Attach 4 - FY 2024-25 Hercules Annual Budget Book — Hercules City Council, June 11, 2024

ANNUAL
BUDGET

CITY OF HERCULES, CALIFORNIA
2024-2025

FISCAL YEAR

BUDGET 2019-21CITY OF HERCULES FY 2024-25 ANNUAL BUDGET TABLE OF CONTENTS About Hercules ......................................................................................................... 1 Letter from the City Manager .................................................................................... 3 Budget Awards ........................................................................................................12 Budget at a Glance ..................................................................................................13 Budget Process .......................................................................................................17 Statement of Financial Principles and Policies ....................................................... 23 Local City Budget and Demographic Comparison .................................................. 26 Organizational Chart ............................................................................................... 27 Citywide Budget
Authorized Full-Time Positions .......................................................................... 29 All Fund Summary ............................................................................................. 31 Citywide Expenditures ....................................................................................... 33 Citywide Revenues ............................................................................................ 34 Summary of Transfers ....................................................................................... 35 FY 2024-25 List of Additional Budget Requests ..................................................... 37 Department Summaries
City Council ........................................................................................................ 39 City Manager ...................................................................................................... 42 Human Resources ............................................................................................. 46 City Clerk ........................................................................................................... 48 City Attorney ...................................................................................................... 50 Finance .............................................................................................................. 53 Police ................................................................................................................. 57 Community Development ................................................................................... 60 Public Works ...................................................................................................... 63 Parks and Recreation ......................................................................................... 66 Non-Departmental .............................................................................................. 69 Fund Summaries
General Fund ..................................................................................................... 74 Special Revenue Funds ..................................................................................... 87 Sewer Enterprise Funds ................................................................................... 117 Internal Service Funds ..................................................................................... 120 Debt Service Funds .......................................................................................... 126 Capital Project Funds ....................................................................................... 140 Agency Funds .................................................................................................. 193 Successor Agency Fund .................................................................................. 198 Glossary of Budget Terms .................................................................................... 200 Resolutions ........................................................................................................... 204 5 Miles
Hercules
Napa
San Francisco Oakland
Richmond
Vallejo
Martinez
4 80
80 San
Pablo
Bay
Welcome: The City of Hercules
Annual Budget FY 2024-2025
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.

BUDGET 2019-21CITY OF HERCULES FY 2024-25 ANNUAL BUDGET ABOUT HERCULES

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

EXECUTIVE LEADERSHIP TEAM
City Manager
Dante Hall
City Attorney
Patrick Tang
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 Ave.

Syca more Ave.
4 HERCULES
The City of Hercules is a community of 26,297 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. 1 BUDGET 2019-21CITY OF HERCULES FY 2024-25 ANNUAL BUDGET ABOUT HERCULES

HERCULES

AT WORK
FY 2020/2021
14,000
Total City Labor Force
3,001
Total Employed by
Top 10 Employers, 2022-23
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 before- and-after school day care and pre-school programs.

FINANCE
COMMISSIONERS:

Chair
Ed Ulle
Vice Chair
Dennis Esselsagoe
Commissioner
Cedric Whigham
2 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 programs to
incentivize certain types of desired eating
and drinking businesses with move-in costs,
and made strides to further the vision of
the Hercules Hub by securing $850,000 of
Federal funding through Congressman John
Garamendi’s office which is much needed
to complete the design phase of the project.

Furthermore, the City assumed the role of
Housing Successor to the former Hercules
Redevelopment Agency. This landmark
Council action effectively unlocks millions
of dollars in former Redevelopment Agency
assets that the City can now invest in new
affordable housing solutions.

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
BUDGET 2019-21CITY OF HERCULES FY 2024-25 ANNUAL BUDGET LETTER FROM THE CITY MANAGER

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

On behalf of our Hercules team, it is our privilege to present to you and the Community the Recommended Fiscal Year 2024-25 Annual Operating Budget and Fiscal Years 2024-25 through 2033-34 Capital Improvement Program (CIP).

The budget documents are the product of many teammates working collaboratively to align resources consistent with the City Council’s and Community’s priorities while maintaining fiscal responsibility. In implementing the Council’s budget, our team strives to advance our organizational values of teamwork, customer service, innovation, meeting challenges, and professional development. I want to acknowledge and thank all of them for their efforts to improve the Community we serve. It is an honor to work with such a dedicated, Community-focused team of professionals.
3 LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
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 th
e potential development of
a new hotel, an evaluation of infrastructure
and development-related fees, and other
opportunities as directed by the City Council.

Traffic, Transportation &
Infrastructure
• Hercules Hub – As one of the City’s top
priorities, the Her
cules 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 co
ntinuing 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 includ
es 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 includ
es 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 strategi
es 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 prop
erty 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 developi
ng 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 well-
trained personnel can help ensure that any
losses in an emergency will be at their most
minimal.

Quality Of Life
• Community Engagement – This element
includes continu
ing 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 re
new 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 co
ntinuing to explore and
implement policies and projects that reduce
harmful greenhouse gases 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 pro
vide 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 communit
y 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 2024-2025 Annual Budget of
$41 million in operating and capital budget
expenditures. 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 recommended annual
budget remains consistent with the Council’s
commitment to long-term solvency. The
estimated revenue and expenditure 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 2024-25 proposed
budget compared to last year’s budget. The
4 following categories explain the overall
assumption used as a baseline:
• Salaries and Benefits
The most significant c
ost 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 3% Cos
t of Living wage
increase.
• PERS Miscellaneous and Public Safety
Normal Cost and Unfund
ed Actuarial
Liability (UAL) rates are projected as
follows based on CalPERS actuarial
assumptions:
• Health care costs, including medical,
dental and vision, ar
e projected to increase
by 3% from the FY 23-24 Kaiser rate.
• 1% of employee salaries will be
contributed towar
ds IRS Section 115
Pension Trust per policy direction
established by the City Council.
• All other expenditures are estimated to
increase by 3%.

As part o
f 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 2024-25 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 a
five-year forecast to anticipate future needs
and opportunities.

General Fund Budget
The General Fund comprises of general-
purpose revenues, such as taxes, fines and
fees, interest, and other income that may
be used to support general governmental
operations. The FY 2024-25 Annual General
Fund Budget totals $19.8 million in revenue
and $19.4 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,
Business License, Document Transfer Tax,
and Transient Occupancy Tax. Together they
comprise approximate 80% of total revenues.

Overall, General Fund revenues in FY 24-25
are projected to increase by approximately
8% compared to what was projected in
FY 23-24. The revenue increase is driven
by proceeds from sales tax, utility users’
tax, interest income, and the program fees
from continued success in 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 Fun
d and is remitted to
the City from the State monthly. Sales Tax
revenue growth has slowed, with a forecasted
increase of about 2% based on quarter
one analysis generated from the data from
the California Department of Tax and Fee
Administration (CDTFA). Hercules 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. If one or more
of these key businesses 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.
• Utility User’s Tax (UUT) are revenues
collected from the con
sumption 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
$4 million for FY 24-25. 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. However, the decrease
in Wireless Telecom UUT revenues will be
offset by the increase in Electric, Gas, and
Water UUT revenues due to rate increases.
• The City of Hercules has been classified as
a low-to-no propert
y 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 24-25.
• Transient Occupancy Tax (TOT) -
Commonly referred to a
s a “hotel tax,” the
TOT is levied for the privilege of occupancy;
each transient is subject to 10% of the rent
the operator charges. The TOT is a general
tax deposited into the City’s General Fund.

TOT revenue is expected to increase due to

LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
Ongoing costs:

Human Resources Director $5,000 $5,000
NeoGov Recruitment Notifications $3,606 $3,606
Reclass two Rec Coordinators to Supervisors $19,300 $19,300 Full-Time Recreation Technician – Aquatics $5,000 $5,000 Reorganization of IT Services – –
LLAD Coordinator
Total, Ongoing costs $32,906 $176,000 $208,906
One-Time Costs:

NeoGov Module Support Services $38,000 $38,000
Legal Counsel for Receivership $40,000 $40,000
Replace 2 New Pickup Trucks $150,000 $150,000
Total, One-Time costs $78,000 $150,000 $228,000
TOTAL $110,906 $326,000 $436,906

BUDGET IMPACT
General Fund Other Funds TOTAL
$176,000 $176,000
5 new developments. Airbnb and other short-
term rental operations generate additional
TOT. 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 or three years
following the City’s issuance of a Certificate
of Occupancy (whichever occurs first). The
next fiscal year will be the third year after the
issuance.
•Parks & Recreation offers programs suitable
for the whole community, ranging from
camps and sports programs to educational
classes and community cultural events.

During the pandemic, Parks & Recreation
revenue was significantly affected due to
reduced programs and closures. The FY
24-25 Proposed Annual Budget estimates
that program revenues will continue to grow
based on FY 22-23 actual revenues.
•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. On October 10, 2023, the City
completed the user fee study and established
appropriate cost recovery levels for City
services that benefit individuals or groups
rather than the public. The new fees were
adopted on October 24, 2023.
•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 7% 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 (47% 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 $1.9 million
of fund balance and maintain a $4.8 million
in operating reserve. The reserve balance
is equivalent to 25% of the General Fund
budget.

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.

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
assumption, the General Fund can absorb
the additional ongoing costs requested in the
proposed budget.

However, the five-year forecast assumes a
one-time full repayment to retire all CalHFA
loans as agreed on October 18, 2013. As
a result of these repayments, the General
Fund forecast will temporarily experience a
negative fund balance. There are sufficient
funds in the operating reserve to cover the
deficit.

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 2022 CalPERS actuarial
assumptions.
• Health care costs, including medical, dental
and vision, are projected to increase by 3%
using current year premium as base.
• All other expenditures are estimated to
increase by 3%.

Capital Improvement Projects (CIP)
Hercules Capital Improvement Projects
(CIP) aims to maintain and improve our
City’s aged public infrastructure as best it
can with available resources. Taking care of
existing infrastructure is an important part of
building a resilient city. As such, the capital
improvements in this plan balance the need
of rehabilitating aged infrastructure while
also embarking on key enhancement projects
that address critical priorities, such as street
safety and sustainability.

This Capital Improvement project
emphasizes:
• Substantial capital work has been completed
and proposed in light of grant-funded (and
locally matched) transportation projects.
• A “fix it first” approach where proper
maintenance of Hercules existing
infrastructure is prioritized above requests
for “new” infrastructure.
• Additional revenue or funding is needed
to maintain our existing infrastructure
adequately.

Public infrastructure includes the City’s
streets, sewers, storm drains, transportation,
facilities, and parks. While this CIP plans for
ten years, the City Council will only allocate
funds for Fiscal Year (FY) 2024-25. This

LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
6 LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
CIP and budget will be proposed, along with
the City’s operating budget for approval by
the City Council during the adoption of the
annual budget.

The CIP outlines the vision for short- and
long-range project delivery and funding for
maintaining, improving, and building new
and existing infrastructure assets to benefit
our residents, businesses, property owners,
and visitors. The CIP links the General
Plan, Parks Master Plan, and various master
planning documents, as well as available
resources, to provide a means for planning,
scheduling, and implementing capital
projects over the next ten years.

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. Projects included in a
CIP are defined as any long-term investment
that builds, replaces, or improves an asset
(e.g. facilities, roads, parks, sewer, and
drainage lines, etc.), have a useful life of
at least five years and a minimum cost of
$50,000. A critical distinction between the
capital and operating budget is that capital
projects are approved in one year, but their
completion can take years. In contrast,
operating budgets are typically focused on
ongoing maintenance and are “use-it-or-lose-
it” at year’s end, with unspent funds returned
to the fund.

Projects in the Ten-Year CIP were prioritized
according to the Ten-Year Action Plan of
the recently completed Parks Master Plan,
the Sanitary Sewer Master Plan, the City’s
Pavement Management Program, and
the Draft Building Facilities Assessment.

Proposed FY 2024-25 recommended projects
include:
• Construction of the Refugio Park picnic
area and shade structure project.
• Completion of the final design of Beechnut
Park.
• Resurfacing the Foxboro Basketball Court.
• Repairs to the Bay Trail Wall.

Also included is the design of the Upper
Sycamore Sewer main replacement while
Falcon Way is to be resurfaced from Wren
Court to Refugio Valley Road. Ten of
the City’s public buildings are proposed
to receive upgrades, including painting,
and recarpeting the first half of City Hall,
pool repairs and HVAC replacement in the
Community Swim Center, and bathroom
renovations in the Ohlone Community
Center.

The FY 2024-25 Proposed CIP are fully
funded by various funding sources as
specified below. The Capital Improvement
Projects are funded almost exclusively with
revenues from restricted funds.
• The Sewer Fund is restricted to
maintenance and replacement of the City’s
sewers. Much of the available funding for
the capital budget is, in fact, devoted to the
Sewer Fund.
• Transportation Fund includes Gas Tax,
Measure J, and SB1 Road Maintenance
and Repair Account are the result of
voters’ approval of increases dedicated
to transportation infrastructures.

Transportation projects also are
supplemented by Development Impact Fees
(DIF), which are paid for by new residential
and commercial developments. However,
these fees are highly variable and have
categorical restrictions.
• Facilities Replacement – Internal Service
Fund (ISF) is used for capital improvements
to city-owned buildings and is paid through
their operating budget.
• The General Fund, though historically
a small contributor to the overall capital
budget, is the only non-restricted funding
source that can support any public
infrastructure expense. This year, due to
limited resources from restricted funds, staff
are proposing to fund 50% of the FY 2024-25
CI P.

However, the Ten-Year CIP identified a
significant number of unfunded projects. The
total number of unfunded projects identified
in the Ten-Year CIP is approximately $118
million, or 84% of the total Ten-Year CIP:
$101 million for Hercules HUB, $9.6 million
for streets, $4.2 million for parks, and $3.3
million for facilities. Staff recommend
looking for other alternatives to fund the
projects. The following are financing or
funding options for the City Council to
explore regarding potential funding for the
f ut u re CI P.
• Capital Grants – the City acquired the
services of grant writing consultant,
California Consulting to continue efforts
to identify, and apply for, available grants
applicable to approved Capital Improvement
Projects.
• Bond Financing
• General Obligation Bonds, which are
also referred to as GOs, are municipal
bonds which provide a way for state and
local governments to raise money for
projects that may not generate a revenue
stream directly. They are called “general
obligation” bonds because they are not
backed by a specific revenue producing
project or asset. Instead, they are backed
by the “full faith and credit” of the issuer.

In simple terms that means the bonds are
backed by the state or local government’s
ability to tax, and to raise taxes to pay
bondholders. For cities, it normally comes
in the form of property taxes.
• Lease Revenue Bonds is an effective
and increasingly popular vehicle for state
and local governments or cities to finance
and refinance equipment acquisitions, the
construction of public facilities and the
expansion and rehabilitation of existing
public facilities. Lease financing enables
cities to finance a variety of governmental
projects without incurring a “debt” or an
“indebtedness” that is subject to the voter
approval process.

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
7 LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
until the final court disposition is received.

The funds are restricted to police-related
activities only, and in FY 24-25, $117,000
is proposed to fund the Police Department
lobbies. The fund is projected to end the
fiscal year with $28,000 of available balance.
• 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
2024-25 projected ending available balance
is negative $304,838. 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
to cover existing capital or infrastructure
deficiencies. The City DIF funds are
categorized as follows and their respective
available fund balance projected in FY 2024-
25:
• Public Facilities (Fund #241): $154,359
• Police Facilities (Fund #244): $68,843
• Fire Facilities (Fund #246): $0 (Revenues
remitted to the Fire District)
• Parks & Recreation (Fund #247): $191,954
• Public Benefit Fee (Fund #249): $999,867
• Transportation Facilities (Fund #261):
$128,408
• 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 2024-
25 is $727,585 and the proposed budget is
approximately $669,864. The projected FY
2024-25 ending available balance is $85,946.
• 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 like the
Gas Tax. The revenue estimate for FY 2024-
25 is $520,000 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 2024-
25 estimated ending available balance
is $524,432, including $452,545 reserve
for West Contra Costa Integrated Waste
Management Authority (WCCIWMA) related
activities.
• 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 $53K.
• BART Park & Ride (Fund #266): This fund
is to account for maintenance of the park-
and-ride facility owned by BART. The cost
to maintain the facility will be reimbursed by
BART through a revolving fund, so no out-
of-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
2024-25 is $1.1 million.
• Successor Housing: On February 27, 2024,
the City Council adopted a resolution and
elected to become the Housing Successor to
the Hercules Redevelopment Agency. This
allows the City to actively administer the
$4.3 million in outstanding loans and access
the $5.3 million in Housing Funds to pay for
Housing Successor administrative costs and
affordable housing development. Housing
asset funds may be used to develop affordable
housing for extremely low- to low-income
households. Staff will update the Council on
the administration of the affordable housing
loan programs sometime in May.

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
8 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
revenues collected from sewer fees cannot
be used for non-sewer-related purposes.

FY 2024-25 proposed operating budget
is estimated to be $4.4 million; Capital
improvements of $640K, 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
developed a replacement cycle plan. The
model provides for the replacement of
vehicles on a schedule based on age and
mileage. Some vehicles need to be replaced
before the targeted age and mileage
threshold, and others can be extended beyond
the established schedule. All vehicles are
evaluated using these criteria and assessed
for maintenance and gas consumption costs
to determine the appropriate replacement
time frame. For FY 2024-25, the budget
provides for replacing the following:
• Replace the existing two Public
Works pick-up trucks that exceeded the
dependable service life. (Estimated cost:
$150,000)
There is sufficient available balance in
the Vehicle Replacement fund to fund the
proposed replacements.
• 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 2024-25 proposed IT operating Budget
is estimated to be $1 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 2024-25
proposed Facilities Maintenance Budget is
estimated to be $1.1 million. 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 24-
25, the projected ending available balance is
$219,696.
• 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. HELP-
080604-03 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, 2023,
the remaining balance was $5.1 million.

In the alternative, staff can also attempt
to renegotiate the entire loan amount with

LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
9 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, CalHFA has not formally agreed to
renegotiate the loan and it remains unknown
what the terms would be; staff will report
back to Council on this matter once CalHFA
has agreed to the terms.

Future Developments
The City has a continued emphasis on
expanding its tax base and quality of life
through new development on key sites.

Approved development projects are key to
the City’s strategy to grow the local economy,
affirmatively further fair housing, and
accommodate its 995-unit Regional Housing
Needs Allocation (RHNA) for the 2023-2031
Housing Element cycle. However, changed
economic conditions, including higher
interest rates, lower prevailing rents, and
higher construction costs, have challenged
the feasibility of several previously
approved developments. Several developers
of approved projects have requested
accommodations from the City, including
extension of entitlements and the use of
infrastructure financing programs available
under state law.

Several factors have combined to challenge
the economic feasibility of development in
recent years. These include interest rates,
construction costs, and prevailing rents.

Projects that were financially feasible
when approved in 2020-22 may now be
infeasible, because the costs to finance their
construction at current rates would exceed
the rental or sales revenues achievable in
today’s market, resulting in what is termed
“negative residual land value”.

Residual land value is a measure of what
a developer would be able to pay for the
land, given a set of assumptions regarding
capital and operating costs and revenue.

Residual land value, in essence, represents
the developer’s land budget. A higher
residual land value means that a proposed
development project is likely to be more
feasible and therefore to attract investors and
obtain financing. A negative residual land
value—a land budget below $0—means
that a proposed development project is not
feasible without offsetting incentives.

The following are upcoming developments:
•Owl Ranch: Residential subdivision
consisting of 40 single-family residential lots
on a 7.44-acre site at 215 Skelly, the former
McLeod Ranch property.
• The Mint at Bayfront (M&P): 325-unit
multi-family residential development within
the approved 90-acre mixed-use Bayfront
project.
• Bayfront Blocks KLMP&O: 175 townhomes
(incl. 22 live/work) within the approved 90-
acre mixed-use Bayfront project.
• Bayfront Affordable Housing: Ledcor has
requested to credit the 58 existing 80% AMI
units in The Exchange toward the project’s
affordable housing commitment (5% of a
proportionate mix of units at 60% AMI).
• Hilltown: 325-unit multi-family residential
development within the approved 90-acre
mixed-use Bayfront project.
• Sycamore Crossing Residential: 120
multifamily units.
• Hampton Inn & Suites Hotel, Sycamore
Crossing: 4-story, 105-guest room hotel on
a 1.8-acre site within the approved 12.8-acre
Sycamore Crossing mixed-use project.
• Franklin Canyon RV Resort: RV/tent cabin
resort with clubhouse, pool and RV storage.
• Bayfront Blocks E&G Hotel: Proposed
207-key hotel with retail, restaurant, meeting
rooms and amenities.
• America’s Tire: Approved 8,938-square
foot tire store at Creekside Center. Building
permit ready to issue; site improvement plans
approved. Potential construction in 2024.
• Sutter Health: Moving forward with
purchase of 100 and 200 Linus Pauling
Drive. Anticipating outpatient medical office/
imaging/blood draw and additional parking.
• New Businesses:
• Learn & Play Montessori
• Dynamite Donuts
• KS Indian Grocery
• KS Brows
• Tandorri Pizza
• Tommy’s BBQ
Looking Ahead
Last year, the City Council completed a
strategic plan that outlines key priorities that
will guide our efforts to serve the City of
Hercules residents. The result of extensive
staff input and collaboration between
department heads, elected officials, and
City leadership, the strategic plan identifies
the goals we want to achieve in serving the
community, strategies to help us reach those
goals, and the measures we will use to hold
ourselves accountable along the way. The
plan centers on the City’s vision and mission
statements and identifies strategic initiatives
to guide our work toward accomplishing the
mission and vision.

Over the past year and continuing into FY
2024-25, we will continue to implement the
goals set forth under these initiatives. We’re
impressed by the hard work, commitment,
and creativity of Hercules staff as we
tackle improving constituent services,
recruiting, and retaining great employees,
and coordinating across departments and
with other local agencies to address needs
identified by the community.

This year, staff have made a concerted effort
to shape the budget process around the
strategic plan. Departments responded to the
initiative by assessing how their plans for
the upcoming year could advance our shared
goals. The budget review team evaluated
departments’ objectives and performance
indicators and prioritized budget requests
with the greatest impact on the outcomes
identified in the strategic plan. As a result,
the budget contains several recommendations
to help catalyze further progress on our
initiatives.

In Closing
While continued unknowns and uncertainties
are ahead, the FY 2024-25 Recommended
Annual Budget offers the Council, City Staff,
and the community a sense of informed
optimism. This budget addresses community
priorities and continues the robust City
services that the community expects through
balanced, conservative strategies.

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. This budget is
responsible, responsive, and balanced. We
want to thrive by design, and this budget will
advance the City.

We are fortunate that Hercules is in a
comparatively strong financial position. This
means that the City is in a better position
than most other cities in terms of its ability to

LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
10 LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
maintain the status quo. It does not mean that
every need can be funded, but it means the
City will remain able to provide continued
high-level services to the community
members who deserve and depend on those
services.

