ANNUAL
BUDGET
CITY OF HERCULES, CALIFORNIA
2025-2026
FISCAL YEAR
BUDGET 2019-21CITY OF HERCULES FY 2025-26 ANNUAL BUDGET TABLE OF CONTENTS About Hercules ......................................................................................................... 1 Letter from the City Manager .................................................................................... 3 Budget Awards ........................................................................................................10 Budget at a Glance ..................................................................................................11 Budget Process .......................................................................................................15 Statement of Financial Principles and Policies ....................................................... 21 Local City Budget and Demographic Comparison .................................................. 24 Organizational Chart ............................................................................................... 25 Citywide Budget
Authorized Full-Time Positions .......................................................................... 27 Labor Allocation ................................................................................................. 29 All Fund Summary ............................................................................................. 31 Citywide Expenditures ....................................................................................... 33 Citywide Revenues ............................................................................................ 34 Summary of Transfers ....................................................................................... 35 FY 2025-26 List of Additional Budget Requests ..................................................... 37 Department Summaries
City Council ........................................................................................................ 40 City Manager ...................................................................................................... 43 Human Resources .............................................................................................. 49 City Clerk ............................................................................................................ 51 City Attorney ....................................................................................................... 54 Finance ............................................................................................................... 57 Police .................................................................................................................. 61 Community Development .................................................................................... 64 Public Works ....................................................................................................... 67 Parks and Recreation ......................................................................................... 70 Non-Departmental .............................................................................................. 73 Fund Summaries
General Fund ..................................................................................................... 78 Special Revenue Funds ..................................................................................... 92 Sewer Enterprise Funds ................................................................................... 121 Internal Service Funds ..................................................................................... 124 Debt Service Funds .......................................................................................... 130 Capital Project Funds ....................................................................................... 144 Agency Funds .................................................................................................. 198 Successor Agency Fund .................................................................................. 202 Glossary of Budget Terms ................................................................................... 204 Resolutions .......................................................................................................... 208 5 Miles
Hercules
Napa
San Francisco Oakland
Richmond
Vallejo
Martinez
4 80
80 San
Pablo
Bay
Welcome: The City of Hercules
Annual Budget FY 2025-2026
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 2025-26 ANNUAL BUDGET ABOUT HERCULES
HERCULES CITY COUNCIL
Mayor
Dion Bailey
Vice Mayor
Chris Kelley
Council Members
Alexander Walker-Griffin
Dilli Bhattarai
Chris Kelley
Tiffany Grimsley
EXECUTIVE LEADERSHIP TEAM
City Manager
Dante Hall
City Attorney
Christie Crowl
City Clerk
Eibleis Melendez
Finance Director
Edwin Gato
Public Works Director
Glenn Dombeck
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 26,063 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 2025-26 ANNUAL BUDGET ABOUT HERCULES
HERCULES
AT WORK
FY 2023/204
13,800
Total City Labor Force
3,299
Total Employed by
Top 10 Employers, 2023-24
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
Dennis Esselsagoe
Commissioners
Cedric Whigham
Edward Ulle
Janet Stallman
Sam Ahmad
Rupinder Sandhu
2 The City Manager’s message provides an
overview of the essential components of the
budget. The memo begins with a summary
of key highlights, followed by a detailed
analysis of significant points categorized by
funds. City Council members will receive
comprehensive budget workbooks, and the
complete budget will be accessible on the
City’s website.
The City operates under a fiscal operating
budget. The Annual Budget presented in this
report seeks to balance one-time investments
with ongoing projects and long-term financial
stability strategies. It is designed to meet the
needs of the community while considering
the City’s current and anticipated financial
resources. The proposed budget reflects the
community’s long-term vision, strategic
objectives, and priorities.
On May 28, 2024, the City Council formally
adopted the Hercules City Council Strategic
Goals for the period of 2024-2026. This
pivotal decision establishes a comprehensive
framework for the Council’s priorities and
outlines multi-year objectives designed to
enhance the well-being of the community.
The goals are as follows:
Goal #1: Promote the development of the
Hercules Hub to create a vibrant center
for community engagement and economic
activity.
Goal #2: Enhance the city’s fiscal
sustainability through prudent financial
management, ensuring long-term economic
viability.
