GENERAL FUND
General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Projection Proposed
Revenues
Taxes
Utility User Tax 3,996,274 4,011,166 3,988,000 4,202,000 Sales Tax 6,192,500 5,753,278 6,296,000 5,890,000 Property Taxes 1,638,581 1,658,630 1,641,000 1,674,000 Franchise Fees 988,108 972,391 979,000 1,382,000 Business Licenses 274,540 292,733 282,000 282,000 Transfer Tax 120,539 90,359 150,000 153,000 Transient Occupancy Tax 30,518 29,590 215,000 245,000 Vehicle License Fee (VLF) and Other
Intergovernmental 2,527,866 2,650,830 2,655,000 2,763,000 Fines & Forefeitures 46,057 34,409 45,000 40,000 Program Revenues
Community Development 246,520 224,004 198,000 292,400 Parks and Recreation 1,423,642 1,648,866 1,466,350 1,649,000 Police 196,189 88,348 115,000 97,000 Public Works 30,776 32,054 31,000 31,000 Other 12,231 6,377 12,000 10,000 Investment Income 564,014 1,412,799 564,000 991,100 Tower & Property Leases 230,556 210,368 235,000 218,000 Cost allocated to other funds 588,529 667,863 786,917 785,968 Transfers In 150,000 156,727 176,556 186,159 Total, Ongoing Revenues 19,257,440 19,940,792 19,835,823 20,891,627 Expenditures
Police 8,430,069 9,043,290 9,124,961 9,635,424 Public Works 417,265 432,333 429,968 443,381 Community Development 408,635 719,579 1,014,244 1,104,239 Parks and Recreation 2,408,847 2,673,550 2,591,807 2,700,746 City Council 329,843 305,915 360,263 356,144 City Manager 491,141 525,815 505,924 553,611 Human Resources 258,427 465,665 418,143 599,922 Legal 193,487 223,043 289,600 255,000 City Clerk 408,679 339,370 502,690 537,496 Finance 1,281,043 1,342,588 1,403,994 1,458,595 Workers Comp/General Liability 1,241,404 1,480,421 1,705,666 1,757,019 Non-Department 260,000 260,000 260,000 260,000 Transfers Out (Debt Service
Obligations) 822,559 799,213 798,457 806,291 Total, Ongoing Expenditures 16,951,399 18,610,782 19,405,717 20,467,868 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
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Projection 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.
Net Annual Activity
Ongoing Operations 2,306,041 1,330,010 430,106$ 423,759$ One-Time Revenues 169,461 731,717 - - One-Time Expenditures (1,644,194) (991,639) (40,000) - Outstanding Encumbrances (626,897)
Annual Surplus (Deficit) 831,308 443,191 390,106 423,759 Transfer to Reserve (per Council Policy)
Operating Reserve 207,827 110,798 97,527 105,940 Section 115 Trust (Pension) 207,827 110,798 97,527 105,940 Capital Improvement Projetcts 415,654 221,595 195,052 211,879 831,308 443,191 390,106 423,759 Operating Reserve:
Beginning Balance 4,014,331 4,326,140 4,610,007$ 4,820,534$ Current Year Contribution 207,827 110,798 97,527 105,940 Interest Earned 103,982 173,069 113,000 148,000 Ending Balance 4,326,140 4,610,007 4,820,534$ 5,074,474$ % of Projected Operating
Expenditures 26% 25% 25% 25%
General Fund
Expenditure by Category
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures by Category
Police
Salaries & Benefits 6,254,106 6,730,648 7,149,757 7,536,154 Contractual Services 924,130 1,089,136 765,700 853,671 Other Operating Expenditures 438,833 433,327 319,600 329,188 Cost Allocation 813,000 790,179 889,904 916,411 8,430,069 9,043,290 9,124,961 9,635,424 Public Works