This favorable position is primarily due to the
prudent fiscal policies of the Council. In the
future, a relentless level of fiscal discipline
will be needed to maintain financial strength
in the face of current economic uncertainties
and prepare for whatever fiscal event happens
next. As spending pressures continue to
mount, the City is well-served by the guiding
principles set forth by the City Council to
guide spending decisions. To date, those
principles have prioritized service delivery
and protection of city employees in a way that
has served the community and the workforce
well.

Acknowledgements
This budget represents a step forward with
continuity of existing services and investment
in basics, while working toward long-term
financial stability reflecting City Council
goals. Nevertheless, our forecasts indicate
that we will face budget challenges in future
years. The City has begun planning now so
that the City Council may make informed
choices as we strive toward a sustainable City
budget.

We would like to thank all the City staff for
their contributions in preparing this adopted
budget for the City Council. Our employees
care deeply about the City and the services
we provide to our residents and community.

I would like to offer additional thanks to
the Finance Department staff for their
dedicated efforts and work during this budget
process and on presenting the annual budget
document.

The City Council’s shared vision and
commitment to making Hercules even better
is at the core of the services we provide. We
appreciate the Department Heads’ expertise
and resourcefulness in this budget process
and the excellent work that each department
has done over the past several years to
prepare us for the next cycle of growth,
projects, and services. These next years will
be both exciting and challenging. We want to
express our gratitude to the City Council for
your confidence in the City’s management
team as well as your policy direction
in this budget process. This document
reflects the hours you spent in discussion
and deliberation, and the directions and
suggestions that you offered, as well as the
sincere interest you have in seeing the City of
Hercules thrive in the years ahead.

Respectfully submitted,
– Dante Hall
City Manager
– Edwin Gato
Finance Director
11 PRESENTED
TO
City of Hercules
California
For the Fiscal Year
Beginning
July 01, 2023
Executive Director

GOVERNMENT

FINANCE OFFICERS ASSOCIATION
Distinguished
Budget PresentationAward
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET BUDGET AWARDS

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 FY2023-24 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 FY2023-24 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 FY2024-25 budget awards.

RCalifornia Society of Municipal
Finance Officers
Certificate of Award
Operating Budget Excellence Award
Fiscal Year 2023-2024
Presented to the
City of Hercules
For meeting the criteria established to achieve a CSMFO Award in Budgeting.

January 29, 2024
Rich Lee James Russell-Field, Chair
2023 CSMFO President Recognition Committee
Dedicated to Excellence in Municipal Financial Reporting 12 The Budget
is the Ci
ty’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.

42.72 Median age of residents
$66,151
Per Capita Personal
Income
29,672
Student Enrollment
(Reflects the total number
of students enrolled in
the West Contra Costa
School District)
14,000
Total City Labor Force
Top 10 Employers, 2022-23
Employer Number of Employees

1. Bio-Rad Laboratories, Inc - 2,028

2. West Contra Costa Unified School
District - 242

3. Home Depot - 163

4. Safeway - 160

5. Pacific Bio Labs Inc - 122

6. Contra Costa County Social
Services - 83

7. Lucky Supermarket - 60

8. City of Hercules - 59

9. Kinder’s Meats & Deli BBQ &
Catering - 48

10. Benda Tool & Works Inc - 36

HERCULES

DATA DIGEST
FY 2024-2025
BUDGET

AT A GLANCE
FISCAL YEAR 2024-2025

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

Sept.

Oct.Nov.Dec.

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
4Publish annual report
& 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 2024/hyphen.case2025 BUDGET OVERVIEW Citywide Revenue
$41 million
$19 million
General Fund Expense
$19 million
General Fund Revenue
$22 million
Other Funds
$20 million
Other Funds
Citywide Expenses
$41 million
Accumulated Fund Balance $2 million
Source: CA Department of Finance
2014 2023
24,826
26,297
Population of the
City of Hercules
13 FINANCIAL

MANAGEMENT
• Sustainable
Operating Budget
• Improved Capital
Improvement Plan
• Business Attraction
and Retention
• New Revenue
Opportunities
BUDGET 2019-21CITY OF HERCULES FY 2024-25 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE Figures are rounded
FY 2024-25:

Citywide Expenditures by Program
$41 million total
Police
$9.2
million
Wastewater
Improvements
$8.8
million
Streets & Others
$10.5
million
$5.1 million
$2.6 million
$1.4 million
$3.4 millionLighting and
Landscaping
Assessment District
Community
Development
$945,331
Parks & Recreation
Administration

CITY OF HERCULES
STRAT

EGIC WORKPLAN
2020 $22 $8 $30 million
Fund ratio: 74%
2021 $27 $5 $31 million
Fund ratio: 86%
Based on June 2022 CalPERS actuarial report, 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 staﬀ pension funding
$37 million
Accrued LiabilityUnfunded
(in $ millions)
Plan Assets
(in $ millions)
Accrued LiabilityUnfunded
(in $ millions)
Plan Assets
(in $ millions)
2020 $27 $10
Fund ratio: 73%
$39 million 2021 $34 $5
Fund ratio: 86%
$43
million
2022 $33 $11
Fund ratio: 75%
2022 $24 $8 $33 million
Fund ratio: 73%

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
14 BUDGET 2019-21CITY OF HERCULES FY 2024-25 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE Revenues
by Type
2024-25
$41
million
Expenses
by Major
Category
2024-25
$41
million
CITY OF HERCULES BUDGET FY 2024-25:

CITYWIDE BUDGET
Figures are rounded
Figures are rounded
Special
Revenues,
Capital
and Debt
$11
million
General Fund
$19 million
Enterprise
$9
million
Capital
Projects
$6 million
Materials,
Supplies
& Services
$17
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
Centers
Other expenses
$4 million
Accumulated
Fund Balance $2 million
15 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 6¢
Public Works 2¢
Other 9¢
Community Development 5¢
48¢ 16¢ 14¢
BUDGET 2019-21CITY OF HERCULES FY 2024-25 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE CITY OF HERCULES BUDGET FY 2024-25:

GENERAL FUND OPERATING BUDGET
Sales Tax (33%) Utility User
Tax (21%)
Vehicle License
Fees (14%)
Program
Revenues (9%)
$6.3
million $3.8
million
$2.7
million
$1.6
million
$1.6
million
$1 million
Property Taxes (8%)
Other Taxes (8%)
Miscellaneous (5%)
$1.8
million
Figures are rounded
Figures are rounded
The net annual
operating results are
structurally balanced.

However, the
forecast included a
one-time repayment
to retire all CalHFA
loans, which will
temporarily cause
the General Fund to
experience a deficit.

The City has set aside
adequate reserves to
weather such difficult
times in the future.

General Fund Five-Year Forecast
Revenues
with One-Time
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 $22.3 million
$19.4 million
$23.71 million
$22.9
million
$25 million
$20 million
Expenditures
including One-Time
Revenues
$19.8
million
$20.4
million
$22.3 million
Expenditures
16 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET BUDGET PROCESS

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:
17 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 full-
accrual 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET BUDGET PROCESS 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
18 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET BUDGET PROCESS

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 cash
plus encumbrance basis budgeting. Cash plus
encumbrance basis budgeting is a method of accounting
that uses income when received and expenses when paid
and committed. This method contrasts with accrual
accounting, which recognizes income at the time the
revenue is earned and records expenses when incurred
regardless when cash is received or paid. The cash plus encumbrance basis of budgeting are the same for all
governmental funds. The budgeting basis for enterprise
or proprietary funds do not include depreciation and also at cash plus encumbrance basis budgeting.
19 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET BUDGET PROCESS

1. The City Manager submits to the City
Council a proposed op
erating 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 res
olution before July 1.

4. The City Manager is authorized to transfer
budgeted amounts be
tween 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 cont
rol 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 (th
e 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 mod
ified 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 re-
appropriated for th
e subsequent year.

9. Budget appropriations for the various
governmental fun
ds 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:
20 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET BUDGET PROCESS

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.
21 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET BUDGET PROCESS 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
22 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES 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 one-
time 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
23 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES 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 self-
supporting 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.
24 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES 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:
25 LOCAL CITY BUDGET AND DEMOGRAPHIC COMPARISON
CITY OF HERCULES FY 2024-25 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 18,431,887 52,504,429 48,528,763 28,111,479 General Fund Expenditures 18,100,181 52,504,430 48,435,585 28,995,141 Total Full Time Equivalents 35 81 90 85
Sworn Personnel FTE 26 87 74 30

DEMOGRAPHICS
Population 26,063 31,088 25,700 18,182
Annual Percent Change -0.50% -0.2% 1.1% -0.50%
Median Age 42.6 33.20 37.9 37.9
Population per FTE 745 384 286 214
Population per Sworn FTE 1002 357 347 606
Housing Units 9,576 10,001 11,342 7,122
Average Household Size 2.89 3.22 2.42 2.77
Labor Force 14,000 13,500 13,500 6,500
Unemployment Rate 4.1% 4.90% 3.9% 3.2%
Median Household Income $125,880 $72,552 $120,414 $113,630 Per Capital Income $52,818 $27,043 $67,881 $49,738

LOCAL CITY BUDGET AND DEMOGRAPHIC
COMPARISON FY 2023-2024
* The Budget Comparison data was obtained from the corresponding city’s Adopted Budget for FY 2023-24. *The Demographics, except the Labor Force and Unemployment Rate, data was obtained from the Census Bureau website. July 2023
* The Labor Force and Unemployment Rate was obtained from the California Employment Development Department website. March 2024
26 Tim Rood
Community
Development
Director
*Staff – 2
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
FY 2024-25 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
*Staff – 2
Functions:
• City Clerk
• Elections
• Agendas
• Council Mtgs
• Cable/Web
Broadcasts.
• Records Admin.
• Contract Mgmt.
• Reception
• Meeting
Coordinate
Edwin Gato
Finance Director
*Staff – 6
Functions:

Financial Services:
• General
Accounting
• Accounts
Payable
• Accounts
Receivable or
Collections
• Payroll
• Budget
• Audit and
Financial
Reporting
• Investment
Mgmt.
• Cash Mgmt.
• Debt Mgmt.

IT Services:
• Network
Services and
Infrastructure
Security
• Telecommuni-
cation Support
• Desktop &
Server Support
• GIS Support
Dante Hall
City Manager
*Staff – 2
Functions:
• Executive Mgmt.
• Real Estate
(Incl. RITC)
• Franchises
• RDA Successor
• Economic
Development
• Legislative
• Inter-
Governmental
• Cable/Web
Broadcasts
• Risk
management
• Contract Mgmt.

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
5 Non-Sworn
1 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
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
Vacant
Human
Resources
Director
*Staff -1
1 PT
Functions:

Employee
life cycle:
• Recruitment
• Hiring
• Onboarding
• Training
• Termination.

Oversees
employee
relations
• Compensation
• Benefits,
• Performance
management,
• Learning
• Development.

HUMAN

RESOURCES
27 CITYWIDE BUDGET
CITYWIDE CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
28 Authorized Full-Time Positions
By Classification Within Department
FTE Trends
Personnel by Department
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actuals Actual Budget Proposed
Police
Chief of Police 1 1 1 1
Police Commander 2 2 2 2
Police Sergeant 5 5 5 5
Police Officer 18 18 18 18
Police Support Specialist 2 3 3 3
Parking Enforcement Officer 1
Administrative Specialist 1 1 1 1
29 30 30 31
Public Works
Public Works Director 1 1 1 1
Public Works Superintendent 1 1 1 1
Public Works Inspector/Specialist 1 1 1
Maintenance Supervisor 1 1
LLAD Coordinator 1
Associate Engineer 1 1 1 1
Maintenance Worker I 4 4 4 1
Maintenance Worker II 4 3 2 5
11 11 11 12
Community Development
Community Development Director 1 1 1 1
Senior Planner 1 1
Permit Technician 1 1
Community Development Specialist 1 1
2 2 3 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 2024-25 ANNUAL BUDGET
29 Authorized Full-Time Positions
By Classification Within Department
Parks & Recreation
Parks & Recreation Director 1 1 1 1
Recreation Manager 1 1 1 1
Recreation Supervisor 2
Recreation Coordinator 2 2 2
Recreation Technician 1
4 4 4 5
Administration
Accounting Technician II 2 2 2 2
Administrative Services Director 1
Administrative Specialist 1 1 1
Cable/Communications Technician 1 1
City Clerk 1 1
City Clerk/PIO 1
City Manager 1 1 1 1
Finance Director 1 1 1 1
Human Resources Director 1 1 1 1
Information Systems Administrator 1 1 1 1
Information Systems Specialist 1 1
Management Analyst 1 1 1 1
Senior Accountant 1 1 1 1
Senior Clerk 1 1 2 2
11 12 13 13
Total City-wide FTE Count 57 59 61 64
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCITYWIDE
30 City-Wide Budget
All Funds Summary
Projected Projected Changes in Projected Proposed Proposed Changes in Proposed 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 22-23 FY 23-24 FY 23-24 FY 23-24 FY 23-24 FY 24-25 FY 24-25 FY 24-25 FY 24-25 General Fund
100 GENERAL FUND $1,808,562 $18,431,887 $18,329,431 $0 $1,911,018 $19,835,823 $19,445,717 ($313,847) $1,987,277 401 FISCAL NEUTRALITY 4,326,140 110,000 4,436,140 113,000 $313,847 4,862,987 General Fund Total 6,134,702 18,541,887 18,329,431 - 6,347,158 19,948,823 19,445,717 - 6,850,264 Special Revenue Funds
101 ASSET SEIZURE 203,220 - 57,918 145,302 - 117,000 28,302 201 AB 3229 COPS Program 33,283 150,000 156,727 26,556 150,000 176,556 - 220 CITYWIDE L&L DIST 83-2 738,976 2,307,543 2,160,074 - 886,445 2,298,346 2,109,482 1,075,309 221 VICTORIA BY THE BAY L&L (339,760) 520,580 629,910 (449,090) 660,174 707,109 (496,025) 222 HERCULES VILLAGE L&L DIST 152,996 178,982 228,160 - 103,818 183,048 225,414 61,452 223 BAYWOOD ASSESS 04-1 L&L 93,315 173,230 173,175 - 93,370 181,144 180,511 - 94,003 224 BAYSIDE ASSESS DIST L&L 157,379 160,665 150,085 167,959 165,678 161,240 172,397 225 ARTERIAL ROADWAYS 471,205 322,637 327,980 465,862 340,210 365,916 440,156 231 STORMWATER ASSESSMENT (157,621) 381,000 434,833 (211,454) 355,645 449,029 - (304,838) 241 DIF-GEN PUBLIC FACILITIES 119,409 34,950 - 154,359 - - 154,359 242 COMMUNITY DEVELOPMENT FND 113,536 60,000 - 173,536 - 170,000 3,536 243 DEVELOPMENT FEE FUND 73,708 - - 73,708 - - 73,708 244 DIF-POLICE FACILITIES 268,843 - - 268,843 - 200,000 68,843 246 DIF-FIRE FACILITIES - - - - - - - - 247 DIF-PARK & REC 191,954 - - 191,954 - - 191,954 249 PUBLIC BENEFIT FEE 999,867 - - 999,867 - - 999,867 261 DIF-TRAFFIC FACILITIES 128,408 - - 128,408 - - 128,408 262 STATE GAS TAX FUND - 1,392,993 1,257,526 (26,056) 109,411 727,585 725,829 (81,186) 29,981 263 MEASURE "C" STREET FUND 53,909 450,000 529,965 26,056 - 520,000 601,186 81,186 - 264 STMP TRAFFIC IMPACT FUND - - - - - - - - 266 BART PARK & RIDE 331,214 182,000 182,000 - 331,214 89,000 89,000 331,214 267 GENERAL PLAN AND BLDG TRAINING 953,381 240,000 - - 1,193,381 - - 1,193,381 268 SB1 - RMRA 646,866 - - - 646,866 673,002 965,100 - 354,768 291 AB 939 - JPA FUND 785,334 180,000 237,562 727,772 185,000 388,340 524,432 387 WATER QUALITY RETENTION BASIN 236,752 50,000 47,000 239,752 62,000 48,000 253,752 521 REGIONAL WATER QUALITY 53,002 - - 53,002 - - 53,002 640 HOUSING SUCCESSOR 5,053,317 - - 5,053,317 102,000 - 5,155,317 Special Revenue Funds Total 11,362,493 6,784,580 6,572,915 - 11,574,158 6,692,832 7,679,712 - 10,587,278 Capital Projects Funds
300 CITY - CAPITAL PROJECTS - 450,000 450,000 - 2,350,823 2,350,823 - 354 HERCULES HUB - 300,000 300,000 - 1,089,000 1,089,000 - 295 FEDERAL GRANTS - - - - - - -
296 STATE AND LOCAL GRANTS - 502,506 502,506 - 38,500 38,500 - Capital Projects Funds Total - 1,252,506 1,252,506 - - 3,478,323 3,478,323 - - CITYWIDE CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
31 City-Wide Budget
All Funds Summary
Projected Projected Changes in Projected Proposed Proposed Changes in Proposed 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 22-23 FY 23-24 FY 23-24 FY 23-24 FY 23-24 FY 24-25 FY 24-25 FY 24-25 FY 24-25 Debt Service Funds
672 2003B DEBT SERVICE PFA 1,621 563,316 564,937 - 563,430 563,430 - 673 2009 DEBT SERVICE PFA - 907,159 907,159 - 905,296 905,296 - 383 SUNTRUST LEASE - - - - - - - -
388 EQUIPMENT LEASE - 235,896 235,896 - 235,027 235,027 - Debt Service Funds Total 1,621 1,706,371 1,707,992 - 1,703,753 1,703,753 - - Enterprise Funds
420 SEWER FUND (OPERATIONS) 12,257,213 6,631,785 7,009,825 11,879,173 6,291,000 7,662,587 (4,210,000) 6,297,586 421 SEWER FUND (CAPITAL) - 132,000 132,000 - 1,100,000 1,100,000 - Sewer Fund Total 12,257,213 6,763,785 7,141,825 - 11,879,173 7,391,000 8,762,587 (4,210,000) 6,297,586 Internal Service Funds
450 VEHICLE REPLACEMENT FUND 315,624 153,000 220,000 248,624 158,000 150,000 256,624 460 IT OPERATING FUND 521,662 996,333 1,339,974 178,021 1,085,715 1,036,263 227,473 470 FACILITY MAINTENANCE FUND 366,183 938,955 995,631 309,507 1,046,683 1,137,470 218,720 480 IT EQUIPMENT REPLACEMENT FUND 365,516 - - - 365,516 - 309,000 - 56,516 490 FACILITY REPLACEMENT FUND 361,696 - 142,000 - 219,696 - - - 219,696 Internal Service Funds Total 1,930,681 2,088,288 2,697,605 - 1,321,364 2,290,398 2,632,733 - 979,029 Total, City Budget $31,686,710 $37,137,417 $37,702,274 $0 $31,121,853 $41,505,129 $43,702,825 ($4,210,000) $24,714,157 Agency Funds
382 ASSMT DIST 05-01 DEBT SVC - 229,088 229,088 - 226,873 226,873 - 501 TAYLOR WOODROW MAINT LMOD 73,088 - - 73,088 - - 73,088 511 OPEB & SOMAR 2,673,351 120,000 104,600 2,688,751 120,000 112,475 2,696,276 730 HERCULES GOLF CLUB - - - - - - -
Agency Funds Total 2,746,439 349,088 333,688 2,761,839 346,873 339,348 - 2,769,364 SUCCESSOR AGENCY & HOUSING - 3,635,370 3,635,370 - - 8,587,154 8,587,154 - - Totals 34,433,149 $41,121,875 $41,671,332 $0 $33,883,692 $50,439,156 52,629,327 ($4,210,000) $27,483,521 CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCITYWIDE
32 City-wide Expenditures
Summary by Fund Type
Expenditure Trends
Expenditures By Department
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
General Fund Operations by Department
Police 7,758,261$ 8,430,069$ 8,367,070$ 9,124,961$ Public Works 413,667 417,265 454,663 429,968
Community Development 1,039,536 511,989 933,497 1,014,244 Parks & Recreation 1,950,446 2,408,847 2,494,876 2,591,807 Administration 3,958,765 4,204,024 4,790,863 5,148,280 Non-Department 260,000 260,000 260,000 260,000 Transfers Out 423,542 822,559 799,212 798,457
15,804,217 17,054,753 18,100,181 19,367,717
One-time 2,668,125 1,644,194 229,250 78,000
ARPA (Loss of Revenue Calculation) 1,085,540 - - - 19,557,882 18,698,947 18,329,431 19,445,717
Special Revenue, Capital and Debt
Special Revenues 9,611,535 9,877,196 6,572,915 7,679,712 Capital Projects 1,291,455 1,959,988 1,252,506 3,478,323 Debt Service 1,466,458 1,752,421 1,707,992 1,703,753 Enterprise
Sewer 4,228,621 22,324,123 7,141,825 8,762,587
Net City Budget 36,155,951 54,612,675 35,004,669 41,070,092 Internal Charges
Internal Service Funds 2,042,804 2,332,179 2,697,605 2,632,733 Total City Budget 38,198,755$ 56,944,854$ 37,702,274$ 43,702,825$ Fiduciary
Successor Agency 93,352,707 2,723,047 3,635,370 8,587,154 Other Agency 335,923 369,629 333,688 339,348
Total Organization 131,887,385$ 60,037,530$ 41,671,332$ 52,629,327$ -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
FY 21-22
Actual
FY 22-23
Actual
FY 23-24
Projection
FY 24-25
Proposed
Internal Service
Sewer
Debt Service
Capital Projects
Special Revenues
General Fund
CITYWIDE CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
33 City-wide Revenues/Transfers In
Summary by Fund Type
Revenue Trends
Revenuess By Fund
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
General Fund
Taxes 13,069,061$ 13,241,060$ 13,006,113$ 13,551,000$ Intergovernmental 2,391,327 2,527,866 2,561,220 2,655,000 Fines & Forefeitures 48,663 46,057 38,760 45,000 Program Revenues 1,517,372 2,012,712 1,640,395 1,822,350 Use of Money & Property 347,905 794,570 292,320 799,000 Cost allocated to other departments 624,568 588,529 736,352 786,917 Transfers In 396,816 150,000 156,727 176,556
18,395,712 19,360,794 18,431,887 19,835,823
One-time 1,431,000 169,461 - -
19,826,712 19,530,255 18,431,887 19,835,823
Special Revenue, Capital and Debt
Special Revenues 8,726,264 10,595,783 6,784,580 6,692,832 Capital Projects 740,531 454,160 1,252,506 3,478,323 Debt Service 1,406,663 1,668,349 1,706,371 1,703,753 Enterprise
Sewer 5,694,960 19,916,957 6,763,785 7,391,000
Net City Budget 36,395,130 52,165,504 34,939,129 39,101,731 Internal Charges
Internal Service Funds 1,562,958 2,218,712 2,088,288 2,290,398 Total City Budget 37,958,088$ 54,384,216$ 37,027,417$ 41,392,129$ Fiduciary
Successor Agency 12,268,134 5,950,257 3,635,370 8,587,154 Other Agency (42,960) 423,432 349,088 346,873
Total Organization 50,183,262$ 60,757,905$ 41,011,875$ 50,326,156$ -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
FY 21-22
Actual
FY 22-23
Actual
FY 23-24
Projection
FY 24-25
Proposed
Internal Service
Sewer
Debt Service
Capital Projects
Special Revenues
General Fund
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCITYWIDE
34 City-wide Budget
Transfers
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Transferred From (Sender) Transferred To (Receiver)
Fund Name Fund No. Fund Name Fund No.

