstate 80 (I-80)
from the State Route 4
separation (Post Mile 10.1) in
Hercules, to the Carquinez
Bridge (Post Mile 13.5), in
Crockett.
16 Project Need
The existing pavement
exhibits signs of distress,
resulting in poor ride
quality and the potential
for pavement failure.
3 17
Project
Purpose
To extend the service life
of the pavement and
enhance highway safety.
4 18
Project
Scope
 26 lane-miles of pavement resurfacing and restoration for the mainline freeway and ramps within the project limits
 Electrical, Drainage, signing work
 Upgrading curb ramps at ramp termini to be ADA compliant  Construction Capital Cost is $50m
 State Highway Operations & Protection Program (SHOPP) & SB1 funding
5 19
Scheduled
Closures
I-80 Weekend Closures
 Eastbound (56 hours each weekend)
 July 21, Friday (9:00pm) – July 24, Monday (5:00am)
 August 4, Friday (9:00pm) – August 7, Monday (5:00am)  August 18, Friday (9:00pm) – August 21, Monday (5:00am)  Westbound (104 hours) – Labor Day Weekend
 August 31, Thursday (9:00pm) – September 5, Tuesday (5am) 20 Need for
Full Closure
Removal of existing paving
and installation of
Continuously Reinforced
Concrete Pavement (CRCP)
is a labor and equipment
intensive operation.

Safety of Caltrans and
Contractor staff.

Safety of travelling public.

Performing weeks of
overnight work in each
weekend.

STEP 1: Demolition STEP 2: Base preparation
STEP 3: Reinforcing steel STEP 4: Concrete placement
21 Benefits of
CRCP
4 weekend closures vs. Over 120
nights of closures
Project should finish in late 2023
instead of late 2024.

Improved ride quality now - CRCP
has no joints.

Improved ride quality later – less
likely to crack / settle / rock in
future due to reinforcing steel.
22 Traffic
Management
Plan
• Regional Changeable Message Sign
(CMS) Deployment
• Detours
• Outreach Effort
9 23
Regional
CMS
Deployment
10 24
Regional
CMS
Deployment
Eastbound I-80 Closure
11 25
Westbound I-80 Closure
12 26
Major Regional
Detours for
EB 80
Eastbound I-80 Closed at SR4
Oakland / SF Area traffic
diverted to EB SR24 to NB I-680
or EB SR4 to I-5
San Jose / Hayward Area traffic
diverted to EB 580 to I-5
13 27
Regional
Detours for
EB 80
Eastbound I-80 Closure
14 28
Major
Regional
Detours
for WB 80
Westbound I-80 Closed at
I-780
Vacaville / Fairfield Area
traffic diverted to SB I-680
from I-80 in Cordelia
Tahoe/Sacramento Area
traffic diverted to SB I-5 to
WB SR4 or WBI-580
15 29
Regional
Detours for
WB 80
16 30
Outreach
Effort
• Caltrans will notify public via:
• City Council Meetings
• Radio/TV Station News
• Paid Media Advertisements
• Caltrans Website
• Social Media (Caltrans & Cities)
• Press Release/Traffic Advisories
31 Outreach
Effort
Website &
Contacts
For Additional project information:
• Caltrans CC 80 Pave Project Website
www.CC80pave.com
• Contacts:

Vince Jacala
Caltrans Public Affairs Branch Chief
[email protected]
(510) 286-5206
Bart Ney
Caltrans Public Affairs Office Chief
[email protected]
32 Questions & Comments
19 33
Public Hearings
Agenda Items:

1. 22-565

2. 22-566

3. 22-567
34 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 13, 2023
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Public Hearing on Proposed FY 2023-24 City of Hercules Annual Budget Plan including the First Year of the Ten-Year 2023–2033 Capital Improvement Plan (CIP) Budget
RECOMMENDED ACTION:

Open the Continued Public Hearing, receive a Staff Report, Take Public Testimony, Close the Public Hearing, and Adopt the following resolutions (Attachments 1-3):

1. Approving the FY 2023-24 City of Hercules Budget Plan which includes the First Year (2023-24 Fiscal Year) of the Ten-Year (2023-2033 Fiscal Years) Capital Improvement Plan (CIP) Budget and making certain designations and fund balance adjustments, approving annual contracts for services in a total amount of $4,932,662.

2. Approving the FY 2023-24 Hercules Public Financing Authority Budget Plan Consisting of Debt Service in the amount of $2,025,414.

3. Establishing the Appropriations Limit for the FY 2023-24 in accordance with Proposition 111 and Article XIII B.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

The Finance Commission reviewed the proposed Ten-Year (FY 2023-2033) CIP and FY 2023-24 Annual Budget at their regular meeting on March 15, 2023, and special meeting on April 19, 2023, and expressed full support of the budget.

BACKGROUND:

The City Council held a series of budget workshops to discuss and review the proposed Ten-Year (FY 2023-2033) Capital Improvement Plan (CIP) and FY 2023-24 Annual Budget at their regular meeting on March 28 and April 25, respectively. The first public hearing of the entire recommended annual budget was conducted on May 23, 2023, and the public hearing is continued tonight for adoption.
22-565
35 DISCUSSION:

The proposed FY 2023-24 Budget including the City Manager’s Budget Message is available on-line on the City’s website (www.ci.hercules.ca.us) and through the following link: https://www.ci.hercules.ca.us/government/finance/budgets The budget proposal incorporates a Cost-of-living adjustments (COLA) increase in labor costs of 4.5% and a one-time retention bonus of 3%, and an overall increase of 3%, an increase to account for inflation and a few other adjustments to address gaps in organizational efficiency and effectiveness. The chart below describes the notable changes, along with the economic impact associated with each adjustment.

Also, the Council approved, at the first public hearing, the appropriation of $2.5 million of set-aside money received from the State Budget allocation for local assistance to partially pay down the CalHFA loans and authorize staff to re-negotiate with CalHFA to repay the remaining balance over time.

Following the closing of the public hearing this evening, the City Council is requested to consider approval of the budget recommended by the City Manager. The Budget Resolution sets forth designations necessary to ensure they are appropriately shown in the annual audit. Finally, the resolution approving the Budget also approves several annual contracts for services for which funding is included in the Budget.

General
Fund
Other
Funds
Total
Ongoing costs:

Senior Planner 188,000 188,000
Standby and Call back pay 1,700 74,300 76,000
Maintenance Supervisor (36,000) 36,000 -
Contract CIP Engineer 250,000 250,000
Animal Control Services 27,000 27,000
Recreation Specialist 5,750 5,750
Overall Operating Cost 165,000 165,000
Cellebrite 9,000 9,000
Tri-City Consortium 40,000 40,000
Special Event 50,000 50,000
General Liability & Worker's Compensation Insurance 200,000 200,000 Total, Ongoing costs 650,450 1,010,750 360,300
One-Time Costs:

Media Services 24,000 24,000
Regional Government Services (RGS) 65,000 65,000
Grant Writing Services 50,000 50,000
Business Attraction Grant 100,000 100,000
Eat Local Program 50,000 50,000
Total, One-time costs 289,000 289,000 -
Budget Impact
36 The contracts being approved are set forth in the following table:

The revenue estimates and expenditure appropriations in the budget are for all City funds and include operations, capital and internal transfers for all programs and support functions of the City. Fund summaries and financial schedules showing two prior years actual results, FY 2022-23 projections, and FY 2023-24 proposed budget are presented for each City budgetary unit in the budget document.

In addition to the proposed budget, the following related items are presented for Council approval:

Hercules Public Financing Authority (PFA) Budget
The Hercules Public Financing Authority (PFA) budget plan for FY 2023-24 consists of debt service in the amount of $2,025,414. The PFA Debt Service Funds include the following:
 2020 Public Financing Authority (PFA) Lease Revenue Refunding Bonds – This bond issue helped pay for the Hercules Community Library construction and is paid for solely out of the General Fund. Debt Service payment for FY 2023-24 is $564,937.
 2009 Public Financing Authority (PFA) Taxable Lease Revenue Bonds – BioRad/Venture – This bond was issued to pay for the Venture Building on Linus Pauling Drive and is fully paid for by lease revenue and a guaranteed investment contract (GIC). Debt Service payment for FY 2023-24 is $907,159.
 2021 Public Financing Authority (PFA) Wastewater Revenue Bonds – This bond issue was to finance improvements to the City’s wastewater system and is paid for solely out of the wastewater fund. Debt Service payment for FY 2023-24 is $553,318.

No. Vendor Name Service Description FY 23/24
1 AMS.Net Network Support & Maintenance $154,000
2 Superion, LLC (Central Square) Financial & Business Aplications Support & Maintenance & Training Subscription
106,500
3 M-Group Associate Planner 116,000
4 Pacific Site Maintenance Landscaping 620,177
5 Andre, Mechanical Service Lift Station Maintenance /Electrical Trouble Shooting
62,000
6 Kleen Tech Janitorial (Citywide) 150,504
7 Clean Streets Street sweeping 77,001
8 Contra Costa County Animal Control 237,689
9 H&R Plumbing Storm Drain & Sewer Cleaning 150,000
10 Hercules Tree Tree Work 100,000
11 City of Pinole Sewer Plant Engineering Services 3,158,791 TOTAL: $4,932,662
37 Successor Agency to the former Hercules Redevelopment Agency The Successor Agency depends on the receipt of property tax increment revenue to pay obligations of the former Hercules Redevelopment Agency. To receive the tax increment, the Successor Agency submits a Recognized Obligation Payment Schedule (ROPS) annually to an Oversight Board and the State Department of Finance. After approval by the Oversight Board, tax increment funds are distributed to the Successor Agency by the Contra Costa Auditor Controller’s Office. The use of tax increment is restricted, and the Successor Agency does not receive excess tax increment. Excess tax increment after payment of debt and administrative costs are distributed to other taxing entities such as the City of Hercules, Cities within Contra Costa County, the State of California (for schools), and special districts.

Successor Agency revenue is expected to be sufficient for all debt service obligations for bonds in FY 2023-24. The total FY 2023-24 Successor Agency budget of bond debt service payments is about $3.6 million. As property values increase and more tax increment becomes available, there is sufficient funding for administration, developer obligations and pass-through payments approved by the State Department of Finance.

Appropriation (GANN) Limit
The California Constitution limits growth in local government spending and establishes a maximum limit for expenditures from general taxes. The law, commonly known as the Gann Limit, requires that the limit is recalculated and approved annually by the City Council at the beginning of each fiscal year. The Gann Limit is indexed to specified growth factors approved by the Legislature and applied to revenue appropriations. The annual Appropriation (GANN) Limit establishes the maximum amount that can be appropriated to the General Fund.

Article XIII B of the California Constitution was approved by California voters in 1979 and has been amended several times since its adoption. Article XIII B creates a restriction on the amount of revenue that can be appropriated in any fiscal year.

Article XIII B requires all local government entities to establish an annual appropriation limit. The appropriation subject to limitation is to be based on the 1978- 79 appropriation adjusted for changes in cost of living and population.

California Government Code Section 7910 requires each local government to establish its appropriation limit by resolution. Adoption of the attached resolution will approve the FY 2023-24 annual Appropriations Limit. For FY 2023-24, the Appropriations Limit has been determined to be $536,017,008.

FISCAL IMPACT OF RECOMMENDATION:

The proposed FY 2023-24 Citywide Budget appropriates expenditures of $37 million, of which General Fund is $18 million, Special Revenue, Capital Projects and Debt Service funds are $9 million, Sewer Enterprise Fund is $7 million, and Internal Service Funds is $3 million. There are sufficient revenues and accumulated fund balance to fund these appropriations.
38 The City’s General Fund is projected to end the year with an available fund balance of $692K, and $4.5 million in operating reserve, which is equivalent to 25% of the General Fund budget.

ATTACHMENTS:

1. Annual Budget Resolution

2. PFA Resolution

3. GANN Resolution

4. FY 2023-24 Annual Budget
39 RESOLUTION NO. 23-_______

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING THE FISCAL YEAR 2023-24 CITY OF HERCULES BUDGET PLAN WHICH INCLUDES THE FIRST YEAR (2023-24 FISCAL YEAR) OF THE TEN-YEAR (2023-33 FISCAL

YEARS) CAPITAL IMPROVEMENT BUDGET AND MAKING CERTAIN
DESIGNATIONS, CONFIRMING THE CITY MANAGER’S CONTRACT AUTHORITY,

AND APPROVING ANNUAL CONTRACTS FOR SERVICES IN THE TOTAL AMOUNT OF $4,932,662.

WHEREAS, the City of Hercules (City) has prepared and adopted annually the operating and capital budgets of the various funds of the City with the intent of providing a policy program for City services and a financial system to carry out the planned program of services; and WHEREAS, the City Manager has prepared and is submitting an operating and capital budget for FY 2023-24; and
WHEREAS, the City Manager and Finance Director have reviewed the proposed budget with the City Council and Finance Commission; and
WHEREAS, those reviews included consideration of the capital projects listed to be funded by the various City funds, and the presentation of individual operating budgets in those funds; and WHEREAS, the operating and capital budget program reflects cost containment efforts in all departments and funds; and
WHEREAS, the budget, as presented, does not include provisions for any additional State or Federal takeaways or legislation that might adversely affect the proposed budget; and WHEREAS, all grants received shall be appropriated and spent according to grant guidelines; and
WHEREAS, it will be necessary to carry over certain encumbrances and committed expenditures from FY 2022-23 to FY 2023-24; and
WHEREAS, the City Council has reviewed the proposed budget for FY 2023-24 at Public Hearings on May 23, 2023, and June 13, 2023 held for the purpose of reviewing and discussing FY 2023-24 operating and capital budgets and providing the opportunity for public input and discussions.
40 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hercules as follows:

1. The City Council hereby approves the FY 2023-24 operating and capital budgets for all City funds as detailed in attachments hereto.

2. The City Council hereby adopts the FY 2023-24 Annual Budget.

3. The City Council hereby approves the ten-year FY 2023-24 through FY 2032-33 Capital Improvement Budget in concept, recognizing that all listed projects may not currently be fully funded, but that staff will pursue any and every funding opportunity that is available to accomplish the desired capital program.

4. The City Council hereby authorizes the use of Available Fund Balances in those funds where projected expenditures are greater than projected revenues, and that the Treasurer and/or the Finance Director be authorized to make loans during the fiscal year from one fund or entity to another fund or entity as deemed necessary and as appropriate.

5. The City Council hereby authorizes the Treasurer and/or Finance Director and/or his/her designee to carry over from FY 2022-23 to FY 2023-24 any encumbered amounts and associated appropriations, or any other amounts for items that are deemed necessary to the continuity of providing service to the community or are necessary for the initiation and completion of planned projects, programs, or services.

6. The City Council authorizes the City Manager and the Finance Director and/or their designees to approve and make payment for goods and services received by the City in accordance with the City’s approved budgets, programs, and policies.

7. The City Council authorizes the City Manager and his/her designee to expend budgeted City funds as set forth below without further City Council authorization, such as the purchasing process for Council’s award of bid or award of services contract:

CONTRACT TYPE LIMIT
General Contracts $50,000
Public Works Construction Contracts $100,000
Fully Reimbursed General Contracts $100,000
Except as provided above, all City expenditures shall require City Council authorization.

8. The City Council authorizes the City Manager and his/her designee, without further City Council approval, to expend up to $50,000 per expenditure, subject to an aggregate limit of $50,000, for non-budgeted emergency expenses during any fiscal year.

However, the City Manager must report any action taken under this paragraph of this Resolution back to the City Council.
41 9. The City Council authorizes the City Manager and his/her designee, the foregoing notwithstanding and without further City Council approval, to: (1) pay all amounts allowed under contracts approved by the City Council regardless of the amount of any such payment(s) (in the case of the City, any project contracts approved and authorizing the City Manager authority to administer the entire contract, any principal and interest payments on debt issues, and any pass-through collected for other agencies), (2) make any transfer of funds, or transfer of bond proceeds for capital projects in other funds, as identified in the City budget, (3) authorize change orders for any contract approved by the City Council in an aggregate amount not to exceed $50,000 or 10% of the contract price, whichever is less, and (4) enter into and bind the City to contracts that are budgeted as set forth in Section 7 above.

10. The City Council hereby makes or confirms the following General Fund reserves or designations:

11. The City Council hereby approves and authorizes the City Manager to execute the following annual contracts:

City Council Designations FY 23-24
Economic Uncertainty (25% target) $4,516,295
Capital Projects 3,788,932
Earthquake Insurance Deductible 500,000
PEG Fees 207,000
Reusable Bags (remaining) 13,930
Total, Designations $9,026,157
No. Vendor Name Service Description FY 23/24
1 AMS.Net Network Support & Maintenance $154,000
2 Superion, LLC (Central Square) Financial & Business Aplications Support & Maintenance & Training Subscription
106,500
3 M-Group Associate Planner 116,000
4 Pacific Site Maintenance Landscaping 620,177
5 Andre, Mechanical Service Lift Station Maintenance /Electrical Trouble Shooting
62,000
6 Kleen Tech Janitorial (Citywide) 150,504
7 Clean Streets Street sweeping 77,001
8 Contra Costa County Animal Control 237,689
9 H&R Plumbing Storm Drain & Sewer Cleaning 150,000
10 Hercules Tree Tree Work 100,000
11 City of Pinole Sewer Plant Engineering Services 3,158,791 TOTAL: $4,932,662
42 The foregoing Resolution was duly and regularly adopted at the City Council meeting of the City of Hercules held on the 13th of June 2023, by the following vote of the Council:

AYES:

NOES:

ABSENT:
____________________________
Alexander Walker-Griffin, Mayor
ATTEST:
___________________________________
Eibleis Melendez, City Clerk
43 PFA RESOLUTION NO. 23-____

RESOLUTION OF THE PUBLIC FINANCE AUTHORITY APPROVING THE FISCAL YEAR 2023-24 HERCULES PUBLIC FINANCING AUTHORITY BUDGET PLAN CONSISTING OF DEBT SERVICE IN THE AMOUNT OF $2,025,414.

WHEREAS, the Hercules Public Financing Authority (PFA) has prepared and adopted annually the operating budgets of the various funds of the Authority with the intent of providing a policy program for Authority services and a financial system to carry out the planned program of services; and
WHEREAS, the Executive Director has prepared and is submitting an operating and transfers budget for FY 2023-24; and
WHEREAS, the total proposed debt service and net transfer budgeted expenditures in the FY 2023-24 are $2,025,414 for all departments and funds and are offset by corresponding revenues and/or transfers-in from all sources in FY 2023-24 for all departments and funds with any individual fund differences (where expenditures exceed revenues) being made up from its own Fund Balances or temporary loans from other funds; and
WHEREAS, it will be necessary to carry over certain encumbrances and committed expenditures from FY 2022-23 to FY 2023-24; and
WHEREAS, the Authority held a Joint Public Hearing on June 13, 2023, for the purpose of reviewing and discussing the FY 2023-24 fiscal year operating and transfers budget and providing the opportunity for public input and discussion.

NOW, THEREFORE, BE IT RESOLVED, by the Authority Commission of the Hercules Public Financing Authority as follows:

1. The Authority hereby approves the FY 2023-24 operating and transfers budgets for all Authority funds as detailed in attachments hereto.

2. The Authority approves that funding be, and they are hereby, appropriated for operations in the amount $2,025,414 for FY 2023-24 for all funds and departments of the Authority in the manner and for the purposes set forth in the FY 2023-24 budget document.

3. The Authority authorizes the use of Available Fund Balances in those funds where projected expenditures are greater than projected revenues, and that the Treasurer or the Finance Director be authorized to make loans during the fiscal year from one fund or entity to another fund or entity as deemed necessary and as appropriate.

4. The Authority authorizes the Treasurer or the Finance Director to carry over from FY 2022-23 to FY 2023-24 any encumbered amounts and associated appropriations, or any other amounts for items that are deemed necessary to the continuity of providing 44 service to the community or are necessary for the initiation and completion of planned projects, programs, or services.

5. The Authority authorizes the Executive Director, the Treasurer, the Finance Director and their designees to approve and make payment for goods and services received by the Authority in accordance with the Authority’s approved budgets, programs and policies.

6. The Authority authorizes the Executive Director and his/her designee, the foregoing notwithstanding and without further Authority Commission approval, to (1) pay all amounts allowed under contracts approved by the Authority Commission regardless of the amount of any such payment(s) (in the case of the PFA, any principal and interest payments on debt issues) and (2) make any transfer of funds, or transfer of bond proceeds for capital projects and debt service in other funds, identified in the Authority budget.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the Public Financing Authority of the City of Hercules held on the 13th of June 2023, by the following vote of the Commission:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________
Alexander Walker-Griffin, Board Chair
ATTEST:
________________________________
Eibleis Melendez, Secretary
45 RESOLUTION NO. 23-____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES
ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE 2023-24 FISCAL YEAR IN ACCORDANCE WITH PROPOSITION 111 AND ARTICLE XIII B.

WHEREAS, Article XIII B of the State Statute (Government Code Section 7910) requires the City of Hercules to establish each year an appropriations limit for the following fiscal year; and
WHEREAS, the determination of the appropriations limit is considered to be a legislative act and should be adopted at a regularly scheduled Council Meeting; and WHEREAS, effective in the 1990-1991 fiscal year, Proposition 111 amended Article XIII B to allow a selection of annual adjustment growth factors (personal income, commercial/industrial assessed value, and population) which must also be adopted at a regularly scheduled Council Meeting; and
WHEREAS, the annual appropriations limitation has been computed by the Finance Director based on methodology in accordance with provisions of Government Code Sections 7900-7910 and Proposition 111 amendments, as indicated in Attachment A.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hercules as follows:

1. The City Council hereby establishes the appropriations limit for the City of Hercules for FY 2023-24 at $536,017,008 using the City of Hercules Population Change and Per Capital Cost of Living Change.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 13th day of June 2023, by the following vote of the Council:

AYES:

NOES:

ABSENT:
____________________________
Alexander Walker-Griffin, Mayor
ATTEST:
________________________________
Eibleis Melendez, City Clerk
46 Attachment 3.A
City of Hercules
Appropriations Limit Calculation
I. Calculation of Appropriations Limit:

Fiscal Year 2022-23 Appropriations Limit $506,343,344
Adjustment Factors
a. Per Capita Cost of Living Change 1.0444
b. Population Change (Change in City population) 1.0136 Change Factor (a. x b.) 1.0586
Fiscal Year 2023-24 Appropriations Limit $536,017,008
II. Calculation of appropriations subject to the Appropriations Limit:

Fiscal Year 2023-24 Budgeted General Fund Revenue $18,431,887 Less: Non-proceeds of taxes (3,754,579)
Total FY 2023-24 appropriations subject to the Appropriations Limit: $14,677,308 Percent (%) of Appropriations Limit 3%
Source: State Department of Finance
Fiscal Year 2023-24
47 ANNUAL
BUDGET

CITY OF HERCULES, CALIFORNIA
2023-2024

FISCAL YEAR
48 TABLE OF CONTENTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET BUDGET 2019-21 About Hercules.....................................................................................1 Letter from the City Manager...........................................................3 Budget Awards...................................................................................11 Budget at a Glance............................................................................12 Budget Process..................................................................................16 Statement of Financial Principles and Policies..........................22 Local City Budget and Demographic Comparison...................25 Organizational Chart........................................................................26 Citywide Budget
Authorized Full-Time Positions................................................27 Labor Allocation...........................................................................29 All Fund Summary........................................................................31 Citywide Expenditures/Transfers Out.....................................33 Citywide Revenues/Transfers In...............................................34 Summary of Transfers.................................................................35 Department Summaries
City Council....................................................................................37 City Manager.................................................................................40 Administrative Services..........................................................42 City Clerk.........................................................................................46 City Attorney..................................................................................48 Finance............................................................................................51 Police...............................................................................................54 Community Development..........................................................57 Public Works..................................................................................60 Parks & Recreation.......................................................................63 Non-Departmental.......................................................................66 Fund Summaries
Fund Description..........................................................................67 General Fund.............................................................................70 Special Revenue Funds...........................................................83 Sewer Enterprise Funds.......................................................111 Internal Service Funds..........................................................114 Debt Service Funds...............................................................120 Capital Project Funds...........................................................134 Agency Funds.........................................................................172 Private Purpose Trust Fund................................................176 Glossary of Budget Terms........................................................178 Resolutions..................................................................................182

49 5 Miles
Hercules
Napa
San Francisco Oakland
Richmond
Vallejo
Martinez 4
80 80
San
Pablo
Bay
Welcome: The City of Hercules
Annual Budget FY 2023-2024
About Hercules: Established as
a dynamite factory in the 1800s
and incorporated in 1900, the
City of Hercules is located on the
northeastern shore of San Pablo
Bay, conveniently located along the
I-80 corridor and within minutes of
both San Francisco and Napa. The
over 25,000 residents represent a
diverse mix of many ethnic groups.

Primarily a suburban, family-oriented
community, the City is transforming
into more than a suburban community
with a lively new waterfront, and a
new train and ferry terminal in the
works.

Hercules offers residents a range of
municipal services. The City provides
a full range of recreational programs
including youth/teen and adult
activities, and year-round child care.

ABOUT HERCULES CITY OF HERCULES FY 2023-24 ANNUAL BUDGET BUDGET 2019-21

HERCULES CITY COUNCIL
Mayor
Alexander Walker-Griffin
Vice Mayor
Dan Romero
Council Members
Dion Bailey
Chris Kelley
Tiffany Grimsley

EXECUTIVE

LEADERSHIP TEAM
City Manager
Dante Hall
City Attorney
Patrick Tang
Acting City Clerk
Eibleis Melendez
Finance Director
Edwin Gato
Public Works Director
Mike Roberts
Police Chief
Joseph Vasquez
Community Development
Director Tim Rood
Parks & Recreation Director
Christopher Roke
80 80
Refugio Valley Rd.

San Pablo A ve.

Syca more Ave. 4

HERCULES
The City of Hercules is a community of 26,091 residents located along the I-80 corridor and within minutes of both San Francisco and Napa. Hercules is in Contra Costa County in the San Francisco Bay Area. 50 ABOUT HERCULES CITY OF HERCULES FY 2023-24 ANNUAL BUDGET BUDGET 2019-21

HERCULES

AT WORK
FY 2020/2021
13,700
Total City Labor Force
3,229
Total Employed by
Top 10 Employers, 2020-21
The City’s Senior Center provides daily senior programs and activities and sponsors special community events and trips.

Hercules maintains an abundance of open space areas and trails throughout the community, providing the opportunity for spotting various types of wildlife and offering dazzling views of the bay. Hercules also has two community and five neighborhood parks. The City also has approximately 950 acres of open space areas and trails distributed throughout the community. Together the open space areas and city parks account for approximately 1/3 of
the total land area within the City.

Future plans include redeveloping
the historic Hercules Point as a
public waterfront park.

Hercules is served by two public
school districts: John Swett Unified
School District and West Contra Costa Unified School District. Private elementary and secondary schools are also available in adjacent communities. At the post-secondary level, both public schools and private schools in the East Bay provide a variety of high-quality educational opportunities. The City Child Care Program provides beforeand-after school day care and pre-school programs.

FINANCE
COMMISSIONERS:

Chair
Ed Ulle
Vice Chair
Dennis Esselsagoe
Commissioners
Orit Samson
Terrell Kingwood
Barinder Dhillon-Flanagan
51 The City Manager’s message outlines the
main points regarding the budget. We have
listed some highlights at the beginning of the
memo, and then you will find all significant
highlights by the fund. The City Council
members will receive full budget workbooks,
and the entire city budget will be available on
the City’s website.

The City operates under a fiscal operating
budget. The Annual Budget presented in
this report balances one-time and ongoing
investments and long-term financial stability
strategies. It is designated to meet the
community’s needs within the City’s current
and projected financial resources. The
proposed budget reflects the community’s
long-term vision, strategic plans, and
priorities.

In April 2022, the City Council held a public
strategic planning meeting workshop where
they established the Hercules Strategic
Plan. During the workshop, the Council
set priorities and multi-year goals, as listed
below:
•Multimodal station (RITC – Renamed the
Hercules Hub);
•Grow retail and commercial development to
serve the community; and
•Long-term financial plan
Key Milestones
The City has made significant progress
on each of the adopted strategic priorities.

The City has adopted a balanced budget,
successfully implemented business assistance
programs, and made strides to further the
vision of the Hercules Hub. Furthermore,
Hercules has made significant strides in
restoring the Parks & Recreation programs
that were closed due to the mandatory closure
in 2020, addressing both immediate needs
and medium to long term fiscal sustainability
through community engagement and voter
approval of Measure N, which removed the
sunset provision that would have caused the
expiration of the Utility User’s Tax (UUT) in
January 2025.

Setting the path forward
To align Council’s priorities, ongoing
programs, projects, and activities with
the budget, and staff resources, we have
developed a workplan of activities that
work together to accomplish Council goals.

The workplan consists of five categories,
Prudent Financial Management, Traffic,
Transportation & Infrastructure, Public
Safety, Quality of Life, and Future Planning
& Policy Initiatives. The following section
provides a high-level description of each
category and related programs, initiatives,
and activities.

Prudent Financial Management
•Develop a Structurally Balanced and
Sustainable Operating Budget and Forecast
– This element includes adopting a balanced
budget that supports financial sustainability
for multiple years into the future. This
is accomplished by carefully managing
recurring and non-recurring revenues,
recurring and non-recurring expenditures,
and reserves.
•Develop a Robust Capital Improvement Plan
(CIP) – This element seeks to improve the
capital financial planning tool for short- and
long-range funding for the maintenance,
improvement and building of new
infrastructure assets to benefit our residents,
businesses, property owners, and visitors.

The CIP links the General Plan, various
master planning documents, and available
resources to provide a means for planning,
scheduling, and implementing capital projects
over the next ten years. The CIP offers
a long-term approach to prioritizing and
selecting new projects in the City.
•Economic Development – Continue
business attraction/business retention
activities that increase support for our local
economy. These activities include continued
business assistance programs and the Yiftee
Community Digital Gift Card program.
•Explore New Revenue Opportunities – This
element includes the potential development of
a new hotel, an evaluation of infrastructure
and development-related fees, and other
opportunities as directed by the City Council.

LETTER FROM THE CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET BUDGET 2019-21

LETTER FROM THE CITY MANAGER
Honorable Mayor and Members of the City Council:

We thank the City Council and the City staff for your dedicated work on the FY2023-2024 annual budget. The annual budget is the most challenging yet vital task we complete each year, and as our budget grows and we continue to complete capital projects, it becomes more complicated. Without all of you and your commitment, compiling this upcoming fiscal year’s budget would not be possible.

We thank each of you for your time with the budget process and valuable input.

We are proud to present the proposed FY 2023-2024 annual budget to the City Council for the fiscal year beginning July 1, 2023, and ending June 30, 2024. The City typically begins its budget planning process in January. 52 LETTER FROM THE CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Traffic, Transportation &
Infrastructure
• Hercules Hub – As one of the City’s top
priorities, the Hercules Hub will achieve the
vision of the Hercules Bayfront as a model
transit-oriented community for the Bay Area
and beyond. The Hub will connect thousands
of homes with a new train stop along the
Capitol Corridor, bicycle and pedestrian
pathways, bus routes, carpool options, and
a future ferry service. The Project would
relieve congestion on I-80 and reduce vehicle
miles traveled (VMT) and greenhouse
gas emissions. As reported at the January
24, 2023, City Council meeting, the City
submitted a joint TIRCP grant application
with CCJPA and a grant application for the
Federal-State Partnership for Intercity Rail
for design phase funding. We are currently
awaiting word on awards from these grant
applications.
• Major Sewer system Improvements – This
element includes continuing to make progress
on the City’s adopted Sewer Master Plan. The
activities include improvements to Sycamore
Ave. Lower Trunk Main and Upper Trunk
Main, among others.
• Pavement and Road System Improvements
- This element includes the Pedestrian
Sidewalk Improvement Willow and Palm,
an annual street repair project, an annual
sidewalk repair program, and an annual
restriping project.
• Deferred Maintenance of City Facilities –
This element includes assessing the condition
of all city-owned facilities and developing
a prioritized schedule of maintenance and
repairs over the next several years.

Public Safety
• Community Policing – This element
includes strategies to build better
relationships between the Police Department
and residents and employing strategies to
decrease high levels of calls for service.
• Code Enforcement – Continue to work
with owners, and property managers to
enforce established City codes. The desired
outcome is fewer visible hazards, fewer code
complaints, and improvement in conditions
in most severe cases (e.g. cluttering, illegal
habitation).
•Urban Forest Management – This element
includes developing a strategy to manage
trees in City’s open space and arterials along
the wildland/urban interface to prevent
damage to adjacent public and private
properties. The strategy will monitor and
mitigate hazardous trees along Refugio
Valley Park between Sycamore Avenue
and Patridge Drive, San Pablo Avenue
between Tsushima and Hercules Avenue,
and throughout various City Parks, and other
areas in the City.
• Emergency Preparedness – This element
focuses on the City’s Emergency Operation
Plan in order to provide the community with
effective preparation should an emergency
occur. The City coordinates City facilities,
assigning specific tasks to personnel,
while specifying the policies and general
procedures that are relative to emergency
preparedness. While we all realize it is
virtually impossible to prevent disasters, a
plan engineered by knowledgeable and welltrained personnel can help ensure that any losses in an emergency will be at their most
minimal.

Quality Of Life
• Community Engagement – This element
includes continuing to implement effective
strategies, plans, and tactics to better engage
and communicate with our community,
including town hall meetings, newsletters,
social media, and other methods.
• Diversity, Equity & Inclusion – This
element intends to renew the City’s focus
on diversity, equity, and inclusion. The
activities include the continuation of a
community Cultural Festival and community
conversations about diversity.
• Environmental Sustainability – This
element includes continuing to explore and
implement policies and projects that reduce
harmful greenhouse gasses and comply with
state environmental mandates. The activities
include installing electric vehicle charging
stations on City property, increased purchase
and use of clean energy, consideration of a
Climate Action plan, and others.

Future Planning & Policy Initiatives
• Land Use Planning – This element includes
reviewing and amending City General Plan
Elements, zoning codes, and policies as
needed, including the adoption of the new
Housing Element.
• Parks Systems Master Plan - The Parks
Master Plan will provide the information for
the City that is needed to take a proactive
approach over the next decade in addressing
aging park facilities, responding to the need
for inclusive parks, and anticipating the
future recreation needs of the community. It
will capture the infrastructure and facility
needs as well as community priorities for
the future. This information will support
informed discussion and decision-making
related to park needs and opportunities. This
will allow the City to strategically allocate
resources and leverage grant opportunities to
ensure the needs of the community are met in
the future.

Annual Budget Summary
The City provides various services to the
Hercules community and thus has a complex
budget with multiple funding sources. These
funds include the General Fund, Special
Revenue Funds, Capital Funds, Debt Service,
Sewer Enterprise Fund, and Internal Service
Funds. Most of these funds, other than
the General Fund, are restricted. All these
funds combined are considered the citywide
budget. The FY 2023-2024 All Funds Annual
Budget totals $35.7 million in revenue and
$36.8 million in operating and capital budget
expenditures. In both fiscal years, prior years’
savings (accumulated fund balance), bond
proceeds collected in previous fiscal years,
and anticipated grant funding offset the net
increase in expenditures among the different
funds to balance the budget. A detailed
breakdown of the All-Funds Revenue and
Expenditure by the fund is included in the
Financial Summary section of the budget
book.

The City Manager’s proposed annual budget
remains consistent with the Council’s
commitment to long-term solvency.

The revenue estimates and expenditure
appropriation in the budget are for the
General Fund, other restricted funds, sewer,
debt service and internal service funds. They
include general operations, debt, capital
and internal transfers (for all programs
and support functions of the City), fund
summaries and financial schedules (showing
prior year actual results), and the FY 23-24
proposed budget compared to last year’s
budget. The following categories explain the
53 overall assumption used as a baseline:
• Salaries and Benefits
The most significant cost is driven by its
labor. Labor accounts for almost 60% of
total expenditures. Below are significant
assumptions used to estimate the cost of
salaries and benefits:
• Regular Salaries – Personnel services costs
included a 4.5% wage increase and a 3% onetime retention bonus based on the two-year labor agreements with the employee groups.
• PERS Miscellaneous and Public Safety
Normal Cost and Unfunded Actuarial
Liability (UAL) rates are projected as follows
based on CalPERS actuarial assumptions:
• Health care costs, including medical, dental
and vision, are projected to increase by 3%
from the FY 22-23 Kaiser rate.
• 1% of employee salaries will be contributed
towards IRS Section 115 Pension Trust per
policy direction established by the City
Council.
• All other expenditures are estimated to
increase by 3%.

As part of the budget process, City
departments requested additional requests
over their baseline budgets to enhance
service delivery, to respond to legislative
mandates, and to implement special and
capital projects. These various funding
requests were presented to the Council as
part of the FY 2023-2024 Proposed Budget
and summarized as follows:

The City’s annual budget is a planning
tool that matches the services desired by
the community to the estimated resources
available to provide those services,
such as police, parks and recreation,
community development, public works
and administration. The budget provides a
detailed plan for the next fiscal year and fiveyear forecast to anticipate future needs and opportunities.

General Fund Budget
A portion of the All-Funds budget includes
the General Fund. The General Fund
comprises general-purpose revenues, such
as taxes, fines and fees, interest, and other
income that may be used to support general
governmental operations. The FY 2023-
2024 Annual General Fund Budget totals
$18.4 million in revenue and $18 million in
operating expenditures.

The General Fund’s primary revenue sources
are Sales Tax, Utility Users Tax (UUT),
Property Tax (including Motor Vehicle
License Fee in-lieu), Franchise Fees, and
Business License. Together they comprise
83% of total revenues. Overall, General
Fund revenues in FY 23-24 are projected
to increase by approximately 7% compared
to what was projected in FY 22-23. The
revenue increase is substantially driven by
proceeds from sales tax and the program
fees from re-opening the Parks & Recreation
programs. The revenue projections are based
on the staff’s analysis of local conditions and
reflect the information received from several
sources, including the City’s UUT, Sales and
Property Tax consultant, and the County
Assessor’s office.
•Sales Tax is the largest revenue source
for the City’s General Fund is remitted
to the City from the State monthly. Sales
Tax revenues are projected to increase
significantly based on quarter three analysis
generated from the data from the Board of
Equalization (BOE). However, total sales
tax revenues are highly concentrated within
a few major operators and substantially
generated from business-to-business
sources. Its top three producers generate
over 50% of the City’s sales tax revenues.

When one or more of these key revenue
sources deviate from projections, funding
for future programs and services may be
affected. If one or more of these key revenue
sources were to cease local operations
within Hercules, the resulting drop in sales
tax revenue would likely have a significant
negative impact on the provision of programs
and services.

The City continues to benefit from the
ongoing implementation of the Wayfair court
decision that resulted in an increase in local
government’s share of online sales and the
more significant number of purchases made
online. These trends are part of the City’s
share of the County pool. The following
chart depicts the source of the City’s sales tax
revenues by industry group.
•Utility User’s Tax (UUT) are revenues
collected from the consumption of utility
services, including (but not limited to)
electric, gas, water, sewer, telephone
(including cell phone and long-distance),
sanitation, and cable television. The City
determines the tax rate and the use of its
revenues. UUT revenues are estimated at
$3.7 million for FY 23-24. Based on the trend
and its consumption rate, the City continues
to see erosion in Wireless Telecom’s UUT
revenues due to the update in allocations of
the bundled packages from the respective
providers. These updated allocations shifted
a more significant percentage toward data
that is not taxable. On November 8, 2022,
the Hercules voters approved Measure N,
which removed the sunset provision that
would have caused the expiration of the UUT
in January 2025. The City’s UUT revenue
is approximately 20% of the general fund
budget.