Salaries & Benefits 52,600 35,457 38,714 40,107 Contractual Services 247,069 252,702 270,283 278,500 Other Operating Expenditures 23,596 54,854 26,997 27,900 Cost Allocation 94,000 89,320 93,974 96,874 417,265 432,333 429,968 443,381 Community Development
Salaries & Benefits 170,314 375,188 577,500 606,924 Contractual Services 145,427 249,835 322,790 378,887 Other Operating Expenditures 5,894 11,779 20,261 21,924 Cost Allocation 87,000 82,777 93,693 96,504 408,635 719,579 1,014,244 1,104,239 Parks & Recreation
Salaries & Benefits 1,660,117 1,847,313 1,792,879 1,879,831 Contractual Services 314,003 423,759 359,700 367,628 Other Operating Expenditures 74,427 95,495 99,600 101,600 Cost Allocation 360,300 306,983 339,628 351,687 2,408,847 2,673,550 2,591,807 2,700,746 City Council
Salaries & Benefits 71,066 75,146 75,625 63,000 Contractual Services 1,231 22,923 41,200 42,400 Other Operating Expenditures 48,546 30,922 49,900 51,400 Cost Allocation 209,000 176,924 193,538 199,344 329,843 305,915 360,263 356,144 City Manager
Salaries & Benefits 270,897 295,895 313,289 331,994 Contractual Services 123,724 132,659 72,500 101,400 Other Operating Expenditures 17,520 23,320 37,400 35,000 Cost Allocation 79,000 73,941 82,735 85,217 491,141 525,815 505,924 553,611 Human Resources
Salaries & Benefits 164,755 124,899 263,425 440,636 Contractual Services 44,550 289,654 83,900 86,400 Other Operating Expenditures 8,122 8,163 21,900 22,500 Cost Allocation 41,000 42,949 48,918 50,386 General Fund
Expenditure by Category
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures by Category
258,427 465,665 418,143 599,922 Legal
Contractual Services 193,487 223,043 289,600 255,000 193,487 223,043 289,600 255,000 City Clerk
Salaries & Benefits 199,918 214,886 244,095 271,048 Contractual Services 100,165 24,306 139,400 143,600 Other Operating Expenditures 22,596 19,212 28,900 29,800 Capital Outlay 5,000 5,000 5,200 5,400 Cost Allocation 81,000 75,966 85,095 87,648 408,679 339,370 502,690 537,496 Finance
Salaries & Benefits 606,452 663,783 680,550 713,338 Contractual Services 251,589 259,902 289,000 297,800 Other Operating Expenditures 262,002 274,337 274,000 282,200 Cost Allocation 161,000 144,566 160,444 165,257 1,281,043 1,342,588 1,403,994 1,458,595 Worker's Compensation/General Liability
Salaries & Benefits 32,199 31,760 34,385 35,619 Contractual Services 1,209,205 1,448,661 1,671,281 1,721,400 1,241,404 1,480,421 1,705,666 1,757,019 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) 102,549 - - - Engie Equipment Lease 226,432 235,897 235,027 245,079 Debt Service - 2020 PFA Lease Revenue
Refunding Bonds
365,949 563,316 563,430 561,212 Other Transfers 127,629 - - - 822,559 799,213 798,457 806,291 Total, Ongoing Expenditures 16,951,399 18,610,782 19,405,717 20,467,868 General Fund
General Fund Projected Reserves
FY 23-24
Reserve Description
Type of
Reserves Actual
Beginning
Balance
Surplus
Allocation
One-Time
Retention
Payment
Interest Income
(Operating
Reserve)
Capital
Improvement
Projects (CIP)
Projected
Ending Balance
Beginning
Balance
Surplus
Allocation
Interest Income
(Operating
Reserve)
Capital
Improvement
Projects (CIP)