General Fund 100 Capital Projects 300 $1,535,540 $500,000 General Fund 100 Capital Projects 300 115,579
General Fund 100 Hercules HUB 340 3,493
General Fund 100 Hercules HUB 340 8,556
General Fund 100 SunTrust Lease 383 205,099 102,549
General Fund 100 OPEB Liability 511 60,000 60,000 $60,000 $60,000 General Fund 100 2003B Debt Service PFA 672 360,649 563,316 563,430 General Fund 100 2009 Debt Service PFA 673 5,300
General Fund 100 Asset Seizure 101
General Fund 100 Equipment Lease (Solar Project) 388 218,443 226,431 235,896 235,027 AB 3229 COPS Program 201 General Fund 100 150,000 150,000 156,727 176,556 Landscape & Lighting District 83-2 220 Arterial Roadways 225 26,800 Landscape & Lighting District Victoria by the Bay 2002-1 221 Arterial Roadways 225 26,800 27,200 28,016 29,529 Landscape & Lighting District Hercules Village 2002-2 222 Arterial Roadways 225 7,100 7,500 7,725 8,051 Landscape & Lighting District Baywood 2004-1 223 Arterial Roadways 225 2,400 2,700 2,781 2,841 Landscape & Lighting District Bayside 2005-1 224 Arterial Roadways 225 17,600 18,500 19,055 20,136 Stormwater Assessment 231 General Fund 100
Landscape & Lighting District 83-2 (Zone 1) 232 Arterial Roadways 225 26,100 26,100 29,688 Landscape & Lighting District 83-2 (Zone 2) 233 Arterial Roadways 225 19,500 20,600 21,218 22,367 Landscape & Lighting District 83-2 (Zone 3&4) 234 Arterial Roadways 225 26,500 28,000 28,840 30,376 Landscape & Lighting District 83-2 (Zone 5A) 235 Arterial Roadways 225 19,500 20,600 21,218 22,316 Landscape & Lighting District 83-2 (Zone 5B) 236 Arterial Roadways 225 10,100 11,500 11,845 12,284 Landscape & Lighting District 83-2 (Zone 5C) 237 Arterial Roadways 225 10,600 16,100 16,583 15,970 Landscape & Lighting District 83-2 (Zone 6) 238 Arterial Roadways 225 23,200 24,500 25,235 26,570 Landscape & Lighting District 83-2 (Zone 7) 239 Arterial Roadways 225 30,000 31,700 32,651 34,351 Landscape & Lighting District 83-2 (Zone 8) 251 Arterial Roadways 225 48,900 51,600 53,148 56,052 Landscape & Lighting District 83-2 (Zone 9) 253 Arterial Roadways 225 25,900 27,400 28,222 29,679 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 10) 220 21,528 21,952 22,391 23,030 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 1) 232 845 871 888 921 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 2) 233 615 617 629 635 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 3&4) 234 761 891 909 829 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5A) 235 958 1,236 1,261 1,423 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5B) 236 271 277 283 345 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5C) 237 176 261 266 193 CITYWIDE CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
35 City-wide Budget
Transfers
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Transferred From (Sender) Transferred To (Receiver)
Fund Name Fund No. Fund Name Fund No.

State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 6) 238 640 631 644 592 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 7) 239 614 649 662 827 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 8) 251 1,884 1,966 2,005 2,457 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 9) 253 1,024 1,077 1,099 1,233 State Gas Tax 262 Landscape & Lighting District Victoria by the Bay 2002-1 221 9,230 10,047 10,248 13,052 State Gas Tax 262 Landscape & Lighting District Hercules Village 2002-2 222 3,874 3,982 4,062 4,347 State Gas Tax 262 Landscape & Lighting District Baywood 2004-1 223 2,515 2,613 2,665 3,259 State Gas Tax 262 Landscape & Lighting District Bayside 2005-1 224 1,634 2,284 2,330 2,822 State Gas Tax 262 Arterial Roadways 225
State Gas Tax 262 SB1 Road Maintenance and Repair Account (RMRA) 268 553,583 Measure "C" Street Fund 263 Arterial Roadways 225
SB1 Road Maintenance and Repair Account (RMRA) 268 State Gas Tax 262 262,755 Solid Waste and Recycling 291 Stormwater Assessment 231 125,000 125,000 125,000 125,000 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 13,700,000 132,000 1,100,000 Facility Maintenance 470 BART Park & Ride 266
$6,088,697 $19,680,138 $1,645,918 $2,656,188
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCITYWIDE
36 CITY OF HERCULES
FY 2024-25 LIST OF ADDITIONAL BUDGET REQUEST

LIST OF ADDITIONAL BUDGET REQUEST
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
1 City of Hercules
FY 24-25 List of Additional Budget Request
Title Fund Department Description Justification General Fund Other Funds Total Ongoing costs:

Human Resources
Director
General Fund Human
Resources
Before this year's budget, Human
Resources was under the
Administrative Services Department.

This request is to create a new
department and a director. The cost of
the position is offset with the cost of
HR Administrator and Consultant.

Human Resources has a complex operation. This organizational change will achieve more appropriate management and supervisory spans of control, identify more appropriate alignment and reporting structure of functional units, and achieve a balanced executive management structure. $5,000 $5,000
NeoGov
Recruitment
Notifications
General Fund Human
Resources
NeoGov text notification set-up and
subscription, employment verification
and pre-employment screening set-up
and subscription.

These additional NeoGov tools will help expedite and increase candidate communications, and create internal HR efficiencies geared to reduce the hire time without compromising compliance measures.
$3,606 $3,606
Reclass two Rec
Coordinators to
Supervisors
General Fund Parks &
Recreation
Promote two (2) Recreation
Coordinators to Recreation
Supervisors.

This move, addresses the missing middle and creates a more desireable title within the field of Parks and Recreation. It also sends a message to the two hardworking, dedicated staff that they are valued members of the department and the city. Going forward, this move will also help with attracting talent in the industry. This request is driven by not only operational needs, but compaction issues and succession planning.
$19,300 $19,300
Full-Time
Recreation
Technician -
Aquatics
General Fund Parks &
Recreation
This request is driven by operational
needs, a lack of available qualified
personnel, and a no available
contractor options. This move will
also help with future succession
planning. The Rec Tech postion is
going to help with routine pool
maintenance, and the overall aquatics
operation. The cost of the
position will be offset with the
elimination of four Senior Lifeguards
and the pool maintenance contract.

The Recreation Coordinator who oversees Aquatics is stretched so thin that the position ends up working an excessive number of additional hours, to the point of burnout. When the city opened the pool, there was Full-time help with pool maintenance from Public Works. However, times have changed, and Public Works lacks the time or personnel to work on the pool. In FY22-23, the City Council allocated $15,000 to secure a contractor to provide pool maintenance and an additional $30,000 for FY23-24. After much research, staff found that pool contractors only work on the weekends if it's a call-out situation. Staff then looked to promote a Part-time Pool Manager position but was unsuccessful. Staff then coordinated efforts with the CM and Finance Director to develop an alternate solution, bringing us to a Full-time Recreation Technician position that would be 100% focused on Aquatics. $5,000 $5,000
Reorganization of
IT services
Internal
Service Fund
City Manager Before this year's budget, Information
Technology was under the
Administrative Services Department.

This request is to reclassify the IT
division to Finance Department.

There's no fiscal impact to reclassify the division to Finance. $0 $0 Landscaping and
Lighting (LLAD)
Coordinator
Landscaping
and Lighting
Assessment
District
Public Works The LLAD Coordinator will provide
better customer service to residents
and higher-level oversight of the
landscaping and tree trimming
contracts.

Enhanced oversight and customer service would be gained through increased operational efficiency by having primarily one person assigned to this function instead of multiple people that have other priorities related to buildings, sewer, and streets. Existing staff costs would be reallocated from the LLAD funds to the Facility Maintenance fund as there is a need to enhance the level of maintenance on public buildings and infrastructures. $176,000 $176,000
Total, Ongoing Costs $32,906 $176,000 $208,906
One-Time Costs:

NeoGov Module
Support Services
General Fund Human
Resources
To implement end program purchased
through NeoGov modules to
performance and onboarding.

NeoGov automates manual tasks to save time, reduce errors, streamline processes, and increase operational efficiency.
$38,000 $38,000
Legal Counsel for
Receivership
General Fund Community
Development
Outside Counsel experienced in
receivership petitions to assist the City
by preparing petitions to the court
Outside counsel familiar with receivership petitions may be needed to pursue receivership for a hoarder property that has had ongoing building and fire code violations for at least three years, despite ongoing code enforcement efforts. Aleshire & Wynder, the firm recommended by California Receivers, provided estimated costs of $40,000 based on a similar receivership they recently completed in Suisun City.
$40,000 $40,000
Replace 2 New
Pickup Trucks
which have
exceeded their
useful life
Vehicle
Replacement
Fund
Public Works Surplus 2 Pick up trucks, which are past
due for replacement, and purchase 2
new pickup trucks to replace them.

Both unit 4422 (Model year 2008) and unit 4419(Model Year 2000) have exceeded the 10 year replacement policy and now need to be replaced.

Both of these units were scheduled for replacement in 22/23 budget cycle, but low inventory created excessive cost issues and the purchases were postponed. Also unit 4422 was totaled in a traffic accident(Insurance settlement of $8270.00). Purchasing replacements for these 2 vehicles will cost approximately $140K plus $10K for outfitting. .With a total expenditure of $150K.
$150,000 $150,000
Total, One-Time Costs $78,000 $150,000 $228,000
Total $110,906 $326,000 $436,906
Budget Impact
37 DEPARTMENT SUMMARIES
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETDEPARTMENT SUMMARIES 38 ALEXANDER

WALKER-GRIFFIN
Council Member

DAN ROMERO
Mayor

CITY COUNCIL

KEY PRIORITIES
2024-25:

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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET

TIFFANY GRIMSLEY
Council Member

CHRIS KELLEY
Council Member

DION BAILEY
Vice Mayor
39 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 transit-
oriented 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
• Emergenc
y 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
Revie
wing and amending
City General Plan Elements,
zoning codes, and policies,
including the adoption of
the new Housing Element.
• Parks Systems and
Facilities 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 2024-25 ANNUAL BUDGET
40 City Council
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 69,425 $ 71,066 $ 69,943 $ 75,625 $ Contractual Services 80,716 1,231 43,260 41,200
Other Operating Costs 33,041 48,546 45,550 49,900 Cost Allocation 183,114 209,000 176,924 193,538
Capital Outlay - - - -
Debt Service - - - -
366,296 $ 329,843 $ 335,677 $ 360,263 $
Expenditures By Fund/Program
General Fund 366,296 $ 329,843 $ 335,677 $ 360,263 $ Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY COUNCIL CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
41 CITY MANAGER

CITY MANAGER
CITY MANAGER’S

KEY PRIORITIES
FOR FY 24-25:
• 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 2024-25 ANNUAL BUDGET
42 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 2024-25 ANNUAL BUDGET
43 ADMINISTRATIVE SERVICES
CITY OF HERCULES FY 2024-25 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.

PERFORMANCE MEASURE FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 # of Workers Compensation claims 12 19 15 25 10
# of General Liability claims 13 17 17 14 20
44 City Manager
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 264,759 $ 305,323 $ 363,337 $ 347,674 $ Contractual Services 1,207,410 1,332,929 1,502,790 1,743,781 Other Operating Costs 9,416 17,520 31,400 37,400
Cost Allocation 74,908 79,000 73,941 82,735
$ 1,556,493 $ 1,734,772 1,971,468 $ 2,211,590 $
Expenditures By Fund/Program
General Fund
City Manager 460,216 $ 493,247 $ 503,429 $ 505,924 $ Risk Management 1,096,277 1,241,525 1,468,039 1,705,666 1,556,493 1,734,772 1,971,468 2,211,590
Expenditure Trends
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY MANAGER CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
45 HUMAN RESOURCES
CITY OF HERCULES FY 2024-25 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.

PERFORMANCE MEASURE FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 New Hires 37 46 13 42 44
Tuition Reimbursements 8 7 3 5 5
Tuition Reimbursement Amounts $21,185 $11,590 $8,375 $13,054 $15,311 46 Human Resources
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 172,616 $ 166,719 $ 182,374 $ 263,425 $ Contractual Services 64,525 44,550 113,260 45,900 Other Operating Costs 42,022 8,122 49,852 59,900
Cost Allocation 42,758 41,000 42,949 48,918
321,921 $ 260,391 $ 388,435 $ 418,143 $
Expenditures By Fund/Program
General Fund 321,921 260,391 388,435 418,143
321,921 260,391 388,435 418,143
Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETHUMAN RESOURCES 47 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 2024-25 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.

PERFORMANCE MEASURE FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 City Council Meeting Agendas 20 21 21 21 21
Finance Commission Agendas 7 6 6 6 6
Planning Commission Agendas 23 23 24 24 24
Community & Library Services Commission Agendas 12 12 12 12 12 Economic Development Subcommittee Agendas - - 1 2 - Public Safety & Traffic Subcommittee Agendas 2 2 1 - 2 West Contra County Mayors & Supervisors Association 5 4 - 5 - Public Records Request 69 38 34 46 66
48 City Clerk
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 184,120 $ 201,214 $ 275,808 $ 244,095 $ Contractual Services 74,956 100,165 123,909 139,400 Other Operating Costs 31,117 22,596 34,351 28,900 Cost Allocation 76,876 81,000 75,966 85,095
Capital Outlay 35,514 5,000 10,300 5,200
Debt Service - - - -
402,583 $ 409,975 $ 520,334 $ 502,690 $
Expenditures By Fund/Program
General Fund
City Clerk 351,177 $ 372,172 $ 481,915 $ 463,690 $ Outreach 363 343 309 400
Cable TV 51,043 37,460 38,110 38,600
402,583 $ 409,975 $ 520,334 $ 502,690 $
Expenditure Trends
-
100,000
200,000
300,000
400,000
500,000
600,000
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCITY CLERK
49 CITY ATTORNEY

CITY ATTORNEY

KEY PRIORITIES
2024-25:
• Provide high-
quality 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 2024-25 ANNUAL BUDGET
PERFORMANCE INDICATOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 # of developer projects 8 7 5 9 7
50 • 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 on-
going 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 2024-25 ANNUAL BUDGET
51 City Attorney
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits - - - -
Contractual Services $209,134 $193,487 $281,190 $289,600 Other Operating Costs - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
$209,134 $193,487 $281,190 $289,600
Expenditures By Fund/Program
General Fund $209,134 $193,487 $281,190 $289,600
Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Contractual Services
CITY ATTORNEY CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 52 FINANCE

FINANCE

KEY PRIORITIES
2024-25:
• Structurally Balanced
Operating Budget.
• Ensure on-going
revenues support on-
going costs
• Robust Five-year
Operating and Capital
Improvement Plan
• Parks Master Plan
• Facilities Master 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 2024-25 ANNUAL BUDGET
664647 734 665 819 995 971

OPERATING INDICATORS
Number of Business Licenses Issued
20152014 2016 2017 2018 2019 2020 2021
City of Hercules, Last Ten Fiscal Years
1,103
2022 2023
1,184 1,147
PERFORMANCE INDICATOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Journal Entries 443 359 361 205 189
Cash Receipt 945 835 677 607 476
Accounts Payable 441 304 282 188 149
Budget Adjustments 13 20 9 5 12
53 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 2024-25 ANNUAL BUDGET
54 FINANCE
CITY OF HERCULES FY 2024-25 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 su
pport to City staff
within four hours of request.
• Maintain and support
approximate
ly 40 software
applications, including those
specific to public safety
services.
• Implement upgraded software
application
s as required.
• Maintain connectivity among
network ro
uters, switches, and
devices to ensure availability
and reliability for City staff and
external customers.
• Implement and maintain
servers for n
ew applications.
• Implement the prioritized
recommendati
ons 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 broadcasts 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 cost-effective 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.

PERFORMANCE MEASURE FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 # tickets 2,007 2,043 2,080 2,500 3,000
# of upgrades 60 80 10 120 150
# of software installation 8 5 15 10 10

PERFORMANCE GOALS
FY
2024
FY
2023
Percentage
of software
applications
supported
citywide
70% 70%
Employee
service
request
fulfilled with
7-10 days
90% 90%
55 Finance
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $915,441 $992,064 $1,053,971 $1,126,584 Contractual Services 744,248 699,674 788,986 806,950 Other Operating Costs 397,599 264,865 276,432 287,611 Cost Allocation 140,940 250,000 242,755 219,112
Capital Outlay 273,645 149,021 300,000 309,000
2,471,873 $ 2,355,624 $ 2,662,144$ 2,749,257 $
Expenditures By Fund/Program
General Fund $1,102,435 $1,290,670 $1,322,170 $1,403,994 Internal Service Fund
IT Operations 1,369,438 1,064,954 1,339,974 1,036,263 IT Equipment Replacement - - - 309,000
2,471,873 $ 2,355,624 $ 2,662,144$ 2,749,257 $
Expenditure Trends
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETFINANCE
56 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 26
sworn officers and 5 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 problem- solving,
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 2024-25 ANNUAL BUDGET

OPERATING INDICATORS
Calls for Service Hercules Police Department Last Ten Fiscal Years 2014 2023 2014 2023 2014 2023
2013 2014 2015 2016 2017 2018 2019 2020
12,550 1,843 7,707 13,142 16,245 16,918 29,935
2021 2022
25,784 26,071
2023
25,196
0 500
1000
1500
2000
2500
Part 1 & 2
Crimes
Arrests Traﬃc
Violations
811
1,266
450
624
1,000
524

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
57 POLICE
POLICE

CRIME PREVENTION
Keeping our community, and visitors safe while
improving the overall quality of life.

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 2024-25 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, and Officer Wellness.
• 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 58
Police
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 5,819,191 $ 6,365,810 $ 6,632,048 $ 7,149,757 $ Contractual Services 899,422 924,130 743,220 765,700 Other Operating Costs 265,609 396,350 310,170 319,600 Cost Allocation 724,608 813,000 790,179 889,904
Capital Outlay 78,639 54,102 57,918 117,000
Debt Service - - - -
7,787,469 $ 8,553,392 $ 8,533,535 $ 9,241,961 $
Expenditures By Fund/Program
General Fund
Administration/Inspection/Support 3,665,813 $ 3,987,421 $ 3,443,240 $ 3,936,596 $ Patrol 4,093,691 4,554,353 5,032,377 $ 5,188,365
7,759,504 8,541,774 8,475,617 $ 9,124,961
Asset Forfeiture 27,965 11,618 57,918 $ 117,000
7,787,469 $ 8,553,392 $ 8,533,535 $ 9,241,961 $
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
$10,000,000
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
POLICE CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
59 COMMUNITY DEVELOPMENT

COMMUNITY DEVELOPMENT

KEY PRIORITIES
2024-25:
• Adoption and
implementation of the
City’s Sixth Cycle Housing
Element for 2023-31.
• Developing a strategy
to bring the Hercules
Hub station area into
compliance with the
regional Transit-Oriented
Communities Policy.
• Consideration of a
comprehensive General
Plan update.
• Stewardship of the
City’s Housing Successor
Agency funds and loans.
• Expanding the City’s
tax base through quality
development, including
Owl Ranch, the Bayfront
project, Sycamore
Crossing, and the North
Shore Business Park.
• Attracting desired new
businesses to Hercules.
• Revising the City’s
zoning ordinance and
other policies as needed
to comply with Council
direction and state laws
and mandates.

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 2024-25 ANNUAL BUDGET

OPERATING INDICATORS
Number of Building Permits issued
622631
782 778 756 811
675
1,016 1,013
20152014 2016 2017 2018 2019
City of Hercules, Last Ten Fiscal Years
2020 2021 2022 2023
944
PERFORMANCE INDICATOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 # of Administrative Use Permits 65 58 59 49 38
60 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-oriented-
development.
• Maintain a safe and attractive
community, including enforcing
the City’s codes and ensuring new
development adds to the overall quality
of the community.
• Consider comprehensively updating
the City’s General Plan to reflect
current conditions and goals.

• Expand the City’s tax base through
new development, including facilitating
the start of construction of approved
developments.
• Enhance the City’s economic base,
including developing and managing
business attraction programs, with an
emphasis on attracting restaurants,
cafés and other uses that expand the
City’s tax base as well as its vibrancy.
• Identify and pursue grant
opportunities for the Hercules Hub,
including working with our regional
partners, advancing the design of the
next phases and building support for
the project among key constituencies.