Goal #3: Improve transparency and
communication within the community,
fostering a culture of openness and
collaboration among residents and city
officials.
Goal #4: Continue investing in a skilled and
dedicated workforce at City Hall to ensure
effective governance and high-quality service
delivery.
Goal #5: Strategically plan and secure
funding for major infrastructure projects to
enhance connectivity and improve the quality
of life for all residents.
Goal #6: Develop a comprehensive land-
use strategy that promotes responsible
development while preserving the distinct
character of the neighborhoods.
Goal #7: Formulate a detailed economic
development strategy to attract new
businesses and stimulate local employment
opportunities.
The City Manager’s proposed annual budget
is carefully aligned with this commitment
to long-term financial stability. It includes
detailed revenue estimates and expenditure
appropriations across various funds, such
as the General Fund, other restricted funds,
sewer services, debt service, and internal
service funds. This budget comprehensively
addresses all dimensions of City operations,
encompassing general functions, capital
investments, and debt obligations.
BUDGET 2019-21CITY OF HERCULES FY 2025-26 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 the Recommended Fiscal Year 2025-26 Annual Operating Budget and Fiscal Years 2025-26 through 2034-35 Capital Improvement Program (CIP).
The budget documents are the culmination of collaborative efforts among numerous team members, who have worked together to align resources with the priorities set forth by the City Council and the community, all while ensuring fiscal responsibility. In executing the Council’s budget, our team is dedicated to promoting our core organizational values: teamwork, customer service, innovation, resilience in facing challenges, and professional development. I wish to extend my heartfelt appreciation to all individuals involved for their commitment to improving the community we serve. Collaborating with such a dedicated and community-oriented team of professionals is truly a privilege. 3 LETTER FROM THE CITY MANAGER
Annual Budget Summary
The City is committed to delivering a wide
array of services to the Hercules community,
resulting in a budget that is multifaceted
and complex, supported by various funding
sources. These funding sources encompass
the General Fund, Special Revenue Funds,
Capital Funds, Debt Service, Sewer
Enterprise Fund, and Internal Service Funds.
It is important to note that the majority of
these funds, aside from the General Fund,
are subject to restrictions. Collectively, these
funds comprise the citywide budget covering
both operating and capital expenditures. A
comprehensive breakdown of revenue and
expenditure for all funds is available in the
financial summary section of the budget
document.
The City Manager’s recommended annual
budget is consistent with the Council’s
commitment to sustaining long-term
financial stability. This budget presents
estimated revenues and expenditures for
the General Fund, other restricted funds,
sewer operations, debt service, and internal
service funds. It includes provisions for
general operations, debt management, capital
projects, and internal transfers that are
essential for all City programs and functions.
Additionally, the fund summaries and
financial schedules illustrate prior year actual
results in conjunction with the proposed
budget for Fiscal Year 2025-26 as compared
to the previous year’s budget. The subsequent
categories outline the foundational
assumptions utilized as a baseline for these
estimations.
Salaries and Benefits
Labor represents the most significant
component of our overall expenses,
comprising nearly 60% of total expenditures.
This extensive category includes direct
compensation, such as wages and salaries,
and critical benefits, including comprehensive
health insurance, robust retirement plans, and
associated labor costs. The following section
delineates the key assumptions that have been
meticulously considered in estimating the
financial implications of salaries and benefits:
Base Salary
To address costs associated with personnel
services, a preliminary wage increase of
3% has been incorporated. This increase is
contingent upon ongoing labor negotiations
with various employee groups.
Retirement Plans
Normal Cost: The projected normal cost
rates for the PERS Miscellaneous and Public
Safety classifications have been determined
through a thorough actuarial valuation
utilizing data as of June 30, 2023, specific
to the City’s retirement plans conducted
by CalPERS. This comprehensive analysis
is essential for establishing the minimum
required contributions for the fiscal year
2025-2026. The term “normal cost” refers to
the annual amount, expressed as a percentage
of payroll, necessary to fund the pension
benefits accrued by current employees
during the fiscal year. Additionally, the
accompanying table provides an overview of
the increases in contribution rates, making
a clear comparison to the previous year’s
budget. This information underscores the
financial adjustments necessary to sustain the
integrity of our retirement systems, which
is critical for policymakers and stakeholders
engaged in fiscal planning and management.