LETTER FROM THE CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET General
Fund
Other
Funds
Total
Ongoing costs:

Senior Planner 188,000 188,000
Standby and Call back pay 1,700 74,300 76,000
Maintenance Supervisor (36,000) 36,000 -
Contract CIP Engineer 250,000 250,000
Animal Control Services 27,000 27,000
Recreation Specialist 5,750 5,750
Overall Operating Cost 165,000 165,000
Cellebrite 9,000 9,000
Tri-City Consortium 40,000 40,000
General Liability & Worker's Compensation Insurance 200,000 200,000 Total, Ongoing costs 600,450 360,300 960,750
One-Time Costs:

Media Services 24,000 24,000
Regional Government Services (RGS) 65,000 65,000
Special Event 50,000 50,000
Grant Writing Services 50,000 50,000
Total, Ongoing costs 189,000 - 189,000
Budget Impact
54 •The City of Hercules has been classified as
a low-to-no property tax jurisdiction. The
City’s share of the base 1% property tax
rate is lower than most other jurisdictions at
just a little over 5% of Hercules’s total base
property taxes. This year the Assessor’s
office applied a CPI factor of 2% to non-Prop
8 parcels. It is estimated that the City share of
1% assessed property value tax is calculated
to be a little over $1.6 million for FY 23-24.
•Transient Occupancy Tax (TOT) -
Commonly referred to as a “hotel tax”, the
TOT is levied for the privilege of occupancy,
each transient is subject to 10% of the rent
charged by operator. The TOT is a general
tax which is deposited into the City’s General
Fund. TOT revenue is expected to increase
due to new developments including a hotel to
be built at the Sycamore Crossing location.

Additional TOT is generated by Airbnb
and other short term rental operations. Per
the Development Agreement with Hercules
Self-Storage Management LLC, the City is
entitled to 10% of the rental income in-lieu
of the TOT once a 90% rental threshold has
been reached.
•Parks & Recreation Program Revenues
During the COVID-19 pandemic and
mandatory closure, revenues from the Parks
& Recreation program were significantly
reduced due to the suspension of programs
and offerings and facility rentals. The
FY 23-24 revenue estimates reflect the
re-opening of suspended programs and
returning to normal operations.
•Fees for Service
The City charges fees to the community
based on the costs of services provided.

These fees are documented in the City’s
Master Fees & Charges Schedule. The
Master Fees & Charges schedule is approved
periodically by the City Council, and
individual fees may be amended from time to
time during a fiscal year. However, there must
be a nexus to the costs of providing those
services. The City is currently undertaking a
fee study to update the fees. Staff will return
to the Council with recommendations before
adopting the budget.
•Cell Tower Leases - The revenue collected
from the leases on cell towers is projected to
increase by 2%.

The General Fund’s ongoing expenditures
are projected to increase by 8% compared
to the prior fiscal year’s budget. The growth
in continued spending is due primarily to
contractual salary increases and a rise in
retirement and health insurance rates. Like
most Californian cities, a significant portion
of General Fund expenditures goes towards
Public Safety (40% Police), with the balance
allocated between Parks and Recreation,
Public Works, Community Development,
and administrative functions. While Public
Safety represents the lion’s share of General
Fund dollars, it should be noted that other
Departments, such as Parks and Recreation,
Public Works, and Community Development,
have other dedicated sources of funding in
addition to the General Fund.

The General Fund is projected to end the
fiscal year with approximately $700K of
fund balance, about $368K of one-time
expenditures, and $4.5 million in operating
reserve. The reserve balance is equivalent to
25% of the General Fund budget.

The accumulated fund balance is due
primarily to the increase in sales tax. The
following assumptions are considered in
forecasting sales tax revenues:
• Growth in Sales Tax Revenues due to
higher sales data from BOE.
• Continued modest growth in employment,
disposable income, G.D.P., Consumption of
taxable goods.
• The possibility of recession should not be
ignored but continued low unemployment
and tight labor markets indicate that a severe
downturn is becoming less likely.
• The baseline forecast assumes a very mild
recessionary estimate. Sales tax impacts, to
a certain extent, will be offset by lingering
higher than normal inflation.

A detailed breakdown of the General
Revenues and Expenditures is included in the
General Fund section of the budget book.

General Fund Five-Year Forecast
The Five-Year Forecast provides a current and
long-range financial assessment of revenues,
expenditures, fund balance, and operating
reserves. The primary objective is to provide
the City Council and the community with a
financial forecast and identify any significant
issues that may need to be addressed in the
annual budget development process.

This analysis is centered on the City’s
General Fund because it is the primary
operating budget for tax-supported municipal
services. Long-range financial forecasting
assists the City in making decisions that lead
to our ability to sustain the community’s
core services. It is best practice for the City
to update this plan annually. As shown in the
General Fund section of the budget book,
the General Fund can absorb the additional
ongoing costs requested in the budget.

The five-year forecast includes the following
assumptions, several of which are highly
important to maintaining City services:
• Annual growth in various revenue sources
is projected to be 0% to 3%, with an overall
average annual growth of 2%.
• Applied a Cost-of-Living (COLA) Increase
of 3% for salaries.
• PERS Miscellaneous and Public Safety
Normal Cost and Unfunded Actuarial
Liability (UAL) rates are projected as follows
based on CalPERS actuarial assumptions.
• Health care costs, including medical, dental
and vision, are projected to increase by 3%
from the FY 22-23 Kaiser rate.
• All other expenditures are estimated to
increase by 3%.

It is important to keep in mind that a forecast
is not a budget. Given certain assumptions,
the Five-Year Forecast is a vehicle that peers
into the future and makes projections about
what is likely to happen. If future deficits
are projected, then the forecast allows time
to take corrective action to ensure finances
remain stable.

Capital Improvement Projects (CIP)
The CIP outlines the vision for short- and
long-range project delivery and funding
for the maintenance, improvement, and
building of new and existing infrastructure
assets to benefit our residents, businesses,
property owners, and visitors. The CIP links
the General Plan, various master planning
documents, and available resources to
provide a means for planning, scheduling,
and implementing capital projects over
the next ten years. In prior years, the CIP
planning window was for five years, but
with the pending completion of the Parks
Master Plan and future Facility Master Plan,
the City will be able to plan an additional
five years, and so this CIP offers a longerterm approach to prioritizing and selecting new projects in the City. Although the plan
LETTER FROM THE CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 55 LETTER FROM THE CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET document is updated annually, it allows the
reader to review projects planned over the
ten-year timeframe and provides an overview
of works in progress.

The CIP is intended to incorporate the City’s
investments in infrastructure development
and maintenance (i.e., capital improvements)
with other significant capital expenditures
that add to or strategically invest in the
City’s inventory of assets. Studies and capital
expenditures of less than $25,000 are not
typically included in the CIP.

Typically, procedures for developing the
multi-year CIP consider the City Council
priorities, revenue forecasting, project
evaluation, and community engagement
processes. For the FY 2023-2024 fiscal year,
staff will be recommending a substantial
three-tiered solution to our decades-long
problem of funding larger infrastructure
projects in the future, while continuing to
provide our most valued services to the
community. The first two tiers include
“catching up” and “keeping up” on
infrastructure maintenance. The third tier
will allow the City to develop a financial plan
for larger projects that span multiple fiscal
years, like the Hercules Hub, improvements
to our sewer system, and major road repairs.

More specifically, this year’s ten-year CIP
focuses on continuing to reduce the backlog
of ongoing capital projects (catch up), assess
and address critical deferred maintenance
projects before they get worse (keep up), and
strategically invest in projects that meet the
City’s goals for the future (move ahead).

In the past, department heads would initiate
requests for new CIP projects or make
adjustments to existing projects. These
requests, along with supporting information,
would be prepared as part of the annual
budget process.

For the last few years, the City invested in
developing long-term infrastructure planning
efforts, including the Sewer Master Plan,
Parks and Recreation Master Plan, and
Facilities Maintenance Plan. These planning
efforts were crucial to lay the groundwork to
identify and prioritize critical infrastructure
needs in each topic area. Understanding our
near-term and long-term needs will allow
for a more strategic approach to identifying
capital resource needs while still allowing
the flexibility to respond to other projects or
issues as they arise.

Even with the master planning efforts,
projects must be further scoped and
prioritized annually according to available
funds and resources to successfully deliver
the projects. The evaluation criteria applied
to prioritize current projects include:
• Council priorities and community concerns,
• Public health and safety,
• Regulatory compliance,
• Preservation of city assets,
• Improved efficiencies,
• Grant funding timelines, and
• Staff capacity to deliver.

The proposed ten-year CIP includes 19
projects (4 for facility, 6 for Parks, 3 for
Sewer, 5 for Streets, the Hercules HUB), and
21 existing (or carryover) projects. The tenyear CIP coordinates physical improvements with financial planning, allowing maximum
benefits from available funding sources.

It relies on funding from various sources,
primarily retained in the capital and special
revenue funds, with uses usually restricted
to specific purposes. Funding sources are
each further described in the City’s adopted
budget. The City also adopted a policy to set
aside money for a capital reserve to utilize as
a funding source for capital needs.

Despite ongoing investment in public
infrastructure, the City still has a significant
amount of deferred maintenance and
unfunded capital projects. The City is
currently developing a priority plan,
including funding rate structure, the Parks
Master Plan, and Facilities Maintenance Plan
to begin addressing the deferred maintenance
costs.

Special Revenue funds
The Special Revenue Funds are driven by
grants or other specific funding sources
used for purposes, such as transportation,
building permit counter activity, other
restricted programs, etc. Such funding
sources are restricted, requiring revenues
and expenditures to be tracked differently
from the City’s primary operating fund, the
General Fund. There is sufficient funding
for the completion of current projects or
programs, but the addition of any new
programs or projects is dependent on the
availability of future funding sources.

The following are funds under the Special
Revenue category:
• Asset Seizure (Fund #101) – The City
maintains a forfeited assets fund to account
for monies received from Police confiscated
drug money and property. Funds are held
until the final court disposition is received.

The funds are restricted to police-related
activities only. FY 23-24 projected ending
available balance is $8,000.
• AB 3229 COPS Program (Fund #201)
– California State Legislature created the
Citizens Options for Public Safety (COPS)
program. The funds are restricted to
front-line law enforcement services. The
City receives approximately $150K a year
transferred to General Fund to offset police
services.
• Landscaping and Lighting Assessment
Districts (LLADs) – This Funding is
restricted to landscaping and lighting
maintenance and capital improvements
in City parks, major roads, and each of
the 5 LLADs. The 5 LLADs include
approximately 8,500 parcels. An annual
assessment must be submitted to the County
and placed on the county tax rolls every
year. An engineer’s report outlining the
budget and showing the amount of the
assessment must be prepared. Staff is in the
process of preparing the assessment and the
budget, which will be included in the budget
documents once completed.
• Stormwater (Fund #231) – This fund
accounts for the activities associated with the
acquisition, construction, maintenance, and
operation of stormwater facilities. FY 22-23
projected ending available balance is negative
$207,399. Staff will analyze the fiscal health
of the fund and recommend strategies to
address the deficit in the next fiscal year.
• Development Impact Fees (DIF) –
Under the California Mitigation Fee Act
(AB 1600) cities and counties have the
authority to implement DIFs. This allows
cities and counties to collect funds from
new development projects to cover public
infrastructure, facilities, improvements,
service, and community amenity costs related
to the new development’s proportionate
share of impact on those facilities. DIFs
are prohibited from funding operation and
maintenance and cannot be collected or used
56 LETTER FROM THE CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET to cover existing capital or infrastructure
deficiencies. The City DIF funds are
categorized as follows and their respective
available fund balance projected in FY 23-24:
• Public Facilities (Fund #241): $179,673
• Police Facilities (Fund #244): $105,948
• Fire Facilities (Fund #246): $0 (Revenues
remitted to the Fire District)
• Parks & Recreation (Fund #247): $136,536
• Public Benefit Fee (Fund #249): $975,835
• Transportation Facilities (Fund #261):
$141,988
• Sub-regional Transportation Mitigation
Program (STMP): $0 (Revenues collected are
remitted to West Contra Costa Transportation
Advisory Committee (WCCTAC) in
accordance with the Master Cooperative
Agreement)
• State Gas Tax (Fund #262) - The Gas Tax
is a special revenue fund used to account
for the revenue received from the State of
California derived from gasoline taxes.

These funds may only be used for street
purposes as specified in the State Streets and
Highways Code, so they have always been
an important revenue source for the City’s
Streets Capital Improvement Program. The
revenue estimate, including SB1 funds, for
FY 23-24 is $1.4 million and the proposed
budget is approximately $1.4 million. The
projected FY 23-24 ending available balance
is $192,863.
• Measure J Street Fund (Fund #263) – The
Measure J Fund is a special revenue fund
used to account for the revenue received from
the County’s ½ cent sales tax measure and
can only be used for street purposes per F.
above, similar to the Gas Tax. The revenue
estimate for FY 23-24 is $450K and the
estimated ending available balance at the end
of the fiscal year is $0.
•Solid Waste and Recycling (Fund #291) –
This special revenue fund is used to comply
with recycling and diversion programs
required by State legislation (AB 939).

Previously approved qualifying expenditures
include street repair to mitigate damage
from garbage trucks, street sweeping, trash
removal from the stormwater system, and
enforcing the plastic bag ban. FY 23-24
estimated ending available balance is
$716,427.
•Regional Water Quality (Fund #521) -
This fund accounts for the Regional Water
Quality. Created by the State Legislature
in 1967, the Board protects water quality
by setting statewide policy, coordinating,
and supporting the Regional Water Board
efforts, and reviewing petitions that contest
Regional Board actions. There are nine
regional water quality control boards that
exercise rulemaking and regulatory activities
by basins. FY 23-24 ending available balance
is $51,729.
•BART Park & Ride (Fund #266) – This fund
is to account for maintenance of the parkand-ride facility owned by BART. The cost to maintain the facility will be reimbursed by
BART through a revolving fund, so no outof-pocket expenditures occur. •General Plan Update Fee and Building
Training Fee (Fund #267) – This fund is
to account for the General Plan Update
Recovery Fee and Building Training Fee. The
projected ending available balance for FY
23-24 is $1.1 million.
•American Recovery Plan Act (ARPA) (Fund
#353) – This fund is to account for funding
received from ARPA. The final rule offers
a standard allowance for revenue loss of $10
million. Staff selected the standard allowance
as permissible under the revenue loss
category and elected to use the total amount
allocated of $6.2 million for government
services.
•Successor Housing - The City did not elect
to become the Housing Successor to the
Hercules Redevelopment Agency (“Housing
Successor”) to retain housing assets
and functions. The City and the County
declined the role of Housing Successor in
2012 because there was no funding for the
management or monitoring of housing assets
and functions. The Housing Authority’s
refusal of Housing Successor responsibilities
has left 108 loans with an outstanding
balance of $3.9 million and $4.9 million in
deposits from loan repayments in a state of
limbo since 2012. The City does not have
the legal authority to administer loans and
spend money generated by Former Agency
housing assets (“Housing Funds”) because
the Housing Funds are restricted as Housing
Successor assets under HSC 34176 and
34176.1.

City staff is currently in discussions with
the County Housing Authority to legally
transfer the role of Housing Successor,
including all housing assets and functions
of the Former Agency, from the Housing
Authority to the City. This will allow the
City to actively administer the $3.9 million
in outstanding loans and access the $4.9
million in Housing Funds to pay for Housing
Successor administrative costs and affordable
housing development. If the City becomes
Housing Successor, it will incur costs to
administer loans, prepare annual reports due
to the California Department of Housing
and Community Development (“HCD”),
and report on the Housing Fund in the City’s
audited financial statements.

Administrative costs are estimated to be
$200,000 to $225,000 in the first year
to set up the Housing Fund, catch up on
annual reports, and review outstanding loan
balances and payoff status. Ongoing annual
administrative costs are estimated to be
$100,000 to $150,000 based on a review of
other housing successors. State law permits
a maximum annual administrative allowance
of $200,000 per year adjusted for inflation.

Sewer Enterprise Fund
On January 23, 2001, the cities of Hercules
and Pinole entered into a joint letter
agreement for the operation and ownership
of the Pinole/Hercules Wastewater Treatment
Plant. The City has an undivided fifty percent
ownership interest in the Plant, and the City
of Pinole has the right and responsibility
to manage and operate the Plant. The City
retains responsibility for operating and
maintaining its wastewater collection system.

Also, the City of Pinole maintains the records
and accounts for all the wastewater treatment
plant transactions.

The City owns and operates the collection
system in Hercules, which includes over
60 miles of underground piping and five
lift stations. The effluent is treated at the
Hercules-Pinole Wastewater Treatment Plant
(WWTP), located, and operated by the City
of Pinole. Hercules owns half of the WWTP.

The City collects approximately $6 million
a year in services charges from over 8,400
connections charged through the County
tax roll. Developers also pay impact fees to
provide capacity for the wastewater their
project generates.

The Sewer Enterprise Fund pays for the
sewer system’s operations, maintenance, and
capital improvement and is restricted. The
57 revenues collected from sewer fees cannot
be used for non-sewer-related purposes. FY
23-24 proposed operating budget is estimated
to be $4.1 million; Capital improvements of
$785K, and debt obligation annual payment
of $2 million.

Internal Service Funds
The City utilizes five Internal Service Funds
(ISFs). Three of the funds manage the
capital replacement and asset management
of vehicles, facilities, and technology items.

The two ISF manages the City’s Information
System (IT) Operations and Facilities
Maintenance.
• Vehicle Replacement ISF
The City is in the process of developing
a replacement cycle plan. The model that
the City is developing will provide for the
replacement of vehicles on a schedule based
on age and mileage. There will typically
be some vehicles that need to be replaced
before the targeted age and mileage threshold
and others that can be extended beyond the
established schedule. All vehicles will be
evaluated using these criteria and assessing
the maintenance and gas consumption cost
to determine the appropriate replacement
time frame. Currently, the City replacement
is “pay-as-you-go” basis. For FY 23-24, the
budget provides for replacing the following:
• Replace the existing two patrol vehicles
that exceeded the dependable service life
of a Police patrol vehicle and two Police
administrative vehicles. (Estimated cost:
$220,000)
• Information Technology Operations and
Replacement ISF
The fund accounts for Information
Technology, which provides various
technology-related services for the city,
including networking and infrastructure
technology, including servers, switching,
security, cyber protection, internet
connectivity, service desk, disaster recovery,
and other data communication technologies.

FY 23-24 proposed IT operating Budget is
estimated to be $1.3 million. Resources are
from administrative charges to departments
based upon their proportional share of
program costs.
• Facilities Maintenance ISF
The fund accounts for Facility Maintenance
and provides and manages maintenance and
emergency structural repair services for
all City facilities. The source of revenue
is reimbursement from departments for
the cost of providing facility maintenance
services. This interservice fund pays for the
maintenance and repair of the City’s facilities
which include:
• City Hall (including the Police Department)
• Senior Center
• Library
• Lupin & Hanna Kids Center
• Teen Center
• Community Center
• Ohlone & Foxboro Community Center
Activities include contract janitorial, HVAC,
plumbing and other miscellaneous activities;
various repairs and improvements performed
by City staff, and utilities. FY 23-24
proposed Facilities Maintenance Budget is
estimated to be $995,631. Resources are from
charges to departments based upon their
proportional share of program costs using the
square footage of the building they occupied.
• Facility Replacement ISF
This fund will be used to cover the major
replacement of City buildings and facilities.

There is a significant backlog of large
maintenance projects at City Hall, the Police
Department, etc. For FY 23-24, the City will
be conducting a Citywide Facility study to
address some of these backlogs.
• IT Equipment Replacement ISF
This fund will be used to replace
infrastructure and equipment used to
support City technology needs (servers,
switches, data security, etc.). This model has
not yet been developed, and expenditures
are currently charged together with IT
Operations as “pay-as-you-go.”
The ISF receives money from the other
operating funds, like the General Fund,
Special Revenue funds, Sewer Enterprise
Fund, etc. These operating funds contribute
not only for the operations but also its future
capital replacements. The use of internal
service funds provides for a smoothing of
the costs over the asset’s useful life. This is
a better budgeting process because it does
not require large allocations in one year and
smaller allocations in other years. Instead,
the estimate for repairs or replacement is
calculated, and allocations are made from the
operating budget into internal service funds
so that resources are available when required.

Debt Service Funds
The Debt Service Fund is used to account
for the accumulation of financial resources
for the payment of principal, interest, and
related costs for general long-term debt
paid primarily from taxes levied by the
City. Debt is issued as needed to provide for
infrastructure improvements.
• CalHFA Loans
The City obtained the CalHFA loans under
the Residential Development Loan Program
(RDLP) and the Housing Enabled by Local
Partnerships (HELP) for the construction of
the Sycamore North project (the Aventine
development). Presumably, income from
leasing the residential units would have
been sufficient to repay the loans. However,
since the cost to complete the project
was significantly more than the City and
Redevelopment Agency had to pay for the
project’s construction, the project failed
and was marketed to obtain the highest and
best offer from a qualified and experienced
developer. Thus, the obligation to repay
the loans is now the City’s obligation.

Staff approached CalHFA in 2012 and,
after several meetings and counteroffers,
negotiated new loan terms that extended the
time for payment and lowered the interest
rate from 3% to 1.5%. Amendments to loan
agreement on CalHFA Loan No. HELP080604-03 and RDLP-060506-01 were made and entered into on April 11, 2005, and
February 15, 2007, and will expire on April
11, 2027, and August 15, 2026, respectively.

Payment of the remaining loan balance is due
in full no later than the expiration date of the
loan.

On January 10, 2023, Council meeting, the
Council approved in concept the option
for staff to make a partial payment of $2.5
million and attempt to renegotiate repayment
of the remaining balance based on an
extended payment plan. As of June 30, 2022,
the remaining balance was $5.2 million.

In the alternative, staff can also attempt
to renegotiate the entire loan amount with
CalHFA rather than make an initial partial
payment. The best option from the City’s
perspective will depend on the terms of
repayment negotiated with CalHFA. At this
juncture, it is unknown whether CalHFA
would agree to renegotiate the loan and what
the terms would be; staff will report back
to Council on this matter once CalHFA has
been engaged.

LETTER FROM THE CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 58 Future Developments
The City has a continued emphasis on
expanding its tax base and quality of life
through new development on key sites. The
following are upcoming developments:
• Skelly Residential: Approved 40-lot singlefamily subdivision on an approximately 7.44- acre site, the former McLeod Ranch property.
• Chelsea Wetlands: 12 acres of wetlands
proposed to be restored and preserved for
improved habitat and flood capacity.
• Franklin Canyon Area: Approximately
973-acre area containing 646 acres within
City limits and 327 acres outside City limits
subject to Measure M passed by voters
in 2004. The Area includes the Franklin
Canyon Golf Course, Muir Heritage Land
Trust open space/trail/grazing area and
additional private properties outside City
limits.
• Hilltown (a.k.a., Hill Crest): Approved
mixed-use residential development of up to
598 attached multi-family units and 4,200
square feet of neighborhood commercial uses
on a 44-acre former industrial site located on
San Pablo Ave near Victoria by the Bay.
• The Hercules Hub: Positioned to become
the first West Coast facility combining
three modes of transit (bus/rail/ferry) in one
facility.
• Sycamore Crossing: Owned by the Lewis
Group, this 12-acre mixed-use property
on the south side of Sycamore Avenue is
approved to be developed with retail, hotel,
and residential uses to complement and
expand on the Aventine and Bayside projects.
• Waterfront (aka Hercules Bayfront):

Construction underway forth 40-acre mixeduse development, one of the West Coast’s largest transit-oriented projects.

Looking Ahead
Our City continues to assess changing
circumstances and be prepared for their
effects on our ability to deliver services.

While much remains out of our control, we
have a firm grip on what we do control. This
puts the City in a position of strength that
allows us to weather storms and leverage
emerging opportunities. Sound, conservative
financial planning is at the core of our budget
development efforts.

While one of the constants in life is change,
we know that uncertainty is change’s close
companion. Our resiliency lies in our
preparation for uncertain times. Hercules will
effectively forge new paths to remain ready
to deal with whatever else may lie ahead.

The best path to ongoing fiscal sustainability
is to be strategic regarding spending and
ensuring that the City lives within its means.

Preserving reserves and other designations
like the Pension and OPEB Trusts will also
serve to sustain services and the ability to
weather downturns in future years. Without
mitigation, pension and OPEB payment
obligations risk “crowding out” the allocation
of General Tax dollars to current services and
programs.

This past year has been remarkable for our
employees and volunteers’ commitment and
dedication to the City and the community.

We couldn’t sustain services and the
community’s safety without their dedicated
service. I encourage the City Council and
community to appreciate these achievements
and look forward to more progress to
enhance the quality of life in Hercules and
sustain the City as an organization.

In Closing
While there is continued unknowns and
uncertainties ahead, the FY 2023-2024
Proposed Annual Budget offers the Council,
City Staff and the community a sense of
informed optimism as we bounce forward
into 2024. This budget addresses community
priorities and continues robust City services
that the community expects through balanced
conservative strategies. The proposed budget
makes solid progress towards addressing
Council priorities, setting the path ahead
supporting innovative services such as the
Hercules HUB, furthers infrastructure
priorities such as electric modernization, and
mitigates risk of future unplanned economic
shifts.

Despite various challenges, we are working
together effectively to ensure Hercules is
ready for the future by making strategic
fiscal decisions to adapt to our growing and
diversifying population. It is a responsible,
responsive, and balanced budget. We want to
thrive by design, and this budget advances
the city on that path. We are in many ways
so fortunate that we are emerging strong
from the pandemic, and this budget provides
essential benefits and opportunities that
extend throughout our community and look
toward a prosperous and equitable future.

Acknowledgements
Many challenges lie ahead, and because
of responsible past decision making and
an emphasis on setting the stage for fiscal
sustainability, we are positioned as well as we
can be as an organization and community to
weather the storm and its aftermath. We will
continue to move key revenue base expanding
development projects forward.

On behalf of all City employees, staff looks
forward to working with the City Council
and the community on the implementation
of this policy document, which honors our
commitment to maintaining the quality of
life for every resident. The result of the City’s
efforts will be a continuing commitment
to providing high quality services to
the Hercules community, maintaining
facilities and infrastructure, and proactively
responding to changing fiscal realities so
that we maintain local control over our own
financial health.

This budget addresses the City’s highest
priorities for service and capital needs for FY
2023-2024 and will allow us to achieve our
key goals. Preparation and adoption of the
budget is a team effort involving nearly every
employee in our organization and every City
Council member. Thank you to our staff
for their willingness to submit conservative
budget requests and to develop alternative
ways to meet Council priorities. Finally,
thank you City Council for your leadership
in moving ahead on numerous issues, and for
your adoption of additional financial policies
and prudent financial guidance that resulted
in the foundation for this proposed Budget.

LETTER FROM THE CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET – Dante Hall
City Manager
– Edwin Gato
Finance Director
59 PRESENTED TO
City of Hercules
California
For the Fiscal Year Beginning
July 01, 2022
Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
BUDGET AWARDS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

BUDGET AWARDS
The City of Hercules received the Government Finance Officers Association’s (GFOA) Distinguished Budget Award and the California Society of Municipal Finance Officer’s (CSMFO) Operating Budget Excellence Award for the FY2022-23 budget. These awards represent a significant achievement and reflect a commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In preparing the FY2022-23 budget, staff has once again followed the GFOA and CSMFO criteria as well as made enhancements.

This document will be submitted to the GFOA and CSMFO for consideration for the FY2023-24 budget awards.

California Society of Municipal
Finance Officers
Certificate of Award
Operating Budget Excellence Award
Fiscal Year 2022-2023
Presented to the
City of Hercules
For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting.

February 10, 2023
Scott Catlett James Russell-Field, Chair
2022 CSMFO President Recognition Committee
Dedicated Excellence in Municipal Financial Reporting
60 The Budget
is the City’s
Roadmap
The City of Hercules’
annual budget is one of
our most important policy
documents. The Budget at a
Glance is a simplified version
of the comprehensive
budget document that
includes highlights, and an
overview of major revenue
sources and expenditures.

40.2 Median age of residents
$45,744
Per Capita Personal
Income
32,143
Student Enrollment
(Reflects the total number
of students enrolled in
the West Contra Costa
School District)
13,700
Total City Labor Force
Top 10 Employers, 2020-21
Employer Number of Employees

1. Bio-Rad Laboratories Inc, 2,194

2. West Contra Costa Unified School
District, 238

3. Home Depot, 192

4. Safeway, 180

5. Contra Costa County Social
Services, 107

6. Pacific Bio Labs Inc, 93

7. Lucky Supermarkets, 90

8. City of Hercules, 68

9. Benda Tool & Model Works Inc., 44

10. Big Lots, 23

HERCULES

DATA DIGEST
FY 2022-2023 BUDGET

AT A GLANCE
FISCAL YEAR 2023-2024

CITY OF HERCULES, CALIFORNIA
Hercules Budget 101 – an animated overview of the budget process: https://youtu.be/so3ScXZDpWY May June
July
Aug.

Sept. Dec. Nov. Oct.

Jan.

Feb.

March
April

THE BUDGET

DEVELOPMENT

PROCESS
Intro, public hearings
& budget adoption
1 New fiscal
year & year
end review
2 Fiscal
year end
audit &
annual
report
prep
3 Finalize audit & annual
financial report
Publish annual report 4
& mid year review
5 Budget
planning
Packages
6 Mid year
review &
department
budget
preparation
7 Funding
allocation
reviews &
budget
preparation
8 How is the budget developed? The City Council adopts the budget in June of each year for the following fiscal year, which runs from July 1 to June 30. The budget development process is continuous and includes public communication throughout the year.

CITY OF HERCULES FY 2023-2024 BUDGET OVERVIEW
Citywide Revenue
$37 million
$18 million
General Fund Expense
$18 million
General Fund Revenue
$19 million
Other Funds
$19 million
Other Funds
Citywide Expenses
$37 million
Accumulated Fund Balance $1 million
Source: CA Department of Finance
2013 2022
24,640
26,091
Population of the
City of Hercules
61 FINANCIAL

MANAGEMENT
• Sustainable
Operating Budget
• Improved Capital
Improvement Plan
• Business Attraction
and Retention
• New Revenue
Opportunities
HERCULES BUDGET AT A GLANCE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET BUDGET 2019-21 Figures are rounded
FY 2023-24:

Citywide Expenditures by Program
(Excluding Internal Charges)
$37 million total
Police
$8.4
million
Wastewater
Improvements
$7.1
million
Streets & Others
$10.3
million
$4.8 million
$2.4 million
Lighting and $3.3 million Landscaping
Assessment District
Community
Development
$945,331
Parks & Recreation
Administration

CITY OF HERCULES

STRATEGIC WORKPLAN
2019 $21.54 $7.15 $28.7 million
Fund ratio: 75%
2020 $21.03 $7.87 $28.9 million
Fund ratio: 73%
Based on June 2021 CalPERS actuarial report, The City's funding ratio as of June 30, 2022 was 86%. The Fitch (a credit rating agency) generally considers a funded ratio of 70% to be adequate.

CalPERS Pension Funding Status
Safety/police pension funding
Other sta pension funding
$33.74 million
Accrued Liability
Unfunded
(in $ millions)
Plan Assets
(in $ millions)
Accrued Liability
Unfunded
(in $ millions)
Plan Assets
(in $ millions)
2019 $25.09 $8.65
Fund ratio: 74%
2020 $26.34 $9.88 $36.22 million
Fund ratio: 73%
$38.9
million
2021 $33.6 $5.4
Fund ratio: 86%
2021 $26.9 $4.5 $31.4
million Fund ratio: 86%

PUBLIC SAFETY
• Community Policing
• Urban Forest
Management
• Emergency
Preparedness

PLANNING &
POLICY
• Land Use Planning
• Parks Master Plan

QUALITY OF LIFE
• Community
Engagement
• Diversity, Equity &
Inclusion
• Environmental
Sustainability

FACILITIES &

INFRASTRUCTURE
• Hercules Hub
• Sewer Improvements
• Pavement & Road
Improvements
• Deferred Maintenance
of City Facilities
62 HERCULES BUDGET AT A GLANCE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET BUDGET 2019-21 Revenues
by Type
2023-24
$37
million
Expenses
by Major
Category
2023-24
$37
million
CITY OF HERCULES BUDGET FY 2023-24:

CITYWIDE BUDGET
Figures are rounded
Figures are rounded
Special
Revenues,
Capital
and Debt
$12
million
General Fund
$18
million
Enterprise
$6
million
Materials,
Supplies
& Services
$18
million
Salaries
and Benefits
$14
million
The following is a breakdown of revenues
by fund type and expenditures by major category.

What the
City of
Hercules
takes
care of
Here is a look at some
of the services the City
provides and facilities
and infrastructure it
maintains:
58 miles
of city streets
1,494
street and
parking lot
features
14 traffic signals
7 miles
of bike lanes
62 miles
of sanitary sewers
13 parks
9 playground
structures
5 Recreation
Other expenses Centers
$3 million
Accumulated
Fund Balance
$1 million
Capital Projects
$2 million
63 A LOOK
AHEAD
The Five-Year Forecast provides
a current and long-range
financial assessment of revenues,
expenditures, fund balance, and
operating reserves. The primary
objective is to provide the City
Council and the community with a
financial forecast and identify any
significant issues that may need to
be addressed in the annual budget
development process.

General Fund
Expenditures:

Where does
the money go?
For every dollar
spent on the
general fund:

General Fund
Revenue:

Where does
the money
come from?
Police Administration Parks & Recreation
Debt and Miscellaneous 5¢
Public Works 2¢
Community Development 5¢ Other 1¢
46¢ 26¢ 13¢
HERCULES BUDGET AT A GLANCE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET BUDGET 2019-21 CITY OF HERCULES BUDGET FY 2023-24:

GENERAL FUND OPERATING BUDGET
Sales Tax (34%) Utility User
Tax (21%)
Vehicle License
Fees (14%)
Program
Revenues (9%)
$6.2
million $3.8
million
$2.5
million
$1.6
million
$1.5
million
$1.3 million
Property Taxes (9%)
Other Taxes (8%)
Miscellaneous (7%)
$1.6
million
Figures are rounded
Figures are rounded
$22.15 million
$19.27 million
$21.05 million
$18.41 million
$20.54 million
$25 million
$20 million
$15 million
$10 million
Revenues
General Fund Five-Year Forecast
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Expenditures
including One-Time
Expenditures
The net annual
operating
results are
positive, and
the General
Fund maintains
an operating
reserve equal
to 25% of total
expenses.
64 BUDGET PROCESS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

GOVERNMENTAL FUNDS
• General Fund: The General Fund is the general
operating fund of the City. It is used to account for
all financial resources except those required to be
accounted for in another fund.
• Special Revenue Funds: Special Revenue Funds are
used to account for the proceeds of specific revenue
sources (other than special assessments, expendable
trusts, or major capital projects) that are legally
restricted to expenditures for specified purposes.
• Capital Projects Funds: The Capital Projects Funds
are used to account for financial resources to be used
for the acquisition or construction of major capital
facilities (other than those financed by Proprietary
Funds and Trust / Agency Funds).
• Debt Service Funds: Debt Service Funds are used
to account for the accumulation of resources for, and
the payment of, general long-term debt principal,
interest, and related costs.
• Internal Service Funds: Internal Services Funds
are a type of proprietary fund used to report any
activity that provides goods and services on a
cost reimbursement basis to other City funds and
departments of the primary government and its
component units.
• Trust / Agency Funds: Trust Funds are used
to account for assets held by the City in a trustee
capacity for individuals, private organizations, other
governments, and/or other funds.

BUDGET PROCESS

GOVERNING STRUCTURE AND BASIS OF BUDGETING
The City of Hercules is a municipality
incorporated in 1900 under provisions
of the Constitution of the State of
California. The City operates under
a Council Manager general law form
of government and is governed by a
council of five elected members with
staggered four-year terms. Additionally,
City Council members act as the board
of directors of the Hercules Public
Financing Authority (PFA).

BASIS OF BUDGET AND FUND STRUCTURE
Local governments account for revenues and expenditures through separate funds such as General, Special Revenue, Enterprise, Internal Service and Fiduciary funds. The accounts of the City of Hercules are organized on the basis of funds, each of which is considered a separate financial entity. Each fund is comprised of a set of self-balancing accounts for its revenues and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped into generic fund types and fund categories as follows:
65 BUSINESS-TYPE FUNDS
Enterprise Funds: Enterprise Funds are used to
account for operations:
(a) that are financed and operated in a manner similar
to private business enterprises where the intent of
the governing body is that the full costs (expenses,
including depreciation) of providing goods or services
to the general public on a continuing basis be recovered primarily through user charges; or (b) where the
governing body has decided that periodic determination
of revenues earned, expenses incurred is appropriate
for capital maintenance, management control or
accountability. Because enterprise funds use the fullaccrual basis of accounting under FASB, all long-term debt liabilities and debt service payments are recorded within the enterprise fund itself.

For tracking convenience, a separate fund for enterprise debt service payments is shown on the following table
although all transactions are reported together within
an enterprise fund’s financial statements. City budgets contain three major categories - operating, capital and debt. The table on the following page lists the City’s
funds and the categories in which a fund’s financial
transactions contain.

BUDGET PROCESS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Fund # Operating Capital Debt
GENERAL FUND (100) X X

SPECIAL REVENUE FUNDS
Asset Seizure 101 X
Ab 3229 Cops Program 201 X
Citywide L&L Dist 83-2 220 X X
Victoria By The Bay L&L 221 X X
Hercules Village L&L Dist 222 X X
Baywood Assess 04-1 L&L 223 X X
Bayside Assess Dist L&L 224 X X
Arterial Roadways 225 X
Stormwater Assessment 231 X
Dif-Gen Public Facilities 241 X
Community Development Fnd 242 X
Development Fee Fund 243 X
Dif-Police Facilities 244 X
Dif-Fire Facilities 246 X
Dif-Park & Rec 247 X
Public Benefit Fee 249 X
Dif-Traffic Facilities 261 X X
State Gas Tax Fund 262 X X
Measure "C" Street Fund 263 X X
Stmp Traffic Impact Fund 264 X
Solid Waste And Recycling 291 X
Regional Water Quality 521 X
Bart (Park & Ride) 266 X

CAPITAL PROJECT FUNDS
Street Cip Grants 295 X
City Capital Proj-Single 300, 310, 311 X
Energy Conservation Project 301 X
Grant Fund / Stip / Rip 340s, 350 X
Water Quality Ret Basin 387 X

DEBT SERVICE FUNDS
2003b Debt Service Pfa 672 X
2009 Debt Service Pfa 673 X
Suntrust Lease 383 X
Equipment Lease 388 X

FUND DESCRIPTION

HERCULES FINANCIAL REPORTING FUND STRUCTURE
66 BUDGET PROCESS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

BASIS OF ACCOUNTING AND

FINANCIAL REPORTING
The basis of accounting refers to when revenues and
expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of
accounting depends on the purpose for which the fund
has been established and by its measurement focus.

All governmental and expendable trust funds use a
current financial resources measurement focus. With
this measurement focus, only current assets and current liabilities are included on the balance sheet. Operating statements of these funds present increases (i.e.,
revenue/other financing sources) and decreases (i.e.,
expenditures/other financing uses) of net current assets.

All proprietary funds, pension trust and agency funds
are accounted for on a flow of economic resources
measurement focus. With this measurement focus,
all assets and liabilities associated with operation
are included on the balance sheet. Fund equity for
proprietary funds (i.e., net total assets) is segregated into restricted net assets and unrestricted net assets.

Proprietary fund type operating statements present
increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. Agency
and trust funds are custodial in nature (assets equal
liabilities) and do not involve measuring the results of operations.