COMMUNITY DEVELOPMENT
WORKPLAN HIGHLIGHTS:

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
61 Community Development
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $352,494 $172,501 $587,414 $582,488 Contractual Services 348,068 326,578 258,660 317,802 Other Operating Costs 347,486 109,249 16,480 190,261 Cost Allocation 83,810 87,000 82,777 93,693
Capital Outlay - 24,313 - 200,000
Debt Service - - - -
$1,131,858 $719,641 $945,331 $1,384,244
Expenditures By Fund/Program
General Fund $1,039,919 $514,176 $945,331 $1,014,244
DIF-Public Facilities - - - -
Community Development Fund - - - 170,000
Development Fee - - - -
DIF-Police Facilities - 4,259 - 200,000
DIF-Fire Facilities - - - -
DIF-Park & Recreation - - - -
Public Benefit Fee - - - -
DIF-Traffic Facilities 91,939 33,004 - -
STMP Traffic Impact - - - -
General Plan and Training Fees - 168,202 -
1,131,858 $719,641 $945,331 $1,384,244
Expenditure Trends
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCOMMUNITY DEVELOPMENT 62 PUBLIC WORKS

PUBLIC WORKS

KEY PRIORITIES
2024-25:
• 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 Divisions 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 wide- load 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 2024-25 ANNUAL BUDGET
63 PUBLIC WORKS

PUBLIC WORKS
CITY OF HERCULES FY 2024-25 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 Park
s 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
featu
res
14 traffic signals
7 miles
of bike lanes
62 miles
of sanitary sewers
PERFORMANCE INDICATOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Facility Projects 0 0 1 0 3
Parks and Open Space Projects 3 1 7 4 6
Streets Projects 10 4 5 5 5
Sewer Projects 6 4 7 1 2
Regional Transit Intermodal Center Phases 2 1 3 1 3
# of Sewer Lateral Permits Issued 138 115 143 145 98
64 Public Works
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $2,164,978 $2,525,753 $2,555,911 $2,872,387 Contractual Services 2,493,577 1,481,857 3,346,379 3,490,306 Other Operating Costs 2,894,617 2,837,285 4,007,585 3,515,367 Cost Allocation 850,907 874,986 1,106,326 1,113,767 Capital Outlay 2,754,358 6,631,192 2,780,867 6,221,623 Debt Service 739,438 2,960,423 2,138,685 2,139,879 $11,897,875 $17,311,496 $15,935,753 $19,353,329
Expenditures By Fund/Program
General Fund $282,417 $397,627 $455,500 $429,968
Citywide L&L 83-2 2,465,975 1,529,798 1,895,014 1,829,829 Victoria By The Bay L&L 2002-1 698,351 547,731 601,894 677,580 Hercules Village L&L 2002-2 184,736 186,144 220,435 217,363 Baywood L&L 2004-1 172,904 285,495 170,394 177,670 Bayside L&L 2005-1 125,000 149,524 131,030 141,104 Arterial Roadways (107,720) 423,871 327,980 365,916 Stormwater 350,811 422,703 434,833 449,029
State Gas Tax 1,256,084 586,051 1,207,184 669,864 Measure "C" Street Fund 414,979 418,300 529,965 601,186 BART Park & Ride 18,840 31,237 182,000 89,000
SB1 - RMRA - 349,361 - 965,100
Solid Waste and Recycling 119,551 121,571 112,562 263,340 Grants - 492,000 - -
GRANT FUND / STIP / RIP - 193,541 502,506 38,500 City Capital Project 45,926 1,288,400 450,000 2,350,823 Energy Conservation Project 696,102 - - -
Hercules HUB 239,170 (13,953) 300,000 1,089,000
Water Quality Retention Basin 32,762 10,747 47,000 48,000 Sewer - Operations 4,228,621 5,339,268 6,877,825 6,562,587 Sewer - Capital - 3,284,855 132,000 1,100,000
ISF - Equipment Replacement 381 484,713 220,000 150,000 ISF - Facilities Maintenance 672,985 782,512 995,631 1,137,470 ISF - IT Replacement - - - -
ISF - Facilities Replacement - - 142,000 -
Regional Water Quality - - - -
$11,897,875 $17,311,496 $15,935,753 $19,353,329
Expenditure Trends
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000
FY 21-22
FY 22-23
FY 23-24
FY 24-25
Salaries & Benefits
Contractual Services
Other Operating Costs
Cost Allocation
Capital Outlay
Debt Service
PUBLIC WORKS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
65 The past fiscal year was very productive.

Like the rest of the world, we were
coming out of the pandemic and trying
to find our new normal. During this
time, the Hercules Parks and Recreation
Department, among other things,
underwent a yearlong Parks
and Recreation Facilities
Master Plan (PRFMP)
project. The process included
a half dozen pop-up events
held at several different
venues throughout the city,
an open house, a couple
surveys, as well as ongoing meetings
with a Steering Committee that took
an in-depth look at our parks, trails and
open space. The process also included
evaluating our assets and amenities, and
ultimately guided recommendations
for the Hercules City Council. We
are happy to announce that the Parks
Master Plan was officially adopted in
March of 2024.

In addition to the Parks Master Plan,
the Parks and Recreation Department
also successfully launched the
Herculean Mile Awards Recognition
program. The Herculean Mile is a
recognition program where members
of the community and employees will
be recognized 3 times per year, and
featured in the seasonal activity guide
developed by the Parks and Recreation
Department. The first winners were
recognized by Council in March, and
we are looking forward to seeing with
the Herculean Mile can take us.

We also made great strides to return
activities, programs and events to
the community. Some of
the most popular events
included Community
Cleanup Day, Movies in the
Park, 4th of July Fireworks
Celebration, National Night
Out, Unity Day, Trunk or
Treat, PUMPKATAAZ,
Tree Lighting, Breakfast with Santa,
and more. We even added new events
like All In One Day (hiring event),
Spring into Wellness, and Youth
In Government Day. And we also
reimagined events like the Rec EGGs-
Po featuring a Hydro Hunt. With each
passing season, the community has
responded to all of these great programs
and continues to support the day to day
programs like RAP, swim lessons, Tiny
Tots, etc.

We have also noticed an increase in
fee classes, and youth sports. Our
Basketball program continues to
grow. There is a renewed emphasis
on Adult fitness programs including
things like Karate, Jazzercise, Zumba,
Aqua Zumba, Boxing for Health, Hip
Hop Xtreme, and more. All of these
programs together are essential to
personal health. The benefits gained
from participating in programs like
these include living longer, prolonging
independent living for seniors, combats
things like osteoporosis and diabetes,
helps rehabilitate and strengthen
muscles, and enhances the overall
health and well-being.

In addition to offering a myriad of great
programs, activities and classes, the real
strength of Recreation Services doesn’t
stop at personal health, but also is the
key to balanced human development,
quality of life, reduces self-destructive
and anti-social behavior, builds strong
families and healthy communities,
reduces health care, social services,
and police/justice costs, and generates
significant economic generators in the
community. It is proven that recreation
and fitness improve work performance,
increases productivity, decreases
absenteeism, decreases staff turnover,
and reduces on the job accidents.

We look forward to continue delivering
quality programming, and amazing
community events in the coming year.

We can’t wait to see what 2024-25FY
has in store for the community. We just
know that Parks and Rec will be there
to help provide opportunity.

PARKS AND RECREATION

PARKS AND RECREATION
GOALS:
• Continue to grow programs and rentals to
generate revenue for the City.
• Reimagine Teen Center by converting into
a Preschool Center.
• Follow the trends in the industry, and
continue to create new programs.
• Offer fun and exciting events to the
community.
• Continue to work on CIP and important
projects, i.e.
• Beechnut Mini Park project (Prop 68 -
Clean Water and Parks Act).

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
66 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

PARKS AND RECREATION

PARKS AND RECREATION
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
• Completed Parks and
Recreation Facilities
Master Plan; begin
implementation of the
plan; paint exterior of
Community Swim Center.
• Continue to grow
and refine citywide
community events (i.e.

Cultural Festival, 4th of
July Fireworks, NNO, etc).
• Continue to add new
contractors to meet
needs.
• Follow the trends
(re-imagine programs),
create new programs
based on community
input.
• Modify current
programs to follow
industry trends and
community needs
(i.e. adding age
appropriate programs
to accommodate TK
students in RAP).

WORKPLAN
HIGHLIGHTS:

ACCOMPLISHMENTS

FACILITIES
• New Events: Youth In Government Day, and the re-imagined Rec EGGs- Po/Hydro Hunt.
• Completed projects: New water bottle refill stations at the Senior Center and City Hall, Painted interior of the Community Center, Installed additional basketball hoops at the Community Center, and more. • Held many successful events in the 2023-24FY, including: 4th of July Fireworks Celebration, National Night Out, Movie Nights, Trunk or Treat & PUMPKATAAZ, Tree Lighting, All In One Day (summer hiring event), Rec EGGs-Po/Hydro Hunt, the Senior Food Program (Brown Bag program), and more.
• Trainings: Youth Program staff participated in the Summer Leader Institute Training at Pleasant Hill Recreation & Park District, new staff attended an all-day summer staff training led by veteran staff, and more.

EVENTS:
• Cultural Festival (Su 6/2/24)
• Movie Nights – Summer Series (6/28,
7/19, and 8/9/24)
• Fireworks Celebration (Tu 7/4/24)
•National Night Out (Tu 8/6/24)
• Unity Day (W 10/16/24)
• Trunk or Treat & PUMPKATAAZ (F
10/25/24)
• Youth In Government Day (Tu
11/12/24)
• Holiday Tree Lighting (Su 12/1/24)
• Breakfast with Santa (Sa 12/14/24)
• All In One Day (Sa 3/15/25)
• Rec EGGs-Po featuring Hydro Hunt
(Sa 4/19/25)
• Spring Into Wellness (Tu 4/29/25)
• Community Clean-up Day (Sa 5/3/25)
• Cultural Festival (Su 6/1/25)
• And more…
PERFORMANCE INDICATOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 YOUTH & TEENS: # of youth programs 38 8 - 10 13
# of youth attendees 550 112 - 243 178
AQUATICS: # of aquatics programs 4 2 4 9 308
# of aquatics attendees 1,686 533 1,098 1,943 2,128 RECREATION CLASSES: # of recreation programs 7 4 3 16 24 # of recreation attendees 817 124 16 500 398
PRESCHOOL/GRADESCHOOL:
# of preschool/gradeschool programs
11 8 - 11 9
# of preschool/gradeschool attendees 3,319 869 - 2,510 2,482 SENIOR S: # of senior programs 14 14 - 14 21
# of senior attendees 12,577 2,778 - 5,984 15,655
# of meals served 7,259 3,399 8,212 5,124 6,662
67 Parks & Recreation
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 1,557,343 $ 1,682,116 $ 1,743,653 $ 1,792,879 $ Contractual Services 310,031 314,003 377,136 359,700 Other Operating Costs 85,045 74,428 96,725 99,600 Cost Allocation - 360,300 306,983 339,628
Capital Outlay - - - -
Debt Service - - - -
1,952,419 $ 2,430,847 $ 2,524,497 $ 2,591,807 $
Expenditures By Fund/Program
General Fund
Library 63,202 117,558 124,597 137,850
Administration 95,830 103,503 138,847 143,400
Facility Rentals 105,621 186,424 158,692 172,260
Lupine Day Camp 124,340 177,540 206,518 163,779
Ohlone Day Camp 3,201 11,803 5,403 5,796
Ohlone Child Care 162,168 191,853 198,768 222,826 Hanna Child Care 195,661 263,439 220,363 243,173
Lupine School Child Care 259,861 285,134 249,712 237,228 Recreation Classes 60,629 92,066 94,904 96,463
Senior Citizens 10,790 41,048 77,707 76,410
Tiny Tots 235,671 235,183 307,597 305,226
Swim Center 343,681 402,772 443,621 475,600
Sport Program 80,580 114,851 105,722 115,764
Teen Program 2,538 28,309 23,659 21,995
Community Center-Concession Stand 464 384 - -
Youth/Teen Resource Center 208,182 178,980 168,387 174,037 1,952,419 $ 2,430,847 $ 2,524,497 $ 2,591,807 $
Expenditure Trends
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY 21-22
FY 22-23
FY 23-24
FY 24-25
Salaries & Benefits
Contractual Services
Other Operating Costs
Cost Allocation
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETPARKS AND RECREATION 68 Non-Departmental
Department Expenditure Summary
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures By Type
Contractual Services 143,099 408,802 - 40,000 Reserve and Pension Contribution - - 50,000 -
Settlement Payment 2,202,580 604,025 - - Debt Service 1,666,458 1,952,421 1,907,992 1,903,753 Transfers 6,088,697 19,680,138 1,645,918 2,656,188 10,100,834$ 22,645,386$ 3,603,910$ 4,599,941$ Expenditures By Fund/Program
General Fund 2,345,679$ 1,012,827$ 50,000$ 40,000$ American Rescue Plan Act (ARPA) - - - -
2,345,679 1,012,827 50,000 40,000
Debt Service
CalHFA Loans 200,000 200,000 200,000
Suntrust Lease 205,099 102,549 - -
Equipment Lease 217,391 226,432 235,896 235,027 2003B PFA Lease Revenue Bonds 131,378 514,769 564,937 563,430 2009 PFA Taxable Lease Revenue Bonds 912,590 908,671 907,159 905,296 1,666,458 1,952,421 1,907,992 1,903,753
Transfers
General Fund 2,019,082 1,382,557 859,212 858,457 AB3229 COPS Program 150,000 150,000 156,727 176,556 Citywide L&L 83-2 241,000 258,100 265,060 279,653 Victoria By The Bay L&L 2002-1 26,800 27,200 28,016 29,529 Hercules Village L&L 2002-2 7,100 7,500 7,725 8,051 Baywood L&L 2004-1 2,400 2,700 2,781 2,841
Bayside L&L 2005-1 17,600 18,500 19,055 20,136 State Gas Tax 46,569 602,937 50,342 55,965
SB1 RMRA - 262,755 - -
Solid Waste and Recycling 125,000 125,000 125,000 125,000 City Capital Projects 246,816 - - -
City Capital Projects 63,441 - - -
American Rescue Plan Act (ARPA) 3,142,889 3,142,889 - - Sewer - Capital - 13,700,000 132,000 1,100,000
ISF - Facilities Maintenance - - - -
6,088,697 19,680,138 1,645,918 2,656,188
10,100,834$ 22,645,386$ 3,603,910$ 4,599,941$ Expenditure Trends
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 FY 21-22
FY 22-23
FY 23-24
FY 24-25 Contractual Services
Reserve and Pension
Contribution
Settlement Payment
Debt Service
NON-DEPARTMENTAL CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 200,000
69 FUND SUMMARIES
FUND SUMMARIES CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 70 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
268 SB1 - RMRA Public Works
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
640 HOUSING SUCCESSOR Finance
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETFUND DESCRIPTION 71 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 long- term 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 cost- reimbursement basis.

FUND DESCRIPTION CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 72 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETFUND DESCRIPTION 73 GENERAL FUND
GENERAL FUND CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
74 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET GENERAL FUND OVERVIEW

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 2024-25 are projected to increase by approximately 8% compared to FY 2023-24 Budget. The revenue increase is substantially driven by proceeds from general tax, investment income 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
16,976,707 16,013,203
General Fund Revenue Major
Revenue
Sources:
$18.8 million
$17.4 million $18.4 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
FY 24-25
Proposed
$19.8 million
$16.2
million
$1.8 million
$0.8 million
$1.0 million
Misc.

Interfund
Program
Revenue
Taxes
75 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET GENERAL FUND OVERVIEW Sales and Use Tax
The largest revenue source for the City’s
General Fund is remitted to the City from
the State monthly. There is no recession
projected in FY 2024-25. However,
assumptions include a flattening of
sales tax revenue with a conservative
2% growth in FY 2024-25 based on the
latest analysis (2023 Quarter 1) generated
from the data received from California
Department of Tax and Fee Administration
(CDTFA). Hercules’ 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 (2023Q1) 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 $3.9 million for FY 2024-25. 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
202120202019 20232022
Utility User’s Tax (UUT), Annual Per Capita
(Based on Actual Receipts)
$29
$20
$27
$18
$59
$140
$15
$21
$24
$28
$52
$134
$15
$21
$27
$23
$48
$138
$20
$20
$29
$20
$49
$147 $153
$20
$21
$28
$21
$57
General Retail
Transportation
Food Products
Construction
County Pool
Business
to Business
2022 2023202120202019
Sales Tax, Annual Per Capita
(Based on Actual Receipts)
$100
$4
$10
$13
$17
$16
$40
$4
$10
$13
$17
$21
$40
$4
$8
$12
$21
$27
$40
$3
$22
$15
$20
$29
$46
$3
$23
$15
$18
$28
$50
$110 $112
$136 $137
76 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET GENERAL FUND OVERVIEW FY 18-19 FY 19-20 FY 20-21 FY 22-23FY 21-22 FY 23-24
Budget
FY 24-25
Projected
Property Tax
$1.38
million
$1.42
million
$1.45
million
$1.52
million
$1.57
million
$1.60
million
$1.60
million
Transient
Occupancy Tax (TOT)
$30,518
$116,280
$215,000
$25,778
$7,635
FY 22-23FY 21-22FY 20-21 FY 23-24
Budget
FY 23-24
Proposed
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 non-
Prop 8 parcels. It is estimated that the City
share of 1% assessed property value tax is
calculated to be $1.6 million for FY 2024-25.

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 d
eposited into the City’s
General Fund. 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 or three years following the
City’s issuance of Certificate of Occupancy.
77 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET GENERAL FUND OVERVIEW 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
Hercules Parks & Recreation offers programs suitable for the whole community, ranging from camp and sports programs to educational classes and community cultural events. 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 24-25 revenue estimates reflect returning to normal operations.

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 Parks & Recreation Program Revenues
(Based on Actual Receipts)
FY 21-22FY 20-21FY 19-20FY 18-19 FY 22-23

FY 23-24
Budget
FY 24-25
Proposed
$1.71 million
$1.01
million
$391,030
$1.03
million
$1.42
million
$1.30
million
$15,726
$19,005
$73,202
$82,036
$229,493
$126,145
$195,070
$135,617
$204,811
$169,061
$227,656
$235,173
$12,071
$30,184 $6,782$18,189
$9,758
$28,213
$41,970
$126,205
$70,944
$145,890
$75,103
$143,151
$129,039
$117,151
$140,794
$110,620
$8,526
$26,513 $18,058
$54,748
$95,217
$51,164
$81,687
$81,687
$81,910
$137,174
$70,123
$305,826
$12,000
$14,000$12,165
$60,000
$57,120
$180,000
$76,020
$120,000
$122,000
$175,000
$130,000
$162,500
$192,000
$1.47
million
$15,344
$23,406
$12,530
$46,838
$70,786
$215,937
$102,091
$171,263
$216,453
$180,344
$134,806
$192,000
$14,898
$22,724
$45,474
$209,647
$68,724
$99,118
$210,149
$166,275
$175,091
$130,880
$268,497
$165,540
$2,081
$3,329
$21,774
78 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 ea
ch 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 pass-
through 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 administrative departments. Operating expenses include retirement, health insurance, and one- time expenditures, and other
capital projects.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET GENERAL FUND OVERVIEW 79 CITY OF HERCULES FY 2024-25 ANNUAL BUDGET GENERAL FUND OVERVIEW

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.

Also, the five-year forecast assumes a one-time full repayment to retire all CalHFA loans as agreed on October 18, 2013.

As a result of these repayments, the General Fund forecast will temporarily experience a deficit. The City has set aside adequate reserves to weather difficult times in the future.

General Fund Five-Year Forecast
$22.3 million
$19.4
million
$22.2
million
$23.71 million
$20
million
$20.6
million
$22.9 million
$21.7 million
$21.2
million
$25 million
$20 million
$15 million
FY 2024-25
Proposed
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Expenditures including One-Time
Expenditures
Revenues
Forecast
Revenues with One-Time
$19.8
million
$20.4
million
$22.3 million
$20.8
million
$21.3
million
$21.8 million
80 General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Balance 2,138,829 977,254 $ 1,808,562 1,911,018 $ Revenues
Taxes
Utility User Tax 3,828,410 3,996,274 3,756,633 3,988,000 Sales Tax 6,263,066 6,192,500 6,178,700 6,296,000 Property Taxes 1,524,791 1,638,581 1,603,000 1,641,000 Franchise Fees 970,054 988,108 923,100 979,000
Business Licenses 257,289 274,540 279,480 282,000 Transfer Tax 199,673 120,539 148,920 150,000
Transient Occupancy Tax 25,778 30,518 116,280 215,000 Vehicle License Fee (VLF) and Other
Intergovernmental 2,391,327 2,527,866 2,561,220 2,655,000 Fines & Forefeitures 48,663 46,057 38,760 45,000
Program Revenues
Community Development 329,134 349,874 173,075 198,000 Parks and Recreation 1,034,173 1,423,642 1,300,640 1,466,350 Police 136,878 196,189 116,700 115,000
Public Works 10,464 30,776 38,760 31,000
Other 6,723 12,231 11,220 12,000
Use of Money & Property 347,905 794,570 292,320 799,000 Cost allocated to other funds 624,568 588,529 736,352 786,917 Transfers In 396,816 150,000 156,727 176,556
Total, Ongoing Revenues 18,395,712 19,360,794 18,431,887 19,835,823 Expenditures
Police 7,759,504 8,430,069 8,367,070 9,124,961
Public Works 313,571 417,265 454,663 429,968
Community Development 724,190 511,989 933,497 1,014,244 Parks and Recreation 1,952,419 2,408,847 2,494,876 2,591,807 City Council 330,296 329,843 335,677 360,263
City Manager 496,216 491,141 496,565 505,924
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 2024-25 ANNUAL BUDGET
81 General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
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 308,009 258,427 385,440 380,143
Legal 209,134 193,487 281,190 289,600
City Clerk 377,112 408,679 514,940 502,690
Finance 1,114,284 1,281,043 1,309,702 1,403,994
Workers Comp/General Liability 1,135,659 1,241,404 1,467,349 1,705,666 Non-Department 260,000 260,000 260,000 260,000
Transfers Out (Debt Service
Obligations) 423,542 822,559 799,212 798,457
Total, Ongoing Expenditures 15,403,936 17,054,753 18,100,181 19,367,717 Net Annual Activity
Ongoing Operations 2,991,776 2,306,041 331,706 $ 468,106 $ One-Time Revenues 1,431,000 169,461 - -
One-Time Expenditures (2,652,580) (1,644,194) (229,250) (78,000) Reserve per Council Policy (2,931,771) (313,847)
Ending Available Balance 977,254 $ 1,808,562 1,911,018 $ 1,987,277 $ Operating Reserve:

Beginning Balance 4,209,129 4,222,158 4,326,140 $ 4,436,140 $ Current Year Contribution 313,847
Interest Earned 13,029 103,982 110,000 113,000
Ending Balance 4,222,158 4,326,140 4,436,140 $ 4,862,987 $ % of Projected Operating
Expenditures 27% 25% 25% 25%
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETGENERAL FUND
82 General Fund
Expenditure by Category
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures by Category
Police
Salaries & Benefits 5,817,948 6,254,106 6,523,501 7,149,757 Contractual Services 899,422 924,130 743,220 765,700 Other Operating Expenditures 238,887 387,694 310,170 319,600 Capital Outlay 78,639 51,139 - -
Cost Allocation 724,608 813,000 790,179 889,904
7,759,504 8,430,069 8,367,070 9,124,961
Public Works
Salaries & Benefits 18,614 52,600 76,724 38,714
Contractual Services 236,163 247,069 262,409 270,283 Other Operating Expenditures 29,964 23,596 26,210 26,997 Cost Allocation 28,830 94,000 89,320 93,974
313,571 417,265 454,663 429,968
Community Development
Salaries & Benefits 352,112 170,314 575,580 582,488 Contractual Services 271,129 145,427 258,660 317,802 Other Operating Expenditures 17,139 109,248 16,480 20,261 Cost Allocation 83,810 87,000 82,777 93,693
724,190 511,989 933,497 1,014,244
Parks & Recreation
Salaries & Benefits 1,555,370 1,660,117 1,714,032 1,792,879 Contractual Services 310,031 314,003 377,136 359,700 Other Operating Expenditures 87,018 74,427 96,725 99,600 Cost Allocation - 360,300 306,983 339,628
1,952,419 2,408,847 2,494,876 2,591,807
City Council
Salaries & Benefits 69,425 71,066 69,943 75,625
Contractual Services 44,716 1,231 43,260 41,200
Other Operating Expenditures 33,041 48,546 45,550 49,900 Cost Allocation 183,114 209,000 176,924 193,538
330,296 329,843 335,677 360,263
City Manager
Salaries & Benefits 223,534 270,897 322,714 313,289 Contractual Services 152,261 123,724 68,510 72,500 Other Operating Expenditures 45,513 17,520 31,400 37,400 Cost Allocation 74,908 79,000 73,941 82,735
496,216 491,141 496,565 505,924
Worker's Compensation/General Liability
Salaries & Benefits 41,127 32,199 33,069 34,385
Contractual Services 1,094,532 1,209,205 1,434,280 1,671,281 1,135,659 1,241,404 1,467,349 1,705,666
Human Resources
Salaries & Benefits 172,616 164,755 179,379 263,425 GENERAL FUND CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
83 General Fund
Expenditure by Category
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Expenditures by Category
Contractual Services 64,525 44,550 113,260 45,900 Other Operating Expenditures 28,110 8,122 49,852 21,900 Cost Allocation 42,758 41,000 42,949 48,918
308,009 258,427 385,440 380,143
Legal
Contractual Services 209,134 193,487 281,190 289,600 209,134 193,487 281,190 289,600
City Clerk
Salaries & Benefits 184,120 199,918 270,414 244,095 Contractual Services 74,956 100,165 123,909 139,400 Other Operating Expenditures 5,646 22,596 34,351 28,900 Capital Outlay 35,514 5,000 10,300 5,200
Cost Allocation 76,876 81,000 75,966 85,095
377,112 408,679 514,940 502,690
Finance
Salaries & Benefits 522,414 606,452 618,136 680,550 Contractual Services 298,864 251,589 284,000 289,000 Other Operating Expenditures 256,104 262,002 263,000 274,000 Cost Allocation 36,902 161,000 144,566 160,444
1,114,284 1,281,043 1,309,702 1,403,994
Non-Departmental
Debt Service - CalHFA 200,000 200,000 200,000 200,000 SOMAR benefit payments 60,000 60,000 60,000 60,000 260,000 260,000 260,000 260,000
Transfers Out
SunTrust Loan (Final Payment) 205,099 102,549 - - Engie Equipment Lease 218,443 226,432 235,896 235,027 Debt Service - 2020 PFA Lease Revenue
Refunding Bonds
- 365,949 563,316 563,430
Other Transfers 127,629 - -
423,542 822,559 799,212 798,457
Total, On-going Expenditures 15,403,936 17,054,753 18,100,181 19,367,717 CITY OF HERCULES FY 2024-25 ANNUAL BUDGETGENERAL FUND
84 General Fund
Available Fund Balance Calculation
FY 23-24 FY 24-25
Available
Balance, as
adjusted
Projected, Net
Baseline
Operations
Appropriatio
n to Program/
Projects
Estimated
One-time
expenditures
Available
Balance, as
projected
Beginning Cash Balance 24,672,219$ $ 468,106 $ (2,150,823) $ (165,000) $ 22,824,502 Current Liabilities (3,242,863) (3,242,863)
General Fund Set-Aside:

Former RDA Negative Cash (3,400,000) (3,400,000)
Programs and Projects (4,200,238) (4,200,238)
General Fund Reserve or Designations:

Reserve for Earthquake Insurance Deductible (500,000) (500,000) Reserve for Capital Projects (3,788,932) 2,150,823 200,000 (1,438,109) Reserve for Reusable Bags (remaining) (13,930) (13,930) Reserve for PEG Fees (274,000) (274,000)
Reserve for Economic Uncertainty (25% target) (4,436,140) (426,847) (4,862,987) Partial payment to CalHFA loans (2,500,000) (2,500,000) Outstanding Encumbrances (405,098) (405,098)
Ending Available Cash Balance 1,911,018$ 468,106$ -$ (391,847)$ 1,987,277$ *FY 24-25 activities:
(1) Capital Projects: $2,150,823
(2) Removal of Eucalyptus Trees: $150,000; and Exploration of Clocktower Renovation: $50,000 (3) Operating Reserve transfer to maintain 25% of operating expenditures.

Projected FY 24-25 Activities*
GENERAL FUND CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
85 General Fund
Five-Year Financial Forecast
Description / Highlights
Fund Activity
Year 1 Year 2 Year 3 Year 4 Year 5
FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Actual Actual Budget Proposed Forecast Forecast Forecast Forecast Forecast Beginning Available Balance $2,138,829 $977,254 $1,808,562 $1,911,018 $1,987,277 $1,140,277 ($251,723) ($119,723) ($42,723) Revenues
Taxes
Utility User Tax 3,828,410 3,996,274 3,756,633 3,988,000 4,220,000 4,234,000 4,295,000 4,358,000 4,445,000 Sales Tax 6,263,066 6,192,500 6,178,700 6,296,000 6,557,000 6,802,000 7,035,000 7,284,000 7,539,000 Property Taxes 1,524,791 1,638,581 1,603,000 1,641,000 1,674,000 1,708,000 1,742,000 1,777,000 1,813,000 Franchise Fees 970,054 988,108 923,100 979,000 998,000 1,017,000 1,036,000 1,056,000 1,076,000 Business Licenses 257,289 274,540 279,480 282,000 288,000 294,000 300,000 306,000 312,000 Transfer Tax 199,673 120,539 148,920 150,000 153,000 156,000 159,000 162,000 165,000 Transient Occupancy Tax 25,778 30,518 116,280 215,000 219,000 223,000 227,000 232,000 237,000 Vehicle License Fee (VLF) and Other
Intergovernmental 2,391,327 2,527,866 2,561,220 2,655,000 2,708,000 2,762,000 2,817,000 2,873,000 2,931,000 Fines & Forefeitures 48,663 46,057 38,760 45,000 45,000 45,000 45,000 45,000 45,000 Program Revenues
Community Development 329,134 349,874 173,075 198,000 201,000 203,000 205,000 207,000 209,000 Parks and Recreation 1,034,173 1,423,642 1,300,640 1,466,350 1,497,000 1,525,000 1,554,000 1,584,000 1,615,000 Police 136,878 196,189 116,700 115,000 116,000 117,000 118,000 119,000 120,000 Public Works 10,464 30,776 38,760 31,000 32,000 33,000 34,000 35,000 36,000 Other 6,723 12,231 11,220 12,000 12,000 12,000 12,000 12,000 12,000 Use of Money & Property 347,905 794,570 292,320 799,000 726,000 740,000 756,000 773,000 789,000 Cost allocated to other funds 624,568 588,529 736,352 786,917 761,000 784,000 808,000 832,000 848,000 Transfers In 396,816 150,000 156,727 176,556 150,000 150,000 150,000 150,000 150,000 18,395,712 19,360,794 18,431,887 19,835,823 20,357,000 20,805,000 21,293,000 21,805,000 22,342,000 Expenditures
Police 7,759,504 8,430,069 8,367,070 9,124,961 9,481,000 9,838,000 10,136,000 10,434,000 10,743,000 Public Works 313,571 417,265 454,663 429,968 548,000 562,000 576,000 590,000 605,000 Community Development 724,190 511,989 933,497 1,014,244 1,046,000 1,079,000 1,108,000 1,137,000 1,167,000 Parks and Recreation 1,952,419 2,408,847 2,494,876 2,591,807 2,675,000 2,757,000 2,833,000 2,909,000 2,985,000 City Council 330,296 329,843 335,677 360,263 368,000 376,000 385,000 393,000 403,000 City Manager 496,216 491,141 496,565 505,924 524,000 541,000 555,000 569,000 584,000 Human Resources 308,009 258,427 385,440 380,143 395,000 405,000 414,000 423,000 432,000 Legal 209,134 193,487 281,190 289,600 299,000 308,000 317,000 326,000 336,000 City Clerk 377,112 408,679 514,940 502,690 518,000 533,000 546,000 559,000 573,000 Finance 1,114,284 1,281,043 1,309,702 1,403,994 1,452,000 1,501,000 1,545,000 1,590,000 1,635,000 Workers Comp/General Liability 1,135,659 1,241,404 1,467,349 1,705,666 1,738,000 1,772,000 1,806,000 1,842,000 1,878,000 Non-Department 260,000 260,000 260,000 260,000 102,000 105,000 108,000 111,000 114,000 Transfers Out (Debt Service Obligations) 423,542 822,559 799,212 798,457 808,000 820,000 832,000 845,000 853,000 15,403,936 17,054,753 18,100,181 19,367,717 19,954,000 20,597,000 21,161,000 21,728,000 22,308,000 Net Annual Activity
Ongoing Operations $2,991,776 $2,306,041 $331,706 $468,106 $403,000 $208,000 $132,000 $77,000 $34,000 One-Time Revenues 1,431,000 169,461 - - - - - - - One-Time Expenditures (2,652,580) (1,644,194) (229,250) (78,000) - - - - - Transfer from Reserve (Local Assistance) 2,500,000
CalHFA Loan Balance (3,750,000) (1,600,000)
Reserve per Council Policy (2,931,771) (313,847)
Ending Available Balance $977,254 $1,808,562 $1,911,018 $1,987,277 $1,140,277 ($251,723) ($119,723) ($42,723) ($8,723) Operating Reserve:

Beginning Balance $4,209,129 $4,222,158 $4,326,140 $4,436,140 $4,862,987 $4,964,987 $5,068,987 $5,174,987 $5,283,987 Current Year Contribution 313,847 - - - - -
Interest Earned 13,029 103,982 110,000 113,000 102,000 104,000 106,000 109,000 111,000 Ending Balance $4,222,158 $4,326,140 $4,436,140 $4,862,987 $4,964,987 $5,068,987 $5,174,987 $5,283,987 $5,394,987 % of Projected Operating Expenditures 27% 25% 25% 25% 25% 25% 24% 24% 24% 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETGENERAL FUND
86 SPECIAL REVENUE FUNDS
SPECIAL REVENUE FUNDS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 87 Asset Seizure
Fund Summary - Fund 101
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 203,220 $ 145,302 $ Revenues
Intergovernmental - $ 159,854 $ - -
Interest Income (2,100) 2,732 - -
Miscellaneous Revenues - - - -
(2,100) 162,586 - -
Transfers In - - - -
(2,100) 162,586 - -
Expenditures
Salaries and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Other Expenses 27,965 8,654 - -
Cost Allocation - - - -
Capital Outlay - - - -
Capital Improvement Projects (CIP) - 2,964 57,918 117,000 Debt Service - - - -
27,965 11,618 57,918 117,000
Transfer Out - - - -
27,965 11,618 57,918 117,000
Changes in restricted reserves
Net Annual Activity (30,065) 150,968 (57,918) (117,000) Ending Available Fund Balance 203,220 $ 145,302 $ 28,302 $ 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 2024-25 ANNUAL BUDGET 88 AB 3229 COPS Program
Fund Summary - Fund 201
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 33,283 $ 26,556 $
Revenues
Intergovernmental 161,285 $ 165,271 $ 150,000 150,000 Interest Income - - - -
Miscellaneous Revenues - - - -
161,285 165,271 150,000 150,000
Transfers In - $ - - -
161,285 165,271 150,000 150,000
Expenditures
Salaries and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out 150,000 150,000 156,727 176,556
150,000 150,000 156,727 176,556
Changes in restricted reserves
Net Annual Activity 11,285 15,271 (6,727) (26,556) Ending Available Fund Balance 33,283 $ 26,556 $ - $ California state legislation (AB 3229) created the Citizens Options for Public Safety (COPS) program. These funds are used for front line law enforcement services.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 89 Lighting and Landscape District 83-2
Fund Summary - Fund 220
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 738,976 $ 886,445$ Revenues
Assessment 1,997,920 $ 2,075,134 $ 2,276,506 2,265,861 Interest Income (21,706) 23,420 - -
Miscellaneous Revenues - - - -
1,976,214 2,098,554 2,276,506 2,265,861
Transfers In 29,316 30,428 31,037 32,485
2,005,530 2,128,982 2,307,543 2,298,346
Expenditures
Salary and Benefits 462,706 562,164 544,883 633,726 Contractual Services 372,075 89,849 438,645 398,840 Utilities 420,039 526,174 249,363 411,140
Maintenance & Repairs 356,775 8,982 185,835 166,960 Other Expenses 2,886 3,178 23,189 18,817
Cost Allocation 196,115 191,000 233,270 140,517
Capital Improvement Projects (CIP) 630,680 148,451 160,000 - Loan Repayment (10 years) 24,700 - 59,829 59,829
2,465,976 1,529,798 1,895,014 1,829,829
Transfer Out 241,000 258,100 265,060 279,653
2,706,976 1,787,898 2,160,074 2,109,482
Changes in restricted reserves
Net Annual Activity (701,446)$ 341,084 147,469 188,864 Ending Available Fund Balance 738,976 $ 886,445 $ 1,075,309$ 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 2024-25 ANNUAL BUDGET 90 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 102,796 82,961 119,915 95,627 49,161 31,378 99,146 122,262 205,630 96,231 1,260,754 2,265,861 General Benefit Contribution 921 635 829 1,423 345 193 592 827 2,457 1,233 23,030 32,485 103,717 83,596 120,744 97,050 49,506 31,571 99,738 123,089 208,087 97,464 1,283,784 2,298,346 Expenditures By Type
Salaries & Benefits 20,122 20,122 10,668 12,370 12,370 6,185 15,576 22,769 22,769 20,175 470,600 633,726 Contractual Services 5,000 4,300 7,600 7,600 1,440 1,000 4,300 3,200 13,100 3,200 348,100 398,840 Utilities 13,500 5,070 20,365 37,050 300 400 7,255 12,800 66,580 35,170 212,650 411,140 Maintenance & Repairs 14,000 1,500 1,500 8,100 660 - 1,500 1,500 19,100 2,200 116,900 166,960 Other Expenses 947 750 883 310 269 292 982 1,099 1,295 925 11,065 18,817 Cost Allocation - - 448 5,736 2,216 1,782 - - - - 130,335 140,517 Capital Improvement Projects (CIP) - - - - - - - - - - - - Loan Repayment (10 years) 20,260 - 42,192 - - - 17,637 33,867 - - (54,127) 59,829 73,829 31,742 83,656 71,166 17,255 9,659 47,250 75,235 122,844 61,670 1,235,523 1,829,829 Transfers Out 29,688 22,367 30,376 22,316 12,284 15,970 26,570 34,351 56,052 29,679 - 279,653 103,517 54,109 114,032 93,482 29,539 25,629 73,820 109,586 178,896 91,349 1,235,523 2,109,482 Net Annual Results 200 29,487 6,712 3,568 19,967 5,942 25,918 13,503 29,191 6,115 48,261 188,864 Beginning Balance (51,190) 103,843 75,797 106,952 229,334 (7,751) (119,457) 82,614 294,063 20,219 152,021 886,445 Ending Balance (50,990) 133,330 82,509 110,520 249,301 (1,809) (93,539) 96,117 323,254 26,334 200,282 1,075,309 SPECIAL REVENUE FUND CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 91 Victoria by the bay Lighting and Landscape District
Fund Summary - Fund 221
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance (339,760)$ (449,090)$ Revenues
Assessment 461,039 $ 472,851 $ 510,332 647,122 Interest Income - - - -
Miscellaneous Revenues - - - -
461,039 472,851 510,332 647,122
Transfers In 9,230 $ 10,047 10,248 13,052
470,269 482,898 520,580 660,174
Expenditures
Salary and Benefits 91,038 112,286 98,021 122,347 Contractual Services 3,222 168,675 173,116 185,700 Utilities 361,967 229,920 254,798 265,000
Maintenance & Repairs 210,932 4,400 25,750 39,300 Other Expenses - - 14,476 10,854
Cost Allocation 27,692 28,000 35,733 29,379
Capital Outlay 3,500 4,450 - 25,000
Debt Service - - - -
698,351 547,731 601,894 677,580
Transfer Out 26,800 27,200 28,016 29,529
725,151 574,931 629,910 707,109
Changes in restricted reserves
Net Annual Activity (254,882)$ (92,033) (109,330) (46,935) Ending Fund Balance (339,760) (449,090)$ (496,025)$ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 92 Hercules Village Lighting and Landscape District
Fund Summary - Fund 222
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Projection Proposed
Beginning Available Fund Balance 152,996 $ 103,818 $ Revenues
Assessment 158,265 $ 162,323 $ 174,920 178,701 Interest Income (1,681) 3,706 - -
Miscellaneous Revenues - - - -
156,584 166,029 174,920 178,701
Transfers In 3,874 $ 3,982 4,062 4,347
160,458 170,011 178,982 183,048
Expenditures
Salary and Benefits 32,828 47,608 43,299 38,333
Contractual Services 4,159 58,483 58,271 59,100
Utilities 59,828 63,033 61,800 80,070
Maintenance & Repairs 76,007 5,020 31,847 25,300
Other Expenses - - 10,219 1,921
Cost Allocation 11,914 12,000 14,999 12,639
Capital Outlay - - - -
Debt Service - - - -
184,736 186,144 220,435 217,363
Transfer Out 7,100 7,500 7,725 8,051
191,836 193,644 228,160 225,414
Changes in restricted reserves
Net Annual Activity (31,378)$ (23,633) (49,178) (42,366) Ending Fund Balance 152,996 $ 103,818 $ 61,452 $ 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 2024-25 ANNUAL BUDGET 93 Baywood Lighting and Landscape District
Fund Summary - Fund 223
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 93,315 $ 93,370 $
Revenues
Assessment 150,144 $ 154,648 $ 170,565 177,885 Interest Income (1,960) 3,491 - -
Miscellaneous Revenues - - - -
148,184 158,139 170,565 177,885
Transfers In 2,515 2,613 2,665 3,259
150,699 160,752 173,230 181,144
Expenditures
Salary and Benefits 46,622 56,676 42,951 51,680
Contractual Services 4,304 49,417 45,396 3,000
Utilities 64,054 24,192 30,900 37,220
Maintenance & Repairs 45,390 4,210 18,001 57,100
Other Expenses - - 3,719 1,811
Cost Allocation 11,461 11,000 14,727 12,159
Capital Outlay 1,072 140,000 - -
Debt Service - - 14,700 14,700
172,903 285,495 170,394 177,670
Transfer Out 2,400 2,700 2,781 2,841
175,303 288,195 173,175 180,511
Changes in restricted reserves
Net Annual Activity (24,604)$ (127,443) 55 633 Ending Fund Balance 93,315 $ 93,370 $ 94,003 $
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 94 Bayside Lighting and Landscape District
Fund Summary - Fund 224
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 157,379 $ 167,959 $ Revenues
Assessment 143,268 $ 147,933 $ 158,335 162,856 Interest Income (1,435) 3,029 - -
Miscellaneous Revenues - - - -
141,833 150,962 158,335 162,856
Transfers In 1,634 2,284 2,330 2,822
143,467 153,246 160,665 165,678
Expenditures
Salary and Benefits 32,304 43,159 35,375 37,264
Contractual Services 4,159 3,826 4,196 3,000
Utilities 36,634 53,535 20,600 35,050
Maintenance & Repairs 43,729 41,004 50,262 55,000 Other Expenses - - 10,522 2,118
Cost Allocation 8,174 8,000 10,075 8,672
Capital Outlay - - - -
Debt Service - - - -
125,000 149,524 131,030 141,104
Transfer Out 17,600 18,500 19,055 20,136
142,600 168,024 150,085 161,240
Changes in restricted reserves
Net Annual Activity 867 $ (14,778) 10,580 4,438
Ending Fund Balance 157,379 $ 167,959 $ 172,397 $ 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 2024-25 ANNUAL BUDGET 95 Arterial Roadways
Fund Summary - Fund 225
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 471,205 $ 465,862 $ Revenues
Assessment - $ - $ - -
Interest Income (5,581) (2,022) - -
Miscellaneous Revenues - - - -
(5,581) (2,022) - -
Transfers In 319,600 314,000 322,637 340,210
314,019 311,978 322,637 340,210
Expenditures
Salary and Benefits 18,732 23,062 24,558 26,077
Contractual Services - 2,614 - -
Utilities (203,941) 341,547 238,239 267,200
Maintenance & Repairs 71,509 50,648 56,856 60,000 Other Expenses - - - -
Cost Allocation 5,980 6,000 8,327 12,639
Capital Outlay - - - -
Debt Service - - - -
(107,720) 423,871 327,980 365,916
Transfer Out - - - -
(107,720) 423,871 327,980 365,916
Changes in restricted reserves
Net Annual Activity 421,739 $ (111,893) (5,343) (25,706) Ending Fund Balance 471,205 $ 465,862 $ 440,156 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 96 Stormwater Assessment
Fund Summary - Fund 231
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance (157,621)$ (211,454)$ Revenues
Assessment 144,495 $ 336,987 $ 256,000 230,645 Interest Income - - - -
Miscellaneous Revenues - - - -
144,495 336,987 256,000 230,645
Transfers In/Solid Waste 125,000 125,000 125,000 125,000 269,495 461,987 381,000 355,645
Expenditures
Salary and Benefits 184,753 214,259 204,570 223,003 Contractual Services 91,716 123,405 132,271 136,239 Utilities 1,959 1,849 2,060 2,122
Maintenance & Repairs 15,984 32,422 25,750 26,523 Other Expenses 2,770 3,768 3,090 3,183
Cost Allocation 53,630 47,000 67,092 57,959
Capital Outlay - - - -
Debt Service - - - -
350,812 422,703 434,833 449,029
Transfer Out/General Fund - - - -
350,812 422,703 434,833 449,029
Changes in restricted reserves
Net Annual Activity (81,317)$ 39,284 (53,833) (93,384) Ending Available Fund Balance (157,621)$ (211,454)$ (304,838)$ 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 2024-25 ANNUAL BUDGET 97 Development Impact Fee - Public Facilities
Fund Summary - Fund 241
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 119,409 $ 154,359 $ Revenues
Fees - $ 391 $ 34,950 -
Interest Income (1,190) 2,926 - -
Miscellaneous Revenues - - - -
(1,190) 3,317 34,950 -
Transfers In - - - -
(1,190) 3,317 34,950 -
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 (1,190)$ 3,317 34,950 -
Ending Available Fund Balance 119,409 $ 154,359 $ 154,359 $ 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) CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 98 Community Development Tax
Fund Summary - Fund 242
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 113,536 $ 173,536 Revenues
Fees - $ 750 $ 60,000 -
Interest Income (1,387) 3,411 - -
Miscellaneous Revenues - - - -
(1,387) 4,161 60,000 -
Transfers In - - - -
(1,387) 4,161 60,000 -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - - - 170,000
Debt Service - - - -
- - - 170,000
Transfer Out - - - -
- - - 170,000
Changes in restricted reserves
Net Annual Activity (1,387)$ 4,161 60,000 (170,000) Ending Available Fund Balance 113,536 $ 173,536 $ 3,536 $ 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 2024-25 ANNUAL BUDGET 99 Development Fee Fund
Fund Summary - Fund 243
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 73,708 $ 73,708 $
Revenues
Fees - $ - $ - -
Interest Income (592) 1,453 - -
Miscellaneous Revenues - - - -
(592) 1,453 - -
Transfers In - - - -
(592) 1,453 - -
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 (592)$ 1,453 - -
Ending Available Fund Balance 73,708 $ 73,708 $ 73,708 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 100
Development Impact Fee - Police Facilities
Fund Summary - Fund 244
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 268,843 $ 268,843 $ Revenues
Fees - $ 692 $ - -
Interest Income (2,187) 5,339 - -
Miscellaneous Revenues - - - -
(2,187) 6,031 - -
Transfers In - - - -
(2,187) 6,031 - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - 4,259 - 200,000 Debt Service - - - -
- 4,259 - 200,000
Transfer Out - - - -
- 4,259 - 200,000
Changes in restricted reserves
Net Annual Activity (2,187)$ 1,772 - (200,000)
Ending Available Fund Balance 268,843 $ 268,843 $ 68,843 $ 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 2024-25 ANNUAL BUDGET 101
Development Impact Fee - Fire Facilities
Fund Summary - Fund 246
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Projection Proposed
Beginning Available Fund Balance - $ - $
Revenues
Fees - $ 915 $ - -
Interest Income - (27) - -
Miscellaneous Revenues - - - -
- 888 - -
Transfers In - - - -
- 888 - -
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 - $ 888 - -
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 102
Development Impact Fee - Parks & Recreation
Fund Summary - Fund 247
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 191,954$ 191,954 $ Revenues
Fees - $ 805 $ - -
Interest Income (1,534) 3,774 - -
Miscellaneous Revenues - - - -
(1,534) 4,579 - -
Transfers In - - - -
(1,534) 4,579 - -
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 (1,534)$ 4,579 - -
Ending Available Fund Balance 191,954 $ 191,954$ 191,954 $ 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 2024-25 ANNUAL BUDGET 103
Public Benefit Fee
Fund Summary - Fund 249
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 999,867 $ 999,867 $ Revenues
Fees - $ - $ - -
Interest Income (28,759) 19,938 - -
Miscellaneous Revenues - - - -
(28,759) 19,938 - -
Transfers In - - - -
(28,759) 19,938 - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves
Net Annual Activity (28,759)$ 19,938 - -
Ending Available Fund Balance 999,867 $ 999,867 $ 999,867 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 104
Development Impact Fee - Transporation Facilities
Fund Summary - Fund 261
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 128,408 $ 128,408 $ Revenues
Fees - $ 2,820 $ - -
Interest Income (1,302) 3,078 - -
Miscellaneous Revenues - - - -
(1,302) 5,898 - -
Transfers In - - - -
(1,302) 5,898 - -
Expenditures
Salary and Benefits - - - -
Contractual Services 76,939 12,949 - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses 15,000 - - -
Cost Allocation - - - -
Capital Outlay - 20,055 - -
Debt Service - - - -
91,939 33,004 - -
Transfer Out - - - -
91,939 33,004 - -
Changes in restricted reserves
Net Annual Activity (93,241)$ (27,106) - -
Ending Available Fund Balance 128,408 $ 128,408 $ 128,408 $ 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 2024-25 ANNUAL BUDGET 105
State Gas Tax
Fund Summary - Fund 262
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ 109,411$
Revenues
Gas Tax 1,184,727 $ 664,094 $ 1,392,993 727,585
Interest Income (5,740) 12,549 - -
Miscellaneous Revenues - - - -
1,178,987 676,643 1,392,993 727,585
Transfers In - 262,755 - -
1,178,987 939,398 1,392,993 727,585
Expenditures
Salary and Benefits 221,462 259,269 258,145 279,386 Contractual Services 81,181 30,442 206,315 100,000 Utilities 11,093 12,195 12,360 12,700
Maintenance & Repairs 57,712 74,881 79,067 81,500 Other Expenses 3,184 17,300 19,570 20,200
Cost Allocation 103,897 96,986 116,636 126,078
Capital Outlay 777,555 94,977 350,000 50,000
Capital Improvement Projects (CIP) - - 165,091 -
Debt Service - - - -
1,256,084 586,050 1,207,184 669,864
Transfer Out 46,569 602,937 50,342 55,965
1,302,653 1,188,987 1,257,526 725,829
Changes in restricted reserves (26,056) (81,186)
Net Annual Activity (123,666)$ (249,589) 109,411 (79,430) Ending Available Fund Balance - $ 109,411$ 29,981$ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 106
Measure "C" Street Fund
Fund Summary - Fund 263
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 53,909 $ - $
Revenues
Gas Tax 450,134 $ 510,780 $ 450,000 520,000 Interest Income (562) 1,735 - -
Miscellaneous Revenues - - - -
449,572 512,515 450,000 520,000
Transfers In - - - -
449,572 512,515 450,000 520,000
Expenditures
Salary and Benefits 231,831 259,116 259,318 275,393 Contractual Services (15,444) 3,501 56,650 58,300 Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation 50,981 51,000 63,997 67,493
Capital Outlay 147,611 104,683 150,000 200,000
Capital Improvement Projects (CIP) - - - -
Debt Service - - - -
414,979 418,300 529,965 601,186
Transfer Out - - - -
414,979 418,300 529,965 601,186
Changes in restricted reserves 26,056 81,186
Net Annual Activity 34,593 $ 94,215 (53,909) -
Ending Available Fund Balance 53,909 $ - $ - $
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 2024-25 ANNUAL BUDGET 107
STMP Traffic Impact Fee
Fund Summary - Fund 264
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Fees - $ - $ - -
Interest Income - - - -
Miscellaneous Revenues - - - -
- - - -
Transfers In - - - -
- - - -
Expenditures
Salary and Benefits - - - -
Pass through to other agency - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out - - - -
- - - -
Changes in restricted reserves
Net Annual Activity - $ - - -
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 108
BART Park & Ride
Fund Summary - Fund 266
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 331,214 $ 331,214 $ Revenues
Fees - $ - $ - -
Interest Income - - - -
Miscellaneous Revenues 53,985 81,187 182,000 89,000 53,985 81,187 182,000 89,000
Transfers In - - - -
53,985 81,187 182,000 89,000
Expenditures
Salary and Benefits - - - -
Contractual Services 20,600.00 14,674 23,000 24,000 Utilities (1,760.00) 10,900 18,000 20,000
Maintenance & Repairs - 5,663 41,000 45,000
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Capital Improvement Project (CIP) - - 100,000 -
Debt Service - - - -
18,840 31,237 182,000 89,000
Transfer Out - - - -
18,840 31,237 182,000 89,000
Changes in restricted reserves
Net Annual Activity 35,145 $ 49,950 - -
Fund Balance
Ending Available Fund Balance 331,214 $ 331,214 $ 331,214 $ 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 2024-25 ANNUAL BUDGET 109
General Plan Update Fee and Building Training Fee
Fund Summary - Fund 267
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 953,381 $ 1,193,381 $ Revenues
Fees - $ 164,192 $ 240,000 -
Interest Income - 22,898 - -
Miscellaneous Revenues - - - -
- 187,090 240,000 -
Transfers In - 953,800 - -
- 1,140,890 240,000 -
Expenditures
Salary and Benefits - - - -
Contractual Services - 168,202 - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- 168,202 - -
Transfer Out - - - -
- 168,202 - -
Changes in restricted reserves
Net Annual Activity - $ 972,688 240,000 -
Fund Balance
Ending Available Fund Balance 953,381 $ 1,193,381 $ 1,193,381 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 110
Road Maintenance Rehabilitation Account (SB1 - RMRA)
Fund Summary - Fund 268
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 646,866 $ 646,866 $ Revenues
RMRA - $ 576,570 $ - 673,002
Interest Income - 12,020 - -
Miscellaneous Revenues - - - -
- 588,590 - 673,002
Transfers In - 553,583 - -
- 1,142,173 - 673,002
Expenditures
Salary and Benefits - - - -
Pass through to other agency - 44,832 - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Street Maintenance Program - - - 250,000
Capital Improvement Projects (CIP) - 304,529 - 715,100 Debt Service - - - -
- 349,361 - 965,100
Transfer Out - 262,755 - -
- 612,116 - 965,100
Changes in restricted reserves -
Net Annual Activity - $ 530,057 - (292,098)
Ending Available Fund Balance 646,866 $ 646,866 $ 354,768 $ Senate Bill (SB) 1, Chapter 5, Statutes of 2017, created the Road Maintenance and Rehabilitation Program (RMRP) to address deferred maintenance on the State Highway System and the local street and road system, and the Road Maintenance and Rehabilitation Account (RMRA) for the deposit of various funds for the program. A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.