Unfunded Actuarial Liability: The
projected contribution amounts related
to the unfunded actuarial liability for
the PERS Miscellaneous and Public
Safety classifications have been similarly
determined through a comprehensive
actuarial valuation using data as of June
30, 2023. This detailed analysis is vital
for establishing the minimum required
contributions for the fiscal year 2025-2026.
The unfunded actuarial liability (UAAL)
denotes the disparity between the total
cost of promised pension benefits and the
assets available to fulfill those obligations.
It indicates a shortfall in the pension fund,
revealing that the assets are insufficient to
meet all promised payments to current and
future retirees. A significant UAAL may
imply considerable financial pressure on the
pension system, potentially necessitating
increased contributions from employers,
including cities, counties, or states, to address
the shortfall. At present, the City’s funding
ratio stands at approximately 70%.
Employer-Sponsored Health Insurance
Employer-sponsored health insurance,
encompassing vital medical, dental, and
vision coverage, is expected to experience
a modest 3% increase in premium costs
compared to the fiscal year 2024-25 Kaiser
rate. This projection reflects current trends
in healthcare expenses and reinforces our
commitment to providing essential health
benefits to employees and their families while
navigating the complexities of the healthcare
landscape.
Other Expenditures
According to prevailing economic trends,
including the Consumer Price Index (CPI)
for the San Francisco Area as of February
2025, all other expenditures are anticipated to
increase by 3%.
City departments have submitted additional
funding requests that exceed their baseline
budgets to enhance service delivery, comply
with legislative mandates, and execute
special projects within the budgetary
framework. These various funding requests
were presented to the Council as part of the
Proposed Budget for Fiscal Year 2025-26 and
are summarized as follows:
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
4 The City’s annual budget is an essential
planning instrument that effectively aligns
community needs with the resources
available for service delivery. These critical
services include public safety through
the police department, park recreational
opportunities, community development
initiatives, essential public works projects,
and efficient administrative operations. This
comprehensive budget provides a detailed
financial strategy for the upcoming fiscal year,
featuring a five-year forecast for the General
Fund. This forecast allows for thoughtful
anticipation of future needs and opportunities
that will promote growth and enhance the
quality of life for all residents.
As the City develops the FY 25-26 annual
budget, we invite community members to
contribute their perspectives on the most
significant priorities to residents, businesses,
and other stakeholders. We aim to create
a budget that ensures the City’s financial
sustainability while upholding the delivery of
services that our community values.
The City utilizes fund accounting to ensure
compliance with financial regulations and
to exhibit transparency in its financial
management. A fund is a collection of
related accounts specifically organized to
manage resources allocated for activities or
objectives. In the Analysis section of this
report, readers will find comprehensive and
detailed information regarding the various
categories of funds, which underscore their
unique purposes and financial implications.
This section thoroughly presents information
on the following fund categories:
I. General Fund Revenue Estimates
II. General Fund Expenditures
Projections
III. General Fund Projected Net Annual
Result
IV. General Fund Reserves
V. General Fund Five-Year Forecast
VI. Non-General Fund Programs
General Fund Budget
The General Fund functions as the primary
operating fund of the City, providing essential
financial resources for a wide range of
services. It receives funding from multiple
sources, including property taxes, sales
taxes, business licenses, fines, forfeitures,
and intergovernmental revenue. This fund is
critical for supporting key services such as
law enforcement, parks, and recreation, public
works—which includes the maintenance
of streets and facilities—and fundamental
government functions like administration and
finance.
In contrast to funds earmarked for specific
purposes, such as water and sewer projects
or capital improvements, the General
Fund is allocated for a broad spectrum of
City operations. Its importance cannot be
overstated, as it guarantees the consistent
delivery of essential services and empowers
the City to respond effectively to unforeseen
events and economic variations.
The General Fund revenues for Fiscal Year
2025-2026 are projected to increase by
approximately 5% compared to the audited
actuals for Fiscal Year 2023-2024, primarily
due to the revised Franchise Fee from
Republic Services.