Modified Accrual Accounting. The modified accrual
basis of accounting is used by all governmental
funds and expendable trust funds, as required by
generally accepted accounting principles (GAAP), the
Governmental Accounting Standards Board (GASB)
and the State of California. Under the modified accrual basis of accounting, revenues are recognized when
they become measurable and available as net current
assets. Property tax and assessments are recognized
as revenues in the fiscal year in which the taxes were
levied. Sales and use taxes are reported as revenue
when collected by the State of California for subsequent remittance to the City. Intergovernmental revenues
and investment earnings are accrued when earned.

Revenues from grants, entitlements, and donations are
recognized in the fiscal year in which all eligibility
requirements are satisfied. Fines and permits revenue
are not susceptible to accrual as they generally are not measurable until received in cash.

Expenditures are generally recognized under the
modified accrual basis of accounting when the related
fund liability is incurred. Exceptions to this general
rule include principal and interest on general longterm debt, recognized when due, and accumulated unpaid
vacation and compensatory pay that is accrued and
reported on the government-wide financial statements
for governmental funds.

Full Accrual Accounting. As mentioned previously,
the full-accrual basis of accounting is used for the
enterprise and proprietary fund types. Under this
method, revenues are recognized when earned and
expenses are recognized at the time liabilities are
incurred. The City has chosen to utilize GASB as
its standard setting body for the accounting in its
proprietary funds, as allowed since November 30, 1989.

Deferred revenues arise when potential revenues
do not meet both the “measurable” and “available”
criteria for recognition in the current period. Deferred revenues also arise when resources are received by
the City before it has a legal claim to them, as when
loans are extended upon agreement for future lease or
loan repayment proceeds. In subsequent periods, when
both revenue recognition criteria are met, or when the
City has a legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and
revenue is recognized.

Past actual data presented in this budget document
reconcile to the City’s financial statements using the
GAAP basis of accounting for governmental funds and
full-accrual basis for enterprise funds.

Basis of Budgeting Method. The budget uses the
basis of budgeting method. The basis of budgeting
and the basis of accounting are the same for all
governmental funds. The budgeting basis for enterprise
and proprietary funds do not include depreciation/
amortization of debt principal and interest payments
or the capitalization of capital construction costs or
donated/contributed capital. Depreciation of capital
assets for enterprise and internal service funds has been budgeted.
67 BUDGET PROCESS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

1. The City Manager submits to the City
Council a proposed operating budget for
the following fiscal year. This budget includes
proposed expenditures, by fund and department,
and the revenues expected to finance them.

2. Public hearings are conducted to obtain
taxpayer comments.

3. The budget is legally enacted through passage
of a resolution before July 1.

4. The City Manager is authorized to transfer
budgeted amounts between objects within the
same department; however, any revisions, which
alter total expenditures of any fund, must be
approved by the City Council.

5. Formal budgetary integration is employed
as a management control device. Special
Revenue Fund budgets are adopted on a basis
consistent with accounting principles generally
accepted in the United States (USGAAP) and
are consistent with the basis used for financial
reporting.

Accordingly, actual revenues and expenditures
can be compared with related budget amounts
without any reconciliation. The General Fund
budget is adopted on the budgetary basis, which
is not consistent with accounting principles
generally accepted in the United States of
America.

Commitments for material and services, such
as purchase orders and contracts, are recorded
during the year as encumbrances to assist in
controlling expenditures. Appropriations, which
are encumbered at year-end lapse, then are added
to the following year’s budgeted appropriations.

However, encumbrances at year-end are reported
as reservations of fund balance.

6. Under Article XIII B of the California
Constitution (the Gann Spending Limitation
Initiative), the City is restricted as to the
amount of annual appropriations from the
proceeds of taxes, and if proceeds of taxes
exceed allowed appropriations, the excess
must either be refunded to the State Controller,
returned to the taxpayers through revised tax
rates or revised fees schedules, or an excess in
one year may be offset against a deficit in the
following year. For the fiscal year ended June
30, 2018, based on the calculations by City
Management, proceeds of taxes did not exceed
the appropriations limit.

7. Budget revenue amounts represent the
original budget modified by adjustments
authorized during the year. Budgeted
expenditure amounts represent original
appropriations adjusted for supplemental
appropriations during the year, which were
contingent upon new or additional revenue
sources and re-appropriated amounts for prior
year encumbrances. The City Manager must
approve adjustments to departmental budgets;
however, management may amend the budgeted
amounts within departmental expenditure
classifications, with approval of the Finance
Director.

8. Certain appropriations carryover and are reappropriated for the subsequent year.

9. Budget appropriations for the various
governmental funds become effective July 1.

The City Council may amend the budget during
the fiscal year. The legal level of budgetary
control has been established at the fund level.

BUDGET PROCESS AND PROCEDURES
The City follows the following procedures in establishing the budgetary data reflected in this document:
68 BUDGET PROCESS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

BUDGETARY PROCESS
There are two pieces to the budget: an operating
budget and a capital budget. The departmental
operating budgets represent current year operations
whereas the capital budget covers major construction
projects and the purchase of major equipment for
multiple fiscal years. The operating and capital
budgets are concurrently created and adopted in a
similar manner. However the operating budget covers
a one-year period while the capital budget covers a
five-year period with money being appropriated for the
first year along with the current year operating budget and the remaining four years of the capital plan being
approved in concept.

The budget and this document is the culmination of a
process in which the community -- through its elected
leaders, commission/committee members, public
hearings, and the advice of City staff -- decides upon
the services it shall receive from its government under the constraint of resources available to it through
taxes, fees, and transfers from the federal, state, and county governments.

Operating Budget Process
The budget process began in March with the request
by the Finance Department for revenue projections
and an estimation of operating expenditures requests.

City Council / Finance Commission Budget
Meetings. The City Manager and the City’s senior
staff discussed the City’s General Fund budget issues
with the City Council/Finance Commission as first
looks at revenues and expenditures. The Finance
Commission includes five appointed members from
the public. The budget work sessions provided time for
the Commission members to discuss issues related to
the budget.

Citizen Input on the Budget and Final Adoption.

Citizen participation was encouraged during the City
Council / Finance Commission budget work sessions.

Additionally, public notice of Council consideration of the City’s proposed budget resolution was advertised
per state law. A copy of the proposed Budget was
available at the City Clerk’s Office and on-line for
citizen review. Any amendments made by Council
will be incorporated into the final adopted budget.

Mid-Year Budget Review and Revision Process.

After the adoption of the budget, there are scheduled
reviews of the budget’s progress. In March of the fiscal year, there is a major mid-year (second quarter) review in which revenues and expenditures are examined and
adjustments made if necessary. There are also first,
third and fourth quarter reports prepared and reviewed
with the Finance Subcommittee of the City Council.

Any adjustments to the budget must be passed by City
Council resolution.

In addition to these scheduled reviews of the adopted
budget, there is a process for amending the budget
during the year if a department finds that more
money is needed to be spent on a program than was
originally anticipated, or finds that there are new
funded or unfunded needs to be met. In this case, the
department must present to City Council its reasons
for requesting a budget adjustment. As with the
scheduled budget reviews, these budget adjustments
must also be adopted by City Council resolution before
a department can spend money amounting to more
than the original appropriation.

Requests for adjustment to the budget fall into two
categories:
• Pre-Approval - Departments may present to Council
on an individual basis revised funding requests for
approval to proceed with a new initiative, program or
project. Council approval of such requests constitutes
formal budget appropriations authority.
• New Requests - Department requests may be
submitted through the mid-year revision resolution.

Departments submit a memorandum to the City
Manager outlining the cost of the requested item, its
justification, financing sources, whether the request
is a one-time or ongoing cost, and accounting codes
impacted. If approved by the City Manager, these
requests are listed on the subsequent mid-year
revision resolution. City Manager review includes a
determination of the necessity for the request and its
fiscal impact.
69 BUDGET PROCESS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Capital Improvement Budget
The Capital Improvement Budget is a plan for capital
projects, fixed assets, and infrastructure owned by
the City of Hercules. Requests from senior staff are
reviewed by the City Manager as part of the annual
budget development process to insure that the City’s
assets are maintained in an efficient manner and
that Council long-term goals are met. The capital
budget is organized by the department and/or
fund responsible for the asset. The capital process
starts with departments submitting their requests
for maintenance, replacement, and the addition
of assets under their control. The City Manager
oversees a disciplined process to provide assurance
to citizens that the City’s assets and infrastructure are maintained within the constraints of available funding.

USING THIS BUDGET DOCUMENT
The first section of this document is a general
introduction to the budget and the document itself.

The document covers both the operating and capital
budgets for the City with most of this document being
devoted to the City’s operating budgets. In general, the document is organized by fund type with the majority
of it devoted to the General Fund.

The first section of this document gives a general
overview of the City’s revenues, expenditures, and
fund balances. This section gives a summary of the
fund balances for all of the funds and the resources
available to the City to meet current and future
obligations. Also presented are the detailed account
information of all the City’s revenues, and a list of the City employee positions for all departments.

The General Fund section shows budget expenditure
details of each General Fund department. The sections
following the General Fund are the City’s various
special revenue funds, capital project funds, debt
service funds, enterprise funds, and internal service
and trust funds. The Appendices section includes the
resolutions that adopted the budgets, and a glossary of budgeting and accounting terms.

CITY ORGANIZATIONAL

STRUCTURE
The organizational structure of the City of Hercules’
municipal departments is found in the chart on the
following page. The chart outlines the supervisory
reporting structure of the City’s senior staff. The City Manager reports to and serves at the pleasure of the
City Council, a five-member elected body.

The City Manager holds a weekly Department Head
Meeting to review the occurrences of the prior week
and the upcoming week. This meeting is also held to
discuss any items of special interest or concern.

CITY COMMISSIONS

AND SUB-COMMITTEES
The City has three (3) commissions and three (3) full/
sub committees appointed by the City Council.

Commissions and committees provide advisory
recommendations, counsel and guidelines on their
relevant topic areas.

These commissions and committees include
the following:
• Planning Commission
• Community and Library Services Commission
• Finance Commission
• Education Sub-Committee (Inactive)
• Economic Development Sub-Committee
• Public Safety/Traffic Sub-Committee
70 STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Establishing certain generalized principles governing
the financial affairs of the City is desirable to guide both the financial management and financial planning
for the City. The City of Hercules is accountable to its citizens, employees, and other stakeholders for the use of public funds and the best management of resources.

These Financial Principles will provide City staff
with guidance in preparing and submitting the annual
budget for the City and in the preparation of financial forecasts. The adoption of certain financial policies is necessary and appropriate to implement the financial
principles and to help ensure financial sustainability
and to improve the City’s credit worthiness and bond
rating.

Financial Principles
• Adopt a balanced operating budget by June 30th of
each year for the following fiscal year without using
General Fund undesignated fund balances or reserves.

The budget thus adopted shall include expenditures
necessary to provide for the well-being and safety of
the community subject to available revenues;
• Fees for services shall be updated annually to
recover, as much as possible, the cost of providing the services and to allow for the impacts of inflation, with fees not exceeding the cost of providing the service.

In some instances, the City Council may elect to not
recover the full cost of providing the service and the
City Council shall determine the appropriate cost
recovery level of individual services;
• Revenues in excess of expenditures at the end of a
fiscal year shall be applied on a priority basis to satisfy the general fund reserve requirements, capital projects reserves, capital equipment reserves, and liability
reserves before being appropriated for other uses.
• Current year operating expenditures shall be funded
by current year operating revenues;
• Manage the City’s finances as to ensure repayment
of debt and improvement in the City’s bond rating in
order to minimize future issuance and interest costs to the City.
• Meet all financial reporting requirements in a timely manner and ensure appropriate internal controls are in
place to ensure financial accountability.

General City Financial Policies
• Employees are one of the most important assets of
the City and should be compensated at an appropriate
level and commensurately with the City’s ability to
pay;
• Establish, and then maintain, a “minimum reserve”
for economic uncertainties equal to one month or

8.33% of expenditures of the current year General
Fund budget exclusive of Nonspendable, Restricted,
and Assigned fund balance with a goal of increasing
that to two months or 16.66% of expenditures in the
future.
• The General fund reserve shall provide for meeting
contingency needs, investment earnings, and shall
serve as a cash flow reserve.
• Provide for capital equipment replacement
as necessary to achieve greater efficiency and
effectiveness in the City’s operations;
• One-time revenues shall be utilized for onetime expenditures or to enhance reserve funds as appropriate or necessary;
• The City shall maintain, replace, and improve its
infrastructure and the City shall set aside a reasonable and prudent amount of General Fund monies for
capital projects including the repair of various
facilities as part of its annual budget process to the
greatest extent possible.

CITY OF HERCULES

STATEMENT OF FINANCIAL
PRINCIPLES AND POLICIES Adopted December 16, 2015
71 STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Revenue & Expenditure Policies
• Realistic and prudent estimates of revenues shall be
used to maintain financial flexibility;
• Revenue raising alternatives shall be explored as
necessary and the City shall pursue grants available to local government;
• Programs funded through user fees shall be selfsupporting to the greatest
extent possible
or at a level
proscribed
by the City
Council;
• Full recovery
of overhead
and internal
services
from grant
and special or enterprise funds shall be pursued to
the greatest extent possible and as permitted by the
restrictions associated with each fund.

Special Revenue, Enterprise,
and Internal Service Fund Policies
• The City shall abide by applicable rules and
regulations pertaining to the expenditures of special
revenue funds as required by each funding source;
• Enterprise activities shall be programmed to
generate sufficient revenues to support the enterprise’s operations including overhead and internal services,
debt service requirements, and current and future
capital needs;
• Special Revenue and Enterprise funds shall adhere
to all other applicable fiscal policies of the City.
• Internal Service funds shall be established as
appropriate to ensure cost recovery on a fair and
equitable basis;
• Transfers to the General fund from other funds
for overhead costs shall be reviewed annually and
conform to the Federal Office of Management &
Budget A-97 Guidelines.

Debt Policies
• Debt shall only be incurred for capital improvement
projects and only if the project cannot be funded by
recurring or one-time revenues;
• Proceeds from long-term debt shall not be used for
current on-going expenditures;
• Short-term borrowing shall not be used for operating
expenditures unless it is a Tax & Revenue anticipation
Note or other short-term cash flow borrowing and
shall be limited to repayment in the same fiscal year;
• The use of the City’s General Fund as security for
debt issues should be limited to the greatest extent
possible to capital projects which serve the general
benefit for the City.

Forecasting Policies
• The City shall develop and maintain a five to ten
year Financial Forecast which shall be updated
two times each year with any unexpected changes
in economic conditions or other circumstances
prompting more frequent updates;
• The Financial Forecast should recognize the effects
of economic cycles and shall differentiate between
one-time revenues associated with one-time economic
activities and revenues resulting from base economic
growth;
• Financial Forecasts shall identify the assumptions
used in their preparation and the risks associated with those assumptions;
• Revenue and expenditure estimates should be
prepared on a realistic basis with a target of +/- 2
percent variance from the estimate for revenues and a
+/- 1 percent variance for expenditures;
• On-going revenue increases based upon site specific
development shall be incorporated using a realistic
estimation of timing and shall not exceed the midpoint
of the range of estimated revenues.
72 STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES CITY OF HERCULES FY 2023-24 ANNUAL BUDGET a. Service Level Expectations - Defining the
types and levels of services expected in a given
year includes a process of public engagement,
understanding current services, identifying the
City’s mission, long-term vision, and goals of the
community. Based on the goals established by the
City Council, the City Manager identifies the
resources required to deliver services, how best
to organize those resources to achieve the City
Council’s vision for the community and presents
those recommendations in the proposed Budget for
the City Council review, consideration, and direction.

In a service-oriented organization such as a city,
it takes a combination of staff and consultants to
provide services. As important as it is for a city to
invest in its physical capital, it is just as important for a city to ensure it is investing appropriately in its human capital and to determine what is the proper
level of staffing and the necessary skill sets required to deliver on the city’s mission. City staff is currently evaluating potential needs for additional personnel and resources necessary to accomplish tasks related to the
established priorities.
b. Reserve Policy - Increasing the general fund
reserve policy limit from 16% to 25% (equal to three
months of the General Fund Operating Budget) to
protect the City from fluctuations in the economy
or other significant unplanned needs. Once a 25%
funding level is reached, available surplus funds
would be directed to other Council priorities.
c. Long-Term Capital Improvement Project
Funding – During the April 26, 2022, Budget
Workshop, the current funding strategy for capital
projects entail a detailed analysis of the long-term
capital improvement project funding needs based on a
5-year forecast. This strategy assumes a “pay as you
go” philosophy that does not anticipate the use of debt financing.
d. General Fund Surplus Allocation – A surplus
occurs when income exceeds expenditures. The
term is often referred to in government as savings.

A surplus is an indication that the City’s finances are being effectively managed. Staff recommends that
Available resources as determined annually through
the closing of the financial records will be used as a
basis for the following allocation:
i. 25% contribution to Pension/OPEB - The
City has established an Internal Revenue Service
Code Section 115 irrevocable trust which achieves
a higher rate of return on investments than that
earned on the pooled investment portfolio, LAIF.
25% of the available fund balance shall be put
into a Trust Fund or directly into paying off the
CalPERS unfunded liability for either pensions or
post-employment benefits.
ii. 25% to Operating Reserve – 25% be put into
operating reserves up to the 25% policy limit.
iii. 50% contribution to unmet/deferred
infrastructure and maintenance needs – A
funding mechanism to fund projects included
in the Long-Term Capital Improvement Project
Funding, as described in section c above.

1. The City Council hereby approve the following additions to the Statement of Financial Principles and Policies:
73 LOCAL CITY BUDGET AND DEMOGRAPHIC COMPARISON CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

HERCULES SAN PABLO EL CERRITO PINOLE
Form of Government Council-Manager
General Law
Council-Manager
General Law
Council-Manager
General Law
Council-Manager
General Law
Year Incorporated 1900 1948 1917 1903

BUDGET COMPARISON
General Fund Revenue 16,916,000 50,128,460 45,677,116 28,111,479 General Fund Expenditures 16,383,422 50,128,458 44,865,113 28,995,141 Total Full Time Equivalents 33 81 91 73
Sworn Personnel FTE 26 87 74 46

DEMOGRAPHICS
Population 25,920 31,389 25,583 18,582
Annual Percent Change -0.40% -2.3% -1.4% -2.3%
Median Age 42.7 32.50 42.0 42.6
Population per FTE 785 388 281 254
Population per Sworn FTE 997 361 346 404
Housing Units 9,165 9,941 10,996 7,106
Average Household Size 2.87 3.34 2.44 2.87
Labor Force 13,900 13,400 13,500 9,400
Unemployment Rate 3.2% 3.90% 2.9% 2.4%
Median Household Income $114,124 $67,294 $116,875 $104,275 Per Capital Income $48,777 $24,049 $63,549 $46,006

LOCAL CITY BUDGET AND DEMOGRAPHIC COMPARISON
FY 2022-2023
* The Budget Comparison data was obtained from the corresponding city’s Adopted Budget for FY 2022-23. *The Demographics, except the Labor Force and Unemployment Rate, data was obtained from the Census Bureau website. July 2022
* The Labor Force and Unemployment Rate was obtained from the California Employment Development Department website. March 2022
74 Timothy Rood
Community
Development
Director
*Staff – 3
Functions:
• Long Range
Planning
• Short Range
Planning
• Planning
Counter
• Housing
Element
• General Plan
• Zoning
Ordinance
• CEQA Mgmt.
• Planning
Commission
• Permits
• Building
Inspection
• Plan Checking
• Code
Enforcement
ORGANIZATIONAL CHART CITY OF HERCULES FY 2023-24 ANNUAL BUDGET FY 2023-24 CITY OF HERCULES

ORGANIZATION CHART SENIOR MANAGEMENT

CITIZENS OF HERCULES

HERCULES CITY COUNCIL

CITY ATTORNEY
Patrick Tang

CITY MANAGER
Dante Hall

BOARDS, COMMISSIONS
& COMMITTEES
Eibleis
Melendez
City Clerk/PIO
*Staff – 3
Functions:
• City Clerk
• Elections
• Agendas
• Council Mtgs.
• Records Admin.
• Reception
• Meeting
Coordinate
Edwin Gato
Finance Director
*Staff – 4
Functions:
• Accounts
Payable
• Accounts
Receivable
• Payroll
• Budget
• Audits
• Investment
Mgmt.
• Cash Mgmt.

Dante Hall
City Manager
*Staff – 4
Functions:
• Executive Mgmt.
• Real Estate
(Incl. RITC)
• Franchises
• RDA Successor
• Economic
Development
• Legislative
• Inter-
Governmental
• Cable/Web
Broadcasts
• Human
Resources
• Risk
management
• Contract Mgmt.
• IT Services
• PIO
Michael
Roberts
Public Works
Director
*Staff – 11
Functions:
• Engineering
• Streets
• Facility
Maintenance
• Solid Waste
• Wastewater
• Sewer
Maintenance
• Lighting/
Landscaping
• Clean Water
Program
Christopher
Roke
Parks & Rec.

Director
*Staff - 4
55 PT
Functions:
• CLS
Commission
• Facility Rentals
• Child Cares
• Sports
• Rec Classes
• Seniors
• Tiny Tots
• Camps
• Youth/Teen
• Swim Center
• Library
• Rec. Volunteers
Joseph
Vasquez
Police Chief
*Staff –
26 Sworn
4 Non-Sworn
3 PT
Functions:
• Patrol and
Special Enforce.
• School Safety
(SRO)
• Criminal/ Int.

Invest
• Records/ Evid
Mgmt.
• Police Reserve
• Explorer
Program
• City Volunteer
Coord.
• Emergency

OPS/SRT
• Crime
Prevention
• Allied agency
Liaison
• Council
Meetings
• Training /
certification
• Grants
• PD Finance
CITY

CLERK &

ADMINISTRATION

PARKS &

RECREATION
POLICE

DEPARTMENT
PUBLIC
WORKS,

ENGINEERING &

MAINTENANCE

OFFICE OF THE
CITY

MANAGER

FINANCE COMMUNITY

DEVELOPMENT
*includes department heads
75 CITYWIDE BUDGET
76 Authorized Full-Time Positions
By Classification Within Department
FTE Trends
Personnel by Department
FY 20-21 FY 21-22 FY 22-23 FY 22-23
Actuals Actual Budget Adopted
Police
Chief of Police 1 1 1 1
Police Commander 2 2 2 2
Police Sergeant 5 5 5 5
Police Officer 17 17 18 18
Police Officer Trainee 1 1 -
Police Support Specialist 2 2 3 3
Administrative Specialist 1 1 1 1
29 29 30 30
Public Works
Public Works Director 1 1 1 1
Public Works Superintendent 1 1 1 1
Public Works Inspector/Specialist 1 1
Associate Engineer 1 1 1 1
Maintenance Worker I 4 4 4 4
Maintenance Worker II 4 4 3 3
11 11 11 11
Community Development
Community Development Director 1 1 1 1
Senior Planner 1
Permit Technician 1 1 1 1
2 2 2 3
0 10
20 30
40 50
60 70
FY 20-21
Actual
FY 21-22
Actual
FY 22-23
Budget
FY 23-24
Adopted
Community Development
Parks & Recreation
Administration
Public Works
Police
CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
77 Authorized Full-Time Positions
By Classification Within Department
Parks & Recreation
Parks & Recreation Director 1 1 1 1
Recreation Manager 1 1 1 1
Recreation/Comm/Adminstr 1 1
Recreation Coordinator 2 2 1 1
4 4 4 4
Administration
City Manager 1 1 1 1
City Clerk/PIO 1 1 1 1
Finance Director 1 1 1 1
Management Analyst 1 1 1 1
Cable/Communications Technician 1 1 - -
Information Systems Administrator 1 1 1 1
Information Systems Specialist 1 1
Senior Clerk 1 1 1 2
Human Resources Specialist 1 1 1 1
Senior Accountant 1 1 1 1
Accounting Technician II 2 2 2 2
Administrative Specialist 1 1
11 11 12 13
Total City-wide FTE Count 57 57 59 61
CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
78 Labor Allocation
By Fund
Fund No.
=================> 100 232 233 234 235 236 237 238 239 251 253 220 221 222 223 224 225 231 262 263 291 420 460 470 Position Title
Fund Name
===============> General
LLAD
No. 83-2
(Zone 1)
LLAD
No. 83-2
(Zone 2)
LLAD
No. 83-2
(Zone
3&4)
LLAD
No. 83-2
(Zone
5A)
LLAD
No. 83-2
(Zone
5B)
LLAD
No. 83-2
(Zone
5C)
LLAD
No. 83-2
(Zone 6)
LLAD
No. 83-2
(Zone 7)
LLAD
No. 83-2
(Zone 8)
LLAD
No. 83-2
(Zone 9)
LLAD
No. 83-2
(Zone
10)
LLAD
No. 2002-
1 (Victoria
by the
Bay)
LLAD
No.
2002-2
(Hercule
s
Village)
LLAD
No. 2004-
1 (Baywoo
d)
LLAD
No. 2005-
1 (Bayside
)
Arterial
Roadwa
y
Stormwa
ter
State
Gas Tax
Measure
"C"
Street
Fund
AB 939 -
JPA Sewer
IT Ops
and Repl
Facility
Maint Total
Full-Time Department
ADMINISTRATIVE SPECIALIST POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 CHIEF OF POLICE POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 POLICE COMMANDER POLICE 2.00 - - - - - - - - - - - - - - - - - - - - - - - 2.00 POLICE OFFICER POLICE 18.00 - - - - - - - - - - - - - - - - - - - - - - - 18.00 POLICE SERGEANT POLICE 5.00 - - - - - - - - - - - - - - - - - - - - - - - 5.00 POLICE SUPPORT SPECIALIST POLICE 3.00 - - - - - - - - - - - - - - - - - - - - - - - 3.00

30.00 - - - - - - - - - - - - - - - - - - - - - - - 30.00 ASSOCIATE ENGINEER PUBLIC WORKS - - - - - - - - - - - 0.15 - - - - - 0.15 0.20 0.20 - 0.30 - - 1.00 MAINTENANCE WORKER I PUBLIC WORKS - - - - - - - - - - - 0.83 0.55 0.05 0.10 0.05 - 0.15 0.36 0.21 - 0.85 - 0.85 4.00 MAINTENANCE WORKER II PUBLIC WORKS 0.15 0.06 0.06 0.01 0.02 0.02 0.02 - 0.07 0.07 0.07 0.31 0.10 0.05 0.08 0.05 0.05 0.36 0.25 0.22 - 0.75 - 0.24 3.00 PUBLIC WORKS DIRECTOR PUBLIC WORKS 0.10 - - - - - - - - - - 0.05 - - - - - 0.10 0.20 0.20 - 0.30 - 0.05 1.00 PUBLIC WORKS SUPERINTENDENT PUBLIC WORKS 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.03 0.02 0.02 0.02 0.02 0.02 0.18 0.10 0.10 - 0.25 - 0.02 1.00 PUBLIC WORKS INSPECTOR/SPECIALIST PUBLIC WORKS 0.25 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.10 0.04 0.04 0.04 0.04 0.04 0.05 0.13 0.12 - 0.05 - - 1.00

0.53 0.09 0.09 0.04 0.05 0.05 0.05 0.03 0.10 0.10 0.09 1.47 0.71 0.16 0.24 0.16 0.11 0.99 1.24 1.05 - 2.50 - 1.16 11.00 COMMUNITY DEVELOPMENT DIRECTOR COMMUNITY DEVELOPMENT 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 SENIOR PLANNER COMMUNITY DEVELOPMENT 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 PERMIT TECHNICIAN COMMUNITY DEVELOPMENT 0.20 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.13 0.05 0.05 0.05 0.05 0.05 0.03 0.07 0.05 - 0.07 - - 1.00

2.20 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.13 0.05 0.05 0.05 0.05 0.05 0.03 0.07 0.05 - 0.07 - - 3.00 PARKS & RECREATION DIRECTOR PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION COORDINATOR PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION MANAGER PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION/COMM/ADMINSTR PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00

4.00 - - - - - - - - - - - - - - - - - - - - - - - 4.00 CITY MANAGER ADMINISTRATION 0.59 - - - - - - - - - - 0.12 - - - - - - - - - 0.29 - - 1.00 CITY CLERK/PIO ADMINISTRATION 0.64 - - - - - - - - - - 0.02 0.02 0.02 0.02 0.02 - - - - - 0.10 0.16 - 1.00 FINANCE DIRECTOR ADMINISTRATION 0.80 - - - - - - - - - - 0.10 - - - - - - - - - 0.10 - - 1.00 MANAGEMENT ANALYST ADMINISTRATION 0.25 - - - - - - - - - - - - - - - - - - 0.25 0.10 0.30 - 0.10 1.00 INFORMATION SYSTEMS SPECIALIST ADMINISTRATION - - - - - - - - - - - - - - - - - - - - - - 1.00 - 1.00 INFORMATION SYSTEMS ADMINISTRATOR ADMINISTRATION - - - - - - - - - - - - - - - - - - - - - - 1.00 - 1.00 SENIOR CLERK ADMINISTRATION 2.00 - - - - - - - - - - - - - - - - - - - - - - - 2.00 HUMAN RESOURCES SPECIALIST ADMINISTRATION 0.80 - - - - - - - - - - 0.10 - - - - - - - - - 0.10 - - 1.00 SENIOR ACCOUNTANT ADMINISTRATION 0.80 - - - - - - - - - - 0.10 - - - - - - - - - 0.10 - - 1.00 ACCOUNTING TECHNICIAN II ADMINISTRATION 1.60 - - - - - - - - - - 0.20 - - - - - - - - - 0.20 - - 2.00 ADMINISTRATIVE SPECIALIST ADMINISTRATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00

8.48 - - - - - - - - - - 0.64 0.02 0.02 0.02 0.02 - - - 0.25 0.10 1.19 2.16 0.10 13.00

45.21 0.11 0.11 0.06 0.07 0.07 0.07 0.05 0.12 0.12 0.11 2.24 0.78 0.23 0.31 0.23 0.16 1.02 1.31 1.35 0.10 3.76 2.16 1.26 61.00 CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
79 Labor Allocation
By Fund
Fund No.
=================> 100 232 233 234 235 236 237 238 239 251 253 220 221 222 223 224 225 231 262 263 291 420 460 470 Position Title
Fund Name
===============> General
LLAD
No. 83-2
(Zone 1)
LLAD
No. 83-2
(Zone 2)
LLAD
No. 83-2
(Zone
3&4)
LLAD
No. 83-2
(Zone
5A)
LLAD
No. 83-2
(Zone
5B)
LLAD
No. 83-2
(Zone
5C)
LLAD
No. 83-2
(Zone 6)
LLAD
No. 83-2
(Zone 7)
LLAD
No. 83-2
(Zone 8)
LLAD
No. 83-2
(Zone 9)
LLAD
No. 83-2
(Zone
10)
LLAD
No. 2002-
1 (Victoria
by the
Bay)
LLAD
No.
2002-2
(Hercule
s
Village)
LLAD
No. 2004-
1 (Baywoo
d)
LLAD
No. 2005-
1 (Bayside
)
Arterial
Roadwa
y
Stormwa
ter
State
Gas Tax
Measure
"C"
Street
Fund
AB 939 -
JPA Sewer
IT Ops
and Repl
Facility
Maint Total
Part-Time
PARKING ENFORCEMENT OFFICER POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 POLICE SUPPORT SPECIALIST POLICE 0.50 - - - - - - - - - - - - - - - - - - - - - - - 0.50 RECORDS CLERK SPECIALIST POLICE 0.50 - - - - - - - - - - - - - - - - - - - - - - - 0.50 INTERN ADMIN/ENG/PLANNING COMMUNITY DEVELOPMENT 0.50 - - - - - - - - - - - - - - - - - - - - - - - 0.50 FACILITY ATTENDANT PARKS & RECREATION 0.85 - - - - - - - - - - - - - - - - - - - - - - - 0.85 LIFEGUARD/SWIM INSTRUCTOR I PARKS & RECREATION 0.64 - - - - - - - - - - - - - - - - - - - - - - - 0.64 LIFEGUARD/SWIM INSTRUCTOR II PARKS & RECREATION 0.45 - - - - - - - - - - - - - - - - - - - - - - - 0.45 OFFICE ASSISTANT PARKS & RECREATION 0.01 - - - - - - - - - - - - - - - - - - - - - - - 0.01 OFFICE ASSISTANT I (PT) PARKS & RECREATION 0.21 - - - - - - - - - - - - - - - - - - - - - - - 0.21 OFFICE ASSISTANT II (PT) PARKS & RECREATION 1.27 - - - - - - - - - - - - - - - - - - - - - - - 1.27 RECREATION AIDE PARKS & RECREATION 1.06 - - - - - - - - - - - - - - - - - - - - - - - 1.06 RECREATION LEADER I PARKS & RECREATION 4.45 - - - - - - - - - - - - - - - - - - - - - - - 4.45 RECREATION LEADER II PARKS & RECREATION 2.51 - - - - - - - - - - - - - - - - - - - - - - - 2.51 RECREATION LEADER III PARKS & RECREATION 3.77 - - - - - - - - - - - - - - - - - - - - - - - 3.77 RECREATION SPECIALIST PARKS & RECREATION 0.75 - - - - - - - - - - - - - - - - - - - - - - - 0.75 SENIOR LIFEGUARD PARKS & RECREATION 1.32 - - - - - - - - - - - - - - - - - - - - - - - 1.32 ADMINISTRATIVE SECRETARY ADMINISTRATION 0.50 - - - - - - - - - - - - - - - - - - - - - - - 0.50

20.30 - - - - - - - - - - - - - - - - - - - - - - - 20.30 CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
80 City-Wide Budget
All Funds Summary
Projected Projected Changes in Projected Adopted Adopted Changes in Projected Available Revenues/ Expenses/ Commitments/ Available Fund Revenues/ Expenses/ Commitments/ Available Fund Fund Balance Transfers In Transfers Out Reserves Balance Transfers In Transfers Out Reserves Balance FY 20-21 FY 21-22 FY 21-22 FY 21-22 FY 21-22 FY 22-23 FY 22-23 FY 22-23 FY 22-23 General Fund
100 GENERAL FUND $977,254 $20,458,889 $18,294,347 ($2,292,889) $848,907 $18,431,887 $18,294,431 ($294,137) $692,226 401 FISCAL NEUTRALITY 4,222,158 4,222,158 $294,137 4,516,295 General Fund Total 5,199,412 20,458,889 18,294,347 (2,292,889) 5,071,065 18,431,887 18,294,431 - 5,208,521 Special Revenue Funds
101 ASSET SEIZURE 70,206 33,000 95,000 8,206 - - 8,206
201 AB 3229 COPS Program 6,727 150,000 150,000 6,727 150,000 156,727 - 220 CITYWIDE L&L DIST 83-2 678,303 2,107,899 2,085,925 - 700,277 2,307,543 2,160,074 847,746 221 VICTORIA BY THE BAY L&L (255,348) 482,897 585,681 (358,132) 520,580 629,910 (467,462) 222 HERCULES VILLAGE L&L DIST 180,265 166,305 207,117 - 139,453 178,982 228,160 90,275 223 BAYWOOD ASSESS 04-1 L&L 78,740 157,261 148,496 - 87,505 173,230 173,175 - 87,560 224 BAYSIDE ASSESS DIST L&L 130,180 149,231 132,955 146,456 160,665 150,085 157,036 225 ARTERIAL ROADWAYS 577,333 314,000 333,621 557,712 322,637 327,980 552,369 231 STORMWATER ASSESSMENT (136,148) 376,000 376,201 (136,349) 381,000 434,833 - (190,182) 241 DIF-GEN PUBLIC FACILITIES 144,723 - - 144,723 34,950 - 179,673 242 COMMUNITY DEVELOPMENT FND 168,615 - - 168,615 60,000 - 228,615 243 DEVELOPMENT FEE FUND 71,936 - - 71,936 - - 71,936
244 DIF-POLICE FACILITIES 165,948 - 60,000 105,948 - - 105,948 246 DIF-FIRE FACILITIES - - - - - - - -
247 DIF-PARK & REC 136,536 - - 136,536 - - 136,536
249 PUBLIC BENEFIT FEE 975,835 - - 975,835 - - 975,835
261 DIF-TRAFFIC FACILITIES 141,988 - - 141,988 - - 141,988 262 STATE GAS TAX FUND 484,380 1,434,597 1,784,677 134,300 1,392,993 1,257,526 (187,246) 82,521 263 MEASURE "C" STREET FUND 43,128 450,000 600,409 - (107,281) 450,000 529,965 187,246 - 264 STMP TRAFFIC IMPACT FUND - - - - - - - -
266 BART PARK & RIDE 275,690 45,000 17,000 (303,690) - 182,000 182,000 - 267 GENERAL PLAN AND BLDG TRAINING - - - 915,000 915,000 240,000 - 1,155,000 291 AB 939 - JPA FUND 833,015 178,000 237,026 773,989 180,000 237,562 716,427 353 AMERICAN RESCUE PLAN ACT (ARPA) - 3,142,889 3,142,889 - - - - 387 WATER QUALITY RETENTION BASIN 183,466 46,000 46,000 183,466 50,000 47,000 186,466 521 REGIONAL WATER QUALITY 51,729 - - 51,729 - - 51,729 Special Revenue Funds Total 5,007,247 9,233,079 10,002,997 611,310 4,848,639 6,784,580 6,514,997 - 5,118,222 Capital Projects Funds
300 CITY - CAPITAL PROJECTS - 497,000 497,000 - 450,000 450,000 - 354 HERCULES HUB - 360,000 360,000 - 300,000 300,000 -
295 FEDERAL GRANTS - 492,000 492,000 - - - -
296 STATE AND LOCAL GRANTS - 1,138,000 1,138,000 - 502,506 502,506 - Capital Projects Funds Total - 2,487,000 2,487,000 - - 1,252,506 1,252,506 - - CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
81 City-Wide Budget
All Funds Summary
Projected Projected Changes in Projected Adopted Adopted Changes in Projected Available Revenues/ Expenses/ Commitments/ Available Fund Revenues/ Expenses/ Commitments/ Available Fund Fund Balance Transfers In Transfers Out Reserves Balance Transfers In Transfers Out Reserves Balance FY 20-21 FY 21-22 FY 21-22 FY 21-22 FY 21-22 FY 22-23 FY 22-23 FY 22-23 FY 22-23 Debt Service Funds
672 2003B DEBT SERVICE PFA 158,687 355,934 513,000 1,621 563,316 564,937 - 673 2009 DEBT SERVICE PFA - 908,000 908,000 - 907,159 907,159 - 383 SUNTRUST LEASE - 103,000 103,000 - - - - -
388 EQUIPMENT LEASE - 227,000 227,000 - 235,896 235,896 - Debt Service Funds Total 158,687 1,593,934 1,751,000 1,621 1,706,371 1,707,992 - - Enterprise Funds
420 SEWER FUND (OPERATIONS) 11,715,650 6,053,000 6,690,801 11,077,849 6,068,734 7,009,825 (4,241,000) 5,895,758 421 SEWER FUND (CAPITAL) 751,000 - 751,000 - 132,000 132,000 - Sewer Fund Total 12,466,650 6,053,000 7,441,801 - 11,077,849 6,200,734 7,141,825 (4,241,000) 5,895,758 Internal Service Funds
450 VEHICLE REPLACEMENT FUND 591,367 148,300 523,371 216,296 153,000 220,000 149,296 460 IT OPERATING FUND 365,515 1,271,986 1,275,217 362,284 996,333 1,339,974 18,643 470 FACILITY MAINTENANCE FUND 361,695 787,000 825,191 323,504 938,955 995,631 266,828 480 IT EQUIPMENT REPLACEMENT FUND 365,516 - - - 365,516 - - - 365,516 490 FACILITY REPLACEMENT FUND 361,696 - 100,000 - 261,696 - 142,000 - 119,696 Internal Service Funds Total 2,045,789 2,207,286 2,723,779 - 1,529,296 2,088,288 2,697,605 - 919,979 Total, City Budget $24,877,785 $42,033,188 $42,700,924 ($1,681,579) $22,528,470 $36,464,366 $37,609,356 ($4,241,000) $17,142,480 Agency Funds
382 ASSMT DIST 05-01 DEBT SVC - 232,910 232,910 - 229,088 229,088 - 501 TAYLOR WOODROW MAINT LMOD 71,046 - - 71,046 - - 71,046 511 OPEB & SOMAR 2,587,849 118,000 102,000 2,603,849 120,000 104,600 2,619,249 730 HERCULES GOLF CLUB - - - - - - -
Agency Funds Total 2,658,895 350,910 334,910 2,674,895 349,088 333,688 - 2,690,295 SUCCESSOR AGENCY - 16,935,736 10,822,705 (6,113,031) - 3,635,370 3,635,370 - - Totals 27,536,680 $59,319,834 $53,858,539 ($7,794,610) $25,203,365 $40,448,824 41,578,414 ($4,241,000) $19,832,775 CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
82 Citywide Expenditures/Transfers Out
Summary by Fund Type
Expenditure Trends
Expenditures By Department
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
General Fund Operations by Department
Police $ 7,463,163 $ 7,758,261 $ 7,881,727 $ 8,367,070
Public Works 292,566 413,667 415,325 454,663
Community Development 788,933 1,039,536 827,093 933,497 Parks & Recreation 1,422,635 1,950,446 2,108,537 2,459,876 Administration 3,790,199 3,970,614 4,479,706 4,790,863
Non-Department 260,000 260,000 260,000 260,000
Transfers Out 312,037 423,542 685,934 799,212
14,329,533 15,816,066 16,658,322 18,065,181
One-time 1,992,706 2,656,276 786,025 229,250
ARPA (Loss of Revenue Calculation) - 1,085,540 850,000 - 16,322,239 19,557,882 18,294,347 18,294,431
Special Revenue, Capital and Debt
Special Revenues 5,567,090 9,611,535 10,002,997 6,514,997 Capital Projects 3,809,261 1,291,455 2,487,000 1,252,506 Debt Service 1,320,336 1,466,458 1,751,000 1,707,992
Enterprise
Sewer 6,059,337 4,228,621 7,441,801 7,141,825
Net City Budget 33,078,263 36,155,951 39,977,145 34,911,751 Internal Charges
Internal Service Funds 2,042,511 2,042,804 2,723,779 2,697,605 Total City Budget $ 35,120,774 $ 38,198,755 $ 42,700,924 $ 37,609,356 Fiduciary
Successor Agency 7,528,055 12,662,707 10,822,705 3,635,370 Other Agency 3,709,939 3,709,939 334,910 333,688
Total Organization $ 46,358,768 $ 54,571,401 $ 53,858,539 $ 41,578,414 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
FY 20-21
Actual
FY 21-22
Actual
FY 22-23
Projection
FY 23-24
Adopted
Internal Service
Sewer
Debt Service
Capital Projects
Special Revenues
General Fund
CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
83 City-wide Revenues/Transfers In
Summary by Fund Type
Revenue Trends
Revenuess By Fund
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
General Fund
Taxes $ 11,082,785 $ 13,069,061 $ 11,997,000 $ 13,006,113 Intergovernmental 2,285,392 2,391,327 2,511,000 2,561,220 Fines & Forefeitures 36,586 48,663 38,000 38,760
Program Revenues 1,344,575 1,933,195 1,650,000 1,640,395 Use of Money & Property 511,188 347,905 286,000 292,320 Cost allocated to other departments 602,677 624,568 684,000 736,352 Transfers In 150,000 396,816 150,000 156,727
16,013,203 18,811,535 17,316,000 18,431,887
One-time 600,750 1,431,000 - -
ARPA (Loss of Revenue Calculation) - 3,142,889 3,142,889 - 16,613,953 23,385,424 20,458,889 18,431,887
Special Revenue, Capital and Debt
Special Revenues 5,530,737 8,715,136 9,233,079 6,784,580 Capital Projects 4,738,226 740,531 2,487,000 1,252,506
Debt Service 1,254,278 1,406,663 1,593,934 1,706,371
Enterprise
Sewer 5,773,932 5,694,960 6,053,000 6,200,734
Net City Budget 33,911,126 39,942,714 39,825,902 34,376,078 Internal Charges
Internal Service Funds 2,061,127 1,562,958 2,207,286 2,088,288 Total City Budget $ 35,972,253 $ 41,505,672 $ 42,033,188 $ 36,464,366 Fiduciary
Successor Agency 12,585,089 12,268,134 16,935,736 3,635,370 Other Agency 3,973,269 (42,960) 350,910 349,088
Total Organization $ 52,530,611 $ 53,730,846 $ 59,319,834 $ 40,448,824 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
FY 20-21
Actual
FY 21-22
Actual
FY 22-23
Projection
FY 23-24
Adopted
Internal Service
Sewer
Debt Service
Capital Projects
Special Revenues
General Fund
CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
84 City-wide Budget
Summary of Transfers
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Transferred From (Sender) Transferred To (Receiver)
Fund Name Fund No. Fund Name Fund No.