SPECIAL REVENUE FUND CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 111
Solid Waste and Recycling
Fund Summary - Fund 291
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 785,334 $ 727,772 $ Revenues
Fees - $ - $ - -
Interest Income (8,167) 19,420 4,000 9,000
Miscellaneous Revenues 213,632 176,184 176,000 176,000 205,465 195,604 180,000 185,000
Transfers In - - - -
205,465 195,604 180,000 185,000
Expenditures
Salary and Benefits 10,640 12,377 12,562 13,340
Contractual Services 8,911 9,194 - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) 100,000 100,000 100,000 250,000 Debt Service - - - -
119,551 121,571 112,562 263,340
Transfer Out 125,000 125,000 125,000 125,000
244,551 246,571 237,562 388,340
Changes in restricted reserves
Net Annual Activity (39,086)$ (50,967) (57,562) (203,340) Ending Available Fund Balance 785,334 $ 727,772 $ 524,432 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 112
American Recovery Plan Act ("ARPA")
Fund Summary - Fund 353
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
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 2024-25 ANNUAL BUDGET 113
Water Quality Retention Basin
Fund Summary - Fund 387
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 236,752 $ 239,752 $ Revenues
Property Tax 53,215 $ 55,077 $ 50,000 56,000
Interest Income (4,482) 4,156 - 6,000
Miscellaneous Revenues - - - -
48,733 59,233 50,000 62,000
Transfers In - - - -
48,733 59,233 50,000 62,000
Expenditures
Salary and Benefits - - - -
Contractual Services 32,762 10,747 47,000 48,000
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
32,762 10,747 47,000 48,000
Transfer Out - - - -
32,762 10,747 47,000 48,000
Changes in restricted reserves
Net Annual Activity 15,971 $ 48,486 $ 3,000 14,000 Ending Available Fund Balance 236,752 $ 239,752 $ 253,752 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 114
Regional Water Quality
Fund Summary - Fund 521
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 53,002 $ 53,002 $
Revenues
Fees - - - -
Interest Income (425) 1,045 - -
Miscellaneous Revenues - - - -
(425) 1,045 - -
Transfers In - - - -
(425) 1,045 - -
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 (425)$ 1,045 - -
Fund Balance
Ending Available Fund Balance 53,002 $ 53,002 $ 53,002 $ 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 2024-25 ANNUAL BUDGET 115
Successor Housing Agency
Fund Summary - Fund 640
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 5,053,317 $ 5,053,317 $ Revenues
Tax Increment (RPTTF) - - - -
Interest Income 353,645 255,697 - 102,000
Miscellaneous Revenues - - - -
353,645 255,697 - 102,000
Transfers In - - - -
353,645 255,697 - 102,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - 1,705 - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- 1,705 - -
Transfer Out - - - -
- 1,705 - -
Changes in restricted reserves
Net Annual Activity 353,645 $ 253,992 - 102,000 Ending Available Fund Balance 5,053,317 $ 5,053,317 $ 5,155,317 $ On February 27, 2024, the City elected to become the Successor Housing Authority and retain the housing assets and functions previously performed by the Hercules Redevelopment Agency in accordance with HSC Section 34176.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSPECIAL REVENUE FUND 116

SEWER ENTERPRISE FUND
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSEWER ENTERPRISE FUND 117
Sewer - Operations
Fund Summary - Fund 420
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Projection Proposed
Beginning Available Fund Balance 12,257,213$ 11,879,173$ Revenues
Charges for Services 5,852,278 $ 5,922,758$ 5,993,734 6,053,000 Interest Income 59,089 375,085 75,000 238,000
Rate Stabilization Fund - - 563,051 619,657
Miscellaneous Revenues - - - -
5,911,367 6,297,843 6,631,785 6,910,657
Transfers In - - - -
5,911,367 6,297,843 6,631,785 6,910,657
Expenditures
Salary and Benefits 653,521 727,572 763,159 806,828 Contractual Services 266,054 74,250 433,341 446,300 Utilities 68,264 65,929 87,902 90,700
Maintenance & Repairs 11,288 41,507 50,096 51,600 Sewer Plant Operating Expenses 2,117,981 1,994,792 2,506,100 2,609,425 Other Expenses 7,394 5,740 6,314 6,600
Cost Allocation 280,194 258,000 307,886 420,784
Capital Outlay 20,615 - 6,180 -
Capital Improvement Projects (CIP) 88,571 53 - -
Capital Outlay - Pinole (Hercules' Share) 79,226 652,691 65,000 Debt Service 1,811,518 2,092,199 2,064,156 2,065,350 5,325,400 5,339,268 6,877,825 6,562,587
Transfer Out - 13,700,000 132,000 1,100,000
5,325,400 19,039,268 7,009,825 7,662,587
Changes in restricted reserves (4,829,657)
Net Annual Activity 585,967 (12,741,425) (378,040) (5,581,587) Ending Fund Balance 12,257,213
Move to Fund 421 (Sewer Capital)
Ending Available Fund Balance 12,257,213$ 11,879,173$ 6,297,586$ Debt Service Coverage Ratio 1.38 1.50 1.20 1.20
Operating & Maintenance Reserve (180 days) 1,108,000
Capital Reserve (Equal to annual system depreciation) 1,002,000 Debt Service Reserve (Equivalent to 1-year of debt service) 2,100,000 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSEWER ENTERPRISE FUND 118
Sewer - Capital Projects
Fund Summary - Fund 421
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Projection Proposed
Beginning Available Fund Balance - $ - $
Revenues
Charges for Services - $ - $ - -
Interest Income - - - -
Bond Proceeds - - - -
Miscellaneous Revenues - - - -
- - - -
Transfers In - 13,700,000 132,000 1,100,000
- 13,700,000 132,000 1,100,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Sewer Plant Operating Expenses - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Capital Improvement Projects (CIP) - 3,284,855 132,000 1,100,000 Debt Service - - - -
- 3,284,855 132,000 1,100,000
Transfer Out - - - -
- 3,284,855 132,000 1,100,000
Changes in restricted reserves
-
Net Annual Activity - 10,415,145 - -
Ending Fund Balance - $ - $ - $
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 2024-25 ANNUAL BUDGET 119

INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 120
Vehicle Replacement
Fund Summary - Fund 450
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 315,624 $ 248,624 $ Revenues
Charges for Services - $ 148,300 $ 153,000 158,000 Interest Income 3,700 6,050 - -
Miscellaneous Revenues - - - -
3,700 154,350 153,000 158,000
Transfers In - - - -
3,700 154,350 153,000 158,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay 381 484,713 220,000 150,000
Debt Service - - - -
381 484,713 220,000 150,000
Transfer Out - - - -
381 484,713 220,000 150,000
Changes in restricted reserves
Net Annual Activity 3,319 $ (330,363) (67,000) 8,000 Ending Available Fund Balance 315,624 248,624 $ 256,624 $ 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 2024-25 ANNUAL BUDGET 121
Information Technology (IT) Operations
Fund Summary - Fund 460
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 521,662 $ 178,021 $ Revenues
Charges for Services 736,313 $ 1,271,986 $ 996,333 $ 1,085,715 Interest Income 124 - - -
Miscellaneous Revenues 5,781 5,376 - -
742,218 1,277,362 996,333 1,085,715
Transfers In - - - -
742,218 1,277,362 996,333 1,085,715
Expenditures
Salary and Benefits 393,027 375,984 423,367 446,034
Contractual Services 78,430 46,209 30,900 30,000
Utilities 46,933 46,521 51,706 53,200
Maintenance and Subscriptions 320,020 355,354 422,380 434,750 Other Expenses 3,345 2,865 13,432 13,611
Cost Allocation 104,038 89,000 98,189 58,668
Capital Outlay 273,645 149,021 300,000 -
1,219,438 1,064,954 1,339,974 1,036,263
Transfer Out - - - -
1,219,438 1,064,954 1,339,974 1,036,263
Changes in restricted reserves
Net Annual Activity (477,220)$ 212,408 (343,641) 49,452 Ending Available Fund Balance 521,662 $ 178,021 $ 227,473 $ 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 2024-25 ANNUAL BUDGET 122
Facility Maintenance
Fund Summary - Fund 470
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 366,183 $ 309,507 $ Revenues
Charges for Services 817,040 $ 787,000 $ 938,955 1,046,683 Interest Income - - - -
Miscellaneous Revenues - - - -
817,040 787,000 938,955 1,046,683
Transfers In - - - -
817,040 787,000 938,955 1,046,683
Expenditures
Salary and Benefits 159,927 155,241 191,509 326,296 Contractual Services 10,842 65,954 185,400 191,000
Utilities 301,154 355,016 273,164 281,300
Maintenance & Repairs 100,577 111,707 174,070 179,300 Other Expenses 28,447 22,592 27,224 28,100
Cost Allocation 72,039 72,000 144,264 131,474
Capital Outlay - - - -
672,986 782,510 995,631 1,137,470
Transfer Out - - - -
672,986 782,510 995,631 1,137,470
Changes in restricted reserves
Net Annual Activity 144,054 $ 4,490 (56,676) (90,787) Ending Available Fund Balance 366,183 $ 309,507 $ 218,720 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETINTERNAL SERVICE FUND 123
Information Technology (IT) Equipment Replacement
Fund Summary - Fund 480
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
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 - - - 309,000
Debt Service - - - -
- - - 309,000
Transfer Out - - - -
- - - 309,000
Changes in restricted reserves
Net Annual Activity - $ - - (309,000)
Ending Available Fund Balance 365,516 $ 365,516 $ 56,516 $ 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 2024-25 ANNUAL BUDGET 124
Facilities Replacement
Fund Summary - Fund 490
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 361,696 $ 219,696 $ 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) - - 142,000 -
Debt Service - - - -
- - 142,000 -
Transfer Out - - - -
- - 142,000 -
Changes in restricted reserves
Net Annual Activity - $ - (142,000) -
Ending Available Fund Balance 361,696 $ 219,696 $ 219,696 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETINTERNAL SERVICE FUND 125

DEBT SERVICE FUNDS
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETDEBT SERVICE FUNDS 126
Summary of Annual Debt Service Obligation from FY 2024-25 through Maturity

Total Outstanding Debt Obligation
by Debt Category in FY 2023-24 Principal Interest Total 2020 Public Financing Authority (PFA)
Lease Revenue Bonds
$5,041,619 $576,557 $5,618,176
2009 Public Financing Authority (PFA)
Taxable Lease Revenue Bonds
$7,675,000 $5,765,745 $13,440,745
California Housing Finance Agency
(CalHFA) HELP Loan
$1,287,588 $42,600 $1,330,188
California Housing Finance Agency
(CalHFA) RDLP Loan
$3,750,000 $313,572 $4,063,572
Engie Construction Loan $3,873,163 $1,034,981 $4,908,144 2021 Public Financing Authority (PFA)
Wastewater Revenue Bonds
$8,095,000 $1,855,746 $9,950,746
Public Owned Treatment Works
Construction Loan
$22,144,092 $3,540,138 $25,684,230
Total $51,866,462 $13,129,339 $64,995,801
Note: In FY 2025-26 and FY 2026-27, the remaining balances for CalHFA loans are due in full.

FY 2024-25 DEBT DETAIL
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET DEBT DETAIL
$4,190,745
$4,147,520
$4,144,772
$5,444,928
$7,828,502
$3,971,661
$3,984,866
$3,988,804
$3,997,932
$4,011,654
$4,019,944
$4,032,951
$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
127
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET DEBT LIMITS
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
$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 $4,499,945,010 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
$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 $1,124,986,253 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
$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 $168,747,938

Assessed Valuation
Conversion
Percentage
Adjusted Assessed
Valuation
Debt Limit
Percentage
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
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.
128
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET DEBT DETAIL
FY 2024-25 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 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 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 2027-28 $350,000 $552,953 $902,953
FY 2028-29 to Maturity $6,425,000 $3,395,123 $9,820,123 Total $7,675,000 $5,765,745 $13,440,745
129
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET DEBT DETAIL
FY 2024-25 DEBT DETAIL
2020 PFA Lease Revenue Refunding Bonds
On August 1, 2020, the Hercules Public Financing Authority refinanced the proceeds of the Lease Revenue Bonds, Series 2003B, in the aggregate principal amount of $5,876,843. The interest rateof 2.21% with a final maturity due on December 1, 2023. The debt service payments are scheduled semi-annually at amounts that ranges from $106,428 to $560,249.

The City is obligated to pay only its Base Rental Payments and Additional Payments under the Lease.

The obligation of the City to pay Base Rental Payments or Additional Payments does not constitute an obligation of the city for 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 2020 Hercules Public Financing Authority Lease Revenue Refunding Bond are as follows:

Year Ending June 30 Principal Interest Total
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 2027-28 $489,075 $75,087 $564,162
FY 2028-29 to Maturity $3,153,055 $213,155 $3,366,210 Total $5,041,619 $576,557 $5,618,176
130
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET DEBT DETAIL
FY 2024-25 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 annual debt service requirements to maturity for the H.E.L.P. Loan are as follows:

Year Ending June 30 Principal Interest Total
FY 2024-25 $76,133 $23,867 $100,000
FY 2025-26 $1,211,455 $18,733 $1,230,188
Total $1,287,588 $42,600 $1,330,188

131
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET DEBT DETAIL
FY 2024-25 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.

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

Year Ending June 30 Principal Interest Total
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 $313,572 $4,063,572
132
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 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.

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

Year Ending June 30 Principal Interest Total
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 2027-28 $173,379 $93,262 $266,641
FY 2028-29 to Maturity $3,268,016 $637,773 $3,905,788 Total $3,873,163 $1,034,981 $4,908,143

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.

FY 2024-25 DEBT DETAIL
133
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 interest thereon to be due and payable immediately in writing.

Future debt service requirements to maturity are as follows:

Year Ending June 30 Principal Interest Total
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 2027-28 $400,000 $151,725 $551,725
FY 2028-29 to Maturity $ 6,175,000 $1,004,539 $7,179,539 Total $ 7,730,000 $1 ,667,428 $9,397,428

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET DEBT DETAIL
FY 2024-25 DEBT DETAIL
134
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.

