Annual Proposed BudgetFiscal Year (FY) 2025-26
City Council Meeting
April 22, 2025
1 Budget Discussion
Council priorities and multi-year goals
Overall general assumptions applied - Baseline
Significant budget increases and budget impact of the following increases General Fund
Non-General Fund programs
2 Council’s Priorities and Multi-Year Goals
3 Goal #1: Advance the development of the Hercules Hub
Goal #2: Strengthen the city's fiscal sustainability
Goal #3: Enhance transparency and communication
Goal #4: Continue investing in a skilled and dedicated team at City Hall Goal #5: Strategically plan and fund major infrastructure projects Goal #6: Develop a comprehensive land-use strategy.
Goal #7: Formulate a detailed economic development strategy
Overall Assumptions Used(Baseline)
4 CalPERS Unfunded Actuarial Liability (UAL)
5 Funding Ratio: 74%
Significant Budget Increases and budget impact
6 General Fund Analysis
General Fund
Revenue Estimates
Expenditures Projections
Projected Net Annual Results
Five Year Forecast
7 General FundRevenue Estimates
8 General FundExpenditure Projections
Salaries and benefits – accounts for almost 60% of total General Fund expenses.
The General Fund expenditures are projected to increase by 5% compared to the prior fiscal year budget. 9 General FundProjected Annual Operating Results
10 General FundFive-Year Forecast
11 Non-General FundBudget Highlights
12 Sewer Enterprise FundBudget Highlights
The Sewer Enterprise Fund pays for the sewer system’s operations, maintenance, and capital improvement FY 25-26 operating budget is estimated to be:
$4.6 million in ongoing operating expenditures;
$2 million in debt service obligation; and
$636K in capital improvements projects
The City collects approximately $6 million a year in service charges from over 8,400 connection The City is also conducting a sewer health study to carefully assess and understand the City’s utility system and develop a tailored approach that will best serve the needs of the sewer fund. 13 Internal Service Funds (ISF)
14 Debt Service Obligations
15 Capital Improvement Projects (CIP)Funding Sources
16 Questions & Comments
17