General Fund 100 Capital Projects 300 $0 $450,000 $22,000 $0 General Fund 100 Capital Projects 300 - 1,085,539 850,000 - General Fund 100 SunTrust Lease 383 205,099 205,099 103,000 - General Fund 100 OPEB Liability 511 60,000 60,000 60,000 60,000 General Fund 100 2003B Debt Service PFA 672 106,938 - 355,934 563,316 General Fund 100 2009 Debt Service PFA 673 1,269,542 - - - General Fund 100 Asset Seizure 101 - - - -
General Fund 100 Equipment Lease (Solar Project) 388 - 218,444 227,000 235,896 AB 3229 COPS Program 201 General Fund 100 150,000 150,000 150,000 156,727 Landscape & Lighting District 83-2 220 Arterial Roadways 225 - 26,800 - - Landscape & Lighting District Victoria by the Bay 2002-1 221 Arterial Roadways 225 23,792 26,800 27,200 28,016 Landscape & Lighting District Hercules Village 2002-2 222 Arterial Roadways 225 6,487 7,100 7,500 7,725 Landscape & Lighting District Baywood 2004-1 223 Arterial Roadways 225 2,289 2,400 2,700 2,781 Landscape & Lighting District Bayside 2005-1 224 Arterial Roadways 225 15,587 17,600 18,500 19,055 Stormwater Assessment 231 General Fund 100 - - - -
Landscape & Lighting District 83-2 (Zone 1) 232 Arterial Roadways 225 22,770 - 26,100 26,100 Landscape & Lighting District 83-2 (Zone 2) 233 Arterial Roadways 225 18,021 19,500 20,600 21,218 Landscape & Lighting District 83-2 (Zone 3&4) 234 Arterial Roadways 225 24,475 26,500 28,000 28,840 Landscape & Lighting District 83-2 (Zone 5A) 235 Arterial Roadways 225 17,980 19,500 20,600 21,218 Landscape & Lighting District 83-2 (Zone 5B) 236 Arterial Roadways 225 10,030 10,100 11,500 11,845 Landscape & Lighting District 83-2 (Zone 5C) 237 Arterial Roadways 225 9,776 10,600 16,100 16,583 Landscape & Lighting District 83-2 (Zone 6) 238 Arterial Roadways 225 21,408 23,200 24,500 25,235 Landscape & Lighting District 83-2 (Zone 7) 239 Arterial Roadways 225 27,677 30,000 31,700 32,651 Landscape & Lighting District 83-2 (Zone 8) 251 Arterial Roadways 225 45,162 48,900 51,600 53,148 Landscape & Lighting District 83-2 (Zone 9) 253 Arterial Roadways 225 23,913 25,900 27,400 28,222 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 10) 220 31,013 21,528 21,952 22,391 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 1) 232 1,290 845 871 888 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 2) 233 704 615 617 629 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 3&4) 234 772 761 891 909 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5A) 235 811 958 1,236 1,261 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5B) 236 252 271 277 283 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5C) 237 168 176 261 266 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 6) 238 235 640 631 644 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 7) 239 1,313 614 649 662 CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
85 City-wide Budget
Transfers
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Transferred From (Sender) Transferred To (Receiver)
Fund Name Fund No. Fund Name Fund No.

State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 8) 251 1,939 1,884 1,966 2,005 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 9) 253 1,084 1,024 1,077 1,099 State Gas Tax 262 Landscape & Lighting District Victoria by the Bay 2002-1 221 7,991 9,230 10,047 10,248 State Gas Tax 262 Landscape & Lighting District Hercules Village 2002-2 222 3,224 3,874 3,982 4,062 State Gas Tax 262 Landscape & Lighting District Baywood 2004-1 223 2,750 2,515 2,613 2,665 State Gas Tax 262 Landscape & Lighting District Bayside 2005-1 224 1,442 1,634 2,284 2,330 State Gas Tax 262 Arterial Roadways 225 - - - -
Measure "C" Street Fund 263 Arterial Roadways 225 - - - - Solid Waste and Recycling 291 Stormwater Assessment 231 124,237 125,000 125,000 125,000 City Capital Projects 300 General Fund 100 - 246,816 - - City Capital Projects 311 Federal Grant 295 63,441
American Rescue Plan Act (ARPA) 353 General Fund - Loss of Revenue Component 100 - 3,142,889 3,142,889 - Sewer - Operation 420 Sewer - Capital 421 - - - 132,000 Facility Maintenance 470 BART Park & Ride 266 440,643 - - - $2,680,814 $6,088,697 $5,399,177 $1,645,918
CITYWIDE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
86 DEPARTMENT SUMMARIES
87 DAN ROMERO
Vice Mayor

CITY COUNCIL

CITY COUNCIL

KEY PRIORITIES
2023-24:

Multiyear Goals
• Multimodal station
(RITC - Renamed the
Hercules Hub)
• Grow retail
and commercial
development to serve
the community
• Long-term financial
plan
Workplan Categories
include: Prudent
Financial Management,
Traffic, Transportation
& Infrastructure, Public
Safety, Quality Of Life,
and Future Planning &
Policy Initiatives.

The five members of the City Council are elected at-large by the voters of Hercules, with one of the Council Members selected each year to serve as Mayor by their colleagues. Their primary responsibilities are to establish public policy, enact ordinances, adopt an annual budget for each fiscal year, and take other actions which guide and determine how to best provide services and enhance the quality of life in Hercules.

The City Council typically meets the second and fourth Tuesday of for their regular meetings, with special meetings called as needed, and this provides the primary means to hear from the City’s residents and other stakeholders. Another important role is that Council Members represent the City on a number of regional boards and agencies including the WestCAT, the West Contra Costa Transportation Advisory Committee, the West Contra Costa Regional Integrated Waste management Authority, the Contra Costa Mayors Conference, the Association of Bay Area Governments, and the League of California Cities, among others.

As the City’s main policy making body, the City Council is charged with guiding the City towards the realization of the Vision for our community as established in the current Strategic Plan:

The City of Hercules is a richly diverse community, serving as a major transportation hub and a prime destination for the Bay Area.

It is built on a sound economic and physical infrastructure, and its residents enjoy public safety, security, well-maintained parks, streets and public facilities. We conduct our work in an atmosphere of trust and respect. We constantly look for better ways to deliver services and always strive for excellence.

ALEXANDER

WALKER-GRIFFIN
Mayor
CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

TIFFANY GRIMSLEY
Council Member

CHRIS KELLEY
Council Member

DION BAILEY
Council Member
88 CITY COUNCIL

STRATEGIC WORKPLAN

CITY COUNCIL

PRUDENT FINANCIAL

MANAGEMENT
• Develop a Structurally
Balanced and Sustainable
Operating Budget and
Forecast that supports
financial sustainability for
the future.
• Develop a Robust Capital
Improvement Plan (CIP)
Improve the capital financial
planning tool for short- and
long-range funding.
• Economic Development
Continue business
programs that increase
support for local economy.
• Explore New Revenue
Opportunities

TRAFFIC,

TRANSPORTATION &

INFRASTRUCTURE
• Hercules Hub will achieve
the vision of the Hercules
Bayfront as a model transitoriented community.
• Major Sewer system
Improvements making
progress on the City’s
adopted Sewer Master Plan.
• Pavement and Road
System Improvements
includes the Pedestrian
Sidewalk Improvement
Willow and Palm, street
repair project, sidewalk
repair program, and
restriping project.
• Deferred Maintenance of
City Facilities

PUBLIC SAFETY
• Community Policing –
Building better relationships
between Police Dept. and
residents, and decreasing
high levels of calls for
service.
• Code Enforcement
Continue to work with
owners, and property
managers to enforce
established City codes.
• Urban Forest
Management
• Emergency Preparedness
The City’s Emergency
Operation Plan provide the
community with effective
preparation should an
emergency occur.

QUALITY OF LIFE
• Community Engagement
strategies to better engage
and communicate with our
community.
• Diversity, Equity &
Inclusion Renewing the
City’s focus on diversity,
equity, and inclusion.
• Environmental
Sustainability Implement
policies and projects that
reduce greenhouse gasses
and comply with state
environmental mandates.

FUTURE PLANNING &

POLICY INITIATIVES
• Land Use Planning
Reviewing and amending
City General Plan Elements,
zoning codes, and policies,
including the adoption of
the new Housing Element.
• Parks Systems Master
Plan will provide data to
take a proactive approach
over the next decade in
addressing aging park
facilities, responding to the
need for inclusive parks,
and anticipating future
recreation needs.

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
89 City Council
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures By Type
Salaries & Benefits 77,546$ 69,425$ 69,645$ 69,943$
Contractual Services 72,551 80,716 42,000 43,260
Other Operating Costs 26,333 33,041 38,000 45,550
Cost Allocation 231,158 183,114 209,000 176,924
Capital Outlay - - - -
Debt Service - - - -
407,588$ 366,296$ 358,645$ 335,677$
Expenditures By Fund/Program
General Fund 407,588$ 366,296$ 358,645$ 335,677$
Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY COUNCIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
90 CITY MANAGER

CITY MANAGER
CITY MANAGER’S

KEY PRIORITIES
FOR FY 23-24:
• To align Council’s
priorities, ongoing
programs, projects
and activities with
the budget, and staff
resources.
• Develop a workplan
to accomplish
Council’s goals.
• The workplan
consists of five
categories, Prudent
Financial Management,
Traffic, Transportation
& Infrastructure, Public
Safety, Quality Of Life,
and Future Planning &
Policy Initiatives.

The City Manager is appointed by and serves at the pleasure of the City Council and is responsible for implementing the policy direction provided by the City Council as given in City Council meetings based on the recommendations made by the City Manager and his staff, providing leadership to the City organization and employees, fostering a level of community engagement, and keeping the community informed through a variety of means.

The City Manager also works with the City Council in regard to their regional and other agency assignments and support the City Council in the City’s legislative advocacy efforts.

As the City’s Chief Executive Officer, the City Manager responsible for ensuring the City organization is focused on meeting the Mission as defined Strategic Plan:

Our mission is to lead our diverse community and enhance the quality of life in the City of Hercules, now and in the future. We do this by providing effective, efficient, responsive, and innovative services with integrity and a culture of transparency.

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
91 CITY MANAGER

CITY MANAGER
WORKPLAN HIGHLIGHTS:
• Utilize sound budgeting practices
and recommend a balanced budget,
including using all budgeting tools
in the annual budget cycle to ensure
a fiscally prudent approach which
sets the stage for long term financial
sustainability, strategically utilizes
reserves, and provides enhanced
information to assist decision makers.
• Identify and pursue grant
opportunities for the Hercules
Regional Intermodal Transportation
Center, including working with our
regional partners, advancing the design
of the next phases to ensure they are
shovel ready, and building support for
the project among key constituencies.
• Focus on Public Safety includes
Community Policing to build better
relationships with residents, Code
Enforcement to improve conditions
and decrease hazards, Urban Forest
Management to manage trees in City’s
open space and arterials along the
wildland/urban interface, and Emergency
Preparedness focusing on the City’s
Emergency Operation Plan in order to
provide the community with effective
preparation should an emergency occur.
• Enhancing the Quality of Life includes
renewing the City’s focus on Diversity,
Equity, and Inclusion, exploring and
implementing policies that improve
Environmental Stability, and continued
Community Engagement to better
engage and communicate with
the public with town hall meetings,
newsletters, social media, and other
methods.
• Land Use Planning includes reviewing
and amending City General Plan
Elements, zoning codes, and policies as
needed, including the adoption of the
new Housing Element.
• The Parks Master Plan will provide the
information for the City that is needed
to take a proactive approach over
the next decade in addressing aging
park facilities, responding to the need
for inclusive parks, and anticipating
the future recreation needs of the
community.

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
92 ADMINISTRATIVE SERVICES CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

HUMAN RESOURCES
In support of the City’s principles, values and vision, it is the goal of the Human Resources Department to support the total operation in meeting its goals through its most valuable resource – its people.

The Human Resources office strives to develop an attitude of teamwork and quality in our day-to-day operations; create an atmosphere that fosters challenges, fun and safety; and commit to doing and to acting openly, equitably and consistently in our pursuit of uncompromising quality.

OBJECTIVES:

To act as a catalyst
to enable all
City of Hercules
employees to contribute
at optimum levels
toward the success of a
greater community by:
• Attract and retain a
highly qualified, diverse
workforce.
• Offering a competitive
salary and benefits
package and developing
the full potential of
our workforce by
providing training and
development for career
enhancement.
• Foster amicable
employee/labor
relations.
• Promote employee
safety, wellness, high
productivity and
performance.
• Ensure compliance
with laws and regulations
• Maintain consistency
and fairness when
implementing and
administering policy
decisions and direction.

COUNCIL STRATEGIC GOAL
Provide a means for employees to report concerns of possible wrong doing (whistle-blowing).
• The City maintains a whistleblower hotline through a third party and regularly makes that information available to employees.

Continue a formal volunteer program to help various departments. • The Police Department makes good use of volunteers in a variety of roles with two volunteers added to the roster recently.

A cadre of Police volunteers is also now working in support of our voluntary code compliance efforts to enhance the community.

Volunteers were utilized in the recent upgrades at the Ohlone and Foxboro community Centers. In Parks & Recreation volunteers support a variety of events and activities.
93 ADMINISTRATIVE SERVICES CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

RISK MANAGEMENT
Risk Management is a unit under the Administrative Services Department. The Administrative Services Director works with Departments to eliminate or mitigate potential risk and preserve public property, as well as manage the City’s Workers’ Compensation Program.

The City is a member of the Municipal Pooling Authority (“MPA”), a joint powers agency that is governed by a board of member municipalities. The City’s deposits with the Municipal Pooling Authority are in accordance with formulas established by the Municipal Pooling Authority. Actual surpluses or losses are shared in accordance with a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

COUNCIL STRATEGIC GOAL
OBJECTIVES:
• Preservation of the
City’s assets and public
service capabilities
from loss, destruction
and depletion.
• Systematized
internal procedures
for identifying and
constantly reassessing
the fluctuating
exposures to risk, and
implementing courses
of action to minimize
or eliminate that risk.
• The establishment,
to the extent possible
of an exposure-free
work and service
environment in which
the City personnel and
members of the public
can enjoy safety and
security in the course
of their daily pursuits.
• Protection against
the financial
consequences of
catastrophic loss
through avoidance,
risk transfer, and/or
purchased insurance.

Reduce exposure to litigation and claims.
• The City has been successful in reducing claims and litigation over the past few years. Efforts to continue this trend include updates to the city’s standard form of contracts and the development of specialty contract models, the investment of monies to address key infrastructure issues like the maintenance of trees and the filling of major potholes. However, the more recent period has seen an uptick in claims and possible litigation.
94 ADMINISTRATIVE SERVICES CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

INFORMATION TECHNOLOGY
Information Technology is responsible for overseeing the technology infrastructure and daily needs of the City. Information Technology utilizes information and communications technology to design, select, and implement a variety of technology solutions that assist the City and all City departments with providing services and meeting strategic goals promoting technological and telecommunication growth.

The Information Technology department collaborates with all city departments and provides support for all network users and mobile devices, as well as maintenance of data centers, server networks, switches, routers, and software applications.

COUNCIL STRATEGIC GOAL
OBJECTIVES:
• Provide
technological desktop
computer support to
City staff within four
hours of request.
• Maintain and support
approximately 40
software applications,
including those
specific to public
safety services.
• Implement upgraded
software applications
as required.
• Maintain connectivity
among network
routers, switches,
and devices to
ensure availability
and reliability for City
staff and external
customers.
• Implement and
maintain servers for
new applications.
• Implement
the prioritized
recommendations
from the IT Capital
Project Plan.

Complete an equipment
replacement plan with a rationale,
schedule and budget.
• While equipment replacement
is on-going and considered as
part of the annual budget process
each year, a more formalized
replacement plan still needs to be
developed.

Evaluate IT Systems, especially
financial management to determine
possible improvements.
• A new web site was launched.

Improvements needed to
recommence cable broadcasets
was also completed. Software
upgrades to the cloud will be
completed in FY20-21 to the City’s
financial software application as well
as software upgrades to the cloud
for the RecTrak software application.

New citywide computer and
hardware upgrades are scheduled
for completion in FY20-21 as well.

Consider new ways to deliver
municipal services in more costeffective ways.
• The city looks for opportunities
on an on-going basis. In February
2019 the City recommenced cable
broadcast of City Council and
Planning Commission meetings
through the County CCTV services.
95 City Manager
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures By Type
Salaries & Benefits 801,063$ 830,402$ 938,233$ 969,078$ Contractual Services 1,407,342 1,667,701 1,803,384 2,121,036 Other Operating Costs 41,168 204,783 94,440 94,684
Cost Allocation 202,595 221,704 209,000 215,079
Capital Outlay 68,391 323,262 316,000 300,000
Debt Service - - - -
2,520,559$ 3,247,852$ 3,361,057$ 3,699,877$
Expenditures By Fund/Program
General Fund
City Manager 360,115$ 460,216$ 494,705$ 503,429$
Risk Management 1,081,116 1,046,660 1,266,049 1,468,039 Information System - 49,617 - -
Human Resources 241,725 321,921 325,086 388,435
1,682,956 1,878,414 2,085,840 2,359,903
Internal Service Fund
IT Equipment Replacement 837,603 1,369,438 1,275,217 1,339,974 2,520,559$ 3,247,852$ 3,361,057$ 3,699,877$
Expenditure Trends
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY MANAGER CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
96 The Office of the City Clerk provides legislative support to the Mayor and City Council and standing committees; conducts all municipal elections; administers the citywide records retention schedule and off-site storage contract; administers the board/ commission process. The City
Clerk is the information resource
for the community, City Council,
and City Staff. As the Clerk to
the City Council, the City Clerk
prepares and distributes the
agendas for the City Council.

The City Clerk is the local official
who administers democratic
processes such as municipal
elections, access to city records,
and all legislative actions ensuring transparency to the public. The City Clerk acts as a compliance officer for federal, state, and local statutes including the Political Reform Act, the Brown Act, and the Public Records Act. The City Clerk manages public inquiries and relationships and arranges for ceremonial and official functions.

CITY CLERK CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

CITY CLERK

COUNCIL STRATEGIC GOALS
OBJECTIVES:
• To ensure open
access to information,
documents, and the
legislative process.
• To ensure fair and
impartial elections.
• To maintain the official
record of all City Council
proceedings.
• To develop and maintain
on-going efforts that
increase transparency in
city government.
• Perform other State and
municipal statutory duties.

Continue to enhance transparency and
open government
• The city has resumed cable broadcast of City Council
and Planning Commission meetings. The City also now
has a presence on Facebook and Nextdoor and posts
regularly.

Foster an ethical environment free from
conflicts of interest
• The City Council has adopted a Code of Ethics which
is reviewed annually and an annual acknowledgment
of the policy is required for City Council Members,
Commission Members and staff.

Enhance access to information (sunshine
provision)
• The City’s website is a key vehicle for enhanced access to information; together with our increased social media presence.
• Conduct annual review and update of anti-nepotism,
anti-cronyism, conflict of interest, and Code of Ethics. • The City Council conducts an annual review of these
policies every January.

Provide training to Commissions
• The City Clerk & City Attorney undertake annual
training for Boards and Commissions, with that having
taken place each year.
97 City Clerk
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures By Type
Salaries & Benefits 258,156$ 184,120$ 253,654$ 275,808$ Contractual Services 61,531 74,956 120,300 123,909
Other Operating Costs 13,823 31,117 33,350 34,351
Cost Allocation 104,147 76,876 81,000 75,966
Capital Outlay - 35,514 10,000 10,300
Debt Service - - - -
437,657$ 402,583$ 498,304$ 520,334$
Expenditures By Fund/Program
General Fund
City Clerk 396,495$ 351,177$ 461,004$ 481,915$
Outreach 355 363 300 309
Cable TV 40,807 51,043 37,000 38,110
437,657$ 402,583$ 498,304$ 520,334$
Expenditure Trends
-
100,000
200,000
300,000
400,000
500,000
600,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY CLERK CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
98 CITY ATTORNEY

CITY ATTORNEY

KEY PRIORITIES
2023-24:
• Provide highquality legal services
in a cost-effective
manner
• Develop and
recommend
strategies to reduce
legal risk and
exposure to liability
• Work to minimize
litigation exposure
and resolve litigation
in an effective
manner
• Effectively manage
special counsel
contracts and
services
Appointed by the City Council as the City’s chief legal advisor, the City Attorney provides all legal services and advice to the City Council, Commissions, and staff. The City Attorney represents the City in all litigation, and manages any special counsel services, including when used for litigation. Elements of the City’s risk management efforts and claims administration are also handled by the City Attorney.

Serving as the City’s legal counsel, the City Attorney contributes to the City’s overall operation in a multiplicity of service areas and in support of all Strategic Plan goals, and in particular Goal H and two related strategies:

Continue to Provide Exemplary Governance and City
Administration
Strategy 1: Improve administrative processes and overall quality of executive and administrative management.

Strategy 3: Provide and enhance exemplary governance.

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
99 • Perform all requested legal work
and review and prepare required
documents and contracts in a
timely manner, including ordinances,
resolutions, legal opinions, and contracts
and agreements.
• Provide the City Council with regular
litigation and claims updates, including
assessment of success, liability, and
advise as to how to best manage and
respond to pending or active litigation
and claims.
• Review all agenda items, staff
reports, and related attachments for
consideration by the City Council, and
Commissions as needed, including
assessing and ensuring compliance
with law and best practices from a
legal perspective, approving required
documents as to form, advising staff and
the City Council on those matters.
• Facilitate the City’s public
improvements and private
development projects through ongoing support of these activities, including consideration by the Planning
Commission and City Council of private
development, preparation and award
of bids for public projects, assisting
with contract award and management,
resolution of legal issues which may
arise, and close-out of completed
projects and assisting with any claims
which may arise.
• Identify on a pro-active basis any
opportunities to avoid exposure to
legal risk or concerns and take steps to
do so, including regularly consulting with
the City Council, City Manager, and staff
on up-coming projects and activities,
monitoring the changing legal landscape
and new case law, and engaging with a
variety of stakeholders to better assess
areas of possible concern.

CITY ATTORNEY

CITY ATTORNEY
WORKPLAN HIGHLIGHTS:

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
100
City Attorney
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures By Type
Salaries & Benefits -$ -$ -$ -$
Contractual Services 154,562 209,134 273,000 281,190
Other Operating Costs - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
154,562$ 209,134$ 273,000$ 281,190$
Expenditures By Fund/Program
General Fund 154,562$ 209,134 273,000$ 281,190$
Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Contractual Services
CITY ATTORNEY CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 101

FINANCE

FINANCE

KEY PRIORITIES
2023-24:
• Structurally Balanced
Operating Budget.
• Ensure on-going
revenues support ongoing costs
• Robust Five-year
Operating and Capital
Improvement Plan
• Update or establish
written documentation
for various finance
policies and
procedures.
• Implementation of a
Financial Monitoring
Tool to assist in budget
monitoring.

The Finance Department is responsible for providing the City, and its agencies (including the Successor Agency and the Public Financing Authority), with the fiscal oversight and controls necessary to ensure sound financial management. The Department oversees budgeting, accounting, revenue collection, and protection of city-wide assets. The Department is responsible for managing the City’s fiscal resources in a prudent and effective manner and undergoes an external audit every year. The Department also provides internal support for all city departments and reporting services to enhance accountability and assist with strategic planning and decision-making. The Department is committed
to providing financial information in a timely manner and to providing positive customer service to both external and internal customers.

The Department is also responsible for the coordination and completion of the annual audit for all City funds, and related audits for Wastewater fund, federal funds, Measure B (Additional Sales Tax) and N (Utility Users Tax).

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
614 647 664 734 665 819
995 971

OPERATING INDICATORS
Number of Business Licenses Issued
2013 2014 2015 2016 2017 2018 2019 2020 2021
City of Hercules, Last Ten Fiscal Years
1,103
2022
1,184
102

FINANCE
• The Budget document has been
awarded the Distinguished Budget
Presentation Award from Government
Finance Officers Association (GFOA).

This award is the highest form of
recognition in governmental budgeting.
• Enforces and monitors the General
Fund Reserve and Fund Balance
Policy that reflects best practices and
prudently protects the fiscal solvency of
the City.
• Timeliness, accuracy, and
transparency in financial reporting
is an important City goal. The
Department continues to provide
timely delivery of the Basic Financial
Statements, in which the independent
auditor issued a clean opinion last fiscal
year. The Department continues to
promptly deliver budget, financial and
investment updates to the City Council,
Finance Committee, and the public.
• The Department continues to
proactively address delinquent
accounts through its audit and
collection efforts to maximize City
collections and cash flow.
• The Department continues to focus
on the City Council strategic goal of
fiscal sustainability. The Long-Range
Financial Plan is one of those efforts
that enables the City to understand the
long-term fiscal effects of its decisions
and to plan for future challenges like
CalPERS cost increases and recessions.

FINANCE
WORKPLAN HIGHLIGHTS:

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
103
Finance
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures By Type
Salaries & Benefits 551,713$ 522,414$ $ 591,130 630,604$ Contractual Services 231,660 298,864 310,400 284,000
Other Operating Costs 196,264 244,255 221,000 263,000
Cost Allocation 126,387 36,902 161,000 144,566
Capital Outlay - - - -
Debt Service - - - -
1,106,024$ 1,102,435$ $ 1,283,530 1,322,170$
Expenditures By Fund/Program
General Fund $1,106,024 $1,102,435 $1,283,530 $1,322,170 Expenditure Trends
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Debt Service
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
FINANCE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
104
POLICE
POLICE

COMMUNITY

SERVICE
We focus on being
professional and
compassionate while
committing to public safety.

Our mission is to serve our
community with honor
and create community
partnerships though
positive and transparent
engagement. We adhere
strictly to our core values
of loyalty, duty, respect,
service, humility, integrity,
and perseverance ...

LDRSHIP.

We maintain a caring
attitude and empathize
with those we serve. We
welcome and seek an
active partnership with the
community in carrying out
our responsibilities.

We recognize that to be an
effective law enforcement
agency we must have the
support, confidence, and
trust of our community. We
work diligently to be a part
of this community and not
apart from it.

The Hercules Police Department has
27 sworn officers and 4 non-sworn
full-time positions within numerous
operating units and Divisions, including
Patrol, Investigations, Traffic, Records
and Property and Evidence.

The HPD is responsible for protecting
the City’s residents, property owners,
and businesses by patrolling 10.6 square
miles of Hercules using cars, bicycles,
and motorcycles.

The Department fosters a problemsolving, community policing philosophy, and works collaboratively with policy
makers, the City Manager’s Office, and
the community to address problems of
crime and property damage.

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

OPERATING INDICATORS
Calls for Service Hercules Police Department Last Ten Fiscal Years 2011 2020 2011 2020 2011 2020
2013 2014 2015 2016 2017 2018 2019 2020
12,309 12,550 1,843 7,707 13,142 16,245 16,918 29,935
2021 2022
25,784 26,071
0 500
1000
1500
2000
2500
Part 1 & 2
Crimes
Arrests Trac
Violations
1,000 636
573
620
2,100
588

CONTACT INFORMATION
Phone: (510) 799 8260
Office Address:
111 Civic Drive,
Hercules CA, 94547
Office Hours: M-TH, 8 AM-5
PM
Website: ci.hercules.ca.us
Facebook: Hercules Police
Department
105
POLICE
POLICE

RESPOND TO PRIORITY ONE
and non emergency calls for service within
designated time frames.

INCREASE EFFORTS
in traffic enforcement to reduce the number of
collisions and traffic violations.

RESPOND QUICKLY
and effectively to community generated complaints.

PROVIDE EFFICIENT COMMUNICATION
through the use of technology and social media

CREATIVE COMMUNITY EVENTS
to build positive relationships with our community
which instills trust in our department.

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
• We will continue to provide traffic
safety, enforcement, and education
services to the community
• We will continue to
coordinate disaster
preparedness with
Fire, Emergency
Medical Services and
the County and State
Office of Emergency
Services.
• Critical training for all Department
personnel will continue to be provided
including Crisis Intervention Team
(CIT), De-Escalation Tactics, Procedural
Justice, and Racial Profiling.
• Parolees, probationers, and
registered sex offenders living within
Hercules will continue to be strictly
monitored.
• We will continue to seek Federal,
State, and other funding to enhance
staffing and equipment.

WORKPLAN HIGHLIGHTS:
1 2
3 4
6 RECRUIT, HIRE AND DEVELOP
qualified men and women from a diverse community
to maintain high levels of service to the community.
5 106
Police
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Proposed
Expenditures By Type
Salaries & Benefits 5,716,011$ 5,819,191$ 6,258,997$ 6,632,048$ Contractual Services 876,397 899,422 694,000 743,220
Other Operating Costs 480,512 265,609 284,000 310,170
Cost Allocation 702,012 724,608 813,000 790,179
Capital Outlay - 78,639 30,000 -
Debt Service - - - -
7,774,932$ 7,787,469$ 8,079,997$ 8,475,617$
Expenditures By Fund/Program
General Fund
Administration/Inspection/Support 3,913,658$ 3,665,813$ 3,388,800$ 3,443,240$ Patrol 3,635,370 4,093,691 4,596,197$ 5,032,377
7,549,028 7,759,504 7,984,997$ 8,475,617
Asset Forfeiture 225,904 27,965 95,000$ -
7,774,932$ 7,787,469$ 8,079,997$ 8,475,617$
Expenditure Trends
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
POLICE CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
107

COMMUNITY DEVELOPMENT

COMMUNITY DEVELOPMENT

KEY PRIORITIES
2023-24:
• Implementing a
staffing plan to provide
sustainable, effective and
efficient Core Services,
including processing of
development applications
and building permits.
• Advancing the next
phases of the Hercules
Regional Intermodal
Transportation Center.
• Expanding the City’s
tax base through quality
development, including
Owl Ranch, the Bayfront
project, Sycamore
Crossing, and the North
Shore Business Park.
• Revisiting the City’s
zoning ordinance and
other policies and
updating as needed to
comply with Council
direction and state laws
and mandates.
• Ensuring successful
implementation of
remaining development
opportunities, including
establishing long-term
plans for managing shared
parking for the Bayfront
project.

The Community Development Department provides information and advisory services to decision makers and the public regarding the growth and development of the community to ensure balanced and appropriate land use. The Community Development Department processes development applications in accordance with the City’s adopted General Plan and zoning ordinance, maintains and updates the City’s codes, General Plan and other long-range plans, and provides staff support to the City Council and Planning Commission as well as other City departments. In addition, the Community Development Department responds to public inquiries regarding zoning, land use, use permits, and development standards. The Community Development Department is also responsible for fostering the City’s economic development, including business assistance grants and incentives. Community Development includes the Planning, Building, and Code Enforcement Divisions, which ensure the safety of the citizens of Hercules through enforcement of state and local codes, standards, and regulations. The Department works diligently to ensure that all new construction meets the standard of construction required by the codes and that all existing structures are maintained in a safe condition.

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

OPERATING INDICATORS
Number of Building Permits issued
631 622 672 782 778 756 811
675
1,016
2013 2014 2015 2016 2017 2018 2019
City of Hercules, Last Ten Fiscal Years
2020 2021 2022
944
108

COMMUNITY DEVELOPMENT
• Ensure the successful build-out
of the Waterfront Master Plan and
the Bayfront, including guiding
the construction and entitlement
components of each phase, forming
the Waterfront Parking entity, and
working with the developer to ensure
a vibrant and model transit-orienteddevelopment results.

Maintain a safe and attractive
community, including enforcing
the City’s codes and ensuring new
development adds to the overall quality
of the community.

Identify and pursue grant
opportunities for the Hercules Hub,
including working with our regional
partners, advancing the design of
the next phases to qualify for further
funding, and building support for the
project among key constituencies.

Hire a Senior Planner to assist the
Director with complex planning
projects, manage development review
and permitting, and assist with staffing
regional committees and work groups.

Expand the City’s Tax Base through
new development, including
facilitating the start of construction of
the approved hotel at the Sycamore
Crossing development, and identify and
pursue other opportunities to attract
new businesses to Hercules.

Enhance the City’s economic base,
including developing and managing
business incentive, assistance, and
attraction programs, with an emphasis
on attracting restaurants, cafés and
other uses that expand the City’s tax
base as well as its vibrancy.

COMMUNITY DEVELOPMENT
WORKPLAN HIGHLIGHTS:

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
109
Community Development
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures By Type
Salaries & Benefits 348,918$ 352,494$ 401,497$ 587,414$ Contractual Services 73,011 348,068 330,000 258,660
Other Operating Costs 287,052 347,486 16,000 16,480
Cost Allocation 87,478 83,810 87,000 82,777
Capital Outlay 2,444 - 60,000 -
Debt Service - - - -
798,903$ 1,131,858$ 894,497$ 945,331$
Expenditures By Fund/Program
General Fund 792,456 1,039,919 834,497 945,331
DIF-Public Facilities (1,285) - - -
Community Development Fund - - - -
Development Fee (1,285) - - -
DIF-Police Facilities 2,444 - 60,000 -
DIF-Fire Facilities 829 - - -
DIF-Park & Recreation - - - -
Public Benefit Fee - - - -
DIF-Traffic Facilities - 91,939 - -
STMP Traffic Impact 5,744 - - -
798,903$ 1,131,858$ 894,497$ 945,331$
Expenditure Trends
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
COMMUNITY DEVELOPMENT CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 110

PUBLIC WORKS

PUBLIC WORKS

KEY PRIORITIES
2023-24:
• Continue to
aggressively pursue
grant funding for the
City’s CIP projects
• Advance the
Hercules RITC
• Effectively manage
day-to-day operations
to ensure Hercules
keeps its reputation as
a well-maintained City
• Expedite
processing of private
development projects
• Utilize Capital
Reserve funding
to improve public
infrastructure
• Increase oversight
of City-wide public
facilities
The Public Works Department constructs, maintains, and operates the City’s public infrastructure including streets, sidewalks, traffic signals, bridges, streetlights, storm drain system, stormwater basins, creeks, sewer collection system, landscaping, parks, urban forest, and public buildings.

The Department is staffed with 12 employees and is organized into two Division overseen by the Public Works Director/City Engineer who reports to the City Manager.

The Engineering Division administers the City’s Capital Improvement Program including grant funding, reviews and inspects grading and public improvements on private development projects, reviews traffic engineering, and administers the City’s Clean Water Program. The Division also responds to public inquiries, administers the sewer lateral certification program, and issues encroachment permits, grading permits, and wideload permits. The Division consists of 2 employees, an Assistant Engineer and Public Works Inspector, in addition to the City Engineer.