Future debt service requirements to maturity are as follows:

Year Ending June 30 Principal Interest Total
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 2027-28 $1,213,515 $297,322 $1,510,837
FY 2028-29 to Maturity $16,276,003 $1,854,042 $18,130,045 Total $21,009,705 $3,163,688 $24,173,393
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET DEBT DETAIL
FY 2024-25 DEBT DETAIL
135
2020 DEBT SERVICE PFA
Fund Summary - Fund 672
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 1,621 $ - $
Revenues
Property Lease Revenue - - - -
Interest Income - - - -
Miscellaneous Revenues - - - -
- - - -
Transfers In/General Fund - 360,649 563,316 563,430 - 360,649 563,316 563,430
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses 1,500 2,500 - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 129,878 512,269 564,937 563,430
131,378 514,769 564,937 563,430
Transfer Out - - - -
131,378 514,769 564,937 563,430
Changes in restricted reserves
Net Annual Activity (131,378)$ (154,120) (1,621) - Ending Available Fund Balance 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 2024-25 ANNUAL BUDGET 136
2009 DEBT SERVICE PFA
Fund Summary - Fund 673
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Property Lease Revenue 984,267 915,949 907,159 905,296 Interest Income (1,146) 57,470 - -
983,121 973,419 907,159 905,296
Transfers In - 5,300 - -
983,121 978,719 907,159 905,296
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 912,590 908,671 907,159 905,296
912,590 908,671 907,159 905,296
Transfer Out - - - -
912,590 908,671 907,159 905,296
Changes in restricted reserves
Net Annual Activity 70,531 $ 70,048 - -
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETDEBT SERVICE FUND 137
SunTrust Lease
Fund Summary - Fund 383
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Charges for Services - $ - $ - -
Interest Income - - - -
Property Lease Revenue - - - -
- - - -
Transfers In 205,099 102,549 - -
205,099 102,549 - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 205,099 102,549 - -
205,099 102,549 - -
Transfer Out - - - -
205,099 102,549 - -
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 2024-25 ANNUAL BUDGET 138
Equipment Lease
Fund Summary - Fund 388
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Charges for Services - $ - $ - -
Interest Income - - - -
Property Lease Revenue - - - -
- - - -
Transfers In 218,444 226,432 235,896 235,027
218,444 226,432 235,896 235,027
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 217,391 226,432 235,896 235,027
217,391 226,432 235,896 235,027
Transfer Out - - - -
217,391 226,432 235,896 235,027
Changes in restricted reserves (1,053)
Net Annual Activity - $ - - -
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETDEBT SERVICE FUND 139

CAPITAL PROJECT FUNDS
CAPITAL PROJECT FUNDS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 140
Public infrastructure includes the City’s streets,
sewers, storm drains, transportation, facilities,
and parks. While this CIP plans for ten years, the
City Council will only allocate funds for Fiscal
Year (FY) 2024-25. This CIP and budget will be
proposed, along with the City’s operating budget
for approval by the City Council during the
adoption of the annual budget.

The CIP outlines the vision for short- and
long-range project delivery and funding for
maintaining, improving, and building new
and existing infrastructure assets to benefit
our residents, businesses, property owners,
and visitors. The CIP links the General Plan,
Parks Master Plan, and various master planning
documents, as well as available resources, to
provide a means for planning, scheduling,
and implementing capital projects over the
next ten years.

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. Projects included in a CIP are defined as
any long-term investment that builds, replaces,
or improves an asset (e.g. facilities, roads, parks,
sewer, and drainage lines, etc.), have a useful
life of at least five years and a minimum cost of
$50,000. A critical distinction between the capital
and operating budget is that capital projects are
approved in one year, but their completion can take
years. In contrast, operating budgets are typically
focused on ongoing maintenance and are “use-
it-or-lose-it” at year’s end, with unspent funds
returned to the fund.
2024-25 CAPITAL PROJECTS BUDGET &

TEN-YEAR CAPITAL IMPROVEMENT PLAN (CIP)
Hercules Capital Improvement Projects (CIP) aims to maintain and improve our City’s aged public infrastructure as best it can with available resources. Taking care of existing infrastructure is an important part of building a resilient city.

As such, the capital improvements in this plan balance the need of rehabilitating aged infrastructure while also embarking on key enhancement projects that address critical priorities, such as street safety and sustainability.

This Capital Improvement project emphasizes:
• Substantial capital work has been completed and proposed in light of grant-funded (and locally matched) transportation projects. • A “fix it first” approach where proper maintenance of Hercules existing infrastructure is prioritized above requests for “new” infrastructure. • Additional revenue or funding is needed to maintain our existing infrastructure adequately.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET CAPITAL PROJECTS BUDGET & TEN-YEAR CIP 141
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET CAPITAL PROJECTS BUDGET & TEN-YEAR CIP Projects in the Ten-Year CIP were prioritized
according to the Ten-Year Action Plan of the
recently completed Parks Master Plan, the
Sanitary Sewer Master Plan, the City’s Pavement
Management Program, and the Draft Building
Facilities Assessment. Proposed FY 2024-25
recommended projects include:
• Construction of the Refugio Park picnic area
and shade structure project
• Completion of the final design of Beechnut
Park
• Resurfacing the Foxboro Basketball Court
• Repairs to the Bay Trail Wall
Also included is the design of the Upper Sycamore
Sewer main replacement while Falcon Way is to
be resurfaced from Wren Court to Refugio Valley
Road. Ten of the City’s public buildings are
proposed to receive upgrades, including painting,
and recarpeting the first half of City Hall, pool
repairs and HVAC replacement in the Community
Swim Center, and bathroom renovations in the
Ohlone Community Center. The summary of
the Ten-Year CIP is listed in Attachment 2 and
detailed descriptions of all the proposed CIP
projects are included in Attachment 3 to 7.

The FY 2024-25 Proposed CIP are fully funded
by various funding sources as specified below.

The Capital Improvement Projects are funded
almost exclusively with revenues from restricted
funds.
• The Sewer Fund is restricted to maintenance
and replacement of the City’s sewers. Much of
the available funding for the capital budget is,
in fact, devoted to the Sewer Fund.
• Transportation Fund includes Gas Tax,
Measure J, and SB1 Road Maintenance
and Repair Account are the result of
voters’ approval of increases dedicated to
transportation infrastructures. Transportation
projects also are supplemented by Development
Impact Fees (DIF), which are paid for by new
residential and commercial developments.

However, these fees are highly variable and
have categorical restrictions.
• Facilities Replacement – Internal Service
Fund (ISF) is used for capital improvements to
city-owned buildings and is paid through their
operating budget.
• The General Fund, though historically a small
contributor to the overall capital budget, is the
only non-restricted funding source that can
support any public infrastructure expense. This
year, due to limited resources from restricted
funds, staff are proposing to fund 50% of the
FY 2024-25 CIP.
142
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET CAPITAL PROJECTS BUDGET & TEN-YEAR CIP However, the Ten-Year CIP identified a
significant number of unfunded projects. The
total number of unfunded projects identified in
the Ten-Year CIP is approximately $118 million,
or 85% of the total Ten-Year CIP: $101 million
for Hercules HUB, $9.6 million for streets, $4.1
million for parks, and $3.6 million for facilities
as summarized in Attachment 2. Staff
recommend looking for other alternatives to fund
the projects. The following are financing or
funding options for the City Council to
explore regarding potential funding for the
future CIP.
•Capital Grants – the City acquired the
services of grant writing consultant, California
Consulting to continue efforts to identify,
and apply for, available grants applicable to
approved Capital Improvement Projects.
• Bond Financing (Attachment 8)
• General Obligation Bonds, which are also
referred to as GOs, are municipal bonds
which provide a way for state and local
governments to raise money for projects that
may not generate a revenue stream directly.

They are called “general obligation” bonds
because they are not backed by a specific
revenue producing project or asset. Instead,
they are backed by the “full faith and credit”
of the issuer. In simple terms that means
the bonds are backed by the state or local
government’s ability to tax, and to raise taxes
to pay bondholders. For cities, it normally
comes in the form of pro
perty taxes.
• Lease Revenue Bonds is an effective
and increasingly po
pular vehicle for state
and local governments or cities to finance
and refinance equipment acquisitions, the
construction of public facilities and the
expansion and rehabilitation of existing
public facilities. Lease financing enables
cities to finance a variety of governmental
projects without incurring a “debt” or an
“indebtedness” that is subject to the voter
approval process.

Projects with prior City Council appropriations
that were not fully expended have remaining
appropriation balances included as carryover
amounts. These amounts are strictly estimates
and will be trued up at year-end close. Amounts
reflected in the projected carryover column
should not be construed as funds available for
commitment. The carryover estimate often
includes funds encumbered/committed due to an
executed contract for services or goods.

The ten-year 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.

Because staff identified many unfunded projects
in the next ten years, staff recommend that the
City Council explore financing these projects by
issuing bonds. By issuing long-term debt for costly
infrastructure projects with long service lives,
the City can increase equity between generations
without disrupting the operating budget.
143
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET CIP SPENDING PLAN

CITY OF HERCULES

TEN-YEAR CAPITAL IMPROVEMENT
PROGRAM SPENDING PLAN FY 2024-2034

SUMMARY OF CAPITAL IMPROVEMENT PROJECT
PROGRAM SPENDING PLAN FY 2024-25
Prior 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 FY 2033-34 Total Project Name Carryover Proposed Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection City Hall - 137,170 337,700 - - - - - - - - 474,870 Senior Center - 22,715 19,250 41,965 Library 100,000 15,000 - - - - - - - - - 115,000 Community Swim Center - 132,638 94,160 - - - - - - - - 226,798 Teen Center - 20,460 11,000 - - - - - - - - 31,460 Hanna Ranch Childcare Center - 6,820 34,650 - - - - - - - - 41,470 Lupine Kidz Center - 17,380 17,160 - - - - - - - - 34,540 Public Works Maintenance Yard - 30,000 - - - - - - - - - 30,000 Ohlone Community Center - 113,905 37,620 - - - - - - - - 151,525 Foxboro Community Center - 9,735 - - - - - - - - - 9,735 - 200,000 - - - - - - - - - 200,000 57,918 117,000 - - - - - - - - - 174,918 Leila's By The Bay Roof 30,000 30,000
Fire Station #76 Parking Lot 250,000 250,000
Future Facility Capital Improvement
Project - - - 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 3,320,000 Total, Facilities 157,918 822,823 831,540 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 5,132,281 - 1,000,000 - - - - - - - - - 1,000,000 - 250,000 - - - - - - - - - 250,000 - - 750,000 - - - - - - - - 750,000 - 150,000 250,000 - - - - - - - - 400,000 - - 100,000 - - - - - - - - 100,000 - - - 250,000 - - - - - - - 250,000 - - - 100,000 - - - - - - - 100,000 - - 150,000 1,150,000 - - - - - - - 1,300,000 Green Infrastructure Project - - 250,000 - - - - - - - - 250,000 - - - - 250,000 250,000 250,000 250,000 250,000 250,000 250,000 1,750,000 - - - - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 700,000 - - - - 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 8,050,000 Countywide Smart Signals - 65,100 - - - - - - - - - 65,100 Total, Streets - 1,865,100 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 15,365,100 Sycamore Ave (Upper Trunk Main) - - - - - - - - - - - - Sycamore Ave (Lower Trunk Main) - 1,100,000 - 1,100,000 Promenade Lift Station - - 185,000 1,170,450 - - - - - - - 1,355,450 Repair/Replace Sewer Lines under SR-4
& Along Willow Avenue - - 200,000 100,000 1,080,000 - - - - - - 1,380,000 Total, Sewer - 1,100,000 385,000 1,270,450 1,080,000 - - - - - - 3,835,450 25,000 35,000 - - - - - - - - - 60,000 - 3,500 190,500 - - - - - - - - 194,000 - - 150,000 - - - - - - - - 150,000 Foxboro Playground - - 50,000 550,000 - - - - - - - 600,000 Foxboro Basketball Court - 145,000 - - - - - - - - - 145,000 76,450 500,000 - - - - - - - - - 576,450 - 170,000 - - - - - - - - - 170,000 Refugio Tennis Court - - 55,000 270,000 - - - - - - - 325,000 - 100,000 50,000 450,000 - - - - - - - 600,000 - - 70,000 225,000 - - - - - - - 295,000 Woodfield Basketball Court - - 215,000 - - - - - - - - 215,000 Woodfield Tennis Court - - - 320,000 - - - - - - - 320,000 Woodfield Replace Restroom - - - - - - 465,000 - - - - 465,000 Woodfield Accessibility Route - - - - 55,000 273,000 - - - - - 328,000 - - - - 240,000 - - - - - - 240,000 - - - - - 1,440,000 - - - - - 1,440,000 Slurry Seal the Bay Trail - - - 132,000 - - - - - - - 132,000 Bay Trail Wall Repair - 100,000 - - - - - - - - - 100,000 Total, Parks 101,450 1,053,500 780,500 1,947,000 295,000 1,713,000 465,000 - - - - 6,355,450 735,030 89,000 2,909,500 1,289,000 5,022,530 150,000 150,000
850,000 850,000
2,329,500 2,329,500
4,250,000 29,085,319 30,162,080 30,162,080 7,540,520 101,199,999 Total, Transportation 735,030 1,089,000 7,159,500 32,703,819 30,162,080 30,162,080 7,540,520 - - - - 109,552,029 Total, CIP 994,398 5,930,423 10,656,540 37,836,269 33,452,080 33,790,080 9,920,520 1,915,000 1,915,000 1,915,000 1,915,000 140,240,310 FFuunnddiinngg SSoouurrcceess::

CITY OF HERCULES

TEN-YEAR CAPITAL IMPROVEMENT
PROGRAM SPENDING PLAN FY 2024-2034

Grant Funds 760,030 1,127,500 3,100,000 1,289,000 - - - - - - - 6,276,530 Parks Impact Fee - - 150,000 - - - - - - - - 150,000 Transportation Impact Fee - - - - 240,000 - - - - - - 240,000 Police Impact Fee - 200,000 - - - - - - - - - 200,000 General Fund/Capital Reserves 176,450 2,250,823 1,351,540 2,779,500 - - - - - - - 6,558,313 State Gas Tax Fund - 262 - - - 250,000 - - - - - - - 250,000 SB1 RMRA - 715,100 250,000 - 250,000 250,000 250,000 250,000 250,000 250,000 250,000 2,715,100 Asset Seizure Fund 57,918 117,000 - - - - - - - - - 174,918 Facility Maintenance Fund - - - - - - - - - - - - Measure J Fund - 263 - - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 900,000 Solid Waste Fund - 250,000 - - - - - - - - - 250,000 Sewer Fund - 421 - 1,100,000 385,000 1,270,450 1,080,000 - - - - - - 3,835,450 Community Development Tax - 170,000 - - - - - - - - - 170,000 Public Benefit Fee - - - - - - - - - - - - Unfunded - Hercules HUB - - 4,250,000 29,085,319 30,162,080 30,162,080 7,540,520 - - - - 101,199,999 Unfunded - Facilities - - 280,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 3,600,000 Unfunded - Streets - - 400,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 9,600,000 Unfunded - Parks - - 390,000 1,497,000 55,000 1,713,000 465,000 - - - - 4,120,000 Total, Funding 994,398 5,930,423 10,656,540 37,836,269 33,452,080 33,790,080 9,920,520 1,915,000 1,915,000 1,915,000 1,915,000 140,240,310 Refugio Picnic Area
Dredge Refugio Lake
Sycamore Avenue Bicycle
Hercules - The HUB
Police Department Lobbies
Falcon Way
Foxboro
Hercules By The Bay
Annual Street Repair Project
Beechnut Park
145
Project Funding Source: Prior 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection City Hall General Fund/Capital Reserves $ - $ 137,170.00 $ 337,700.00 $ - $ - $ - $ - $ - $ - $ - $ - 474,870$ Senior Center General Fund/Capital Reserves - $ 22,715.00$ 19,250.00$ - $ - $ - $ - $ - $ - $ - $ - $ 41,965$ Library General Fund/Capital Reserves 100,000.00$ 15,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 115,000$ Community Swin Center General Fund/Capital Reserves - $ 132,638.00$ 94,160.00$ - $ - $ - $ - $ - $ - $ - $ - $ 226,798$ Teen Center General Fund/Capital Reserves - $ 20,460.00$ 11,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ 31,460$ Hanna Ranch Childcare Center General Fund/Capital Reserves - $ 6,820.00$ 34,650.00$ - $ - $ - $ - $ - $ - $ - $ - $ 41,470$ Lupine Kidz Center General Fund/Capital Reserves - $ 17,380.00$ 17,160.00$ - $ - $ - $ - $ - $ - $ - $ - $ 34,540$ Ohlone Childcare Center Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Public Works Maintenance Yard General Fund/Capital Reserves - $ 30,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 30,000$ Ohlone Community Center General Fund/Capital Reserves - $ 113,905.00$ 37,620.00$ - $ - $ - $ - $ - $ - $ - $ - $ 151,525$ Foxboro Community Center General Fund/Capital Reserves - $ 9,735.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,735$ Police Development Impact Fee - $ 200,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200,000$ Asset Seizure Fund 57,918.00$ 117,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 174,918$ Leila's By The Bay Roof Unfunded - $ - $ 30,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ 30,000$ Fire Station #76 Parking Lot Unfunded - $ - $ 250,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ 250,000$ Future Facility Capital Improvement
Project Unfunded - $ - $ - $ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 3,320,000$ Total 157,918$ 822,823$ 831,540$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 5,132,281$ Funding Source:
- $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ General Fund/Capital Reserves 100,000$ 505,823$ 551,540$ - $ - $ - $ - $ - $ - $ - $ - $ 1,157,363$ Police Development Impact Fee - $ 200,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200,000$ Facility Maintenance Fund - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Asset Seizure Fund 57,918$ 117,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 174,918$ Unfunded - $ - $ 280,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 3,600,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Total 157,918$ 822,823$ 831,540$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 5,132,281$ City of Hercules
Facilities CIP Summary
Police Department Lobbies
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 146
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 137,170$ 337,700$ - $ - $ - $ - $ - $ - $ - $ - $ 474,870$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 137,170$ 337,700$ - $ - $ - $ - $ - $ - $ - $ - $ 474,870$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
City Hall
FY 24-25
ADA Transition Plan $25,000
Carpet/Paint $75,000
Rebuild Entrance Garden / Fountain / Lighting $20,000
Exit Lights $4,200
FY 25-26
Exterior Paint $50,000
ADA Transition $25,000
Carpet/Paint $75,000
Repave Parking Lot $150,000
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 147
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 22,715$ 19,250$ - $ - $ - $ - $ - $ - $ - $ - $ 41,965$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 22,715$ 19,250$ - $ - $ - $ - $ - $ - $ - $ - $ 41,965$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Senior Center
FY 24-25
Fence around inground transformer Transformer $3,000
ADA Steps , Ramps and walkways at Senior Center $15,000 Inspect and update Exit Lights as needed $2,100
FY 25-26
Repair / Replace roof gutters $2,000
Repaint Outside Senor Center $8,000
Repaint inside Senor Center $5,000
Carpet $2,500
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 148
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

FY 24-25
Seal Starry Cone $15,000
Elastomeric paint could prevent leaking from re-occurring for 2-3 Years.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 149
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 132,638$ 94,160$ - $ - $ - $ - $ - $ - $ - $ - $ 226,798$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 132,638$ 94,160$ - $ - $ - $ - $ - $ - $ - $ - $ 226,798$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Community Swin Center
FY 24-25
Pool Deck slot drain Repair $25,000 Replace electrical Panel Cover $1,200 HVAC Repair/Replacement $79,080 AC compressor Electrical Disconnects $3,500 Filter Flow Meters $3,600
Inspect and update Exit Lights as needed $2,100
FY 25-26
Ada Steps , Ramps and walkways at Senior Center $25,000 Flow Meters $5,400 ADA Striping $3,000 Pool Deck Lighting $18,000
Shower Benches $12,000 UPS To Phone System $1,200
Replace Diving Board $15,000 Pool Filter Media $3,600 Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 150
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 20,460$ 11,000$ - $ - $ - $ - $ - $ - $ - $ - $ 31,460$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 20,460$ 11,000$ - $ - $ - $ - $ - $ - $ - $ - $ 31,460$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Teen Center
FY 24-25
ADA Steps , Ramps and walkways at Teen Center $15,000
Bathroom Exhaust Fans $3,600
FY 25-26
Kitchen Range Hood $2,000
Exterior Paint $8,000
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 151
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 6,820 $ 34,650$ - $ - $ - $ - $ - $ - $ - $ - $ 41,470$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 6,820 $ 34,650$ - $ - $ - $ - $ - $ - $ - $ - $ 41,470$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Hanna Ranch Childcare Center
FY 24-25
Kitchen Range Hood $2,000
Inspect and update Exit Lights as needed $4,200
FY 25-26
VCT Flooring in Classrooms $25,000
Interior Cabinet Repair and Refresh $6,500
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 152
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 17,380$ 17,160$ - $ - $ - $ - $ - $ - $ - $ - $ 34,540$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 17,380$ 17,160$ - $ - $ - $ - $ - $ - $ - $ - $ 34,540$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Lupine Kidz Center
FY 24-25
Restroom Exhaust Fans $5,400
Kitchen Range Hood $2,000
Inspect and update Exit Lights as needed $8,4000
FY 25-26
Slurry Seal Parking Lot $3,500
Restripe Parking Lot $2,500
Inspect and update Fire Alarm as needed $9,600
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 153
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Faility is owned by school district.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 154
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 155
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 113,905$ 37,620$ - $ - $ - $ - $ - $ - $ - $ - $ 151,525$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 113,905$ 37,620$ - $ - $ - $ - $ - $ - $ - $ - $ 151,525$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Ohlone Community Center
FY 24-25
Redesign and Renovate Bathrooms $56,000 Water Heater $3,500 HVAC Repair and or Replacement $22,950 Inspect and update Exit Lights as needed $2,100 Interior Cabinet Repair and Refresh $6,500 Install Parking lot Lights $10,500 FY 25-26
Exterior Paint $8.,000
ADA Transition $10,000
HVAC Repair and or Replacement $16,200
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 156
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CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 157
Project Number: BDP#22-3
Project Name:

Description:

Justification:

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Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Police Development Impact Fee - $ 200,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200,000$ Asset Seizure Fund 57,918$ 117,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 174,918$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 57,918$ 317,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 374,918$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Police Department Lobbies
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 2024-25 ANNUAL BUDGET 158
Project Number:

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The shingles are worn and the roof is due for replacement.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 159
Project Number:

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The Portland cement concrete parking lot has many cracks and the worst areas have been patched with asphalt. A permanent repair is needed.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 160
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FY 26-27 through FY 33-34
Per Draft Building Assessment
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 161
Project Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves - $ 1,000,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,000,000$ SB1 RMRA - $ 300,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 300,000$ SB1 RMRA - $ 100,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ Solid Waste Fund - $ 250,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 250,000$ General Fund/Capital Reserves $ - $ - $ 750,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 750,000$ SB1 RMRA $ - $ 150,000.00 $ 250,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 400,000$ Measure J Fund - 263 $ - $ - $ 100,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 100,000$ SB1 RMRA $ - $ - $ - $ 250,000.00 $ - $ - $ - $ - $ - $ - $ - 250,000$ Measure J Fund - 263 $ - $ - $ - $ 100,000.00 $ - $ - $ - $ - $ - $ - $ - 100,000$ Unfunded $ - $ - $ 150,000.00 $ 1,150,000.00 $ - $ - $ - $ - $ - $ - $ - 1,300,000$ Green Infrastructure Project Unfunded $ - $ - $ 250,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 250,000$ SB1 RMRA $ - $ - $ - $ - $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 1,750,000$ Measure J Fund - 263 $ - $ - $ - $ - $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 700,000$ Unfunded $ - $ - $ - $ - $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 8,050,000$ Countywide Smart Signals SB1 RMRA $ - $ 65,100.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 65,100$ Total - $ 1,865,100$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 15,365,100$ Funding Sources:

General Fund/Capital Reserves -$ 1,000,000$ 750,000$ -$ -$ -$ -$ -$ -$ -$ -$ 1,750,000$ SB1 RMRA - $ 615,100$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 2,865,100$ Measure J Fund - 263 - $ -$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 900,000$ Solid Waste Fund - $ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 250,000$ Unfunded - $ -$ 400,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 9,600,000$ Total - $ 1,865,100$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 15,365,100$ Annual Street Repair Project
City of Hercules
Streets CIP Summary
Falcon Way
Foxboro
Hercules By The Bay
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 162
Project Number:

Project Name:

Description:

Justification:
v
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Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves - $ 1,000,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,000,000$ SB1 RMRA - $ 300,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 300,000$ Measure J Fund - 263 - $ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ Solid Waste Fund - $ 250,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 250,000$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 1,650,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,650,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Falcon Way
Repair and resurface Falcon Way from Wren Court to Refugio Valley Road This section of Falcon Way which serves as a collector for the Birds neighborhood is in extremely poor condition and on a steep downgrade with curves.