Replace 35
Police Radios
Projected
Ending Balance
Section 115 Trust (Pension) Restricted $2,391,824 $2,391,824 97,527 $2,489,351 $2,489,351 105,940 $2,595,291 General Fund Set-Aside:
Former RDA Project Negative Cash BalanceRestricted 3,400,000 3,400,000 3,400,000 3,400,000 3,400,000 Programs and Projects Unrestricted 4,200,238 4,200,238 (337,000) 3,863,238 3,863,238 (143,647) 3,719,591 General Fund Reserve or Designations:
Reserve for Earthquake Insurance DeductibleDesignated 500,000 500,000 500,000 500,000 500,000 Reserve for Partial repayment of CalHFA loanDesignated 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Reserve for Hercules HUB (Local Match)Designated 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Reserve for Capital Projects Designated 6,228,013 6,228,013 195,052 (2,350,823) 4,072,242 4,072,242 211,879 (2,915,720) 1,368,401 Reserve for Reusable Bags (remaining) Designated 13,930 13,930 13,930 13,930 13,930 Reserve for PEG Fees Designated 274,000 274,000 274,000 274,000 274,000 Reserve for Economic Uncertainty (25% target)Unrestricted 4,610,007 4,610,007 97,527 113,000 4,820,534 4,820,534 105,940 148,000 5,074,474 Total, General Fund Reserves $27,118,012 $27,118,012 $390,106 ($337,000) $113,000 ($2,350,823)$24,933,295 $24,933,295 $423,759 $148,000 ($2,915,720) ($143,647) $22,445,687 Projected Annual Activities:
Coucil Reserve Policy (Surplus Allocation)
25% to Operating Reserve for Economic Uncertainty 97,527 105,940 25% to Section 115 Trust (Pension) 97,527 105,940 50% to Capital Projects 195,052 211,879
$390,106 $423,759
One-Time Employee Retention Pay
Police Officer's Association (POA) (165,000)
Teamsters (124,000)
Non-Represented (48,000)
($337,000)
Interest Income (Operating Reserve) $113,000 $148,000
Capital Improvement Projects (CIP) ($2,350,823) ($2,915,720) Replace 35 Police Radios ($143,647)
FY 24-25 (Budget) FY 25-26 (Proposed)
General Fund
Five-Year Financial Forecast
Description / Highlights
Fund Activity
Year 1 Year 2 Year 3 Year 4 Year 5
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Actual Actual Budget Proposed Forecast Forecast Forecast Forecast Forecast Revenues
Taxes
Utility User Tax 3,996,274 4,011,166 3,988,000 4,202,000 4,381,000 4,453,000 4,621,000 4,796,000 4,989,000 Sales Tax 6,192,500 5,753,278 6,296,000 5,890,000 6,038,000 6,189,000 6,344,000 6,502,000 6,665,000 Property Taxes 1,638,581 1,658,630 1,641,000 1,674,000 1,707,000 1,741,000 1,776,000 1,812,000 1,848,000 Franchise Fees 988,108 972,391 979,000 1,382,000 1,409,000 1,436,000 1,464,000 1,492,000 1,521,000 Business Licenses 274,540 292,733 282,000 282,000 284,000 290,000 296,000 302,000 308,000 Transfer Tax 120,539 90,359 150,000 153,000 156,000 159,000 162,000 165,000 168,000 Transient Occupancy Tax 30,518 29,590 215,000 245,000 246,000 247,000 248,000 249,000 250,000 Vehicle License Fee (VLF) and Other
Intergovernmental 2,527,866 2,650,830 2,655,000 2,763,000 2,818,000 2,874,000 2,931,000 2,989,000 3,049,000 Fines & Forefeitures 46,057 34,409 45,000 40,000 41,000 42,000 43,000 44,000 45,000 Program Revenues