The Maintenance & Operations Division maintains the City’s public parks, landscape medians, streets, sidewalks, urban forest, infrastructure and public facilities. This division makes certain that the stormwater and wastewater discharged into San Pablo Bay is clean through the City’s Creek and Stormwater Basin Maintenance Program, Storm Drain Maintenance Program, Street Sweeping Program and Sanitary Sewer Program. In addition, the Public Works Division eliminates safety hazards with the City’s Fire Break Program in open spaces, Tree Trimming Program in parks and streets. The Division also administers the City-wide Lighting and Landscaping Assessment Districts, abates graffiti, and cleans up illegal dumping. It is staffed with a Maintenance Superintendent and 7 Maintenance Workers.

A Management Analyst reporting directly to the Public Works Director/City Engineer provides administrative support to the Department on budgeting, managing grant funding, contract, processing invoices, and other related office support.

CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
111

PUBLIC WORKS

PUBLIC WORKS
CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
The Public Works Department supports the
achievement of all Strategic Plan goals, and in
particular:

Goal D: Enhance Transportation Access and
Options
Strategy 1: Promote Alternative Forms of Transit
Goal G: Invest In and Enhance Maintenance of
Public Infrastructure and Facilities
Strategy 1: Re-evaluate and Make
Recommendations to Improve the City’s Capital
Improvement Programs, Clean Water Programs and
all Lighting and Landscaping Assessment Districts.
• Implement first year recommendations
of Parks Master Plan, Pavement
Management Plan, and Facilities Master
Plan
• Advance the Capital Improvement
Program, including the $14M Sycamore
Sewer Trunk Main Replacement Project,
$1.4M Willow/Palm Sidewalk Installation,
and Park Improvement Projects
throughout the City and $1.15M Design
Contract for the RITC.
• Facilitate the successful completion
of the Sycamore Crossing Project with
Hotel, including roadway improvements
and utility relocations.
• Utilize Capital Reserve funding to
enhance the public infrastructure
• Increase focus on Maintenance &
Operations organizational development
and training, including cross training on
core equipment such as the backhoe and
operation of sewer lift stations and HVAC
systems in buildings.

WORKPLAN HIGHLIGHTS:

The Public Works inventory includes:
58 miles
of city streets
1,494
street and
parking lot
features
14 traffic signals
7 miles
of bike lanes
62 miles
of sanitary sewers
112
Public Works
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Proposed
Expenditures By Type
Salaries & Benefits $ 2,133,274 $ 2,164,978 $ 2,417,277 $ 2,555,911 Contractual Services 3,230,653 2,493,577 3,001,440 3,346,379 Other Operating Costs 2,730,552 2,894,617 3,674,971 4,007,585 Cost Allocation 808,601 850,907 970,986 1,106,326
Capital Outlay 5,510,529 2,754,358 5,687,367 2,780,867
Debt Service 1,247,923 739,438 2,107,529 2,138,685
$ 15,661,532 $ 11,897,875 $ 17,859,570 $ 15,935,753
Expenditures By Fund/Program
General Fund 292,525 282,417 415,453 455,500
Citywide L&L 83-2 1,668,019 2,465,975 1,827,825 1,895,014 Victoria By The Bay L&L 2002-1 569,427 698,350 558,481 601,894 Hercules Village L&L 2002-2 176,206 184,735 199,617 220,435 Baywood L&L 2004-1 117,753 172,904 145,796 170,394
Bayside L&L 2005-1 138,720 125,000 114,455 131,030
Arterial Roadways 286,301 (107,720) 333,621 327,980
Stormwater 373,638 350,811 376,201 434,833
State Gas Tax 668,906 1,256,085 1,735,323 1,207,184
Measure "C" Street Fund 478,344 414,980 600,409 529,965 BART Park & Ride 227,849 18,840 17,000 182,000
Solid Waste and Recycling 10,179 119,551 112,026 112,562 Grants - - 492,000 -
City Capital Project - 45,926 497,000 450,000
Energy Conservation Project 3,398,240 696,102 - -
GRANT FUND / STIP / RIP - - 1,138,000 502,506
GRANT FUND / STIP / TE - - 360,000 300,000
CCTA MEAS J EXP PLAN 135,020 126,706 - -
CCTA TLC GRANT 250,954 - - -
Water Quality Retention Basin 20,802 32,762 46,000 47,000 STMP-SUB REG TRANS PROJ 25,047 112,464 - -
Sewer - Operations 6,059,337 4,228,621 6,690,801 6,877,825 Sewer - Capital - - 751,000 132,000
ISF - Equipment Replacement 206,373 381 523,371 220,000 ISF - Facilities Maintenance 557,892 672,985 825,191 995,631 ISF - Facilities Replacement - - 100,000 142,000
Regional Water Quality - - - -
$ 15,661,532 $ 11,897,875 $ 17,859,570 $ 15,935,753
Expenditure Trends
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000
FY 20-21
FY 21-22
FY 22-23
FY 23-24
Salaries & Benefits
Contractual Services
Other Operating Costs
Cost Allocation
Capital Outlay
Debt Service
PUBLIC WORKS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
113
Over the course of the pandemic, Parks and Rec had to
re-invent ourselves. In the beginning, we collaborated with our neighbors; created a Virtual Recreation Resource Center that allowed us to bring recreation programs into everyone’s homes; created videos of staff reading children’s books, and sent them to their respective classes; created care packages for the kids, and had
parents pick them up outside of the Community
Swim Center; created weekly workbooks
for our Seniors to keep their minds sharp;
developed a call out program to touch base with
our Senior membership; and encouraged people
to get out to our parks, trails and open spaces.

Once the health department allowed
small groups to gather, we developed a
new camp called Hercules Adventures.

We were allowed to hold a “bubble”
with 12 kids and 2 adults, in multi-week
sessions. With most staff on furlough,
the fulltime staff stepped in and went
back to their roots…running classes,
camps and programs. Although it was
extremely tiring, it was fun working
with the kids and we were able to help
many families give their kids a sense of
normalcy.

As of today, we are back to running
programs at pre-pandemic levels. One
of the things that we are extremely
excited about is the first ever Hercules
Parks and Recreation Facilities Master
Plan (PRFMP). The Master Plan will
take about 12 months to develop, before
making recommendations to Council
based on community input. At the time
of the 2023 budget meetings, we will
have hired a consultant, examined our
assets, evaluated our amenities, held
an open house, talked to more than 350
people at a half dozen pop-up events
throughout the city, received feedback
from more than 500 community
members via a survey, reviewed the
feedback with the help of a Steering
Committee, and we will be getting
ready to make recommendations to the
City Council. It has been and will be a
lot of work, but we are excited about the
future.

PARKS AND RECREATION

PARKS AND RECREATION
GOALS:
• Continue the path to
recovery for all programs
post-pandemic.
•Redesign Teen program.
•Follow the trends in the
industry.
•Create new programs.
•Offer fun and exciting
events to the community.
• Complete CIP and other
important projects, i.e.:

All-Abilities Swing
Paint Community Swim
Center
Beechnut Mini Park
project (Prop 68 - Clean
Water and Parks Act)
project by end of FY24
CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
114
13 Parks
9 Playground
Structures
8 Picnic Areas
8 Tennis Courts
5 Swings
5 Recreation
Centers (including
a Teen Center and
Senior Center)
4 Outdoor
Basketball Courts
3 Childcare Facilities
3 Multi-Use Fields
2 Baseball/Softball
Fields
2 Soccer Fields
2 Horseshoe Pits
2 Bocce Ball Courts
2 Gazebos
2 Pools
1 Gymnasium
1 Dog Park
1 Outdoor Fitness
Par Course
and miles of trails
to walk, hike, bike,
skate
In addition to the Master Plan and the return
of programs, the Parks and Recreation
Department has been successful in
refurbishing the gym floor of the Community
Swim Center, replaced the pool safety fence,
added a few new bottle refill stations, and
has a number of projects in the works like
the All Abilities Swing that will be going
in at Refugio Valley Park this summer,
the renovation of Beechnut Mini Park –
part of the Prop 68 funding project, and
several other key items that will take place
within the calendar year like painting the
Community Swim Center, replacing the main
pumps at the pool and more.

We are also eager to continue all the fun
community events like EGGstravaganza,
Splash-A-Palooza, Community Cleanup
Day, Movie Nights in the Park, Cultural
Festival, 4th of July Fireworks Celebration,
Trunk or Treat, Pumpkataaz, Holiday Tree
Lighting and more. We are excited to
continue to contribute to the health of all of
our participants, and enrich the lives of our
community members.

PARKS AND RECREATION

PARKS AND RECREATION
CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
• Develop Parks
and Recreation
Facilities Master
Plan
• Citywide
events: Cultural
Festival, 4th of
July Fireworks
Celebration,
National Night Out,
more
• Add new
contractors
• Create new
programs
• Modify current
programs to follow
industry trends

WORKPLAN
HIGHLIGHTS:

ACCOMPLISHMENTS

FACILITIES
• New Events: PRFMP Pop-up events, Spring Into Wellness (Senior Health Fair), Ohana Day, etc.
• Completed projects: Gym floor refurbishment, new pool safety fence, new water bottle refill stations at Community Swim Center, etc. • Held many successful events in the 2022-23FY, including but not limited to: EGGstravaganza, Splash-A-Palooza, Community Cleanup Day, 4th of July Fireworks Celebration, National Night Out, Movie Nights, Trunk or Treat, PUMPKATAAZ, Tree Lighting and more.
• Youth Program staff participated in Summer Leader Institute Training at Cal State East Bay
EVENTS:

Looking forward to the return
of events like…
• Community Clean-up Day
(Sa 5/6/23)
• Cultural Festival (Su 6/4/23)
• Movie Nights (6/16, 7/21, and 8/18)
• Fireworks Celebration (Tu 7/4/23)
• National Night Out (Tu 8/1/23)
• Unity Day (W 10/18/23)
• Pump-Ka-Taaz (October 2023)
• Trunk or Treat (F 10/27/23)
• Holiday Tree Lighting (Su 12/3/23)
• Breakfast with Santa (Sa 12/9/23)
• Spring Into Wellness,
EGGstravaganza, Splash-A-Palooza &
Rec Expo (Spring 2024)
• And more…
115
Parks & Recreation
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Proposed
Expenditures By Type
Salaries & Benefits 1,009,714$ 1,557,343$ 1,464,422$ 1,743,653$ Contractual Services 164,242 310,031 270,800 342,136
Other Operating Costs 27,544 85,045 42,600 96,725
Cost Allocation 233,486 - 360,300 306,983
Capital Outlay - - - -
Debt Service - - - -
1,434,986$ 1,952,419$ 2,138,122$ 2,489,497$
Expenditures By Fund/Program
General Fund
Library 98,059 63,202 113,800 124,597
Administration 12,095 95,830 93,200 103,847
Facility Rentals 74,100 105,621 135,403 158,692
Lupine Day Camp 49,142 124,340 141,891 206,518
Ohlone Day Camp 5,006 3,201 6,041 5,403
Ohlone Child Care 137,380 162,168 201,741 198,768
Hanna Child Care 152,936 195,661 224,216 220,363
Lupine School Child Care 154,298 259,861 215,653 249,712 Recreation Classes 60,722 60,629 87,433 94,904
Senior Citizens 50,997 10,790 63,167 77,707
Tiny Tots 132,627 235,671 268,668 307,597
Swim Center 300,382 343,681 300,469 443,621
Sport Program 77,741 80,580 109,181 105,722
Teen Program 15,862 2,538 25,348 23,659
Community Center-Concession Stand 436 464 - -
Youth/Teen Resource Center 113,203 208,182 151,911 168,387 1,434,986$ 1,952,419$ 2,138,122$ 2,489,497$
Expenditure Trends
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 FY 20-21
FY 21-22
FY 22-23
FY 23-24
Salaries & Benefits
Contractual Services
Other Operating Costs
Cost Allocation
116
Non-Departmental
Department Expenditure Summary
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures By Type
Contractual Services 8,979 143,099 - -
Reserve and Pension Contribution 9,877 - - 50,000
Settlement Payment 604,025 2,202,580 604,025 -
Debt Service 1,520,336 1,666,458 1,951,000 1,907,992
Transfers 2,680,814 6,088,697 5,399,177 1,645,918
$ 4,824,031 $ 10,100,834 $ 7,954,202 $ 3,603,910
Expenditures By Fund/Program
General Fund $ 622,881 $ 2,345,679 $ 604,025 $ 50,000
American Rescue Plan Act (ARPA) - - - -
622,881 2,345,679 604,025 50,000
Debt Service
CalHFA Loans 200,000 200,000 200,000 200,000
Suntrust Lease 205,099 205,099 103,000 -
Equipment Lease - 217,391 227,000 235,896
2003B PFA Lease Revenue Bonds 205,522 131,378 513,000 564,937 2009 PFA Taxable Lease Revenue Bonds 909,715 912,590 908,000 907,159 1,520,336 1,666,458 1,951,000 1,907,992
Transfers
General Fund 1,641,579 2,019,082 1,617,934 859,212
AB3229 COPS Program 150,000 150,000 150,000 156,727
Citywide L&L 83-2 221,212 241,000 258,100 265,060
Victoria By The Bay L&L 2002-1 23,792 26,800 27,200 28,016 Hercules Village L&L 2002-2 6,487 7,100 7,500 7,725
Baywood L&L 2004-1 2,289 2,400 2,700 2,781
Bayside L&L 2005-1 15,587 17,600 18,500 19,055
State Gas Tax 54,988 46,569 49,354 50,342
Solid Waste and Recycling 124,237 125,000 125,000 125,000 City Capital Projects - 246,816 - -
City Capital Projects - 63,441 - -
American Rescue Plan Act (ARPA) - 3,142,889 3,142,889 - Sewer - Capital - - - 132,000
ISF - Facilities Maintenance 440,643 - - -
2,680,814 6,088,697 5,399,177 1,645,918
$ 4,824,031 $ 10,100,834 $ 7,954,202 $ 3,603,910
Expenditure Trends
$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 FY 20-21
FY 21-22
FY 22-23
FY 23-24 Contractual Services
Reserve and Pension
Contribution
Settlement Payment
Debt Service
NON-DEPARTMENTAL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 117

FUND SUMMARIES
118
Fund Listing
General Fund
Fund Number Fund Name Responsible Department
100 GENERAL FUND ALL
Special Revenue Funds
Fund Number Fund Name Responsible Department
101 ASSET SEIZURE Police
201 AB 3229 COPS Program Police
220 CITYWIDE L&L DIST 83-2 Public Works
221 VICTORIA BY THE BAY L&L Public Works
222 HERCULES VILLAGE L&L DIST Public Works
223 BAYWOOD ASSESS 04-1 L&L Public Works
224 BAYSIDE ASSESS DIST L&L Public Works
225 ARTERIAL ROADWAYS Public Works
231 STORMWATER ASSESSMENT Public Works
241 DIF-GEN PUBLIC FACILITIES Community Development
242 COMMUNITY DEVELOPMENT FND Community Development
243 DEVELOPMENT FEE FUND Community Development
244 DIF-POLICE FACILITIES Community Development
246 DIF-FIRE FACILITIES Community Development
247 DIF-PARK & REC Community Development
249 PUBLIC BENEFIT FEE Community Development
261 DIF-TRAFFIC FACILITIES Community Development
262 STATE GAS TAX FUND Public Works
263 MEASURE "C" STREET FUND Public Works
264 STMP TRAFFIC IMPACT FUND Community Development
266 BART (PARK & RIDE) Public Works
267 General Plan Update Fee Community Development
291 SOLID WASTE AND RECYCLING Public Works
353 American Rescue Plan Act (ARPA) Finance
387 WATER QUALITY RET BASIN Public Works
521 REGIONAL WATER QUALITY Public Works
This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City. The General Fund includes activities for police, planning, public works, operations and maintenance, and legal and administration.

These funds are used to account for the proceeds of special revenue sources that are legally restricted to expenditure for specified purposes.

FUND DESCRIPTION CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 119
Fund Listing
Sewer Enterprise Funds
Fund Number Fund Name Responsible Department
420 WASTEWATER - Operations Public Works
421 WASTEWATER - Capital Projects Public Works
Internal Service Funds
Fund Number Fund Name Responsible Department
450 VEHICLE REPLACEMENT FUND Public Works
460 IT OPERATIONS City Manager
470 FACILITY MAINTENANCE FUND Public Works
480 IT EQUIPMENT REPLACEMENT City Manager
490 FACILITIES REPLACEMENT Public Works
Debt Service Funds
Fund Number Fund Name Responsible Department
672 2003B DEBT SERVICE PFA Finance
673 2009 DEBT SERVICE PFA Finance
383 SUNTRUST LEASE Finance
388 EQUIPMENT LEASE Finance
Capital Projects Funds
Fund Number Fund Name Responsible Department
295 FEDERAL GRANTS - CIP Public Works
296 STATE AND LOCAL GRANTS - CIP Public Works
300 CITY CAPITAL PROJ-SINGLE Public Works
354 HERCULES HUB Public Works
These funds are used for services provided to the public on an user charge basis, similar to the operation of a commercial enterprise.

These funds are used to account for the construction or acquisition of fixed assets, such as buildings, equipment and roads. Depending on its use, a fixed asset may instead be financed by a special revenue fund or a proprietary fund. A capital project fund exists only until completion of the project.

These funds are used to account for money that will be used to pay the interest and principal of longterm debts. Bonds used by a government to finance major construction projects, to be paid by tax levies over a period of years, require a deby service fund to account for their repayment. The debts of special assessment and proprietary funds are serviced within those funds, rather than by a separate debt These funds are used for operations serving other funds or departments within a government on a costreimbursement basis.

FUND DESCRIPTION CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 120
Fund Listing
Agency Funds
Fund Number Fund Name Responsible Department
382 ASSMT DIST 05-01 DEBT SVC Finance
501 TAYLOR WOODROW MAINT LMOD Finance
511 OPEB AND SOMAR Finance
Private Purpose Trust Funds
Fund Number Fund Name Responsible Department
600 SUCCESSOR AGENCY FUND Finance
A fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the Hercules Redevelopment Successor Agency. The sole purpose of this fund is to retire debt of the former redevelopment agency.

These funds are used to account for assets held in trust by the City for the benefit of individuals or other entities. Financial Statements may further distinguish fiduciary funds as either trust or agency funds; a trust fund generally exists for a longer period of time than an agency fund.

FUND DESCRIPTION CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 121

GENERAL FUND
122
GENERAL FUND OVERVIEW CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

GENERAL FUND OVERVIEW
The General Fund is the chief operating fund of the City. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The activities being paid for through the general fund constitute the core administrative and operational tasks of the City.

MAJOR REVENUE
The City relies on several major revenue sources to support the General Fund budget. As shown in the graph below, General Fund revenues in FY 2023-24 are projected to increase by approximately 6% compared to FY 2022-23 Budget. The revenue increase is substantially driven by proceeds from sales tax and the program fees from the re-opening of the Parks & Recreation programs. The bulk of General Fund revenues come from taxes (Utility User’s Tax (UUT), Sales Tax, Property Tax, Real Property Transfer Tax (RPTT), Transient Occupancy Tax (TOT) and other taxes). 0 5
10 15
$ 20 million
FY 22-23
Projection
FY 23-24
Budget
FY 21-22
Actual
FY 20-21
Actual
16,976,707 16,013,203
General Fund Revenue
Misc.

Major
Revenue
Sources:

Interfund
Program
Revenue
Taxes
$16 million
$18.8 million
$17.4 million $18.4 million
$13.4
million
$15.5
million
$14.5
million
$15.5
million
$1.6 million
$0.7 million
$0.6 million
$1.7 million
$0.7 million
$0.5 million
$1.9 million
$0.6 million
$0.8 million
$1.3 million
$0.6 million
$0.7 million
123
GENERAL FUND OVERVIEW CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Sales and Use Tax
The largest revenue source for the City’s
General Fund is remitted to the City from
the State monthly. Sales Tax revenues
are projected to increase significantly
based on quarter three analysis
generated from the data received from
California Department of Tax and Fee
Administration (CDTFA). Total sales tax
revenues are highly concentrated within
a few major operators and substantially
generated from business-to-business
sources. Its top three producers generate
over 50% of the City’s sales tax revenues.

The following chart depicts the source
of the City’s (Q3) sales tax revenues by
industry group.

Utility User’s Tax
Utility User’s Tax (UUT) are revenues
collected from the consumption of utility
services, including (but not limited to)
electric, gas, water, sewer, telephone
(including cell phone and long-distance),
sanitation, and cable television. The City
determines the tax rate and the use of its
revenues. UUT revenues are estimated
at $3.7 million for FY 2023-24. Based on
the trend and its consumption rate, the
City continues to see erosion in Wireless
Telecom’s UUT revenues due to the
update in allocations of the bundled
packages from the respective providers.

These updated allocations shifted a more
significant percentage toward data that is
not taxable.

On November 8, 2022, the
Hercules voters approved
Measure N, which removed the
sunset provision that would have
caused the expiration of the UUT
in January 2025. The City’s UUT
revenue is approximately 20% of
the general fund budget.

Gas
Cable
Water
Telephone
Electricity
2018 2019 2020 2021 2022
Utility User’s Tax (UUT), Annual Per Capita
(Based on Actual Receipts)
$140
$14
$22
$22
$34
$48
$140
$15
$21
$24
$28
$52
$134
$16
$21
$26
$23
$48
$138
$20
$20
$29
$20
$49
$147
$20
$20
$29
$21
$57
General Retail
Transportation
Food Products
Construction
County Pool
Business
to Business
2018 2019 2020 2021 2022
Sales Tax, Annual Per Capita
(Based on Actual Receipts)
$122
$5
$14
$16
$22
$19
$46
$6
$14
$19
$25
$26
$63
$6
$12
$18
$29
$38
$58
$6
$21
$21
$30
$39
$65
$5
$42
$25
$34
$49
$85
$153 $161
$182
$240
124
GENERAL FUND OVERVIEW CITY OF HERCULES FY 2023-24 ANNUAL BUDGET FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 22-23
Projection
FY 21-22 FY 23-24
Budget
Property Tax
$1.32
million
$1.38
million
$1.42
million
$1.45
million
$1.52
million
$1.57
million
$1.60
million
Transient
Occupancy Tax (TOT) $114,000 $116,000
$25,778
$9,651 $6,385 $6,179 $7,635
FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 22-23
Projection
FY 21-22 FY 23-24
Budget
Property Tax
The City of Hercules has been classified as
a low-to-no property tax jurisdiction. The
City’s share of the base 1% property tax rate
is lower than most other jurisdictions at
just a little over 5% of Hercules’s total base
property taxes. This year the Assessor’s
office applied a CPI factor of 2% to nonProp 8 parcels. It is estimated that the City share of 1% assessed property value tax is
calculated to be $1.6 million for FY 2023-24.

Transient Occupancy Tax (TOT)
Commonly referred to as a “hotel tax”, the
TOT is levied for the privilege of occupancy,
each transient is subject to a 10% of the
rent charged by operator. The TOT is a
general tax which is deposited into the City’s
General Fund. TOT revenue is expected
to increase due to new developments
including a hotel to be built at the Sycamore
Crossing location. Additional TOT is
generated by Airbnb and other short term
rental operations. Per the Development
Agreement with Hercules Self-Storage
Management LLC, the City is entitled to 10%
of the rental income in-lieu of the TOT once
a 90% rental threshold has been reached.
125
GENERAL FUND OVERVIEW CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Fees for Service
The City charges fees to the community based on the costs of services provided. These fees are documented in the City’s Master Fees & Charges Schedule. The Master Fees & Charges schedule is approved periodically by the City Council, and individual fees may be amended from time to time during a fiscal year. However, there must be a nexus to the costs of the provision of those services.

Parks & Recreation Program Revenues
During the COVID-19 pandemic and mandatory closure, revenues from the Parks & Recreation program were significantly reduced due to the suspension of programs and offerings and facility rentals. The FY 23-24 revenue estimates reflect the re-opening of suspended programs and returning to normal operations.

Parks & Recreation Program Revenues
(Based on Actual Receipts)
$1.73 million $1.71 million
$1.01
million
$391,030
$1.03
million
$1.15
million
$1.30
million
Teen Program
Senior Citizens
Administration
Recreation Classes
Sport Program
Youth/Teen
Resource Center
Lupine School
Child Care
Ohlone
Child Care
Lupine
Day Camp
Tiny Tots
Hanna
Child Care
Facility
Rentals
Swim Center
$0
With COVID-19 shutdowns, some programs and facilities had more costs than revenues FY 21-22 FY 20-21 FY 17-18 FY 18-19 FY 19-20 FY 22-23
Projection
FY 23-24
Budget
$1,159
$30,917
$31,475
$71,140
$114,211
$221,065
$215,000
$123,928
$126,135
$225,711
$170,543
$264,810
$248,037
$1,038 $15,726
$19,005
$73,202
$82,036
$229,493
$126,107
$195,070
$135,617
$204,811
$169,061
$227,656
$235,173
$215 $12,071
$30,184 $6,782 $18,189
$9,758
$28,213
$41,970
$126,205
$70,729
$145,890
$75,103
$172,261
$129,039
$117,151
$140,794
$110,620
$881 $8,526 $26,513 $18,058
$54,748
$95,217
$50,284
$81,687
$103,227
$81,910
$137,174
$70,123
$305,826
$1,020 $12,000 $14,000
$60,000
$57,120
$180,000
$75,000
$120,000
$122,000
$175,000
$130,000
$162,500
$192,000
$1,000 $11,000
$50,000
$56,000
$156,000
$86,000
$133,000
$92,000
$139,000
$115,000
$154,000
$165,540 $160,000
$2,081
$3,563
$21,774
126
Indirect Cost
The City of Hercules General
Fund includes expenses for all
administrative services (e.g.,
finance, human resources, attorney
services, etc.). A portion of these
services support the enterprise
funds, and other restricted funds.

The City uses a fair and equitable
indirect cost allocation process to
allocate departmental costs from
the General Fund to all funds that
benefit from the services that the
General Fund departments provide.

The plan is completed under
generally accepted accounting
principles (GAAP) as recognized
by the Governmental Accounting
Standards Board (GASB). The
primary principles used to develop
the plan are: 1) the allocated cost
is necessary and reasonable for
the proper performance of a
department, division, unit, and
program; 2) the allocated cost is
charged to departments, divisions,
units, and programs relative to the
benefits received; and 3) costs are
consistently treated as direct or
indirect. Those costs that cannot
reasonably be directly charged are
included in the Cost Plan.

Capital and Debt
Expenditures
The General Fund includes
Capital Improvement Projects
(CIPs) related to public buildings,
general improvements, street
improvements, drainage
improvements, and park
improvements.

The detail for each CIP that includes
additional funding in the upcoming
budget year can be found in the
Capital Improvement Program
section of this document. Debt
in the General Fund includes the
principal payments on outstanding
loans that are the obligation of the
General Fund.

Transfers Out
Funds are transferred out of the
General Fund for debt service,
loan repayments, and capital
projects. Future budgets will
include a transfer Capital Reserve
Fund for future capital needs,
Pension Reserve Trust Fund to
assist in funding future pension
contributions and Operating
Reserve up to the reserve limit.

Non-Recurring
Expenditures
These include projects that are
related to special studies. For
example, full cost projects related
to future developments and
engineering projects, such as traffic
studies, all of which are passthrough expenses that are funded by developer contributions.

GENERAL FUND EXPENSES
The General Fund includes expenses for operations, debt, capital, and transfers out.

The operating costs are for departments that provide services to the Hercules community, including Police, Public Works, Community Development, Parks & Recreation, and the general government departments. Operating expenses include retirement, health insurance, and one-time expenditures include the Department of Finance (DOF) settlement, and other capital projects.

GENERAL FUND OVERVIEW CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 127
GENERAL FUND OVERVIEW CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

FIVE-YEAR GENERAL FUND FORECAST
The Five-Year Forecast provides a current and long-range financial assessment of revenues, expenditures, fund balance, and operating reserves. The primary objective is to provide the City Council and the community with a financial forecast and identify any significant issues that may need to be addressed in the annual budget development process.

It is important to keep in mind that a forecast is not a budget. Given certain assumptions, the Five-Year Forecast is a vehicle that peers into the future and makes projections about what is likely to happen. If future deficits are projected, then the forecast allows time to take corrective action to ensure finances remain stable.

This analysis is centered on the City’s General Fund because it is the primary operating budget for tax-supported municipal services. Long-range financial forecasting assists the City in making decisions that lead to our ability to sustain the community’s core services. It is best practice for the City to update this plan annually.

Based on the current information known, the General Fund will end the fiscal year with a net positive projected for a 5-year forecast period through 2029 assuming the same service level. The revenues also include an estimated increase in general tax revenues of 2% to 3% annually. Expenditure assumed a projected overall average increase of 3% a year. The City has set aside adequate reserves to weather difficult times in the future.

General Fund Five-Year Forecast
$22.15 million
$19.27 million
$21.05 million
$18.41 million
$20.54 million
$25 million
$20 million
$15 million
$10 million
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Expenditures
including One-Time
Expenditures
Revenues
128
General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Balance 1,847,113 2,138,828 $ 977,254 848,907$ Revenues
Taxes
Utility User Tax 3,590,649 3,828,410 3,589,000 3,756,633 Sales Tax 4,775,496 6,263,066 5,398,000 6,178,700
Property Taxes 1,451,716 1,524,791 1,571,000 1,603,000
Franchise Fees 862,104 970,054 905,000 923,100
Business Licenses 268,697 257,289 274,000 279,480
Transfer Tax 126,488 199,673 146,000 148,920
Transient Occupancy Tax 7,635 25,778 114,000 116,280
Vehicle License Fee (VLF) and Other
Intergovernmental 2,285,392 2,391,327 2,511,000 2,561,220 Fines & Forefeitures 36,586 48,663 38,000 38,760
Program Revenues
Community Development 824,891 644,862 306,000 173,075
Parks and Recreation 396,290 1,034,173 1,156,000 1,300,640 Police 65,915 136,878 139,000 116,700
Public Works 46,908 110,559 38,000 38,760
Other 10,571 6,723 11,000 11,220
Use of Money & Property 511,188 347,905 286,000 292,320 Cost allocated to other funds 602,677 624,568 684,000 736,352 Transfers In 150,000 396,816 150,000 156,727
16,013,203 18,811,535 17,316,000 18,431,887
Expenditures
Police 7,463,163 7,758,261 7,881,727 8,367,070
Public Works 292,566 413,667 415,325 454,663
Community Development 788,933 1,039,536 827,093 933,497 Parks and Recreation 1,422,635 1,950,446 2,108,537 2,459,876 City Council 407,588 330,296 358,645 335,677
City Manager 358,241 496,118 493,186 496,565
The General Fund is the City of Hercules Chief Operating Fund. This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services.

GENERAL FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
129
General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
The General Fund is the City of Hercules Chief Operating Fund. This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services.

Human Resources 239,395 321,921 322,689 385,440
Legal 154,562 209,134 273,000 281,190
City Clerk 438,344 363,201 494,610 514,940
Finance 1,109,710 1,114,284 1,272,022 1,309,702
Workers Comp/General Liability 1,076,945 1,135,659 1,265,554 1,467,349 Non-Department 255,536 260,000 260,000 260,000
Transfers Out (Debt Service
Obligations) 321,914 423,542 685,934 799,212
14,329,532 15,816,065 16,658,322 18,065,181
Net Annual Activity
Ongoing Operations 1,683,671 2,995,470 657,678$ 366,706$ One-Time Revenues 600,750 4,573,889 3,142,889 -
One-Time Expenditures (1,992,706) (3,741,816) (1,636,025) (229,250) Reserve per Council Policy (2,931,768) (294,137)
Reserve for programs/capital projects (2,057,349) (2,292,889) Ending Available Balance 2,138,828$ 977,254 848,907$ 692,226$ Operating Reserve:

Beginning Balance 4,034,517 4,209,129 4,222,158$ 4,222,158$ Current Year Contribution 294,137
Interest Earned 174,612 13,029
Ending Balance 4,209,129 4,222,158 4,222,158$ 4,516,295$ % of Projected Operating
Expenditures 29% 27% 25% 25%
GENERAL FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
130
General Fund
Expenditure by Category
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures by Category
Police
Salaries & Benefits 5,630,146 5,817,948 6,155,727 6,523,501 Contractual Services 876,397 899,422 674,000 743,220
Other Operating Expenditures 254,608 237,644 239,000 310,170 Capital Outlay - 78,639 - -
Cost Allocation 702,012 724,608 813,000 790,179
7,463,163 7,758,261 7,881,727 8,367,070
Public Works
Salaries & Benefits 6,528 18,614 72,325 76,724
Contractual Services 194,224 336,259 206,000 262,409
Other Operating Expenditures 70,404 29,964 43,000 26,210 Cost Allocation 21,410 28,830 94,000 89,320
292,566 413,667 415,325 454,663
Community Development
Salaries & Benefits 347,965 352,112 394,093 575,580
Contractual Services 66,438 271,129 330,000 258,660
Other Operating Expenditures 287,052 332,485 16,000 16,480 Cost Allocation 87,478 83,810 87,000 82,777
788,933 1,039,536 827,093 933,497
Parks & Recreation
Salaries & Benefits 997,362 1,555,370 1,434,837 1,714,032 Contractual Services 164,242 310,031 270,800 342,136
Other Operating Expenditures 27,545 85,045 42,600 96,725 Cost Allocation 233,486 - 360,300 306,983
1,422,635 1,950,446 2,108,537 2,459,876
City Council
Salaries & Benefits 77,546 69,425 69,645 69,943
Contractual Services 72,551 80,716 42,000 43,260
Other Operating Expenditures 26,333 (2,959) 38,000 45,550 Cost Allocation 231,158 183,114 209,000 176,924
407,588 330,296 358,645 335,677
City Manager
Salaries & Benefits 262,072 223,534 317,186 322,714
Contractual Services 10,567 152,261 64,000 68,510
Other Operating Expenditures 12,520 45,415 33,000 31,400 Cost Allocation 73,082 74,908 79,000 73,941
358,241 496,118 493,186 496,565
Worker's Compensation/General Liability
Salaries & Benefits 46,316 41,127 38,920 33,069
Contractual Services 1,030,629 1,094,532 1,226,634 1,434,280 1,076,945 1,135,659 1,265,554 1,467,349
GENERAL FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
131
General Fund
Expenditure by Category
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Expenditures by Category
Human Resources
Salaries & Benefits 150,595 172,616 187,289 179,379
Contractual Services 24,788 64,525 46,000 113,260
Other Operating Expenditures 25,667 42,022 48,400 49,852 Cost Allocation 38,345 42,758 41,000 42,949
239,395 321,921 322,689 385,440
Legal
Contractual Services 154,562 209,134 273,000 281,190
154,562 209,134 273,000 281,190
City Clerk/PIO
Salaries & Benefits 255,347 184,120 249,960 270,414
Contractual Services 65,028 74,956 120,300 123,909
Other Operating Expenditures 13,822 (8,265) 33,350 34,351 Capital Outlay - 35,514 10,000 10,300
Cost Allocation 104,147 76,876 81,000 75,966
438,344 363,201 494,610 514,940
Finance
Salaries & Benefits 541,961 522,414 579,622 618,136
Contractual Services 240,635 310,713 310,400 284,000
Other Operating Expenditures 200,727 244,255 221,000 263,000 Cost Allocation 126,387 36,902 161,000 144,566
1,109,710 1,114,284 1,272,022 1,309,702
Non-Departmental
Debt Service - CalHFA 200,000 200,000 200,000 200,000
SOMAR benefit payments 55,536 60,000 60,000 60,000
255,536 260,000 260,000 260,000
Transfers Out
SunTrust Loan (Final Payment) 214,976 205,098 103,000 - Engie Equipment Lease - 218,444 227,000 235,896
Debt Service - 2020 PFA Lease Revenue
Refunding Bonds
106,938 - 355,934 563,316
321,914 423,542 685,934 799,212
Total, On-going Expenditures 14,329,532 15,816,065 16,658,322 18,065,181 GENERAL FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
132
General Fund
Available Fund Balance Calculation
FY 21-22 FY 22-23 FY 23-24
Available
Balance, as
adjusted ARPA
State Local
Assistance - SB
154
Reserve for
Programs/
Projects
Projected, Net
Baseline
Operations
Estimated Onetime
expenditures
Available
Balance, as
adjusted
Projected, Net
Baseline
Operations
Estimated Onetime
expenditures/
Draw on
Reserves
Available
Balance, as
projected
Beginning Cash Balance $ 18,309,201 $ 3,142,889 $ 8,000,000 $ - $ 657,678 $ (1,886,025) $ 28,223,743 $ 366,706 $ (5,198,629) $ 23,391,820 Nonspendable and Restricted for:

Pension Section 115 Trust (3,031,508) (3,031,508) (3,031,508) Prepaid items (10,806) (10,806) (10,806)
General Fund Set-Aside:

Former RDA Negative Cash (3,463,000) (3,463,000) (3,463,000) Programs and Projects (2,057,349) (2,292,889) (4,350,238) 150,000 (4) (4,200,238) General Fund Reserve or Designations:

Reserve for Earthquake Insurance Deductible (500,000) (500,000) (500,000) Reserve for Capital Projects (2,404,511) (5,500,000) 250,000 (3) (7,654,511) 3,865,579 (2) (3,788,932) Reserve for Planning (932,000) (932,000) 932,000 (1) -
Reserve for Building (21,800) (21,800) 21,800 (1) -
Reserve for Reusable Bags (remaining) (13,930) (13,930) (13,930) Reserve for PEG Fees (207,000) (207,000) (207,000)
Reserve for Economic Uncertainty (25% target) (4,222,158) (4,222,158) (294,137) (4,516,295) Partial payment to CalHFA loans - (2,500,000) (2,500,000) (2,500,000) Outstanding Encumbrances (467,885) (467,885) (467,885)
Ending Cash Balance $ 977,254 $ 3,142,889 $ - $ (2,292,889) $ 657,678 $ (1,636,025) $ 848,907 $ 366,706 $ (523,387) $ 692,226 (1) Move to Fund 267 - General Plan Update Fees and Building Training Fees. (2) Includes $3 million designation to Hercules HUB.
(3) Emergency Repairs due to Storm.
(4) Business Attraction Grant ($100K) and Eat Local Program ($50K) - FY 22-23 Activities Projected FY 23-24 Activities
GENERAL FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
133
General Fund
Five-Year Financial Forecast
Description / Highlights
Fund Activity
Year 1 Year 2 Year 3 Year 4 Year 5
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 Actual Actual Projection Adopted Forecast Forecast Forecast Forecast Forecast Beginning Available Balance $1,847,113 $2,138,828 $977,254 $848,907 $692,226 $1,519,521 $2,263,521 $216,021 $761,021 Revenues
Taxes
Utility User Tax 3,590,649 3,828,410 3,589,000 3,756,633 4,232,000 4,307,000 4,349,000 4,398,000 4,448,000 Sales Tax 4,775,496 6,263,066 5,398,000 6,178,700 6,373,000 6,609,000 6,832,000 7,041,000 7,238,000 Property Taxes 1,451,716 1,524,791 1,571,000 1,603,000 1,635,000 1,668,000 1,701,000 1,735,000 1,770,000 Franchise Fees 862,104 970,054 905,000 923,100 942,000 961,000 980,000 1,000,000 1,020,000 Business Licenses 268,697 257,289 274,000 279,480 285,000 291,000 297,000 303,000 309,000 Transfer Tax 126,488 199,673 146,000 148,920 152,000 155,000 158,000 161,000 164,000 Transient Occupancy Tax 7,635 25,778 114,000 116,280 119,000 121,000 123,000 125,000 128,000 Vehicle License Fee (VLF) and
Other Intergovernmental 2,285,392 2,391,327 2,511,000 2,561,220 2,612,000 2,663,000 2,715,000 2,768,000 2,822,000 Fines & Forefeitures 36,586 48,663 38,000 38,760 39,000 39,000 39,000 39,000 39,000 Program Revenues
Community Development 824,891 644,862 306,000 173,075 175,000 177,000 179,000 181,000 183,000 Parks and Recreation 396,290 1,034,173 1,156,000 1,300,640 1,327,000 1,353,000 1,380,000 1,408,000 1,436,000 Police 65,915 136,878 139,000 116,700 118,000 119,000 120,000 121,000 122,000 Public Works 46,908 110,559 38,000 38,760 39,000 39,000 39,000 39,000 39,000 Other 10,571 6,723 11,000 11,220 11,000 11,000 11,000 11,000 11,000 Use of Money & Property 511,188 347,905 286,000 292,320 299,000 305,000 311,000 318,000 325,000 Cost allocated to other funds 602,677 624,568 684,000 736,352 758,000 780,000 802,000 824,000 846,000 Transfers In 150,000 396,816 150,000 156,727 150,000 150,000 150,000 150,000 150,000 16,013,203 18,811,535 17,316,000 18,431,887 19,266,000 19,748,000 20,186,000 20,622,000 21,050,000 Expenditures
Police 7,463,163 7,758,261 7,881,727 8,367,070 8,591,000 8,848,000 9,110,000 9,381,000 9,656,000 Public Works 292,566 413,667 415,325 454,663 534,000 547,000 561,000 575,000 589,000 Community Development 788,933 1,039,536 827,093 933,497 956,000 983,000 1,010,000 1,037,000 1,065,000 Parks and Recreation 1,422,635 1,950,446 2,108,537 2,459,876 2,520,000 2,588,000 2,657,000 2,727,000 2,800,000 City Council 407,588 330,296 358,645 335,677 344,000 351,000 358,000 366,000 374,000 City Manager 358,241 496,118 493,186 496,565 510,000 524,000 538,000 553,000 568,000 Human Resources 239,395 321,921 322,689 385,440 329,000 338,000 347,000 356,000 365,000 Legal 154,562 209,134 273,000 281,190 290,000 299,000 308,000 317,000 326,000 City Clerk 438,344 363,201 494,610 514,940 530,000 544,000 558,000 572,000 586,000 Finance 1,109,710 1,114,284 1,272,022 1,309,702 1,348,000 1,387,000 1,427,000 1,468,000 1,510,000 Workers Comp/General Liability 1,076,945 1,135,659 1,265,554 1,467,349 1,512,000 1,556,000 1,602,000 1,649,000 1,697,000 Non-Department 255,536 260,000 260,000 260,000 100,000 103,000 106,000 109,000 112,000 Transfers Out (Debt Service
Obligations) 321,914 423,542 685,934 799,212 800,000 808,000 820,000 832,000 844,000 14,329,532 15,816,065 16,658,322 18,065,181 18,364,000 18,876,000 19,402,000 19,942,000 20,492,000 Net Annual Activity
Ongoing Operations $1,683,671 $2,995,470 $657,678 $366,706 $902,000 $872,000 $784,000 $680,000 $558,000 One-Time Revenues 600,750 4,573,889 3,142,889 - - - - - - One-Time Expenditures (1,992,706) (3,741,816) (1,636,025) (229,250) - - - - - CalHFA Loan Balance (2,700,000)
Reserve per Council Policy (25%) (2,931,768) (294,137) (74,705) (128,000) (131,500) (135,000) (137,500) Reserve for programs/capital projects (2,057,349) (2,292,889) Ending Available Balance $2,138,828 $977,254 $848,907 $692,226 $1,519,521 $2,263,521 $216,021 $761,021 $1,181,521 Operating Reserve:

Beginning Balance $4,034,517 $4,209,129 $4,222,158 $4,222,158 $4,516,295 $4,591,000 $4,719,000 $4,850,500 $4,985,500 Current Year Contribution 294,137 74,705 128,000 131,500 135,000 137,500 Interest Earned 174,612 13,029
Ending Balance $4,209,129 $4,222,158 $4,222,158 $4,516,295 $4,591,000 $4,719,000 $4,850,500 $4,985,500 $5,123,000 % of Projected Operating
Expenditures 29% 27% 25% 25% 25% 25% 25% 25% 25%
The five-year financial forecast involves projecting revenues, expenses, and key factors that have a financial impact on the organization. Understanding long-term trends and potential risk factors that may impact overall financial sustainability allows the finance officer to proactively address these issues. Going through a long-term financial planning process allows decision makers to focus on long-term objectives, encourages strategic thinking, and promotes overall awareness for financial literacy in an organization. Long-term financial planning creates commitment and motivation to provide a guide for decision-making.