The foundation of the General Fund revenues
is composed of several essential tax sources,
including the Utility User’s Tax (UUT), Sales
Tax, Property Tax, Real Property Transfer
Tax (RPTT), and Transient Occupancy Tax
(TOT), among others. The interdependence
of these key revenue streams is crucial;
should one or more of these vital contributors
cease operations within the City of Hercules,
it could result in a significant decline in
revenue. Such a decrease would threaten
our financial stability and compromise the
availability of critical programs and services
for the community. This emphasizes the
importance of maintaining a stable and
diverse revenue base to ensure we can
continue to meet the needs of our residents
effectively.
The General Fund monitors the sources
and applications of resources primarily
determined by the City Council. Its purpose
is to facilitate the provision of activities,
programs, and services the community
identifies as essential and desirable.
Expenditures from the General Fund are
strategically allocated to enhance public
safety, maintain public infrastructure through
comprehensive public works initiatives,
promote community development, and
enrich recreational and park opportunities.
In addition, the fund underpins essential
administrative functions, ensuring that the
City operates efficiently and effectively and
addresses the needs of its citizens.
Based on the assumptions previously outlined,
the general fund’s ongoing expenditures
are projected to increase by 5% relative to
the budget of the previous fiscal year. This
projection ensures sufficient funding for
essential services and responsibilities.
The General Fund is projected to conclude
the fiscal year with positive operating results
totaling $423,000, along with an operating
reserve of $5 million. This reserve constitutes
25% of the overall General Fund budget,
reflecting effective financial management
practices and ensuring a robust foundation for
future fiscal planning.
General fund reserves, commonly known
as rainy day funds, are financial allocations
established by governments to address
unforeseen expenditures or economic
downturns. These reserves serve as critical
financial buffers, primarily intended for
one-time, unbudgeted expenses or to manage
various financial risks. The fundamental
purpose of creating a general fund reserve is
to enhance economic stability by effectively
addressing unexpected costs and mitigating
the impact of financial uncertainties. The
following provides an overview of the general
fund reserves, including the types of reserves
and the projected ending balance for the fiscal
year 2025-26.
A detailed breakdown of the General
Revenues and Expenditures is included in the
General Fund section of the budget book.
LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Restricted
Section 115 Trust (Pension) $2,595,291
Former RDA Project Negative
Cash Balance
$3,400,000
Designated
Earthquake Insurance
Deductible
$500,000
Partial Repayment of
CalHFA Loan
$2,500,000
Hercules Hub
(Local Match Requirement)
$3,000,000
Capital Improvement Projects
(CIP)
$1,360,401
Reusable Bags $13,930
Public E
ducation and
Government (PEG) Fees
$274,000
Unrestricted
Economic Uncertainty
or Operating Reserve
$5,074,474
Set-Aside for Programs
and Projects
$3,670,626
Total, General Fund
Reserves
$22,388,722
GENERAL FUND RESERVES OVERVIEW
5 General Fund Five-Year Forecast
The Five-Year Forecast comprehensively
assesses current and long-term financial
conditions, including revenues, expenditures,
fund balances, and operating reserves. Its
primary purpose is to offer the City Council
and the broader community an economic
perspective while identifying critical issues
that may warrant consideration during the
annual budget development.
It is crucial to recognize that a forecast
differs from a budget. The Five-Year
Forecast is a strategic tool that anticipates
future financial conditions based on
specific assumptions. Should future deficits
be expected, the forecast presents an
opportunity to take corrective actions to
uphold financial stability.
This analysis focuses on the City’s General
Fund, the primary operating budget for tax-
supported municipal services. Implementing
long-range financial forecasting empowers
the City to make informed decisions
that facilitate the ongoing sustainability
of essential community services. It is
recommended that this plan be reviewed and
updated annually. As indicated in Attachment
5, the General Fund can accommodate the
additional ongoing costs outlined in the
proposed budget.
Furthermore, the five-year forecast
incorporates the assumption of a one-
time full repayment of all CalHFA loans,
as agreed upon on October 18, 2013.
Fortunately, sufficient funds are available in
the operating reserve to facilitate these loan
repayments.
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 2025
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%.
Special Revenue funds
Special revenue funds are designed to track
and manage revenues that are designated for
specific programs or projects. This approach
ensures transparency and accountability in
how these funds are utilized. These revenues
often come from grants or other specific
funding sources that support particular
purposes, such as transportation, building
permit services, and various restricted
programs.