Community Development 246,520 224,004 198,000 292,400 298,000 302,000 306,000 310,000 314,000 Parks and Recreation 1,423,642 1,648,866 1,466,350 1,649,000 1,682,000 1,715,000 1,748,000 1,782,000 1,816,000 Police 196,189 88,348 115,000 97,000 98,000 99,000 100,000 101,000 102,000 Public Works 30,776 32,054 31,000 31,000 32,000 33,000 34,000 35,000 36,000 Other 12,231 6,377 12,000 10,000 10,000 10,000 10,000 10,000 10,000 Investment Income 564,014 1,412,799 564,000 991,100 1,011,000 1,031,000 1,052,000 1,073,000 1,094,000 Tower & Property Leases 230,556 210,368 235,000 218,000 223,000 228,000 233,000 238,000 243,000 Cost allocated to other funds 588,529 667,863 786,917 785,968 758,000 781,000 804,000 827,000 842,000 Transfers In 150,000 156,727 176,556 186,159 150,000 150,000 150,000 150,000 150,000 19,257,440 19,940,792 19,835,823 20,891,627 21,342,000 21,780,000 22,322,000 22,877,000 23,450,000 Expenditures
Police 8,430,069 9,043,290 9,124,961 9,635,424 9,922,000 10,220,000 10,526,000 10,841,000 11,163,000 Public Works 417,265 432,333 429,968 443,381 689,000 707,000 725,000 743,000 763,000 Community Development 408,635 719,579 1,014,244 1,104,239 1,138,000 1,172,000 1,207,000 1,243,000 1,280,000 Parks and Recreation 2,408,847 2,673,550 2,591,807 2,700,746 2,771,000 2,844,000 2,919,000 2,995,000 3,073,000 City Council 329,843 305,915 360,263 356,144 365,000 375,000 385,000 396,000 407,000 City Manager 491,141 525,815 505,924 553,611 569,000 583,000 597,000 611,000 626,000 Human Resources 258,427 465,665 418,143 599,922 618,000 634,000 650,000 666,000 683,000 Legal 193,487 223,043 289,600 255,000 262,000 270,000 278,000 286,000 294,000 City Clerk 408,679 339,370 502,690 537,496 551,000 566,000 581,000 596,000 612,000 Finance 1,281,043 1,342,588 1,403,994 1,458,595 1,498,000 1,540,000 1,584,000 1,628,000 1,674,000 Workers Comp/General Liability 1,241,404 1,480,421 1,705,666 1,757,019 1,791,000 1,827,000 1,863,000 1,899,000 1,936,000 Non-Department 260,000 260,000 260,000 260,000 62,000 64,000 66,000 68,000 70,000 Transfers Out (Debt Service Obligations)822,559 799,213 798,457 806,291 808,000 820,000 832,000 845,000 853,000 16,951,399 18,610,782 19,405,717 20,467,868 21,044,000 21,622,000 22,213,000 22,817,000 23,434,000 Net Operating Results
Ongoing Operations $2,306,041 $1,330,010 $430,106 $423,759 $298,000 $158,000 $109,000 $60,000 $16,000 One-Time Revenues 169,461 731,717 - - - - - - - One-Time Expenditures (1,644,194) (991,639) (40,000) - - - - - - Outstanding Encumbrances (626,897)
Net Operating Surplus (Deficit) $831,308 $443,191 $390,106 $423,759 $298,000 $158,000 $109,000 $60,000 $16,000 Note: CalHFA Loan Balance Payment (One-Time) ($3,750,000) ($1,600,000) Operating Reserve:
Beginning Balance $4,014,331 $4,326,140 $4,610,007 $4,820,534 $5,074,474 $5,226,474 $5,383,474 $5,572,474 $5,754,474 Current Year Contribution $207,827 110,798 97,527 105,940 27,000 15,000 4,000 Interest Earned $103,982 173,069 113,000 148,000 152,000 157,000 162,000 167,000 173,000 Ending Balance $4,326,140 $4,610,007 $4,820,534 $5,074,474 $5,226,474 $5,383,474 $5,572,474 $5,754,474 $5,931,474 % of Projected Operating Expenditures 26% 25% 25% 25% 25% 25% 25% 25% 25% (1) CalHFA Loan due on August 2026 and April 2027.
(2) Applied 3% COLA annually.
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.