GENERAL FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
134

SPECIAL REVENUE FUNDS
135
Asset Seizure
Fund Summary - Fund 101
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 70,206$ 8,206$
Revenues
Intergovernmental 234,514$ -$ 33,000 -
Interest Income 1,924 (2,100) - -
Miscellaneous Revenues - - - -
236,438 (2,100) 33,000 -
Transfers In - - - -
236,438 (2,100) 33,000 -
Expenditures
Salaries and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Other Expenses 225,904 27,965 95,000 -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
225,904 27,965 95,000 -
Transfer Out - - - -
225,904 27,965 95,000 -
Changes in restricted reserves
Net Annual Activity 10,534 (30,065) (62,000) -
Ending Available Fund Balance 70,206$ 8,206$ 8,206$
The purpose of this fund is to account for monies received from Police confiscated drug money and property.

Funds are held until final court disposition is received. The funds are then restricted for police related activities only.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 136
AB 3229 COPS Program
Fund Summary - Fund 201
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 6,727$ 6,727$
Revenues
Intergovernmental 156,727$ 161,285$ 150,000 150,000
Interest Income - - - -
Miscellaneous Revenues - - - -
156,727 161,285 150,000 150,000
Transfers In -$ - - -
156,727 161,285 150,000 150,000
Expenditures
Salaries and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out 150,000 150,000 150,000 156,727
150,000 150,000 150,000 156,727
Changes in restricted reserves
Net Annual Activity 6,727 11,285 - (6,727)
Ending Available Fund Balance 6,727$ 6,727$ -$
California state legislation (AB 3229) created the Citizens Options for Public Safety (COPS) program. These funds are used for front line law enforcement services.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 137
Lighting and Landscape District 83-2
Fund Summary - Fund 220
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 678,303$ $ 700,277
Revenues
Assessment 1,852,313$ 1,997,920$ 2,077,471 2,276,506
Interest Income 10,054 (21,706) - -
Miscellaneous Revenues 54,126 - - -
1,916,493 1,976,214 2,077,471 2,276,506
Transfers In 39,581 29,316 30,428 31,037
1,956,074 2,005,530 2,107,899 2,307,543
Expenditures
Salary and Benefits 459,061 462,706 546,414 544,883
Contractual Services 44,278 372,075 415,620 438,645
Utilities 330,333 420,039 242,100 249,363
Maintenance & Repairs 478,208 356,775 108,222 185,835
Other Expenses 2,801 2,886 22,517 23,189
Cost Allocation 187,851 196,115 213,123 233,270
Capital Improvement Projects (CIP) 111,362 630,680 220,000 160,000 Loan Repayment (10 years) 54,126 24,700 59,829 59,829
1,668,020 2,465,976 1,827,825 1,895,014
Transfer Out 221,212 241,000 258,100 265,060
1,889,232 2,706,976 2,085,925 2,160,074
Changes in restricted reserves
Net Annual Activity 66,842$ (701,446) 21,974 147,469
Ending Available Fund Balance 678,303$ 700,277$ $ 847,746 (Pending Engineer's Report Subject to Change)
The purpose of this fund is to account for Zone #1 to 10 Lighting and Lanscaping District No. 83-2 to finance the costs of landscaping and lighting public areas. The 1972 Act provides that the total cost of installation, construction, operations, maintenance and servicing of landscaping, street lighting and park and recreational facilities can be recovered by the District. Refer to the Engineer's Report.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 138
Landscaping and Lighting Assessment District No. 83-2
Summary by Zone
Zone 1 Zone 2 Zone 3 & 4 Zone 5A Zone 5B Zone 5C Zone 6 Zone 7 Zone 8 Zone 9 Zone 10 Hercules by
the Bay Foxboro
The
Gems/Birds
Business
Park Commercial
Development
Parcels
Village
Parkway Heights
Trees and
Flowers
Birds and
Country
Run City-Wide Total
Revenues
Assessments and Interest 97,170 89,205 117,997 95,456 53,614 30,586 97,697 119,514 205,416 94,059 1,275,792 2,276,506 General Benefit Contribution 888 629 909 1,261 283 266 644 662 2,005 1,099 22,391 31,037 98,058 89,834 118,906 96,717 53,897 30,852 98,341 120,176 207,421 95,158 1,298,183 2,307,543 Expenditures By Type
Salaries & Benefits 18,846 18,846 20,389 11,629 11,629 5,166 8,853 21,305 21,335 18,888 387,997 544,883 Contractual Services 25,901 10,276 22,519 47,329 1,693 970 21,136 13,923 89,500 37,033 603,560 873,840 Other Operating Costs 974 773 909 319 275 299 1,011 1,135 1,338 953 15,206 23,192 Cost Allocation - - 435 5,569 2,151 1,730 - - - - 223,385 233,270 Capital Improvement Projects (CIP) - - - - - - - - - - 160,000 160,000 Loan Repayment (GF) - - - - - - - - - - - -
Loan Repayment (Zone 10) 20,259 - 42,192 - - - 17,637 33,867 - - (54,126) 59,829 65,980 29,895 86,444 64,846 15,748 8,165 48,637 70,230 112,173 56,874 1,336,022 1,895,014 Transfers Out 26,100 21,218 28,840 21,218 11,845 16,583 25,235 32,651 53,148 28,222 - 265,060 92,080 51,113 115,284 86,064 27,593 24,748 73,872 102,881 165,321 85,096 1,336,022 2,160,074 Net Annual Results 5,978 38,721 3,622 10,653 26,304 6,104 24,469 17,295 42,100 10,062 (37,839) 147,469 Beginning Balance (56,399) 67,358 68,218 93,630 194,774 (13,801) (134,354) 61,734 241,585 9,778 167,754 700,277 Ending Balance (50,421) 106,079 71,840 104,283 221,078 (7,697) (109,885) 79,029 283,685 19,840 129,915 847,746 (Pending Engineer's Report Subject to Change)
SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 139
Victoria by the bay Lighting and Landscape District
Fund Summary - Fund 221
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance $ (255,348) $ (358,132) Revenues
Assessment 452,011$ 461,039$ 472,850 510,332
Interest Income (207) - - -
Miscellaneous Revenues - - - -
451,804 461,039 472,850 510,332
Transfers In 7,991$ 9,230 10,047 10,248
459,795 470,269 482,897 520,580
Expenditures
Salary and Benefits 84,408 91,038 93,353 98,021
Contractual Services 12,611 3,222 168,074 173,116
Utilities 280,692 361,967 175,000 254,798
Maintenance & Repairs 162,146 210,932 25,000 25,750
Other Expenses 3,114 - 14,054 14,476
Cost Allocation 26,455 27,692 28,000 35,733
Capital Outlay - 3,500 55,000 -
Debt Service - - - -
569,426 698,351 558,481 601,894
Transfer Out 23,792 26,800 27,200 28,016
593,218 725,151 585,681 629,910
Changes in restricted reserves
Net Annual Activity $ (133,423) (254,882) (102,784) (109,330) Ending Fund Balance (255,348) $ (358,132) $ (467,462)
(Pending Engineer's Report Subject to Change)
The purpose of this fund is to account for Victoria by the bay Lighting and Lanscaping District No. 2002-1 to finance the costs of landscaping and lighting public areas. The 1972 Act provides that the total cost of installation, construction, operations, maintenance and servicing of landscaping, street lighting and park and recreational facilities can be recovered by the District.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 140
Hercules Village Lighting and Landscape District
Fund Summary - Fund 222
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 180,265$ 139,453$
Revenues
Assessment 155,164$ 158,265$ 162,323 174,920
Interest Income (138) (1,681) - -
Miscellaneous Revenues - - - -
155,026 156,584 162,323 174,920
Transfers In 3,224$ 3,874 3,982 4,062
158,250 160,458 166,305 178,982
Expenditures
Salary and Benefits 30,249 32,828 41,122 43,299
Contractual Services 4,296 4,159 56,574 58,271
Utilities 60,278 59,828 60,000 61,800
Maintenance & Repairs 64,160 76,007 20,000 31,847
Other Expenses - - 9,921 10,219
Cost Allocation 11,382 11,914 12,000 14,999
Capital Outlay 5,840 - - -
Debt Service - - - -
176,205 184,736 199,617 220,435
Transfer Out 6,487 7,100 7,500 7,725
182,692 191,836 207,117 228,160
Changes in restricted reserves
Net Annual Activity $ (24,442) (31,378) (40,812) (49,178) Ending Fund Balance 180,265$ 139,453$ 90,275$
(Pending Engineer's Report Subject to Change)
The purpose of this fund is to account for Hercules Village Lighting and Lanscaping District No. 2002-2 to finance the costs of landscaping and lighting public areas. The 1972 Act provides that the total cost of installation, construction, operations, maintenance and servicing of landscaping, street lighting and park and recreational facilities can be recovered by the District.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 141
Baywood Lighting and Landscape District
Fund Summary - Fund 223
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 78,740$ 87,505$
Revenues
Assessment 137,970$ 150,144$ 154,648 170,565
Interest Income 49 (1,960) - -
Miscellaneous Revenues - - - -
138,019 148,184 154,648 170,565
Transfers In 2,750 2,515 2,613 2,665
140,769 150,699 157,261 173,230
Expenditures
Salary and Benefits 40,579 46,622 40,911 42,951
Contractual Services 2,971 4,304 44,074 45,396
Utilities 22,162 64,054 30,000 30,900
Maintenance & Repairs 40,242 45,390 1,500 18,001
Other Expenses - - 3,611 3,719
Cost Allocation 10,949 11,461 11,000 14,727
Capital Outlay 850 1,072 - -
Debt Service - - 14,700 14,700
117,753 172,903 145,796 170,394
Transfer Out 2,289 2,400 2,700 2,781
120,042 175,303 148,496 173,175
Changes in restricted reserves
Net Annual Activity 20,727$ (24,604) 8,765 55
Ending Fund Balance 78,740$ 87,505$ 87,560$
(Pending Engineer's Report Subject to Change)
The purpose of this fund is to account for Baywood Lighting and Lanscaping District No. 2004-1 to finance the costs of landscaping and lighting public areas. The 1972 Act provides that the total cost of installation, construction, operations, maintenance and servicing of landscaping, street lighting and park and recreational facilities can be recovered by the District.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 142
Bayside Lighting and Landscape District
Fund Summary - Fund 224
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 130,180$ 146,456$
Revenues
Assessment 140,467$ 143,268$ 146,947 158,335
Interest Income (476) (1,435) - -
Miscellaneous Revenues - - - -
139,991 141,833 146,947 158,335
Transfers In 1,442 1,634 2,284 2,330
141,433 143,467 149,231 160,665
Expenditures
Salary and Benefits 28,923 32,304 24,665 35,375
Contractual Services 2,971 4,159 4,074 4,196
Utilities 58,213 36,634 20,000 20,600
Maintenance & Repairs 40,805 43,729 47,500 50,262
Other Expenses - - 10,216 10,522
Cost Allocation 7,809 8,174 8,000 10,075
Capital Outlay - - - -
Debt Service - - - -
138,721 125,000 114,455 131,030
Transfer Out 15,587 17,600 18,500 19,055
154,308 142,600 132,955 150,085
Changes in restricted reserves
Net Annual Activity $ (12,875) 867 16,276 10,580
Ending Fund Balance 130,180$ 146,456$ 157,036$
(Pending Engineer's Report Subject to Change)
The purpose of this fund is to account for Bayside Lighting and Lanscaping District No. 2005-1 to finance the costs of landscaping and lighting public areas. The 1972 Act provides that the total cost of installation, construction, operations, maintenance and servicing of landscaping, street lighting and park and recreational facilities can be recovered by the District.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 143
Arterial Roadways
Fund Summary - Fund 225
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 577,333$ 557,712$
Revenues
Assessment -$ -$ - -
Interest Income 2,520 (5,581) - -
Miscellaneous Revenues - - - -
2,520 (5,581) - -
Transfers In 269,367 319,600 314,000 322,637
271,887 314,019 314,000 322,637
Expenditures
Salary and Benefits 22,238 18,732 41,121 24,558
Contractual Services - - - -
Utilities 225,058 (203,941) 231,300 238,239
Maintenance & Repairs 33,292 71,509 55,200 56,856
Other Expenses - - - -
Cost Allocation 5,713 5,980 6,000 8,327
Capital Outlay - - - -
Debt Service - - - -
286,301 (107,720) 333,621 327,980
Transfer Out - - - -
286,301 (107,720) 333,621 327,980
Changes in restricted reserves
Net Annual Activity $ (14,414) 421,739 (19,621) (5,343) Ending Fund Balance 577,333$ 557,712$ 552,369$
(Pending Engineer's Report Subject to Change)
The purpose of this fund is to account for Arterial Roadways Lighting and Lanscaping District to finance the costs of landscaping and lighting public areas.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 144
Stormwater Assessment
Fund Summary - Fund 231
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance $ (136,148) $ (136,349) Revenues
Assessment 245,628$ 144,495$ 251,000 256,000
Interest Income (203) - - -
Miscellaneous Revenues - - - -
245,425 144,495 251,000 256,000
Transfers In/Solid Waste 124,237 125,000 125,000 125,000 369,662 269,495 376,000 381,000
Expenditures
Salary and Benefits 178,262 184,753 160,201 204,570
Contractual Services 110,863 91,716 126,000 132,271
Utilities 1,915 1,959 2,000 2,060
Maintenance & Repairs 27,294 15,984 25,000 25,750
Other Expenses 2,173 2,769 3,000 3,090
Cost Allocation 53,131 53,630 60,000 67,092
Capital Outlay - - - -
Debt Service - - - -
373,638 350,811 376,201 434,833
Transfer Out/General Fund - - - -
373,638 350,811 376,201 434,833
Changes in restricted reserves
Net Annual Activity $ (3,976) (81,316) (201) (53,833)
Ending Available Fund Balance $ (136,148) $ (136,349) $ (190,182) To account for activities associated with the acquisition or construction, and operation and maintenance of stormwater facilities for drainage and disposal of stormwater, and operations related to the provision of services.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 145
Development Impact Fee - Public Facilities
Fund Summary - Fund 241
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 144,723$ 144,723$
Revenues
Fees 766$ -$ - 34,950
Interest Income (10) (1,190) - -
Miscellaneous Revenues - - - -
756 (1,190) - 34,950
Transfers In - - - -
756 (1,190) - 34,950
Expenditures
Salary and Benefits (1,285) - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
(1,285) - - -
Transfer Out - - - -
(1,285) - - -
Changes in restricted reserves
Net Annual Activity 2,041$ (1,190) - 34,950
Ending Available Fund Balance 144,723$ 144,723$ 179,673$ To account for the collection of and expenditure of fees imposed as a condition of new development within the City, in compliance with California Government Code Section 66006 (AB 1600) SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 146
Community Development Tax
Fund Summary - Fund 242
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 168,615$ 168,615
Revenues
Fees 1,500$ -$ - 60,000
Interest Income (9) (1,387) - -
Miscellaneous Revenues - - - -
1,491 (1,387) - 60,000
Transfers In - - - -
1,491 (1,387) - 60,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves
Net Annual Activity 1,491$ (1,387) - 60,000
Ending Available Fund Balance 168,615$ 168,615$ 228,615$ Accounts for the activities and services of the Community Development Department. Revenues are derived from fees, licenses, and fines collected in conjunction with the planning, permitting and enforcement activities of the department in accordance with state law, requiring fees not to exceed the cost of providing services.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 147
Development Fee Fund
Fund Summary - Fund 243
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 71,936$ 71,936$
Revenues
Fees -$ -$ - -
Interest Income (7) (592) - -
Miscellaneous Revenues - - - -
(7) (592) - -
Transfers In - - - -
(7) (592) - -
Expenditures
Salary and Benefits (1,285) - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
(1,285) - - -
Transfer Out - - - -
(1,285) - - -
Changes in restricted reserves
Net Annual Activity 1,278$ (592) - -
Ending Available Fund Balance 71,936$ 71,936$ 71,936$
This fund accounts for revenues from citywide development impact fees required from certain new developments.

Funds are used to mitigate the impacts on availabilty and condition of public facilities caused by these developments.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 148
Development Impact Fee - Police Facilities
Fund Summary - Fund 244
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 165,948$ 105,948$
Revenues
Fees 1,357$ -$ - -
Interest Income (29) (2,187) - -
Miscellaneous Revenues - - - -
1,328 (2,187) - -
Transfers In - - - -
1,328 (2,187) - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) 2,444 - 60,000 -
Debt Service - - - -
2,444 - 60,000 -
Transfer Out - - - -
2,444 - 60,000 -
Changes in restricted reserves
Net Annual Activity $ (1,116) (2,187) (60,000) -
Ending Available Fund Balance 165,948$ 105,948$ 105,948$ To account for the collection of and expenditure of fees imposed as a condition of new development within the City, in compliance with California Government Code Section 66006 (AB 1600). Police Facilities needs through 2035 to be funded by this fee include: a waterfront police substation; an expansion of the existing station; an auditorium/emergency operations center; equipment and additional patrol vehicles for ten new police officers; needed to serve new development.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 149
Development Impact Fee - Fire Facilities
Fund Summary - Fund 246
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Fees 1,716$ -$ - -
Interest Income - - - -
Miscellaneous Revenues - - - -
1,716 - - -
Transfers In - - - -
1,716 - - -
Expenditures
Salary and Benefits - - - -
Contractual Services 829 - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
829 - - -
Transfer Out - - - -
829 - - -
Changes in restricted reserves
Net Annual Activity 887$ - - -
Ending Available Fund Balance -$ -$ -$
To account for the collection of and expenditure of fees imposed as a condition of new development within the City, in compliance with California Government Code Section 66006 (AB 1600) - Fire Facilities. The City collects these fees and remits to various governmental entities, organizations or trusts.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 150
Development Impact Fee - Parks & Recreation
Fund Summary - Fund 247
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance $ 136,536 136,536$
Revenues
Fees 1,577$ -$ - -
Interest Income (10) (1,534) - -
Miscellaneous Revenues - - - -
1,567 (1,534) - -
Transfers In - - - -
1,567 (1,534) - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves
Net Annual Activity 1,567$ (1,534) - -
Ending Available Fund Balance 136,536$ $ 136,536 136,536$ To account for the collection of and expenditure of fees imposed as a condition of new development within the City, in compliance with California Government Code Section 66006 (AB 1600). Assessed only on new residential development, the Parks & Recreation impacts fees are based on the costs to the City of providing new facilities defined in the 2001 Nexus study, including a 4,000-sq.-ft. teen center, a 4,240-sq.-ft. child care center, and a 10,000-sq.-ft. community cultural arts center, as well as acquiring 46.72 acres of land and improving 59.52 acres for neighborhood and community parks.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 151
Public Benefit Fee
Fund Summary - Fund 249
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 975,835$ 975,835$
Revenues
Fees -$ -$ - -
Interest Income 20,474 (28,759) - -
Miscellaneous Revenues - - - -
20,474 (28,759) - -
Transfers In - - - -
20,474 (28,759) - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves
Net Annual Activity 20,474$ (28,759) - -
Ending Available Fund Balance 975,835$ 975,835$ 975,835$ The purpose of this fund is to account for fees charged by City to Owner in the amount specified under the line item, "New Public Benefit Fee" on the Schedule of Exactions.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 152
Development Impact Fee - Transporation Facilities
Fund Summary - Fund 261
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 141,988$ 141,988$
Revenues
Fees $ (158,450) -$ - -
Interest Income (710) (1,302) - -
Miscellaneous Revenues - - - -
(159,160) (1,302) - -
Transfers In - - - -
(159,160) (1,302) - -
Expenditures
Salary and Benefits - - - -
Contractual Services - 76,939 - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - 15,000 - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- 91,939 - -
Transfer Out - - - -
- 91,939 - -
Changes in restricted reserves
Net Annual Activity $ (159,160) (93,241) - -
Ending Available Fund Balance 141,988$ 141,988$ 141,988$ To account for the collection of and expenditure of fees imposed as a condition of new development within the City, in compliance with California Government Code Section 66006 (AB 1600). The purpose of the transportation impact fee program is to fund improvements to the City’s major roadway, bicycle, and pedestrian facilities needed to accommodate travel demand generated by new land development within the City over the next 22 years (through 2040).

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 153
State Gas Tax
Fund Summary - Fund 262
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance $ 484,380 $ 134,300
Revenues
Gas Tax 1,023,113$ 1,184,727$ 1,433,597 1,392,993
Interest Income 1,662 (5,740) 1,000 -
Miscellaneous Revenues 43,566 - - -
1,068,341 1,178,987 1,434,597 1,392,993
Transfers In - - - -
1,068,341 1,178,987 1,434,597 1,392,993
Expenditures
Salary and Benefits 170,017 221,462 246,230 258,145
Contractual Services 242,915 81,181 100,000 206,315
Utilities 10,884 11,093 12,000 12,360
Maintenance & Repairs 67,762 57,712 66,000 79,067
Other Expenses 3,154 3,184 19,000 19,570
Cost Allocation 96,140 103,897 109,986 116,636
Capital Outlay 78,034 777,555 755,280 300,000
Capital Improvement Projects (CIP) 426,827 215,091
Debt Service - - - -
668,906 1,256,084 1,735,323 1,207,184
Transfer Out 54,988 46,569 49,354 50,342
723,894 1,302,653 1,784,677 1,257,526
Changes in restricted reserves (187,246)
Net Annual Activity 344,447$ (123,666) (350,080) (51,779) Ending Available Fund Balance 484,380$ $ 134,300 $ 82,521 This fund accounts for revenues received from the State of California under Street and Highways Code Sections 2015, 2106, 2107, and 2107.5 and 7360. Expenditures support the street maintenance and construction projects in comformance with the Streets and Highways Code requirements.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 154
Measure "C" Street Fund
Fund Summary - Fund 263
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 43,128$ $ (107,281)
Revenues
Gas Tax -$ 450,134$ 450,000 450,000
Interest Income (2,127) (562) - -
Miscellaneous Revenues - - - -
(2,127) 449,572 450,000 450,000
Transfers In - - - -
(2,127) 449,572 450,000 450,000
Expenditures
Salary and Benefits 282,260 231,831 245,120 259,318
Contractual Services 25,146 (15,444) 55,000 56,650
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation 39,363 50,981 65,400 63,997
Capital Outlay 131,576 147,611 234,889 100,000
Capital Improvement Projects (CIP) 50,000
Debt Service - - - -
478,345 414,979 600,409 529,965
Transfer Out - - - -
478,345 414,979 600,409 529,965
Changes in restricted reserves 187,246
Net Annual Activity $ (480,472) 34,593 (150,409) 107,281 Ending Available Fund Balance 43,128$ $ (107,281) -$
This fund accounts for revenue allocated by the Contra Costa County Transportation Authority to the City from the State collected sales tax to be expended for growth management planning and local street maintenance and improvement.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 155
STMP Traffic Impact Fee
Fund Summary - Fund 264
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Fees 5,744$ -$ - -
Interest Income 24 - - -
Miscellaneous Revenues 156 - - -
5,924 - - -
Transfers In - - - -
5,924 - - -
Expenditures
Salary and Benefits - - - -
Pass through to other agency 5,744 - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
5,744 - - -
Transfer Out - - - -
5,744 - - -
Changes in restricted reserves
Net Annual Activity 180$ - - -
Ending Available Fund Balance -$ -$ -$
The West Contra Costa Sub-regional Transportation Mitigation Program (STMP) is a regional development impact fee program covering the West Contra Costa transportation Advisory Committee (WCCTAC) planning area. The City collects the STMP fees and remits them to WCCTAC in accordance with a Master Cooperative Agreement. This Nexus fee study and regional project list was updated in 2019 with the new fees put in place effective July 1, 2019.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 156
BART Park & Ride
Fund Summary - Fund 266
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 275,690$ -$
Revenues
Fees -$ -$ - -
Interest Income - - - -
Miscellaneous Revenues 27,943.00 53,985 45,000 182,000
27,943 53,985 45,000 182,000
Transfers In 440,643.00 - - -
468,586 53,985 45,000 182,000
Expenditures
Salary and Benefits - - - -
Contractual Services 219,724.00 20,600 1,100 23,000
Utilities 8,125.00 (1,760) 3,200 18,000
Maintenance & Repairs - - 12,700 41,000
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Capital Improvement Project (CIP) - - - 100,000
Debt Service - - - -
227,849 18,840 17,000 182,000
Transfer Out - - - -
227,849 18,840 17,000 182,000
Reimburse BART (303,690)
Net Annual Activity 240,737$ 35,145 (275,690) -
Fund Balance
Ending Available Fund Balance 275,690$ -$ -$
The Hercules Transit Center (HTC), a park and ride facility in the City of Hercules has been maintained and operated under a joint agreement between the City of Hercules, BART and Western Contra Costa Transit Authority (WestCat). This fund is to account for the maintenance of the facility and fully reimburse by BART.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 157
General Plan Update Fee and Building Training Fee
Fund Summary - Fund 267
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ 915,000$
Revenues
Fees -$ -$ - 240,000
Interest Income - - - -
Miscellaneous Revenues - - - -
- - - 240,000
Transfers In - - - -
- - - 240,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves 915,000
Net Annual Activity -$ - 915,000 240,000
Fund Balance
Ending Available Fund Balance -$ 915,000$ 1,155,000$
General Plan Update 572,000$ 812,000$
Building Training Fee 343,000$ 343,000$
Total 915,000$ 1,155,000$
The fund is to account for the General Plan Update Fee and Building Training Fee. The General Update Fee (1% of construction valuation of any permit issued) is a fee to pay for the costs of preparing and adopting an updated general plan and the associated environmental documents, and maintaining and preparing legally reqired reports on the general plan. The Building Training Fee was discontinued and the fee was collected to comply with AB 1608.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 158
Solid Waste and Recycling
Fund Summary - Fund 291
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 833,015$ 773,989$
Revenues
Fees -$ -$ - -
Interest Income 623 (8,167) 3,000 4,000
Miscellaneous Revenues 175,722 213,632 175,000 176,000
176,345 205,465 178,000 180,000
Transfers In - - - -
176,345 205,465 178,000 180,000
Expenditures
Salary and Benefits 10,179 10,640 12,026 12,562
Contractual Services - 8,911 - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - 100,000 100,000 100,000
Debt Service - - - -
10,179 119,551 112,026 112,562
Transfer Out 124,237 125,000 125,000 125,000
134,416 244,551 237,026 237,562
Changes in restricted reserves
Net Annual Activity 41,929$ (39,086) (59,026) (57,562)
Ending Available Fund Balance 833,015$ 773,989$ 716,427$ The funding is from the rate differential between the fees collected by Richmond Sanitary Services (RSS) per their franchise agreement with Hercules and the fees for the post-collection agreement. The differential occurred when lower post-collection fees were adopted in 2013 due to the payoff of the bonds. On September 22, 2015, Hercules City Council restrict the use of funds to the purchase and distribution of reusable bags, street sweeping, and street repairs.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 159
American Recovery Plan Act ("ARPA")
Fund Summary - Fund 353
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
ARPA (Non-Entitlement) -$ 3,142,889$ 3,142,889 -
Interest Income - - - -
Miscellaneous Revenues - - - -
- 3,142,889 3,142,889 -
Transfers In - - - -
- 3,142,889 3,142,889 -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - General Fund (Loss of Revenue) - 3,142,889 3,142,889 - - 3,142,889 3,142,889 -
Changes in restricted reserves
Net Annual Activity $ - $ - - -
Ending Available Fund Balance $ - $ - $ -
This fund accounts for revenues from the American Recovery Plan Act ("ARPA"). On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by the President. Fiscal Recovery Funds are intended to provide support to state, local, and tribal governments in responding to the impact of COVID-19 and in their efforts to contain the negative impacts of COVID-19 on their communities, residents, and businesses. The Fiscal Recovery Funds build on and expand the support provided to governments over the last year, including through the Coronavirus Relief Fund (CRF).

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 160
Water Quality Retention Basin
Fund Summary - Fund 387
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 183,466$ 183,466$
Revenues
Property Tax 51,416$ 53,215$ 46,000 50,000
Interest Income 3,057 (4,482) - -
Miscellaneous Revenues - - - -
54,473 48,733 46,000 50,000
Transfers In - - - -
54,473 48,733 46,000 50,000
Expenditures
Salary and Benefits - - - -
Contractual Services 20,802 32,762 46,000 47,000
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
20,802 32,762 46,000 47,000
Transfer Out - - - -
20,802 32,762 46,000 47,000
Changes in restricted reserves
Net Annual Activity 33,671$ 15,971$ - 3,000
Ending Available Fund Balance 183,466$ 183,466$ 186,466$ This fund accounts for revenues from Property Tax Special Assessment for the formation of City of Hercules Community Facilities District No. 2017-01 on April 11, 2017. Development of the Bayfront and Muir Pointe created the need for construction of water quality detention basin for runoff generared by the improvements constructed to support the developments. The CFD was formed to create a funding mechanism for the maintenance costs associated with the water quality detention basin.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 161
Regional Water Quality
Fund Summary - Fund 521
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 51,729$ 51,729$
Revenues
Fees - - - -
Interest Income (5) (425) - -
Miscellaneous Revenues - - - -
(5) (425) - -
Transfers In - - - -
(5) (425) - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves
Net Annual Activity $ (5) (425) - -
Fund Balance
Ending Available Fund Balance 51,729$ 51,729$ 51,729$
This fund accounts for the Regional Water Quality. Created by the State Legislature in 1967, the Board protects water quality by setting statewide policy, coordinating and supporting the Regional Water Board efforts, and reviewing petitions that contest Regional Board actions. There are nine regional water quality control boards that exercise rulemaking and regulatory activities by basins.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 162

SEWER ENTERPRISE FUNDS
163
Sewer - Operations
Fund Summary - Fund 420
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance $ 11,715,650 $ 11,077,849 Revenues
Charges for Services 5,769,396$ $ 5,852,278 6,013,000 5,993,734 Interest Income 92,327 59,089 40,000 75,000
Rate Stabilization Fund - - - 563,051
Miscellaneous Revenues - - - -
5,861,723 5,911,367 6,053,000 6,631,785
Transfers In - - - -
5,861,723 5,911,367 6,053,000 6,631,785
Expenditures
Salary and Benefits 662,073 653,521 710,470 763,159
Contractual Services 546,102 266,054 570,000 433,341
Utilities 85,647 68,264 85,343 87,902
Maintenance & Repairs 43,627 11,288 48,638 50,096
Sewer Plant Operating Expenses 2,075,082 2,117,981 1,909,743 2,506,100 Other Expenses 8,559 7,394 6,130 6,314
Cost Allocation 280,371 280,194 291,477 307,886
Capital Outlay 5,596 20,615 6,000 6,180
Capital Improvement Projects (CIP) 1,158,482 88,571 - - Capital Outlay - Pinole (Hercules' Share) 1,030,000 652,691 Debt Service 1,193,797 1,612,509 2,033,000 2,064,156
6,059,336 5,126,391 6,690,801 6,877,825
Transfer Out - - - 132,000
6,059,336 5,126,391 6,690,801 7,009,825
Changes in restricted reserves (4,804,051)
Net Annual Activity (197,613) 784,976 (637,801) (5,182,091) Ending Fund Balance 25,243,250
Move to Fund 421 (Sewer Capital) (13,527,600)
Ending Available Fund Balance $ 11,715,650 $ 11,077,849 $ 5,895,758 Debt Service Coverage Ratio 1.45 1.46 1.20 1.20
Operating & Maintenance Reserve (180 days) 1,039,000
Capital Reserve (Equal to annual system depreciation) 1,002,000 Debt Service Reserve (Equivalent to 1-year of debt service) 2,200,000 This fund accounts for wastewater treatment to the cities of Hercules and Pinole and for the maintenance of the City's sewer lines and related facilities. It is a self-supporting activity which provides services on a user charge basis to residences and businesses.

SEWER ENTERPRISE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 164
Sewer - Capital Projects
Fund Summary - Fund 421
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 751,000$ -$
Revenues
Charges for Services -$ -$ - -
Interest Income - - - -
Bond Proceeds - - - -
Miscellaneous Revenues - - - -
- - - -
Transfers In - - - 132,000
- - - 132,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Sewer Plant Operating Expenses - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Capital Improvement Projects (CIP) - - 751,000 132,000
Debt Service - - - -
- - 751,000 132,000
Transfer Out - - - -
- - 751,000 132,000
Changes in restricted reserves
Net Annual Activity - - (751,000) -
Ending Fund Balance -
Move from Fund 420 (Operations) 13,527,600
Less: Encumbrances (1,127,600)
Less: Capital Projects Carryover (11,649,000)
Ending Available Fund Balance $ 751,000 $ - $ -
This fund accounts for wastewater treatment to the cities of Hercules and Pinole and for the maintenance of the City's sewer lines and related facilities. It is a self-supporting activity which provides services on a user charge basis to residences and businesses.

SEWER ENTERPRISE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 165

INTERNAL SERVICE FUNDS
166
Vehicle Replacement
Fund Summary - Fund 450
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 591,367$ 216,296$
Revenues
Charges for Services 159,000$ -$ 148,300 153,000
Interest Income 700 3,700 - -
Miscellaneous Revenues - - - -
159,700 3,700 148,300 153,000
Transfers In - - - -
159,700 3,700 148,300 153,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay 206,373 381 523,371 220,000
Debt Service - - - -
206,373 381 523,371 220,000
Transfer Out - - - -
206,373 381 523,371 220,000
Changes in restricted reserves
Net Annual Activity $ (46,673) 3,319 (375,071) (67,000) Ending Available Fund Balance 591,367 216,296$ 149,296$ By Department
Police -
Public Works 75,053
Parks & Recreation 74,243
149,296$
To account for the financing, operations, servicing and maintenance of fleet vehicles and major equipment utilized by City departments, of which the services are rendered on a cost reimbursement basis.

INTERNAL SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 167
Information Technology (IT) Operations
Fund Summary - Fund 460
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 365,515$ 362,284$
Revenues
Charges for Services 1,010,200$ 736,313$ 1,271,986$ 996,333 Interest Income - 124 - -
Miscellaneous Revenues 8,077 5,781 - -
1,018,277 742,218 1,271,986 996,333
Transfers In - - - -
1,018,277 742,218 1,271,986 996,333
Expenditures
Salary and Benefits 337,202 393,027 390,427 423,367
Contractual Services 18,800 78,430 30,000 30,900
Utilities 45,450 46,933 50,200 51,706
Maintenance & Repairs 273,612 320,020 386,550 422,380
Other Expenses 2,981 3,345 13,040 13,432
Cost Allocation 91,168 104,038 89,000 98,189
Capital Outlay 68,391 273,645 316,000 300,000
837,604 1,219,438 1,275,217 1,339,974
Transfer Out - - - -
837,604 1,219,438 1,275,217 1,339,974
Changes in restricted reserves
Net Annual Activity 180,673$ (477,220) (3,231) (343,641) Ending Available Fund Balance 731,031$ 362,284$ 18,643$ Allocate 50% to Facility Replacement Fund (365,516)
Ending Available Fund Balance, as adjusted 365,515$
This fund accounts for Information Technology who provide a variety of technology related services for the city, including networking and infrastructure technology including servers, switching, security, cyber protection, internet connectivity, service desk, disaster recovery and other data communication technologies. Resources are from administrative charges to departments based upon their proportional share of program costs.