Design = $100,000
Construction =1,500,000
Contract Project Management Cost = $50,000
Design and construct FY24-25
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 163
Project Number:

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The Foxboro neighborhood, as a whole, has the most degraded streets in Hercules.

Design = $100,000
Construction = $1,100,000
Contract Project Management Cost = $50,000
Design FY24-25
construct FY25-26
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 164
Project Number:

Project Name:

Description:

Justification:
v
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Hercules By The Bay, as a whole, has the most degraded streets in Hercules excepting the Foxboro neighborhood
Design = $100,000
Construction = $1,500,000
Contract Project Management Cost = $50,000
Design FY25-26
construct FY26-27
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 165
Project Number:

Project Name:

Description:

Justification:
v
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Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ - $ 250,000$ - $ - $ - $ - $ - $ - $ - $ - $ 250,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ 250,000$ - $ - $ - $ - $ - $ - $ - $ - $ 250,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Green Infrastructure Project
Green Infrastructure (GI) refers to the construction and retrofit of storm drainage to reduce runoff volumes, disperse runoff to vegetated areas, harvest and use runoff where feasible, promote infiltration and evapotranspiration, and use bioretention and other natural systems to detain and treat runoff before it reaches our creeks and Bay. Green infrastructure facilities include, but are not limited to, pervious pavement, infiltration basins, and bioretention facilities or “raingardens”.

Provision C.3.j.i of the Municipal Regional Stormwater Permit (MRP) requires the City to treat 1.58 acres through Green Infrastructure by June 30, 2027.

FY25/26
$250k
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 166
Project Number:

Project Name:

Description:

Justification:
v
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Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection SB1 RMRA - $ - $ - $ - $ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 1,750,000$ Measure J Fund - 263 - $ - $ - $ - $ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 700,000$ Unfunded - $ - $ - $ - $ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 8,050,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ - $ - $ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 10,500,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Annual Street Repair Project
Repair and Resurface City streets at miscellaneous locations.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 167
Project Number:

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Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ SB1 RMRA - $ 65,100$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 65,100$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 65,100$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 65,100$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Countywide Smart Signals
This is 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.

CCTA's SHare of cost $502,506
City Match $65,000
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 168
Project Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sycamore Ave (Upper Truck Main)
DELETED Sewer Fund - 421 -$ -$ -$ -$ - $ - $ - $ - $ - $ - $ -$ -$ Sycamore Ave (Lower Truck Main) Sewer Fund - 421 -$ 1,100,000$ -$ -$ - $ - $ - $ - $ - $ - $ -$ 1,100,000$ Promenade Lift Station Sewer Fund - 421 -$ -$ 185,000$ 1,170,450$ - $ - $ - $ - $ - $ - $ -$ 1,355,450$ Repair/ Replace Sewer Lines under
SR-4 & Along Willow Ave Sewer Fund - 421 -$ -$ 200,000$ 100,000$ 1,080,000$ - $ - $ - $ - $ - $ -$ 1,380,000$ Total -$ 1,100,000 $ 385,000$ 1,270,450$ 1,080,000$ - $ - $ - $ - $ - $ -$ 3,835,450$ City of Hercules
Sewer CIP Summary
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 169
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The wet weather hydraulic modeling that ocuurred over winter indicated this project did not need to be constructed.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 170
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This section of pipe is 30 feet deep and under the effluent force main and requires special design and installation.

CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 171
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The relocation is required by the Development Agreement.

Design = $135,000
Construction = $1,170,450
Contract Project Management = $50,000
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 172
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Justification:

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

FY 25-26 Replace 2 Sections of pipe
FY 26-27 Design remaining sections, including under SR-4 FY 26-27 Construction
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 2024-25 ANNUAL BUDGET 173
Project Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Eastbay Regional Park District WW
Grant Funds $ 25,000.00 $ 35,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 60,000.00$ Prop. 64 Grant Funds - $ 3,500.00$ 190,500.00$ - $ -$ -$ - $ - $ - $ - $ -$ 194,000.00$ Parks Impact Fee Fund - $ - $ 150,000.00$ - $ -$ -$ - $ - $ - $ - $ -$ 150,000.00$ Foxboro Playground Unfunded $ - $ - $ 50,000.00 $ 550,000.00 $ - $ - $ - $ - $ - $ - $ - 600,000.00$ Foxboro Basketball Court General Fund/Capital Reserves - $ 145,000.00$ - $ - $ -$ -$ - $ - $ - $ - $ -$ 145,000.00$ General Fund/Capital Reserves $ 76,450.00 $ 500,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 576,450.00$ Community Development Tax Fund $ - $ 170,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 170,000.00$ Unfunded $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ Refugio Tennis Courts Unfunded $ - $ - $ 55,000.00 $ 270,000.00 $ - $ - $ - $ - $ - $ - $ - 325,000.00$ General Fund/Capital Reserves $ - $ 100,000.00 $ 50,000.00 $ 450,000.00 $ - $ - $ - $ - $ - $ - $ - 600,000.00$ Unfunded $ - $ - $ 70,000.00 $ 225,000.00 $ - $ - $ - $ - $ - $ - $ - 295,000.00$ Woodfield Basketball Court Unfunded $ - $ - $ 215,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 215,000.00$ Woodfield Tennis Court Unfunded $ - $ - $ - $ 320,000.00 $ - $ - $ - $ - $ - $ - $ - 320,000.00$ Woodfield Replace Restroom Unfunded $ - $ - $ - $ - $ - $ - $ 465,000.00 $ - $ - $ - $ - 465,000.00$ Woodfield Accessibility Route Unfunded $ - $ - $ - $ - $ 55,000.00 $ 273,000.00 $ - $ - $ - $ - $ - 328,000.00$ Transportation Impact Fee Fund $ - $ - $ - $ - $ 240,000.00 $ - $ - $ - $ - $ - $ - 240,000.00$ Unfunded $ - $ - $ - $ - $ - $ 1,440,000.00 $ - $ - $ - $ - $ - 1,440,000.00$ Slurry Seal the Bay Trail Unfunded $ - $ - $ - $ 132,000.00 $ - $ - $ - $ - $ - $ - $ - 132,000.00$ Bay Trail Wall Repair State Gas Tax Fund - 262 $ - $ 100,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 100,000.00$ Total 101,450$ 1,053,500$ 780,500$ 1,947,000$ 295,000$ 1,713,000$ 465,000$ - $ - $ - $ - $ 6,355,450$ Funding Source:

Transportation Impact Fee Fund - $ - $ - $ - $ 240,000$ -$ - $ - $ - $ - $ -$ 240,000$ Eastbay Regional Park District WW
Grant Funds 25,000$ 35,000$ - $ - $ -$ -$ - $ - $ - $ - $ -$ 60,000$ Prop. 64 Grant Funds - $ 3,500$ 190,500$ - $ -$ -$ - $ - $ - $ - $ -$ 194,000$ General Fund/Capital Reserves 76,450$ 745,000$ 50,000$ 450,000$ -$ -$ - $ - $ - $ - $ -$ 1,321,450$ Parks Impact Fee Fund - $ - $ 150,000$ - $ -$ -$ - $ - $ - $ - $ -$ 150,000$ Community Development Tax Fund - $ 170,000$ - $ - $ -$ -$ - $ - $ - $ - $ -$ 170,000$ State Gas Tax Fund - 262 - $ 100,000$ - $ - $ -$ -$ - $ - $ - $ - $ -$ 100,000$ Unfunded - $ - $ 390,000$ 1,497,000$ 55,000$ 1,713,000$ 465,000$ - $ - $ - $ -$ 4,120,000$ - $ - $ - $ - $ -$ -$ - $ - $ - $ - $ -$ -$ Total 101,450$ 1,053,500$ 780,500$ 1,947,000$ 295,000$ 1,713,000$ 465,000$ - $ - $ - $ - $ 6,355,450$ Sycamore Avenue Bicycle
City of Hercules
Parks CIP Summary
Dredge Refugio Lake
Beechnut Park
Refugio Picnic Area
CAPITAL IMPROVEMENT PROJECTS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 174
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Eastbay Regional Park
District WW Grant Funds 25,000 $ 35,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 60,000$ Prop. 64 Grant Funds - $ 3,500 $ 190,500$ - $ - $ - $ - $ - $ - $ - $ - $ 194,000$ Parks Impact Fee Fund - $ - $ 150,000$ - $ - $ - $ - $ - $ - $ - $ - $ 150,000$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 25,000 $ 38,500$ 340,500$ - $ - $ - $ - $ - $ - $ - $ - $ 404,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Beechnut Park Improvement Project
Improve Beechnut Park utilitzing grant funding. Improvements are to be determined but could include 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 24-25 along with the preliminary design, with final design and construction taking place FY 25-26.

Beechnut Park is the most in need of enhancing and has been essentially unimproved for many years.

Council appropriated the grant funding for Beechnut Park in a prior year. This project is included in the 5-Year Action Plan of the Parks Master Plan.

Design = $63,500
Construction = $340,500
Contract Project Management = In house, no additional cost CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 175
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

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Replace the playground equipment and safety surfacing
Both the playground equipment and safety surfacing are in poor condition and need to be replaced.

This project is included in the 5-Year Action Plan of the Parks Master Plan.

Design = $25,000
Construction = $550,000
Contract Project Management =$25,000
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 176
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

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Estimated End Date:

The surfacing is uneven in places and very rough. The hoops do not have the standard setback. This project is included in the 5-Year Action Plan of the Parks Master Plan.

Construction = $135,000
Contract Project Management $10,000
Timeline FY 24-25
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 177
Project Number:

Project Name:

Description:

Justification:

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Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 76,450 $ 500,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 576,450$ Community Development Tax Fund - $ 170,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 170,000$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 76,450 $ 670,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 746,450$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Refugio Valley Park Picnic Area & Shade Structure Improvement Project This project will add 2 shade structures over the picnic areas to replace the shade provided by the eucalyptus trees that were removed, renovate the picnic area surfacing and furniture, and provide accessible parking stalls in the parking lot and path of travel to these facilities.

These facilities are in need of a renovation and this project was included in the 5-Year Action Plan of the Parks Master Plan
Final Design & Construction Support = $76,450
Construction = $670,000
Contract Project Management = inhouse, no additional cost CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 178
Project Number:

Project Name:

Description:

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Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ - $ 55,000 $ 270,000 $ - $ - $ - $ - $ - $ - $ - $ 325,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ 55,000 $ 270,000 $ - $ - $ - $ - $ - $ - $ - $ 325,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Refugio Tennis Courts Circulation and Safety Improvement Project This project will renovated the circulation system between the parking lot, practice wall, group picnic area, tennis courts, and Turquoise Avenue including replacing the wood railroad tie stairs, steps, and other connecting features with concrete and provide a marked accessible parking spot and accessible route from the parking lot to the tennis courts and gathering areas.

The safety and accessibility enhancements are needed to fully utilize the site and these improvements were included in the 5-Year Action Plan of the Parks Master Plan.

Design = $35,000
Construction = $270,000
Contract Project Management = $20,000
Funding - Unfunded
Timeline FY 26-27
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 179
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

If the lake is not dredged soon, it will continue to fill in. This project was listed in the 5-Year Action Plan of the Parks Master Plan.

Preliminary Design, Environmental, Permits = $100,000
Final Design = $50,000
Construction = $675,000
Contract Project Management = $70,000
Timeline Preliminary Design/Permits FY 25-26
Final Design & Construction FY 26-27
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 180
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Surfacing and basketball hoops/posts are in very poor shape and this project is listed in the 5-Year Action Plan of the Parks Master Plan.

Basketball Court Renovation Project
Construction Cost = $200,000
Contract Project Management $15,000
FY 25-26
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 181
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Court surfacing and appurtenant facilities are in very poor condition and need of renovation. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Construction Cost $300,000
Contract Project Management $20,000
FY 26-27
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 182
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

The building and facilities are in extremely poor condition and need of replacement. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Construction Cost $450,000
Contract Project Management $15,000
FY 29-30
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 183
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Accessible route connecting existing park features will enhance the park for all-ability users. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Design = $30,000
Construction Cost = $273,000
Contract Project Management = $25,000
Construction FY27-28
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 184
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year 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 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Transportation Impact Fee Fund - $ - $ - $ - $ 240,000$ - $ - $ - $ - $ - $ - $ 240,000$ Unfunded - $ - $ - $ - $ - $ 1,440,000$ - $ - $ - $ - $ - $ 1,440,000$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ - $ - $ 240,000$ 1,440,000$ - $ - $ - $ - $ - $ 1,680,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Sycamore Avenue Bicycle and Pedestrian East-West Connector Project Install multiuse pedestrian/bicycle pathway on the north side of Sycamore and Class II bicycle facilities on the south side under I-80/BNSF RR to connect the east and west sides of the City.

I-80 divides the City and safety enhancements are needed on Sycamore so bicyclists and pedestrians have connectivity to the ease and west sides of the City. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Design = $160,000
Construction = $1,440,000
Contract Project Management = $80,000
Funding Future Grants
Timeline TBD, dependent upon funding
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 185
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

The trail is highly used and needs regular maintenance to ensure the surfacing is safe and usable. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Project Cost
Construction Cost = $120,000
Contract Project Management = $12,000
FY 26-27
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 186
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

This work is needed to protect the property above the wall and prevent soil from encroaching onto the Bay Trail.

Project Cost
Construction Cost = $100,000
FY 24-25
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 187
Project Number:

Project Name:

Description:

Justification:

Phase: Funding Source: Prior 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 FY 2033-34 Total Budget Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Env - Reporting & Field
Monitoring Grant Measure J SP - 89,000 89,000 89,000 - - - - - - - 267,000 Env - Conservation Easement Public Benefit Fee Funds - - - - - - - - - - - - Grant Measure J TLC 130,527 - - - - - - - - - - 130,527 Grant WCCTAC STMP Funding 604,503 150,000 150,000 - - - - - - - - 904,503 Grant WCCTAC STMP Funding - - 800,000 - - - - - - - - 800,000 Grant TIRCP - - 1,200,000 1,200,000 - - - - - - - 2,400,000 Grant Garamendi Earmark 850,000 850,000
General Fund - - 670,500 - - - - - - - - 670,500 Unfunded - - 4,250,000 4,250,000 - - - - - - - 8,500,000 General Fund - - 2,329,500 - - - - - - - 2,329,500 Unfunded - - 24,835,319 - - - - - - - 24,835,319 Construction Unfunded - - - 30,162,080 30,162,080 7,540,520 - - - - 67,864,680 Adjustment - - - - - - - - - - - - Total 735,030 1,089,000 7,159,500 32,703,819 30,162,080 30,162,080 7,540,520 - - - - 109,552,029 ROW/Utility Relocations
City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Hercules - The Hub
Design
Environmental mitigation work from previous construction phases is on-going. A funding plan has been created to complete the final design, utility relocations, and construction of the remainder of 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 was successful in securing $2.4M of State TIRCP funds towards final design.

Moving forward, a total of $107.7M is needed to complete the infrastructure for a train stop, of which it is proposed $104.7M be funded with grants.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETCAPITAL IMPROVEMENT PROJECTS 188
Federal Grants - CIP
Fund Summary - Fund 295
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Federal Grants - $ 19,885 $ - -
Interest Income - - - -
Miscellaneous Revenues - - - -
- 19,885 - -
Transfers In - - - -
- 19,885 - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - 492,000 - -
Debt Service - - - -
- 492,000 - -
Transfer Out - - - -
- 492,000 - -
Changes in restricted reserves
Net Annual Activity - $ (472,115) - -
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 2024-25 ANNUAL BUDGET 189
State and Local Grants - CIP
Fund Summary - Fund 296
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
State/Local Grants - $ - $ 502,506 38,500
Interest Income - - - -
Miscellaneous Revenues - - - -
- - 502,506 38,500
Transfers In - - - -
- - 502,506 38,500
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - 193,541 502,506 38,500 Debt Service - - - -
- 193,541 502,506 38,500
Transfer Out - - - -
- 193,541 502,506 38,500
Changes in restricted reserves
Net Annual Activity - $ (193,541) - -
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 2024-25 ANNUAL BUDGET 190
City - Capital Projects
Fund Summary - Fund 300
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Fees - $ - - -
Interest Income - - - -
Miscellaneous Revenues 2,000 - - -
2,000 - - -
General Fund Capital Reserves 450,000 500,000 450,000 2,350,823 452,000 500,000 450,000 2,350,823
Expenditures
Salary and Benefits - - - -
Contractual Services - - - 200,000
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) 45,926 1,288,400 450,000 2,150,823 Debt Service - - - -
45,926 1,288,400 450,000 2,350,823
Transfer Out 310,257 - - -
356,183 1,288,400 450,000 2,350,823
Changes in restricted reserves
Net Annual Activity 95,817 $ (788,400) - -
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 2024-25 ANNUAL BUDGET 191

HERCULES HUB
Fund Summary - Fund 354
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Grant 288,348 $ (46,226)$ 300,000 1,089,000 Interest Income - - - -
Miscellaneous Revenues - - - -
288,348 (46,226) 300,000 1,089,000
Transfers In - - - -
288,348 (46,226) 300,000 1,089,000
Expenditures
Salary and Benefits - - - -
Contractual Services 181,926 - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - (14,003) 300,000 1,089,000 Debt Service - - - -
181,926 (14,003) 300,000 1,089,000
Transfer Out - General Fund (Loss of Revenue) - 50 - - 181,926 (13,953) 300,000 1,089,000
Changes in restricted reserves
Net Annual Activity 106,422 $ (32,273)$ - - 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 2024-25 ANNUAL BUDGET 192

AGENCY FUNDS
CITY OF HERCULES FY 2024-25 ANNUAL BUDGETAGENCY FUNDS
193
Assessment District 05-01 Debt Service
Fund Summary - Fund 382
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Assessment 232,493$ 230,700 $ 229,088 226,873 Interest Income (2,748) 6,758 - -
Miscellaneous Revenues - - - -
229,745 237,458 229,088 226,873
Transfers In - - - -
229,745 237,458 229,088 226,873
Expenditures
Salary and Benefits - - - -
Contractual Services 6,310 6,620 6,700 6,900
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 219,582 222,754 222,388 219,973
225,892 229,374 229,088 226,873
Transfer Out - - - -
225,892 229,374 229,088 226,873
Changes in restricted reserves
Net Annual Activity 3,853$ 8,084 - -
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETAGENCY FUND
194
Taylor Woodrow Maintenance LMOD
Fund Summary - Fund 501
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 73,088 $ 73,088 $
Revenues
Charges for Services - $ - $ - -
Interest Income (578) 1,419 - -
Miscellaneous Revenues - - - -
(578) 1,419 - -
Transfers In - - - -
(578) 1,419 - -
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 (578)$ 1,419 - -
Ending Available Fund Balance 73,088 $ 73,088 $ 73,088 $ 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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETAGENCY FUND
195
Other Post-Employment Benefits (OPEB) and SOMAR
Fund Summary - Fund 511
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance 2,673,351 $ 2,688,751 $ Revenues
Charges for Services - $ - $ - -
Interest Income (332,127) 124,555 60,000 60,000
Miscellaneous Revenues - - - -
(332,127) 124,555 60,000 60,000
Transfers In 60,000 60,000 60,000 60,000
(272,127) 184,555 120,000 120,000
Expenditures
Salary and Benefits 83,637 125,209 84,600 92,475
Contractual Services 15,394 15,045 20,000 20,000
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
99,031 140,254 104,600 112,475
Transfer Out - - - -
99,031 140,254 104,600 112,475
Changes in restricted reserves
Net Annual Activity (371,158)$ 44,301 15,400 7,525 Ending Available Fund Balance 2,673,351 $ 2,688,751 $ 2,696,276 $ (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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETAGENCY FUND
196
Successor Agency
Fund Summary - Fund 600
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Tax Increment (RPTTF) 10,503,145 5,484,664 3,635,370 8,587,154 Interest Income 45,695 77,775 - -
Miscellaneous Revenues 2,104,082 234 - -
12,652,922 5,562,673 3,635,370 8,587,154
Transfers In - - - -
12,652,922 5,562,673 3,635,370 8,587,154
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses 84,471,639 348,384 - 8,587,154
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 8,881,068 2,374,663 3,635,370 -
93,352,707 2,723,047 3,635,370 8,587,154
Transfer Out - - - -
93,352,707 2,723,047 3,635,370 8,587,154
Changes in restricted reserves (1,487,582)
Net Annual Activity (82,187,367)$ 2,839,626 - -
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETPRIVATE PURPOSE TRUST FUND 197

SUCCESSOR AGENCY
SUCCESSOR AGENCY CITY OF HERCULES FY 2024-25 ANNUAL BUDGET 198
Successor Agency
Fund Summary - Fund 600
Fund Description / Budget Highlights
Fund Activity
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Tax Increment (RPTTF) 10,503,145 5,484,664 3,635,370 8,587,154 Interest Income 45,695 77,775 - -
Miscellaneous Revenues 2,104,082 234 - -
12,652,922 5,562,673 3,635,370 8,587,154
Transfers In - - - -
12,652,922 5,562,673 3,635,370 8,587,154
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses 84,471,639 348,384 - 8,587,154
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 8,881,068 2,374,663 3,635,370 -
93,352,707 2,723,047 3,635,370 8,587,154
Transfer Out - - - -
93,352,707 2,723,047 3,635,370 8,587,154
Changes in restricted reserves (1,487,582)
Net Annual Activity (82,187,367)$ 2,839,626 - -
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGETSUCCESSOR AGENCY FUND 199

GLOSARY OF BUDGET TERMS

GLOSSARY OF BUDGET TERMS
CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
200

GLOSSARY OF BUDGET TERMS

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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
201

GLOSSARY OF BUDGET TERMS
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
202

GLOSSARY OF BUDGET TERMS
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.

CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
203

RESOLUTIONS
RESOLUTIONS CITY OF HERCULES FY 2024-25 ANNUAL BUDGET
204

Hercules City CouncilJune 11, 2024

Hercules City Council
June 11, 2024