INTERNAL SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 168
Facility Maintenance
Fund Summary - Fund 470
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 361,695$ 323,504$
Revenues
Charges for Services 883,150$ 817,040$ 787,000 938,955
Interest Income - - - -
Miscellaneous Revenues - - - -
883,150 817,040 787,000 938,955
Transfers In - - - -
883,150 817,040 787,000 938,955
Expenditures
Salary and Benefits 158,539 159,927 183,191 191,509
Contractual Services 13,883 10,842 180,000 185,400
Utilities 228,671 301,154 172,000 273,164
Maintenance & Repairs 68,043 100,577 169,000 174,070
Other Expenses 20,728 28,446 24,000 27,224
Cost Allocation 68,027 72,039 72,000 144,264
Capital Outlay - - 25,000 -
557,891 672,985 825,191 995,631
Transfer Out 440,643 - - -
998,534 672,985 825,191 995,631
Changes in restricted reserves
Net Annual Activity $ (115,384) 144,055 (38,191) (56,676) Ending Available Fund Balance 723,391$ 323,504$ 266,828$ Allocate 50% to Facility Replacement Fund (361,696)
Ending Available Fund Balance, as adjusted 361,695$
This fund accounts for Facility Maintenance provides and manages maintenance and emergency structural repair services for all City facilities. The source of revenue is reimbursement from departments for the cost of providing facility maintenance services.

INTERNAL SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 169
Information Technology (IT) Equipment Replacement
Fund Summary - Fund 480
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 365,516$ 365,516$
Revenues
Charges for Services -$ -$ - -
Interest Income - - - -
Miscellaneous Revenues - - - -
- - - -
Transfers In - - - -
- - - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves
Net Annual Activity -$ - - -
Ending Available Fund Balance -$ 365,516$ 365,516$
Allocate 50% to IT Operations 365,516
Ending Available Fund Balance, as adjusted 365,516$
This fund provides for the replacement of government technology infrastructure and equipment used to support City's departmental needs (servers, switches, data security, etc.). The source of revenue is contributions from various departments for future replacement of computer and related technology equipment included in the program.

INTERNAL SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 170
Facilities Replacement
Fund Summary - Fund 490
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 361,696$ 261,696$
Revenues
Charges for Services -$ -$ - -
Interest Income - - - -
Miscellaneous Revenues - - - -
- - - -
Transfers In - - - -
- - - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - - 100,000 142,000
Debt Service - - - -
- - 100,000 142,000
Transfer Out - - - -
- - 100,000 142,000
Changes in restricted reserves
Net Annual Activity -$ - (100,000) (142,000)
Ending Available Fund Balance -$ 261,696$ 119,696$
Allocate 50% from Facility Maintenance Fund 361,696
Ending Available Fund Balance, as adjusted 361,696$
This fund will be used to cover the major replacement of City buildings and facilities. The source of revenue is an annual contribution from various departments based on the square footage occupied.

INTERNAL SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 171

DEBT SERVICE FUNDS
172
Summary of Annual Debt Service Obligation from FY 2023-24 through Maturity Total Outstanding Debt Obligation
by Debt Category in FY 2023-24 Principal Interest Total 2020 Public Financing Authority (PFA)
Lease Revenue Bonds
$5,490,180 $692,933 $6,183,113
2009 Public Financing Authority (PFA)
Taxable Lease Revenue Bonds
$7,930,000 $6,417,904 $14,347,904
California Housing Finance Agency
(CalHFA) HELP Loan
$1,363,521 $66,667 $1,430,188
California Housing Finance Agency
(CalHFA) RDLP Loan
$3,750,000 $413,572 $4,163,572
Engie Construction Loan $4,115,542 $1,254,929 $5,370,471 2021 Public Financing Authority (PFA)
Wastewater Revenue Bonds
$4,000,642 $1,143,398 $5,144,040
Public Owned Treatment Works
Construction Loan
$22,144,092 $3,540,138 $25,684,230
Total $52,773,435 $14,130,358 $66,903,793
Note: In FY 2025-26 and FY 2026-27, the remaining balances for CalHFA loans are due in full.

FY 2023-24 DEBT DETAIL
DEBT DETAIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
$3,489,414
$3,499,774
$3,362,421
$3,370,084
$3,376,462
$2,509,461
$981,803
$3.97
Million
$3.97
Million
$5.11
Million
$7.66 Million
$3.80
Million
$3.81
Million
$3.82
Million
$3.83
Million
$3.84
Million
$3.85
Million
$3.86
Million $3.32
Million
$3.33
Million
$3.19
Million
$3.20
Million
$3.21
Million
$2.34
Million
$0.82
Million
2024 2025 2026 2027 2028 2029 2030 2031

FISCAL YEAR

DEBT SERVICE

OBLIGATION
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
173
DEBT LIMITS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
2013 2014 2015 2016 2017 2018 2019 2020 2021 2021
$2,386,706,268 $2,432,853,667 $2,823,697,070 $3,035,240,481 $3,279,761,098 $3,505,792,898 $3,655,023,232 $3,873,427,943 $4,107,894,266 $4,278,246,435 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
$596,676,567 $608,213,417 $705,924,268 $758,810,120 $819,940,275 $876,448,225 $913,755,808 $968,356,986 $1,026,973,567 $1,069,561,609 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
$89,501,485 $91,232,013 $105,888,640 $113,821,518 $122,991,041 $131,467,234 $137,063,371 $145,253,548 $154,046,035 $160,434,241 - - - - - - - - - -
$89,501,485 $91,232,013 $105,888,640 $113,821,518 $122,991,041 $131,467,234 $137,063,371 $145,253,548 $154,046,035 $160,434,241 Assessed Valuation
Conversion
Percentage
Adjusted Assessed
Valuation
Debt Limit
Percentage
Debt Limit
Legal Debt Margin
Total debt applicable to
the limit as a percentage of debt limit 1
1 Section 43605 of the California Government Code for General Obligation Bonds.

For the Fiscal Year Ended June 30
Total Net Debt:
applicable to limit:

General
Obligation Bonds
Sources: City Finance Department
County Tax Assessor’s Office

CITY OF HERCULES

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Under State law, the City may not issue debt in excess of 15% of the total assessed valuation of taxable property within its boundaries.

In accordance with California Governmental Code Section 43605, only the City’s general obligation bonds are subject to that legal debt limit.

The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.
174
DEBT DETAIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
FY 2023-24 DEBT DETAIL
2009 Public Financing Authority Taxable Lease Revenue Bonds (Bio-Rad Project) The Authority issued taxable lease revenue bonds, series 2009, dated July 29, 2009, totaling $10,080,000.

The purpose of the bonds was to finance the acquisition of certain commercial condominium properties, consisting of approximately 96,847 square feet located at 203-295 Linus Pauling Drive within the City from the City, funding a reserve fund for the Bonds and to paying the costs of issuance of the Bonds. The interest rates on the bonds range from 6.00% to 8.40%. The interest is payable semiannually on January 1 and July 1, commencing January 1, 2010. The bonds are subject to optional special mandatory redemption, and mandatory sinking account redemption provisions. The bonds are payable from and secured by revenues consisting primarily of the base rental payments of the property lease, Principal is due annually beginning on July 1, 2010, in amounts ranging from $165,000 to $845,000. The bonds mature on July 1, 2038. The principal outstanding balance and the unamortized issuance discount at June 30, 2022 are $8,165,000 and $276,738, respectively.

The Bonds constitute limited obligations of the Authority payable solely from Revenues. The Authority has no taxing power. The obligation of the City to make City Advances does not constitute an obligation of the City which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation.

Future debt service requirements on the 2009 Public Financing Authority Taxable Lease Revenue bonds are as follows:

Year Ending June 30 Principal Interest Total
FY 2023-24 $255,000 $652,159 $907,159
FY 2024-25 $275,000 $630,296 $905,296
FY 2025-26 $300,000 $606,578 $906,578
FY 2026-27 $325,000 $580,796 $905,796
FY 2028-2032 $2,065,000 $2,436,495 $4,501,495
FY 2033-2037 $3,085,000 $1,372,350 $4,457,350
FY 2038-2039 $1,625,000 $139,230 $1,764,230
Total $7,930,000 $6,417,904 $14,347,904
175
DEBT DETAIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
FY 2023-24 DEBT DETAIL
2020 PFA Lease Revenue Refunding Bonds
The Hercules Public Financing Authority issued Lease Revenue Refunding Bond series 2020, datedAugust 1, 2020, totaling $5,876,843. The purpose of the bonds was to finance and to refinance the acquisition andor construction of certain real property and public capital improvements of the City. The issuance of the 2020Lease Revenue Refunding Bond (the “2020 Refunding Bond”) resulted in cash flow savings of $947,702 over the life of the Bond. The City has structured the refinancing to achieve nearly all of the cash flow savings in the first three fiscal years: $458,377, $435,857, and $53,463 during years ended 2021, 2022, and 2023, respectively.

Future debt service requirements on the 2020 Hercules Public Financing Authority Lease Revenue Refunding Bond are as follows:

Year Ending June 30 Principal Interest Total
FY 2023-24 $448,561 $116,376 $564,937
FY 2024-25 $457,061 $106,369 $563,430
FY 2025-26 $465,032 $96,180 $561,212
FY 2026-27 $477,396 $85,766 $563,162
FY 2028-2032 $2,547,562 $263,936 $2,811,498
FY 2033-2034 $1,094,568 $24,305 $1,118,873
Total $5,490,180 $692,933 $6,183,113
176
DEBT DETAIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
FY 2023-24 DEBT DETAIL
Housing Enabled by Local Partnerships (H.E.L.P.) Loan (“H.E.L.P Loan”) In April 2005 the City entered into an agreement with the California Housing Finance Agency (Agency), a public instrumentality and political subdivision of the state of California to develop a 50-unit multifamily rental project that is a component to a mixed-used development, also consisting of 26,825 square feet of ground-floor commercial space. The Agency has authorized the making of a loan in the amount of $1,600,000 known as the Housing Enabled by Local Partnerships (H.E.L.P.) to the City for the purpose of assisting in operating a local housing program. Under the terms of this original agreement the City of Hercules agreed to reimburse the Agency $1,600,000, 10 years from April 11, 2005 at a 3% simple per annum interest. Interest is to be charged only on funds disbursed. In October 2013, the City and Agency amended the agreement to extend the due date of the loan and accumulated interest until April 2027 and to reduce the interest rate to 1.5% simple interest effective October 31, 2013. The balance at June 30, 2022 is $1,439,588..

Future debt service requirements to maturity for the H.E.L.P. Loan are as follows:

Year Ending June 30 Principal Interest Total
FY 2023-24 $75,933 $24,067 $100,000
FY 2024-25 $76,133 $23,867 $100,000
FY 2025-26 $1,211,455 $18,733 $1,230,188
Total $1,363,521 $66,667 $1,430,188
177
DEBT DETAIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
FY 2023-24 DEBT DETAIL
Residential Development Loan Program Loan (“R.D.L.P Loan”) In February 2007, the City entered into a loan agreement with the California Housing Finance Agency (Agency) in the amount of $3,750,000 ($1,750,000 for predevelopment costs and $2,000,000 for construction costs). The funds will be used to assist with site acquisition, predevelopment, and construction costs for 23 affordable ownership units within a 52-unit condominium project, which is a component to the Sycamore Downtown Street project, a mixed-use, mixed-income development. Under the terms of the original agreement, the City agreed to repay the Agency $3,750,000, four years from February 2007 at 3% simple per annum interest. In October 2013, the City and Agency amended the agreement to extend the due date of the loan and accumulated interest until August 2026 and to reduce the interest rate to 1.5% simple interest effective October 31, 2013. The balance at June 30, 2022 is $3,750,000.

Future debt service requirements to maturity for the R.D.L.P. Loan are as follows:

Year Ending June 30 Principal Interest Total
FY 2023-24 - $100,000 $100,000
FY 2024-25 - $100,000 $100,000
FY 2025-26 - $100,000 $100,000
FY 2026-27 $3,750,000 $113,572 $3,863,572
Total $3,750,000 $413,572 $4,163,572
178
DEBT DETAIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
FY 2023-24 DEBT DETAIL
Engie Construction Loan
On August 14, 2020, the City entered into an equipment lease purchase agreement for the implementation of the “Option A” Energy Services Contract. Interest rate is 2.71%, 30/360 basis, and payment commencing August 14, 2020, and ending on September 14, 2040. The balance at June 30, 2022 is $4,115,542.

Future annual debt service requirements to maturity for the rental payment are as follows:

Year Ending June 30 Principal Interest Total
FY 2023-24 $127,479 $108,417 $235,896
FY 2024-25 $130,064 $104,963 $235,027
FY 2025-26 $143,641 $101,438 $245,079
FY 2026-27 $158,064 $97,545 $255,609
FY 2028-2032 $1,039,606 $414,783 $1,454,389
FY 2033-2037 $1,408,443 $247,529 $1,655,972
FY 2038-2041 $993,345 $68,723 $1,062,068
Total $4,000,642 $1,122,330 $4,602,863
Lease Payable
The City has entered into leases for the machine uses. The terms of the agreements range from 13 months to 33 months. The calculated interest rate used was 2.38% based on the term of the agreements.

Principal and interest payments to maturity at June 30, 2022 are as follows:

Future debt service requirements to maturity for the 2020 Public Financing Authority Lease Revenue Refunding bonds are as follows:

Year Ending June 30 Principal Interest Total
FY 2023-24 $7,084 $71 $7,155
Total $7,084 $71 $7,155
Note: PG&E savings are re-directed to offset the loan payments. The Base Option would result in a net annual projected savings of approximately $28,000 per year for the first 20 years and a total projected savings of $2 million over the 25-year life of the project. 179
DEBT DETAIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
FY 2023-24 DEBT DETAIL
State Water Resources Construction Loan
In June 2016, the City entered into an installment sale agreement with the California State Water Resources Control Board in the amount of $26,500,000. The funds are for construction costs for the Pinole-Hercules Wastewater Pollution Control Plant Improvement Project. The interest rate on the loan is 1.7%. The first principal and interest payment are due August 31, 2019, and is contingent on the total drawdowns at project completion. The loan matures on August 31, 2038. The City has drawn down $25,458,720 of the loan principal including construction loan interest as of June 30, 2022. The balance at June 30, 2022 is $23,259,518..

Future debt service requirements to maturity for as of June 30, 2022 are as follows:

Year Ending June 30 Principal Interest Total
FY 2023-24 $1,134,388 $376,450 $1,510,837
FY 2024-25 $1,153,672 $357,165 $1,510,837
FY 2025-26 $1,173,285 $337,553 $1,510,837
FY 2026-27 $1,193,230 $317,607 $1,510,837
FY 2028-2032 $6,277,411 $1,276,774 $7,554,185
FY 2033-2037 $6,829,444 $724,742 $7,554,186
FY 2038-2039 $4,382,663 $149,849 $4,532,512
Total $22,144,092 $3,540,138 $25,684,230
180
Wastewater Revenue Bonds, Series
In July, 2021, the City issued the Direct Purchase Lease in the amount of $8,450,000 and the proceeds were used to early pay off the 2010 PFA Wastewater Revenue Bonds. The bonds bear interest at 2.38%.

Interest on the bonds is payable semi-annually on February 1 and August 1 in each year, commencing February 1, 2022. Principal payments are due in annual installments ranging from $355,000 to $545,000, commencing August 1, 2022 through August 1, 2040.

In the event of default, the City shall declare the entire principal amount of the unpaid series 2021 installment payments and accrued inteest thereon to be due and payable immediately in writing.

Future debt service requirements to maturity for as of June 30, 2022 are as follows:

Year Ending June 30 Principal Interest Total
FY 2023-24 $365,000 $188,318 $553,318
FY 2024-25 $375,000 $179,512 $554,512
FY 2025-26 $385,000 $170,468 $555,468
FY 2026-27 $395,000 $161,186 $556,186
FY 2028-2032 $2,100,000 $659,855 $2,759,855
FY 2033-2037 $2,365,000 $394,545 $2,759,545
FY 2038-2041 $2,110,000 $101,864 $2,211,864
Total $8,095,000 $1,855,746 $9,950,746
DEBT DETAIL CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
FY 2023-24 DEBT DETAIL
181
2020 DEBT SERVICE PFA
Fund Summary - Fund 672
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 158,687$ 1,621$
Revenues
Property Lease Revenue - - - -
Interest Income 103,455 - - -
Miscellaneous Revenues - - - -
103,455 - - -
Transfers In/General Fund 106,938 - 355,934 563,316
210,393 - 355,934 563,316
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - 1,500 - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 205,522 129,878 513,000 564,937
205,522 131,378 513,000 564,937
Transfer Out - - - -
205,522 131,378 513,000 564,937
Changes in restricted reserves
Net Annual Activity 4,871$ (131,378) (157,066) (1,621)
Ending Available Fund Balance 158,687$ 1,621$ -$
(Restricted for Debt Service)
This fund accounts for the 2020 Public Financing Authority (PFA) Lease Revenue Refunding Bond. The City and the Authority refinance a portion of the costs of the acquisition, contruction and installation of various public improvements of the City, including the City Library, that were originally financed and refinanced from the proceeds of the Lease Revenue Bonds, Series 2003B.

DEBT SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 182
2009 DEBT SERVICE PFA
Fund Summary - Fund 673
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Property Lease Revenue 837,889 984,267 908,000 907,159
Interest Income 897 (1,146) - -
838,786 983,121 908,000 907,159
Transfers In - - - -
838,786 983,121 908,000 907,159
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 909,715 912,590 908,000 907,159
909,715 912,590 908,000 907,159
Transfer Out - - - -
909,715 912,590 908,000 907,159
Changes in restricted reserves
Net Annual Activity $ (70,929) 70,531 - -
Ending Available Fund Balance - -$ -$
(Restricted for Debt Service)
This fund accounts for the 2009 Public Financing Authority (PFA) Taxable Lease Revenue Bonds (Bio-Rad Project). The purpose of the bonds was to finance the acquisition of certain commercial condominium properties, consisting of approximately 96,847 square feet located at 203-295 Linus Pauling Drive. The bonds is secured by revenues consisting primarily of the base rental payments of the property lease, Principal is due annually and will mature on July 1, 2038.

DEBT SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 183
SunTrust Lease
Fund Summary - Fund 383
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Charges for Services -$ -$ - -
Interest Income - - - -
Property Lease Revenue - - - -
- - - -
Transfers In 205,099 205,099 103,000 -
205,099 205,099 103,000 -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 205,099 205,099 103,000 -
205,099 205,099 103,000 -
Transfer Out - - - -
205,099 205,099 103,000 -
Changes in restricted reserves
Net Annual Activity -$ - - -
Ending Available Fund Balance -$ -$ -$
This fund accounts for SunTrust Lease. On September 27, 2007, the City entered into master lease agreements with Sun Trust Leasing Corporation in order to provide funds for the financing of the EMS Project performed by Siemens Building Technologies. Payments are due semiannually. The Master Lease Agreement matures on September 27, 2022.

DEBT SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 184
Equipment Lease
Fund Summary - Fund 388
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Charges for Services -$ -$ - -
Interest Income - - - -
Property Lease Revenue - - - -
- - - -
Transfers In - 218,444 227,000 235,896
- 218,444 227,000 235,896
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - 217,391 227,000 235,896
- 217,391 227,000 235,896
Transfer Out - - - -
- 217,391 227,000 235,896
Changes in restricted reserves
Net Annual Activity -$ 1,053 - -
Ending Available Fund Balance -$ -$ -$
This fund accounts for Engie Solar Project Lease. On August 14, 2020, the City entered into master lease agreements with Sterling National Bank in order to provide funds for the financing of the Solar Energy Project by ENGIE Services U.S. Inc. Payments are due annually and the payments are offset by the energy savings of approximately $28,000 annually. The Master Lease Agreement matures on September 14, 2040.

DEBT SERVICE FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 185

CAPITAL PROJECT FUNDS
186
CIP SPENDING PLAN CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

CITY OF HERCULES

TEN-YEAR CAPITAL IMPROVEMENT
PROGRAM SPENDING PLAN FY 2024-2033

SUMMARY OF TEN-YEAR CAPITAL IMPROVEMENT
PROGRAM SPENDING PLAN FY 2024-2033
Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Project Name Carryover Proposed Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Repair Leak in Library Starry Cone 100,000 7,000 - - - - - - - - - 107,000 ADA Transition Plan - Building - 60,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 510,000 Community Center Repairs 175,000 - - - - - - - - - - 175,000 Corp Yard Drainage Improvements - 25,000 - - - - - - - - - 25,000 Police Dept. Expansion 160,000 - - - - - - - - - - 160,000 Building Facilities Plan 75,000 - - - - - - - - - - 75,000 Council Chamber Refurbishment and
Improvement - 50,000 - - - - - - - - - 50,000
Total, Facilities 510,000 142,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 1,102,000 ADA Transition Plan - Parks - 60,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 510,000 60,000 - - - - - - - - - - 60,000
194,000 - - - - - - - - - - 194,000
Park Improvement Project - 200,000 - - - - - - - - - 200,000 Tree Mitigation in Open Space - 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000 - 100,000 - - - - - - - - - 100,000
- 50,000 - - - - - - - - - 50,000
Lupine Hill Stabilization - 100,000 - - - - - - - - - 100,000 Total, Parks and Open Space 254,000 560,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,714,000 - 25,000 25,000 25,000 - - - - - - - 75,000
- 25,000 25,000 25,000 - - - - - - - 75,000
- 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 250,000 - 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 250,000 321,140 - - - - - - - - - - 321,140
1,058,000 - - - - - - - - - - 1,058,000
52,800 - - - - - - - - - - 52,800
250,000 - - - - - - - - - - 250,000
Pedestrian Sidewalk Improvement
Willow & Palm (63042) - 100,000 - - - - - - - - - 100,000 - - 650,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 5,850,000 - - 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,350,000 - - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 900,000 - - - 1,954,000 1,186,000 - - - - - - 3,140,000
ADA Transition Plan - Street - 60,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 510,000 502,506 502,506
65,091 65,091
Total, Streets 1,681,940 827,597 1,050,000 3,004,000 2,186,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 14,749,537 500,000 - - - - - - - - - - 500,000
300,000 179,000 - - - - - - - - - 479,000
Funding Plan 107,700,000 107,700,000
Total, Hercules HUB 679,000 300,000 - - - - - - - - 107,700,000 108,679,000 Sycamore Ave (Lower Trunk Main) 12,000,000 - - - - - - - - - - 12,000,000 Sycamore Ave (Upper Truck Main) 42,000 100,000 400,000 4,078,000 - - - - - - - 4,620,000 Sewer Manholes in Business Park - 32,000 - - - - - - - - - 32,000 Total, SEWER 12,042,000 132,000 400,000 4,078,000 - - - - - - - 16,652,000 Total, CIP 15,166,940 1,961,597 1,600,000 7,232,000 2,336,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 108,850,000 142,896,537

FUNDING SOURCES
BART Fund - 100,000 - - - - - - - - - 100,000
Facilities Fund 260,000 142,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 852,000 Gas Tax - 100,000 - - - - - - - - - 100,000
General Fund 500,000 - - - - - - - - - - 500,000
General Fund/Capital Reserves - 300,000 - - - - - - - - - 300,000 Grant 2,043,800 802,506 - - - - - - - - 107,700,000 110,546,306 LLAD 83-2 Zone 10 - 160,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,060,000 Measure J Fund- 263 - 50,000 200,000 200,000 175,000 175,000 175,000 175,000 175,000 175,000 175,000 1,675,000 Sewer - 421 12,042,000 132,000 400,000 4,078,000 - - - - - - - 16,652,000 Solid Waste Fund - - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 900,000 State Gas Tax Fund- 262 321,140 175,091 750,000 750,000 725,000 725,000 725,000 725,000 725,000 725,000 725,000 7,071,231 Unfunded - - - 1,954,000 1,186,000 - - - - - - 3,140,000 Total, FUNDING 15,166,940 1,961,597 1,600,000 7,232,000 2,336,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 108,850,000 142,896,537 Utility Design
Annual Street Repair Project
Pedestrian Sidewalk Improvement Willow
& Palm (63042)
Beechnut Park
Tree Mitigation & Replacement Program
Annual Sidewalk Repair Program
Annual Restriping Project
Countywide Smart Signals
187
CIP SPENDING PLAN CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

CITY OF HERCULES

CAPITAL PROJECTS

SUMMARY OF COMPLETED PROJECTS AND PRIOR YEAR CARRYOVERS CAPITAL PROJECTS

SUMMARY OF COMPLETED PROJECTS AND PRIOR YEAR CARRYOVERS Project Name Budget To
Date/Projection
Actual Expenditures
thru March 2023
Outstanding Encumbrances/
Estimate through June 30
Projected Prior Year Carryover/
Remaining Balance
Energy Conservation Measures 4,209,354 4,209,354 - -
Repair Leak in Library Starry Cone 100,000 - - 100,000
Community Swim Center Gym Floor Replacement &
Other Building and Deferred Maintenance 250,000 65,696 9,304 175,000 Police Locker Room and Restroom Remodel 160,000 - - 160,000 Building Facilites Plan 75,000 - - 75,000
Total, Facilities 4,794,354 4,275,050 9,304 510,000
Baywood Tree Replacement 140,000 140,000 - -
Beechnut Park 254,000 - - 254,000
ADA Assessment Improvement 40,700 36,000 4,700 -
Refugio Tennis Court Tree Maintenance 6,000 6,000 - -
Community Swim Center Safety Fence Replacement 100,000 - 100,000 - Park Master Plan 150,000 44,021 105,979 -
Resurfacing Refugio Park Tennis Court 162,982 162,982 - - Children With Disabilities Swingset 100,000 - 100,000 - Hannah Ranch Improvements 72,645 72,645 - -
Victoria by the Bay - Refurnish Gazebo & Railing 55,000 - 55,000 - Ohlone Dog Park Tree Removal & Pruning 85,000 - 85,000 - Tree Planting & Removal Open Space 50,000 50,000 - -
Aerator Reugio Valley Parks 60,000 42,700 17,300 -
Total, Parks and Open Space 1,276,327 554,348 467,979 254,000 2019 Pavement Project 694,989 694,989 - -
Village Parkway Traffic Calming 122,000 66,157 55,843 - Pedestrian Sidewalk Improvement - Willow & Palm
(63042) 1,711,800 29,860 1,681,940
2019 Street Lights Replacement 578,861 578,861 - -
2021 Pavement Repair Project 815,281 815,281 - -
2021 Rehabilitation Project - Sycamore 923,229 923,229 - - 2021 Street Lights Replacement 579,295 579,295 - -
ADA Assessment Improvement 25,000 - 25,000 -
Sidewalk and Safe Walkways 100,000 55,000 45,000 -
Total, Streets 5,550,455 3,742,672 125,843 1,681,940
Design Utility Relocation 1,250,000 471,000 100,000 679,000 Total, Hercules HUB 1,250,000 471,000 100,000 679,000
Sycamore Ave (Lower Trunk Main) 14,351,000 1,225,094 1,125,906 12,000,000 Sycamore Ave (Upper Truck Main) 100,000 40,396 17,604 42,000 Total, Sewer 14,451,000 1,265,490 1,143,510 12,042,000
Total, CIP 27,322,136 10,308,560 1,846,636 15,166,940
Summary by Funding Source:

DIF - Police Facilities 160,000 - - 160,000
Proposition 68 - Grant Funds 194,000 - - 194,000
DIF - Park & Recreation 60,000 - - 60,000
Victoria LLAD No. 2002-1 55,000 - 55,000 -
LLAD 83-2 Zone 10 235,700 128,700 107,000 -
General Fund 1,388,627 472,501 416,126 500,000
Baywood LLAD No. 2004-1 140,000 140,000 - -
Sewer 14,451,000 1,265,490 1,143,510 12,042,000
State Gas Tax 3,993,455 3,621,515 25,000 346,940
Facilities Fund 100,000 - - 100,000
Equipment Lease Agreement 4,209,354 4,209,354 - -
Grants 2,335,000 471,000 100,000 1,764,000
Total, CIP 27,322,136 10,308,560 1,846,636 15,166,940
188
Project Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Repair Leak in Library Starry Cone Facility Maintenance Fund 100,000$ $ 7,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 7,000 ADA Transition Plan - Building Facility Maintenance Fund -$ $ 60,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 510,000 Community Center Repairs ARPA General Fund 175,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 175,000 Corp Yard Drainage Improvements Facility Maintenance Fund -$ $ 25,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 25,000 Police Dept. Expansion Police Development Impact Fee 160,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ - Building Facilities Plan ARPA General Fund 75,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ - Council Chamber Refurbishment and
Improvement Facility Maintenance Fund -$ $ 50,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 50,000 Total $ 510,000 $ 142,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 767,000 Funding Source:

Facility Maintenance Fund 100,000$ $ 142,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 692,000 ARPA General Fund 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 250,000 Police Development Impact Fee 160,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 160,000 Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 510,000 $ 142,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 1,102,000 City of Hercules
Facilities CIP Summary
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 189
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Facility Maintenance Fund $ 100,000 $ 7,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 107,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 100,000 $ 7,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 107,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Repair Leak in Library Starry Cone and Improve Fireplace Repair the leak in the starry cone in the Library. For FY 2023-24, it is anticipated the City will have consulted with a leak detection company and architect, as well as hired a contractor who will have begun but not finished the repairs. At the time of the creation of the CIP, the cost of repair is unknow. $100K is being proposed to ensure the repairs can be completed and any unspend funding will be returned to the Facilities Maintenance Fund.

A safety encloseure for the fireplace is proposed to be constructed in FY 2023-24 for approximately $7,000.

Maintain the City's facilities in good working order.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 190
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Facility Maintenance Fund -$ 60,000 $ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 510,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 60,000 $ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 510,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
ADA Transition Plan - Building Access
Construct path of travel improvements from the parking lot to the Senior Center building entrance including improving curb ramps, adding a van accessible parking space, adding reserved parking signs, regrading and repairing surfacingon the path of travel to provide for accessability.

This work is part of the City's ADA Transition Plan to remove impediments related to City-owned buildings for all users. This work and funding level is anticipated to reoccur on an on-going, annual basis into the forseable future.

The Senior Center is one of the City's busiest facilities and is frequented by the elderly, who have the highest levels of mobility impairment.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 191
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed ARPA General Fund $ 175,000.00 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 175,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 175,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 175,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Community Center Repairs
Make improvements and repairs to the Community Center, including:

Paint exterior including trim repair $60K
Paint interior public spaces (hallway, gym, activity rooms) $15K Replace 2 main pool pumps $50K
Add 4 additional hanging basketball hoops on the gym walls $50K One time ARPA/General Fund monies were prevously appropriated to make repairs and improvements to the Community Center.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 192
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Facility Maintenance Fund -$ 25,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 25,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 25,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 25,000
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Corp Yard Drainage Improvements
The Corp Yard floods during storms because proper drainage was never established on-site. Funding will be used to complete a site assessment and make the necessary improvements, including grading and drain pipe installation.

Flooding impacts the Corp Yard's ability to provide storm response.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 193
Project Number: BDP#22-3
Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Police Development Impact Fee $ 160,000.00 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 160,000.00 Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 160,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 160,000.00 $ City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Police Dept. Expansion
This project will remove the decrepit, abandoned modular building in front of City Hall and replace it with police lockers, Including private restrooms and showers, and a workout/training area. The project is on hold until sufficient developer impact fees have been deposited into the fund, which would occur for example when the Bayfront developer pulls permits for The Mint private residential development project.

The Locker room and restrooms used by Police Staff are too small and are in greatly deteriorated condition as they are utilized 24 hours a day/seven days a week. In addition, as our Police staffing has become more diverse with more female officers, space needs to be reallocated to accommodate this shift. A remodel and upgrade of the existing locker rooms and restrooms was evaluated but is not feasible. The new facilities will provide more space and allow for increased diversity and inclusion.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 194
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed ARPA General Fund $ 75,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 75,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 75,000
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Building Facilities Plan
The Building Facilities Plan will assess the condition of all city-owned facilities and develope a prioritized schedule of maintenance and repairs for the next 10 years. This work was funded in FY 22- 23 but staff was unable to locate a private consultant to perform the work. Staff will peform the work in FY 23-24 if a consultant cannot be identified. Once the Plan is completed, future projects and associated costs will be programmed into the CIP.

The average age of City facilities is approximately 30 years old. A proactive approach versus pays as you go is needed to ensure they are properly maintained.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 195
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Facility Maintenance Fund -$ 50,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 50,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 50,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 50,000
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Council Chamber Refurbishment and Improvement
Refurbish and improve the City Council chamber and entrance lobby including: new carpeting, paint walls, clean sound panels, repair ceiling tiles, replace curtain in Council room, and install railing and remove red tape on ramp providing access to Council seating. Install push panel and hardware to automate doors into Council and Lobby.

Due to past funding shortages, repairs to the City's facilities have been deferred. As the City's finances improve and it is now possible to fund maintenance work, facilities that improve citizens' expereiences should be the highest priority.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 196
Project Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection ADA Transition Plan - Parks LLAD 83-2 Zone 10 -$ $ 60,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 510,000 Eastbay Regional Park
District WW Grant Funds $ 60,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 60,000 Prop. 64 Grant Funds $ 194,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 194,000 Park Improvement Project
General Fund/Capital
Reserves -$ 200,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 200,000 Tree Mitigation in Open Space LLAD 83-2 Zone 10 -$ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 500,000 Gas Tax -$ 100,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 100,000 LLAD 83-2 Zone 10 -$ $ 50,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 50,000 Lupine Hill Stabilization
General Fund/Capital
Reserves -$ 100,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 100,000 Total $ 254,000 $ 560,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 1,714,000 Funding Source:

LLAD 83-2 Zone 10 -$ 160,000 $ $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 1,060,000 Eastbay Regional Park
District WW Grant Funds $ 60,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 60,000 Prop. 64 Grant Funds $ 194,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 194,000 $ General Fund/Capital
Reserves -$ 300,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ 300,000 $ Gas Tax -$ 100,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total $ 254,000 $ 560,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 1,714,000 City of Hercules
Parks CIP Summary
Beechnut Park
Tree Mitigation & Replacement
Program
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 197
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection LLAD 83-2 Zone 10 -$ 60,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ $ 510,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 60,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ $ 510,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
ADA Transition Plan - Parks
For Refugio Valley Park, including tennis courts, complete the following improvements:

For parking area, provide reserved parking sign, a van accessible parking space, adequate number of accessible parking spaces, associated striping and access aisles. In general, repair and level surfacing on paths of travel. For tennis courts, install handrails and repair stairway. For restroom, provide accessible path of travel to entrance and modify door hardware.

This work is part of the City's ADA Transition Plan to remove impediments related to City-owned parks for all users. This work is anticipated to reoccur on an on-going, annual basis into the forseable future.

Refugio Valley Park is one of the City's busiest parks and is frequented by the elderly who walk around the loop and children who play in the park. A swing set for all users is being installed in the CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 198
Project Number:

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Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Eastbay Regional Park
District WW Grant Funds 60,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 60,000 Prop. 64 Grant Funds 194,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 194,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total 254,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 254,000
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Beechnut Park
Improve Beechnut Park utilitzing grant funding. Improvements are to be determined but could includea a half play court with basketball hoop, play structures, picnic area, and turf play area.

There is an easement for the overhead electric transmission lines which needs to be modified by PG&E and approved by the CPUC prior to improvements being constructed. This process is expected to occur over FY 23-24 along with the Beechnut Park is the most in need of enhancing and has been essentially unimproved fo many years. Council appropriated funding for Beechnut Park in a prior year.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 199
Project Number:

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Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital
Reserves -$ 200,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 200,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 200,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 200,000
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Park Improvement Project
The Parks Master Plan will be completed in FY 2022-23 and will include a comprehensive list of improvement projects intended to be implemented over the next 10 years. Upon its completion, the future improvement projects and associated costs will be incorporated into the Capital Improvement Plan. $200K is reserved for FY 2023-24.

The Parks System is in need of repair and improvements. Deferred maintenance has has been accruing over the past decade, over which time the City was in severe financial hardship.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 200
Project Number:

Project Name:

Description:

Justification:

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Estimated Start Date:

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Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection LLAD 83-2 Zone 10 -$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ $ 500,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ $ 500,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Tree Mitigation in Open Space
Mitigate hazard trees from open space encroaching onto private property Trees in City open space are in the wildland/urban interface and encroach onto adjacent residential properties. At times they need to be trimmed or removed to prevent damage to adjacent private property and reduce liability. This is a relatively new, emerging threat triggered by climate change and the $50K/year funding level will be evaluated on a forward going basis and adjusted as needed. The City owns open CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 201
Project Number:

Project Name:

Description:

Justification:

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Estimated Start Date:

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Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Gas Tax -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 100,000 LLAD 83-2 Zone 10 -$ 50,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 50,000 Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 150,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 150,000
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Tree Mitigation Program
Mitigate hazard Eucalyptus trees including along Refugio Valley Park between Sycamore Avenue and Patridge Drive, San Pablo Avenue between Tsushima and Hercules Avenue, and throughout various City Parks; also, trees whose roots are lifting sidewalks and causing tripping hazards. Work will first include an assessment by a licensed arborist, then a licensed tree trimming contractor will perform the work.

The Eucalyptus trees have matured throughout town and need to be trimmed and thinned.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 202
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital
Reserves -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 100,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 100,000
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Lupine Hill Stabilization
Secure the services of a geotechnical engineer to complete improvement plans to stabilize a hill above Lupine Drive, hire a contractor to perform the grading, and install soil erosion and sediment controls to be monitored over the coming winter.

The open space above Lupine Drive has been prone slippage and slides over the years.

The toe of a small hill slipped out onto the sidewalk during the Winter storms of 2023 and was cleared; however, the small hill needs to be regraded to stabilize the hillside, including the larger hill behind it. The budget of $100,000 is an estimated of the needed funding and any unspent funding will be returned to the General Fund/Capital CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 203
Project Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection State Gas Tax Fund- 262 -$ 25,000 $ $ 25,000 $ 25,000 -$ -$ -$ -$ -$ -$ -$ $ 75,000 Measure J Fund- 263 -$ 25,000 $ $ 25,000 $ 25,000 -$ -$ -$ -$ -$ -$ -$ $ 75,000 State Gas Tax Fund- 262 -$ 25,000 $ $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 250,000 Measure J Fund- 263 -$ 25,000 $ $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 250,000 State Gas Tax Fund- 262 $ 321,140 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 321,140 Grant Measure J SP $ 1,058,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 1,058,000 Grant TDA Article 3 Bike $ 52,800 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 52,800 ARPA General Fund $ 250,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 250,000 BART Fund -$ 100,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 100,000 State Gas Tax Fund- 262 -$ -$ 650,000 $ $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 5,850,000 Measure J Fund- 263 -$ -$ 150,000 $ $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 1,350,000 Solid Waste Fund -$ -$ 100,000 $ $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 900,000 Unfunded -$ -$ -$ 1,954,000 $ $ 1,186,000 -$ -$ -$ -$ -$ -$ $ 3,140,000 ADA Transition Plan - Streets State Gas Tax Fund- 262 -$ 60,000 $ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 510,000 CCTA Funded Portion -$ 502,506 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 502,506 State Gas Tax Fund- 262 -$ 65,091 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 65,091 Total $ 1,681,940 $ 827,597 $ 1,050,000 $ 3,004,000 $ 2,186,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 14,749,537 Funding Sources:

State Gas Tax Fund- 262 $ 321,140 $ 175,091 $ 750,000 $ 750,000 $ 725,000 $ 725,000 $ 725,000 $ 725,000 $ 725,000 $ 725,000 $ 725,000 $ 7,071,231 Measure J Fund- 263 $ - $ 50,000 $ 200,000 $ 200,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 1,675,000 Grant Measure J SP $ 1,058,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 1,058,000 Grant TDA Article 3 Bike $ 52,800 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 52,800 ARPA General Fund $ 250,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 250,000 Solid Waste Fund -$ -$ 100,000 $ $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 900,000 BART Fund -$ 100,000 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 100,000 Grant -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Unfunded -$ -$ -$ 1,954,000 $ $ 1,186,000 -$ -$ -$ -$ -$ -$ $ 3,140,000 Total $ 1,681,940 $ 325,091 $ 1,050,000 $ 3,004,000 $ 2,186,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 14,247,031 Annual Street Repair Project
Countywide Smart Signals
Annual Restriping Project
City of Hercules
Streets CIP Summary
Annual Sidewalk Repair Program
Pedestrian Sidewalk Improvement
Willow & Palm (63042)
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 204
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection State Gas Tax Fund- 262 -$ 25,000 $ $ 25,000 $ 25,000 $ 75,000 Measure J Fund- 263 -$ 25,000 $ $ 25,000 $ 25,000 $ 75,000 Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 50,000 $ $ 50,000 $ 50,000 -$ -$ -$ -$ -$ -$ -$ $ 150,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Annual Sidewalk Repair Program
Repair sidewalks in the southeast quadrant of the City (southeast of SR-4 and I-80) following a sameyear visual inspection. Repair other sidewalks on a triannual basis (3 times/year) based upon notification of a damaged sidewalk by the public or City staff. The annual budget from FY 2024 to 2026 is based upon the funding amount needed in past years. Beginning in FY 2026-27, it is anticipated an alternative funding source will be identified.

Last year all public sidewalks in the City were visually inspected at a high level from a vehicle and the City's sidewalks are in comparatively good shape. However, there are approximately 100 miles of sidewalk which periodically break due to extreme heat, ground settlement, and tree roots. Detailed annual inspections and timely repairs are needed to reduce tripping hazards and assciated liability and ensure the pedestrian network is in good working order. In future years, a quarter of the City's sidewalks will be visually inspected annually.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 205
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection State Gas Tax Fund- 262 -$ 25,000 $ $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 250,000 Measure J Fund- 263 -$ 25,000 $ $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 250,000 Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 50,000 $ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 500,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Annual Restriping Project
FY 2023-24 striping will include restriping in the vicinty of Lupine, Violet, Sequoia, and Redwood. The restriping work will include stop bars, legends, leaders and centerline striping.

Crosswalks will also be added at the intersection of Willow Avenue and Canterbury/Viewpointe. The County recently added handicap ramps at the intesection and crosswalks can now be installed at this busy intersection which falls within the City Limits.

The City's road network includes 125 lane miles of streets that are striped with stop bars, stop legends, crosswalks, lane lines, centerlines, red curbs, etc. Striping typically lasts 7 years, sometimes longer, sometimes less, based upon traffic load and weather. Restriping therefore is needed on an ongoing, annual, rotational basis and is based upon a visual inspection. Striping is essential for the safety of the traveling public. The budget is based upon historical, annual expenditures.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 206
Project Number: 63042
Project Name:

Description:

Justification:

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Estimated Start Date:

Estimated End Date:

Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed State Gas Tax Fund- 262 $ 321,140.00 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 321,140.00 Grant Measure J SP $ 1,058,000.00 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 1,058,000.00 Grant TDA Article 3 Bike $ 52,800.00 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 52,800.00 ARPA General Fund $ 250,000.00 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 250,000.00 BART Fund $ 100,000$ - -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 100,000.00 Adjustment $ - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 1,681,940 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,781,940.00 $ City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Pedestrian Sidewalk Improvement Willow & Palm
This project will install sidewalk from the Hercules Transit Center (HTC) to Palm Avenue, and then from Palm Avenue to Sycamore Avenue. It will be funded through a Measure J SP grant, TDA Article 3 Bicycle grant, ARPA/General funds, and Gas Tax. BART has verbally agreed to contribute $100,000 and has indicated their Board would appropriate this funding as part of their FY 23-24 Budget adoption process.

Currently there is no sidewalk on Willow and Palm leading to the HTC. This project will provide connectivity to the HTC from the southeast part of town.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 207
Project Number:

Project Name:

Description:

Justification:
v
Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection State Gas Tax Fund- 262 -$ -$ 650,000 $ $ 650,000 $ 650,000 $ 650,000 650,000$ 650,000$ 650,000$ 650,000$ 650,000$ $ 5,850,000 Measure J Fund- 263 -$ -$ 150,000 $ $ 150,000 $ 150,000 $ 150,000 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ $ 1,350,000 Solid Waste Fund -$ -$ 100,000 $ $ 100,000 $ 100,000 $ 100,000 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ $ 900,000 Unfunded -$ -$ -$ 1,954,000 $ $ 1,186,000 -$ -$ -$ -$ -$ -$ $ 3,140,000 Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ -$ 900,000 $ $ 2,854,000 $ 2,086,000 $ 900,000 900,000$ 900,000$ 900,000$ 900,000$ 900,000$ $ 11,240,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Annual Street Repair Project
The Gas Tax and Meaure J return to source funding was drawn down in FY 22-23 to fully fund and match the grant for the Sycamore Avenue Rehabilitiation project. A year is needed to allow these funds to build back up, so a street repair project is not proposed for FY 23-24. For FY 24-25, Falcon Way from Wren Court to Refugio Valley Road is proposed to be repaired based upon an evaluation of the condition of the street and roadway geometrics. The Foxboro neighborhood is programmed for FY 25-26 and Hercules By The Bay is scheduled for FY 26-27. Future years are unprogrammed.

Typically one major road project is completed each year, based upon staff resources and available funding levels. The City's primary street project for FY 23-24 is the Pedestrian Sidewalk Improvement Willow - Palm Project, which is primarily funded through grants. Approximately $900K is available annually starting in FY 24-25 for a major street repair project. The City pursues grants for additional funding. The City has 125 lane miles of streets which require regular repairs.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 208
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed State Gas Tax Fund- 262 -$ 60,000 $ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 510,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 60,000 $ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 510,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
ADA Transition Plan - Remove Barriers in the Street Network For FY 2023-2024, the curb ramps, landing pads, and pedestrian push buttons at the intersection of Sycamore Avenue and San Pablo Avenue will be upgraded to current standards.

This work is part of the City's ADA Transition Plan to remove barriers in the Street Network. The intersection of Sycamore Avenue and San Pablo Avenue is a key intersection in the City. Barrier removal will be on ongoing expenditure into the foreseable future until all impediments have been removed.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 209
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed CCTA Funded Portion -$ 502,506 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 502,506 State Gas Tax Fund- 262 -$ 65,091 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 65,091 Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ 567,597 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 567,597 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Countywide Smart Signals
This a part of a County-wide traffic signal improvement and coordination project that will be funded and administered by CCTA through a grant they received and for which Hercules will provide the local match. Signals to be included are along the San Pablo Corridor including: Hercules Av, Sycamore Av, Market Dr, John Muir Parkway, and Victorial Crescent East. The improvements will include video detection, back up batteries, traffic signal synchronization, and controller updates.

Signal improvements will increase traffic efficiencies at each signal and County wide, provide needed updates to the controllers, and the backup batteries will ensure the signals function during power outages.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 210
Project Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Grant Measure J TLC $ 500,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 500,000 Grant STMP Funding $ 750,000 $ 300,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 1,050,000 Funding Plan -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 1,250,000 $ 300,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,550,000 $ Funding Source:

Grant Measure J TLC $ 500,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 500,000 Grant STMP Funding $ 750,000 $ 300,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 1,050,000 General Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 1,250,000 $ 300,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 1,550,000 City of Hercules
Hercules The Hub CIP Summary
Utility Design
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 211
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Grant Measure J TLC $ 500,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 500,000 Grant STMP Funding $ 750,000 $ 300,000 -$ -$ -$ -$ -$ -$ -$ -$ $ 1,050,000 Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 1,250,000 $ 300,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,550,000 $ City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Hercules The Hub - Utility Design
Advance the design for the relocation of utilities (Kinder Morgan & Shell fuel lines, fiber optic line) out of the Union Pacific Railroad right-of-way and into the Bay Trail right-of-way and Bayfront Boulevard. The WCCTAC Board has allocated an additional $300K in STMP funding, which will be appropriated in time for FY 2-23-24 after the interagency agreement has been approved by both Boards.

This is the next phase that would need to be constructed to advance the Hub.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 212
Project Number:

Project Name:

Description:

Justification:

Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Hercules The Hub - Funding Plan
A funding plan has been created to complete The Hub. The budget in coming years is dependent upon recieving grants. The City set aside $3M in the General Fund/Capital Reserves as the City's local contribution. Most recently, the City applied for the FSP and TIRCP grants.

A total of $107.7M is needed to complete the infrastructure for a train stop, of which it is proposed $104,700 be funded with grants.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 213
Project Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sycamore Ave (Lower Trunk Main) Sewer Fund - 421 $ 12,000,000 $ - $ - $ - -$ -$ -$ -$ -$ -$ $ - $ 12,000,000 Sycamore Ave (Upper Truck Main) Sewer Fund - 421 $ 42,000 $ 100,000 $ 400,000 $ 4,078,000 -$ -$ -$ -$ -$ -$ $ - $ 4,620,000 Sewer Manholes in Business Park Sewer Fund - 421 $ - $ 32,000 $ - $ - -$ -$ -$ -$ -$ -$ $ - $ 32,000 Promenade Lift Station Sewer Fund - 421 $ - $ - $ - $ 100,000 $ 867,000 -$ -$ -$ -$ -$ $ - $ 967,000 Repair/ Replace Sewer Lines under
SR-4 & Along Willow Ave Sewer Fund - 421 $ - $ - $ - $ 100,000 $ 230,000 $ 800,000 -$ -$ -$ -$ $ - $ 1,130,000 Total $ 12,042,000 $ 132,000 $ 400,000 $ 4,078,000 -$ -$ -$ -$ -$ -$ $ 16,652,000 - $ City of Hercules
Sewer CIP Summary
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 214
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 $ 12,000,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ 12,000,000 $ - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment $ - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total $ 12,000,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 12,000,000 $ City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Sycamore Ave (Lower Trunk Main)
Replace 5,500 ft. of the City's primary 24-inch truck sewer main beginning at Duck Pond Park and ending at the influent intake to the Waste Water Treatment Plant in Pinole.

Cratus was awarded the low bid to construct the project and is anticipated to begin work as soon as mid-April, 2023 and have scheduled the project to be completed in 12 months, in April 2024. Full-time construction administration is being performed by WSP.

The trunk sewer, which was constructed in 1972 and has served its useful life, needs to be increased in size to a 30 -inch pipe to convey the in increased flows associated with buildout of the City.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 215
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 $ 42,000 100,000$ 400,000$ $ 4,078,000 -$ -$ -$ $ - -$ -$ -$ $ 4,620,000 -$ -$ -$ -$ -$ -$ -$ $ - -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ $ - -$ -$ -$ $ -
Total $ 42,000 100,000$ 400,000$ $ 4,078,000 -$ -$ -$ $ - -$ -$ -$ $ 4,620,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Sycamore Ave (Upper Truck Main)
Upsize 1,446 ft. of 20-inch Gravity main to 24-inch gravity main and 1,956 ft. of 20 and 24- inch gravity main to 27-inch gravity main along sycamore Ave. The extent of this project goes from Highway 80 on the upstream end to the convergence of the trunk sewer from the industrial LS Force main on the downstream end. Flow monitoring, hydraulin modeling, and preliminary design is scheduled for FY 2023-24, final design is scheduled for 2024-25, with construction in FY 2025-26.

The hydraulic modeling in the Sewer Master Plan Update indicates the mainline needs to be increased in size to convey future flows.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 216
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 -$ 32,000$ -$ -$ -$ -$ -$ $ - -$ -$ -$ $ 32,000 -$ -$ -$ -$ -$ -$ -$ $ - -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ $ - -$ -$ -$ $ -
Total -$ 32,000$ -$ -$ -$ -$ -$ $ - -$ -$ -$ $ 32,000
City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Sewer Manholes in Business Park
Replace concrete rings on sewer manholes in the Business Park. Existing surfacing has worn off, creating a depression in the street. There are a total of 23 manholes needing to be repaired at an approximate cost of $1,400 per manhole.

Well maintained streets are part of the City's business attraction/retention strategy.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 217
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 -$ -$ -$ 100,000$ 867,000$ -$ -$ -$ -$ -$ -$ $ 967,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ -$ -$ 100,000$ 867,000$ -$ -$ -$ -$ -$ -$ $ 967,000 City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Promenade Lift Station
As part of the Bay Front Development Project, the Promenade Lift Station will be taken off-line and bypassed using gravity piping. The Project includes decommissioning the Promenade Lift Station and installing 1,1200 feet of 12-inch diameter gravity main.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 218
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 -$ -$ -$ 100,000$ 230,000$ 800,000$ -$ -$ -$ -$ -$ $ 1,130,000 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ -
Total -$ -$ -$ 100,000$ 230,000$ 800,000$ -$ -$ -$ -$ -$ 1,130,000 $ City of Hercules
Capital Improvement Plan
Fiscal Years 2023-24 through 2032-33
Repair/ Replace Sewer Lines under SR-4 & Along Willow Ave.

Repair existing main under SR-4 between Willow and Foxboro and 2 sections of main along Willow near Sycamore.

Prior cleaning/video inspection has determined the pipes are in poor condition and should be repaired. Additional analysis during design will determine extent of repair needed.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 219
Federal Grants - CIP
Fund Summary - Fund 295
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Federal Grants -$ -$ 492,000 -
Interest Income - - - -
Miscellaneous Revenues - - - -
- - 492,000 -
Transfers In - - - -
- - 492,000 -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - 492,000 -
Debt Service - - - -
- - 492,000 -
Transfer Out - - - -
- - 492,000 -
Changes in restricted reserves
Net Annual Activity -$ - - -
Ending Available Fund Balance -$ -$ -$
This fund accounts for funds expended for Projects funded by federal grants utilized in acquiring or constructing capital assets for the City.

CAPITAL PROJECT FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 220
State and Local Grants - CIP
Fund Summary - Fund 296
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
State/Local Grants -$ -$ 1,138,000 502,506
Interest Income - - - -
Miscellaneous Revenues - - - -
- - 1,138,000 502,506
Transfers In - - - -
- - 1,138,000 502,506
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - - 1,138,000 502,506 Debt Service - - - -
- - 1,138,000 502,506
Transfer Out - - - -
- - 1,138,000 502,506
Changes in restricted reserves
Net Annual Activity -$ - - -
Ending Available Fund Balance -$ -$ -$
This fund accounts for funds expended for Projects funded by state and local grants utilized in acquiring or constructing capital assets for the City.

CAPITAL PROJECT FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 221
City - Capital Projects
Fund Summary - Fund 300
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Fees -$ - - -
Interest Income - - - -
Miscellaneous Revenues - 2,000 - -
- 2,000 - -
Transfers In - 450,000 497,000 450,000
- 452,000 497,000 450,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - 45,926 497,000 450,000 Debt Service - - - -
- 45,926 497,000 450,000
Transfer Out - 310,257 - -
- 356,183 497,000 450,000
Changes in restricted reserves
Net Annual Activity -$ 95,817 - -
Ending Available Fund Balance -$ -$ -$
This fund accounts for funds expended for major capital improvement projects associated with City-owned facilities including police, parks, community centers, and city buildings. This fund is funded primarily by General Fund.

CAPITAL PROJECT FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 222

HERCULES HUB
Fund Summary - Fund 354
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Grant -$ -$ 360,000 300,000
Interest Income - - - -
Miscellaneous Revenues - - - -
- - 360,000 300,000
Transfers In - - - -
- - 360,000 300,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Projects - - 360,000 300,000
Debt Service - - - -
- - 360,000 300,000
Transfer Out - General Fund (Loss of Revenue) - - - -
- - 360,000 300,000
Changes in restricted reserves
Net Annual Activity -$ -$ - -
Ending Available Fund Balance -$ -$ -$
This fund accounts for funds expended for the Hercules Hub (The Hub) Projects. The project is funded by multiple funding sources, including but not limited to, Federal, State, and Local grants. The Hercules Hub (The Hub) will create a regional, state-of-the-art housing and transportation community on the waterfront overlooking the San Pablo Bay. The Hub will connect thousands of housing units with a new train stop along the Capitol Corridor, bicycle and pedestrian pathways, bus routes, carpool options, and ferry service.

CAPITAL PROJECT FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 223

AGENCY FUNDS
224
Assessment District 05-01 Debt Service
Fund Summary - Fund 382
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Assessment $ 229,064 232,493$ 230,910 229,088
Interest Income (434) (2,748) 2,000 -
Miscellaneous Revenues 3,313,813 - - -
3,542,443 229,745 232,910 229,088
Transfers In - - - -
3,542,443 229,745 232,910 229,088
Expenditures
Salary and Benefits - - - -
Contractual Services 6,215 6,310 6,500 6,700
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 3,560,886 219,582 226,410 222,388
3,567,101 225,892 232,910 229,088
Transfer Out - - - -
3,567,101 225,892 232,910 229,088
Changes in restricted reserves
Net Annual Activity $ (24,658) 3,853 - -
Ending Available Fund Balance -$ -$ -$
This fund accounts for revenues from property tax special assessments and provides funding for bonded debt related to Reassessment District 2005-1 (John Muir Parkway). The District Bond are not general obligations of the City.

AGENCY FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
225
Taylor Woodrow Maintenance LMOD
Fund Summary - Fund 501
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 71,046$ 71,046$
Revenues
Charges for Services -$ -$ - -
Interest Income (6) (578) - -
Miscellaneous Revenues - - - -
(6) (578) - -
Transfers In - - - -
(6) (578) - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves
Net Annual Activity $ (6) (578) - -
Ending Available Fund Balance 71,046$ 71,046$ 71,046$
An agreement with Taylor Woodrow Homes, Inc. (project known as the "Hercules Village Project") was established with the former Redevelopment Agency to assist with the development. 15% of the residential units in the projects are provided to Low to Moderate Income. This fund is to be use for the benefit of the qualified buyers or affordable unit owners.

AGENCY FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
226
Other Post-Employment Benefits (OPEB) and SOMAR
Fund Summary - Fund 511
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance 2,587,849$ 2,603,849$
Revenues
Charges for Services -$ -$ - -
Interest Income 361,114 (332,127) 58,000 60,000
Miscellaneous Revenues - - - -
361,114 (332,127) 58,000 60,000
Transfers In 60,000 60,000 60,000 60,000
421,114 (272,127) 118,000 120,000
Expenditures
Salary and Benefits 91,243 83,637 82,000 84,600
Contractual Services 17,593 15,394 20,000 20,000
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
108,836 99,031 102,000 104,600
Transfer Out - - - -
108,836 99,031 102,000 104,600
Changes in restricted reserves
Net Annual Activity 312,278$ (371,158) 16,000 15,400
Ending Available Fund Balance 2,587,849$ 2,603,849$ 2,619,249$ (Restricted for OPEB)
This fund is to account for the optional monetary allowance for both safety and non-safety employees with an annual three percent adjustment on January 1st of each year to employees who retire as regulated by PERS and must have the minimum sick leave accrued as outlined in the Memorandum of Understanding (MOU), and OPEB Trust.

AGENCY FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
227

PRIVATE PURPOSE TRUST FUND
228
Successor Agency
Fund Summary - Fund 600
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23 FY 23-24
Actual Actual Projection Adopted
Beginning Available Fund Balance -$ -$
Revenues
Tax Increment (RPTTF) 12,019,210 10,503,145 16,935,736 3,635,370 Interest Income 485,135 (339,093) - -
Miscellaneous Revenues 80,745 2,104,081 - -
12,585,090 12,268,133 16,935,736 3,635,370
Transfers In - - - -
12,585,090 12,268,133 16,935,736 3,635,370
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses 2,773,445 3,781,639 2,635,660 -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 4,754,610 8,881,068 8,187,045 3,635,370
7,528,055 12,662,707 10,822,705 3,635,370
Transfer Out - - - -
7,528,055 12,662,707 10,822,705 3,635,370
Changes in restricted reserves (5,057,035) 394,574 (6,113,031) Net Annual Activity -$ - - -
Ending Available Fund Balance -$ -$ -$
The Hercules' Successor Agency was established as a separate legal entity on January 10, 2012, under the City Council adopted Resolution 12-005. All non-housing funds and assets where then turned over to the successor agency who is charged with the responsibility of paying off the former Redevelopment Agency's existing debts, disposing of the former Redevelopment Agency's properties and assets to help pay off debts and return revenues to the local government entities that receive property taxes, and winding up the affairs of the former Redevelopment Agency.

PRIVATE PURPOSE TRUST FUND CITY OF HERCULES FY 2023-24 ANNUAL BUDGET 229
GLOSSARY OF BUDGET TERMS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

GLOSSARY OF BUDGET TERMS
230
GLOSSARY OF BUDGET TERMS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET

GLOSSARY OF BUDGET TERMS
Adopted Budget: The adopted budget is the
annual City budget approved by the City Council
on or before June 30.

Allocated Costs: Interfund transactions
that constitute reimbursements to a fund for
expenditures or expenses initially made from it but
that properly apply to another fund.

Appropriation: An appropriation is the legal
authorization granted by the City Council to make
expenditures and incur obligations for a specific
purpose within a specific time frame.

Assessed Valuation: A dollar placed on real estate
or other property by the County as a basis for
levying property taxes.

Beginning Fund Balance: Fund balance available
in a fund from the end of the prior year for use in
the following year.

Bond: A City may raise capital by issuing a
written promise to pay a specified sum of money,
called the face value or principal amount, at a
specified date or dated in the future, together with
periodic interest at a specified rate.

Budget: A plan of financial and program operation
listing an estimate of proposed appropriations or
expenses and the proposed means of financing
them, for a particular time period. The budget
is proposed or preliminary until it has been
adopted by the City Council. Hercules’ budget
encompasses one fiscal year.

Capital Budget: Annual appropriations for capital
improvement projects such as street improvements
and building construction. Capital projects are
supported by a five-year expenditure plan, which
details funding sources and expenditure amounts.

They often are multi-year projects, which require
funding beyond the one-year budget period.

Capital Projects Fund: A fund created to account
for all resources to be used for the constructions
or acquisition of designated fixed assets by a
governmental until except those financed by a
proprietary or fiduciary funds.

Debt Service: Payment of the principal and
interest on an obligation resulting from the
issuance of bonds, notes or leasing arrangements.

Department: An organizational until comprised
of divisions or programs. It is the basic until of
service responsibility that may include a broad
mandate or related activities. It is possible for a
department to have only one division.

Division: A subsection (or activity) within a
department, which furthers the objectives of the
City Council by providing specific services or
programs.

Enterprise Fund: A type of fund established for
total costs of those governmental facilities and
services, which are operated in a manner similar
to private enterprises. These programs are entirely
or predominantly self-supporting. The city of
Hercules maintains a Sewer Enterprise Fund.

Expenditures: Monies spent, including current
operating expenses, debt service and capital
outlays.

Fiduciary Funds: These funds account for assets
held by the City in a trustee capacity. The budget
does not appropriate fiduciary funds.

Fiscal Year (FY): The City’s year for accounting
and budgeting purposes, that begins on July 1 and
ends June 30.
231
GLOSSARY OF BUDGET TERMS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Full-Time Equivalent (FTE): The amount of
time a regular full time or part-time position has
been budgeted for in terms of the amount of time
an employee works in a year.

Fund: An independent fiscal and accounting
entity used to record all financial transactions
related to the specific purpose for which the fund
was created. These are four types for funds:

General, Special Revenue, Enterprise, and
Fiduciary.

Fund Balance: The amount of financial resources
available for use. Generally, this represents the
excess of assets over the sum of liabilities and
restricted reserves. For enterprise funds, it is the
excess of current assets over current liabilities.

Gann Appropriations Limit: Article XIIIB of
the State constitution was amended by Proposition
4 (Gann initiative) in 1979. Article XIIIB limits
growth in the spending of tax proceeds to tax
proceeds appropriated in the “base year” of the
1978-79 times the product of the allowable annual
percentage change in a cost-of-living factor and
the allowable annual percentage change in a
population change factor. The cost-of-living factor
is the larger of the annual percentage change in
the State per capita personal income or the annual
percentage change in the local non-residential
assessed valuation due to new construction. The
population change factor is the larger of the annual
percentage change of the jurisdiction’s population
or the annual percentage population change of the
country in which the jurisdiction is located.

General Fund: The primary fund used to account
for all revenues and expenditures of the City not
legally restricted as to use. The fund is used to
offset the cost of the City’s general operations.

Examples of departments financed by the General
Fund include the Police, Public Works and
Administrative Departments.

Grant: Contributions, gifts of cash or other assets
from another governmental entity to be used
or expended for a specific purpose, activity or
facility.

Guaranteed Investment Contract (GIC):

A contract that guarantees repayment of
principal and a fixed or floating interest rate for
predetermined period of time.

Infrastructure: Facilities on which the
continuance and growth of a community depend,
such as streets and roads, sewers, public buildings,
parks, etc.

Interfund Transfer In/Out: Monies transferred
from one fund to another. Such money is
transferred to finance the operations of another
fund or to reimburse the fund for certain
expenditures.

Internal Service Funds: These funds provide
services to City departments and recover
their costs through user charges. The Vehicle
Replacement Fund is an Internal Service Fund
managing the replacement and maintenance of the
City fleet.

Method of Accounting: The City’s General Fund
budget is developed using modified accrual basis
of accounting, with revenues being recorded when
measureable and available, and expenditures
recorded when the liability is incurred. Enterprise
funds and Internal Service Funds are budgeted
on a generally accepted accounting principles
(GAAP) basis, which for Proprietary Funds is on a
full accrual accounting basis.

Operating Budget: Annual appropriation funds
for on-going program cost, including salaries and
benefits, services and supplies, debt service and
capital outlay.
232
GLOSSARY OF BUDGET TERMS CITY OF HERCULES FY 2023-24 ANNUAL BUDGET Operating Capital Outlay: A budget
appropriation category which budgets all
equipment having a unit cost of more than $2,500
and an estimated useful life of over one year.

These are considered an operating expense and
are differentiated from capital expenditures by the
amount of money they cost. Any expenditure over
$2,500 with an estimated useful life over one year
is capitalized.

Operating Transfer: Amounts transferred
between funds; not considered a revenue or
expense. For example, legal authorized transfers
from a fund receiving revenue to the fund through
which the resources are to be expected.

Ordinance: A formal legislative enacted by the
City Council. It has the full force and the effect
of law within the City boundaries unless it is
in conflict with any higher form of law such
as a State statute or constitutional provision.

An ordinance has higher legal standing than a
resolution.

Program: A program is an activity or division
within a department, which furthers the objectives
of the City Council by providing services or a
product.

Reserve: Represents the portion of fund balance
set aside for financing future capital improvements
or the outlay of capital projects in any given year,
and addressing one-time emergency needs.

Resolution: A special order of the City Council,
which has lower legal standing than an ordinance.

Revenues: Monies received or anticipated by
a local government from both tax and non-tax
sources during the fiscal year.

Salaries and Benefits: A budget category which
generally accounts for full-time and parttime
employees, overtime expenses and all employee
benefits, such as medical, dental and retirement.

Services and Supplies: Expenditures for supplies,
materials and services which ordinarily are
consumed within a fiscal year and which are not
included in inventories.

Special Revenue Funds: These funds account
for the proceeds derived from specific revenue
sources that are legally restricted to expenditures
for specified purposes.
233

RESOLUTIONS
234

COUNCIL RESOLUTIONS
235
Public Hearing
Agenda Item

2. 22-566
236

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 13, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: Design Review Permit (DRP #23-02) to relocate the existing onstreet garbage pick-up location for The Exchange on John Muir Pkwy.

APPLICANT: Caitlynne Challburg
LOCATION: 2525 Bayfront Blvd, Hercules, CA (The Exchange) RECOMMENDED ACTION:

That the City Council:

1. Request planning staff present the staff report;

2. Open the public hearing;

3. Invite the applicant to make a presentation or statement;

4. Receive comments from the public;

5. Offer the applicant or their consultant team the opportunity to answer questions;

6. Close the public hearing;

7. Request clarification from staff or the applicant on any issues related to the project;

8. Take one of the following actions:
a. Approve the Resolution approving the Design Review Permit (Attachment 1), making any desired modifications to the findings for approval; or
b. Continue the item and provide direction to staff to prepare findings for denial; or
c. Refer the matter back to the Planning Commission for further consideration, in which case the referral shall be investigated as advisable and conclusions reported back to the Commission or Council. 22-566
237

EXECUTIVE SUMMARY
Applicant Caitlynne Challburg, representing The Exchange, is requesting a Design Review Permit to relocate the designated garbage pick-up location on John Muir Pkwy.

The current location for garbage pickup is within a no-parking on-street loading zone area in front of Suite F, currently occupied by Dream Bowlz, and Suite E, a vacant retail space.

The pick-up location is proposed to be relocated approximately 70 feet southeast of the current location on the other side of the driveway entrance, to what is currently one onstreet parallel parking space in front of Suite D (Figure 1), a currently vacant retail space.

The applicant obtained approval for the new location from Republic Services (Attachment 2).

The City’s Public Works Director/City Engineer has determined that the yellow loading zone needs to remain in its current location adjacent to the red curb and fire hydrants, to allow larger vehicles such as moving trucks to unload from the rear without blocking the driveway. Thus, the existing on-street parking space in the proposed new pick-up location would need to be removed and the curb painted red.

This Design Review Permit application (DRP #23-02) was denied by the Planning Commission on May 15, 2023 and called up for City Council review on May 23, 2023. The Council requested additional information from the franchise waste hauler, Republic Services, and building management, Catalyst, regarding trash pickup days and times and bin placement practices.

Separate from the location of the pick-up, which is the subject of this application, staff is working with building management and Republic Services to coordinate bin placement and collection to minimize the excess time bins are at the curb.

PROCESS
The design of The Exchange, including the current location for garbage pickup, was approved by the Planning Commission through DRP #17-01, and the proposed modification would result in a reduction of one on-street parking space. Hercules Municipal Code Sec. 13-46.300 Minor Modification states:

The Community Development Director may approve a minor modification to an existing approval or permit for only the specific site development considerations listed below:

1. On-site parking and loading configuration and layout without reduction of spaces.

The circulation and landscaping for parking and loading areas as long as the modification does not affect the overall design theme of the site.

The proposed modification is, therefore, not minor in that it proposes the removal of one parking space and a change to circulation, thereby requiring the submittal of a new DRP with review by the Planning Commission, or the City Council upon call-up or appeal. 238
This Design Review Permit application (DRP #23-02) was denied by the Planning Commission on May 15, 2023 and called up for City Council review on May 23, 2023. The Council requested additional information from the franchise waste hauler, Republic Services, and building management, Catalyst, regarding trash pickup days and times and bin placement practices.

PROJECT DESCRIPTION
Applicant Caitlynne Challburg, representing The Exchange, proposes to relocate the designated garbage pick-up location on John Muir Pkwy. The current location for garbage pickup is within a no-parking on-street loading zone area in front of Suite F, currently occupied by Dream Bowlz, and Suite E, a vacant retail space. The pick-up location is proposed to be relocated approximately 70 feet southeast of the current location on the other side of the driveway entrance, to what is currently one on-street parallel parking space in front of Suite D (Figure 1), a currently vacant retail space. The applicant obtained approval for the new location from Republic Services (Attachment 2).

The City’s Public Works Director/City Engineer has determined that the yellow loading zone needs to remain in its current location adjacent to the red curb and fire hydrants, to allow larger vehicles such as moving trucks to unload from the rear without blocking the driveway. Thus, the existing on-street parking space in the proposed new pick-up location would need to be removed and the curb painted red.

Figure 1: Existing and Proposed Pickup Location
239

PROJECT BACKGROUND
On May 1, 2017, the Planning Commission adopted Resolution #17-02 approving Design Review Permit #17-01 for “Hercules Bayfront Creekside Apartment Project” located on Block N of the Bayfront Waterfront District Master Plan Area with various conditions of approval (Attachment 3). The approved plans show two garbage pickup locations, one within the designated on-street loading zone on Bayfront Blvd near retail Suites L and K and one within the designated on-street loading zone on John Muir Pkwy near retail Suites E and F.

Pick-Up Relocation
In 2022, Dream Bowlz, a retail food establishment, leased Suite F, and its grand opening was held in January 2023. Since opening for business, the owner noted the presence of full garbage bins outside the food establishment as being a hindrance to business (Figure 2). In response, The Exchange property owners are requesting the bins be moved to a nearby parking space adjacent to currently vacant retail spaces, Suite C and D (Figure 3).

When Suite C and D are leased in the future, placement of garbage bins directly in front of these retail spaces may prompt a new request to change location again. However, building management and City staff have not identified any other feasible locations for collection along the John Muir Parkway site of the building. The Exchange was designed and approved with two separate trash rooms, each with its own collection area, and building management has indicated that hauling dumpsters from the eastern trash room to the western trash collection area along Bayfront Boulevard, in front of the building’s fitness center, is not feasible due to the distances involved, the lack of an internal connection route, and the limited curb space at the other pick-up location. The City’s Public Works Director/City Engineer determined that temporary relocation of the pick-up area to the far side of John Muir Parkway was not feasible due to the speeds, traffic volumes and WestCAT transit service on John Muir Parkway. 240
Figure 2: Street View of Suite E & F
Figure 3: Street View of Suite C & D
Parking Considerations
The Exchange includes 172 residential units served by 225 on-site garage parking spaces. Adjacent to The Exchange, there are currently has fifteen (15) public parking spaces along the street frontage of Bayfront Blvd and John Muir Pkwy and another twenty-three (23) spaces on the opposite side of the street, all available for retail visitors and the public. The City’s Public Works Department is planning to convert two curb space in front of Dream Bowlz to short-term parking in the near future. 241
Staff is aware of the limited availability of public parking at this location, particularly for retail customers. Since the on-street parking is not time-limited, staff has observed that it appears to be frequently used throughout the day and evening, presumably by residents of the area for long-term parking of additional household vehicles beyond those assigned spaces in the garage.

When the Planning Commission approved Resolution 17-02 approving DRP #17-01 for Block N of Bayfront Waterfront (the Exchange) on May 1, 2017 (Attachment 3), the project was conditioned in Condition of Approval #17 to make twenty-five (25) parking spaces in the building’s garage available for visitors prior to the execution of a Public Parking District as called for in the Implementing Development Agreement. “Visitors” for the purposes of this interim condition is defined as guests visiting residents of the project, as well as employees or customers of the retail and commercial uses located within the project. The building garage was designed to identify retail/visitor parking, but the project was issued building permits and approved for occupancy without this condition being met, in that the outer gate was closed to non-residents and signage indicated the parking was for residents only.

In May 2023, in response to inquiries from City staff, staff at the property manager, Catalyst, began opening the outer gate to make the 25 shared parking spaces available to the public during Dream Bowlz’ hours of operation Tuesday through Sunday.

Trash Operations
While the subject permit is only for the relocation of the on-street trash pickup, Councilmembers have inquired about the building’s trash operation.

The approved plans include a Trash Operation description noting that the process is to be reviewed and finalized with trash service and building operator. See Figure 4. 242
Figure 4: Existing Trash Operation Description
Republic Services’ website indicates, and their staff has confirmed, that the scheduled trash and recycling pick-up days for The Exchange are Tuesdays and Fridays and that green waste is collected on Wednesdays. Republic Services operations staff stated that currently, their pickup route services the waterfront area later in the morning, after picking 243
up at commercial sites near I-80 and then at The Aventine, in order to minimize noise disturbance to waterfront residents. Republic Services also noted that scheduled pickups may be delayed due to service and logistics issues such as staff absences, equipment problems, etc.

Building management has stated that trash sorting and moving bins out is done by a thirdparty “push/pull” service contracted by the building management, which works from 4am to 11am daily. Bins are currently moved from the trash room to the designated loading area by 11am on Mondays and Thursdays in order to be ready for the Tuesday and Friday pickups. Building management staff stated that building staff returns the bins to the trash room immediately after pickup.

At an on-site meeting on Tuesday, June 6, 2023, building management, Republic Services and City staff met to discuss the refuse management issues. Building management agreed to ask their push/pull vendor to move the bins out on the morning of the collection dates, rather than the day before. Republic Services agreed to investigate whether the waterfront collection route could be modified to complete pickup at the Exchange prior to 10am, when Dream Bowlz typically opens.

The approved permit includes a condition of approval (COA) #24 requiring a refuse collection plan to be formulated, working with Republic Services, to provide for efficient and effective trash/refuse collection, subject to Planning Director review and approval.

Because staff has been unable to locate a record of such a plan having been approved prior to issuance of the building’s final Certificates of Occupancy on July 20, 2020, staff has requested that the applicant provide such a plan for review. The draft resolution of approval includes a condition noting that the City will not restripe the curb to relocate the trash-pickup until this condition has been fulfilled.

ENVIRONMENTAL REVIEW
Conditional Use Permit #23-02 has been determined to be a Class 1 Categorical Exemption under the California Environmental Quality Act (CEQA), Section 15301, which consists of the operation, repair, maintenance, permitting, leasing, licensing or minor alterations of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination.

REQUIRED FINDINGS
Design Review Findings: Section 13-42.500 of the Municipal Code states prior to the issuance of any permit for the erection, construction, or exterior alteration of any public or private building, fence, structure, or sign, the applicant shall secure approval of the proposed design from the Planning Commission, with the following findings:

Finding #1: The approval of the design review plan is in compliance with all provisions of this Chapter, pertinent provisions of Zoning Ordinance and applicable zoning and land 244
use regulations, including but not limited to the Hercules General Plan as amended and any specific plan.

Analysis: The proposed modification would not affect the project’s conformance to applicable zoning and land use regulations, including but not limited to the Hercules General Plan as amended and any specific plan, as found for the original Design Review Permit #17-02 (Attachment 4)
Finding #2: The approval of the design review plan is in the best interests of the public health, safety, and general welfare.

Analysis: The proposed modification would not affect the project’s furtherance of the public health, safety and general welfare, as found for the original Design Review Permit #17-02, because the loss of one on-street parking space would be offset by creating a more attractive sidewalk environment for a currently occupied retail suite.

Finding #3: General site considerations, including site layout, open space and topography, orientation and location of buildings, vehicular access, circulation and parking, setbacks, height, walls, fences, public safety and similar elements have been designed to provide a desirable environment for the development.

Analysis: The proposed modification to the project’s site layout, vehicular access, circulation and parking would continue to provide a desirable environment for the development, as found for the original Design Review Permit #17-02, because the loss of one on-street parking space would be offset by creating a more attractive sidewalk environment for a currently occupied retail suite, and because the modification will not be implemented until the project has complied with the condition of approval to submit a refuse collection plan for Community Development Director approval, as required by the original Design Review Permit.

Finding #4: General architectural considerations, including the character, scale, and quality of the design, the architectural relationship with the site and other buildings, building materials, colors, screening of exterior appurtenances, exterior lighting and signing, and similar elements have been incorporated in order to insure the compatibility of this development with its design concept and the character of adjacent buildings.

Analysis: The proposed modification would not change the project’s architecture, design concept, or compatibility with the character of adjacent buildings, as found for the original Design Review Permit #17-02.

Finding #5: General landscape considerations, including the location, type, size, color, texture and coverage of plant materials at the time of planting and after a 5-year growth period, provision for irrigation, maintenance and protection of landscaped areas and 245
similar elements have been considered to ensure visual relief, to complement buildings and structures, and to provide an attractive environment for the enjoyment of the public.

The proposed modification would not change the project’s landscaping, as found for the original Design Review Permit #17-02.

Staff requests that the City Council consider and approve the resolution approving the new Design Review Permit if it can make all five of the above findings, or if not, to state its reasons for any finding that it cannot make.

ATTACHMENTS:

1. Draft Resolution Approving Design Review Permit 23-03

2. Correspondence with Republic Services

3. Resolution 17-02 approving DRP 17-01

4. DRP 17-01 Design Review Findings and Facts

5. Presentation
246
RESOLUTION #23-XX