Because these funding sources are
restricted, it is necessary to track revenues
and expenditure separately from the City’s
primary operating fund, known as the
General Fund. There is currently enough
funding to complete existing projects and
programs; however, the initiation of new
programs or projects will depend on the
availability of future funding sources.
It’s important to highlight Victoria by the
Bay Lighting and Landscaping Assessment
District (LLAD) is projected to end the fiscal
year with significant deficits. City staff are
actively working on a comprehensive strategy
to address the deficit in Victoria by the Bay
LLAD in line with the Council’s direction.
The following are funds under the Special
Revenue category:
Asset Seizure (Fund #101): The City
has established a forfeited assets fund
designed to manage the financial proceeds
obtained from drug-related assets seized
by the police. This fund is essential for
accounting for the monetary amounts and
property confiscated during law enforcement
operations addressing illegal drug activities.
The funds will remain in custody until a
final court determination is made, ensuring
compliance with legal standards. Moreover,
these resources are strictly restricted for use
in activities pertaining to law enforcement.
AB 3229 COPS Program (Fund #201):
The California State Legislature initiated the
Citizens Options for Public Safety (COPS)
program, a vital initiative designed to
enhance front-line law enforcement services
across the state. Each year, the City benefits
from approximately $150,000 in funding
through this program. These essential funds
are seamlessly integrated into the General
Fund, providing crucial financial support that
helps offset the costs associated with police
services. This program plays a significant
role in ensuring the safety and security of
the community by bolstering the resources
available to law enforcement agencies.
Landscaping and Lighting Assessment
Districts (LLADs): This funding is
designated exclusively for landscaping
and lighting maintenance, as well as
capital improvements in city parks, along
major roads, and within each of the five
Landscaping and Lighting Assessment
Districts (LLADs). The five LLADs
encompass approximately 8,500 parcels.
An annual assessment must be submitted to
the county and included on the county tax
rolls yearly. An engineer’s report outlining
the budget and assessment amount must be
prepared to support this. Staff are working
on the assessment and budget, which will
be included in the budget documents once
finalized.
Stormwater (Fund #231): Stormwater funds
are established to address the costs associated
with managing stormwater runoff. This
encompasses activities such as regulatory
compliance, planning, maintenance, capital
improvements, and infrastructure repairs.
Typically, these funds are financed through
user fees, ensuring that those who benefit
from stormwater management services
contribute to their expenses. The activities
supported by the Stormwater fund are
currently exhibiting a favorable trend and
are anticipated to continue improving as
the years progresses. Staff will persist in
monitoring and analyzing the financial health
of the fund to ensure adherence to the Clean
Water Act and other regulatory requirements.
Development Impact Fees (DIF): Under
the California Mitigation Fee Act (AB
1600), municipalities and counties have
the authority to implement Development
Impact Fees (DIFs). This legislative
provision allows local governments to
levy fees on new development projects to
finance public infrastructure and facilities,
improvements, and community amenities
commensurate with the development’s
impacts. These fees ensure that the financial
responsibilities associated with new
developments are appropriately allocated
LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
6 LETTER FROM THE CITY MANAGER
and that infrastructure development aligns
with community needs. It is essential to note
that DIFs are not permissible for covering
operational and maintenance expenses,
nor can they be utilized to address existing
capital or infrastructure deficiencies. Their
primary objective is to mitigate the effects of
new development projects on public facilities
and services. The City DIF funds are
categorized as follows and their respective
available fund balances projected in FY 25-
26:
• Public Facilities (Fund #241): $160,534
• Community Development Tax Fund:
$10,478
• Other Development Fee (Fund #243):
$76,657
• Police Facilities (Fund #244): $81,366
• Parks & Recreation (Fund #247): $8,276
• Public Benefit Fee (Fund #249):
$1,039,867
• Transportation Facilities (Fund #261):
$477,493
State Gas Tax (Fund #262): A gas tax fund,
or Highway Users Tax Account (HUTA), is
a dedicated fund that receives revenue from
taxes on gasoline and diesel fuel, which is
then used to finance transportation-related
projects like road construction, maintenance,
and public transit. The primary purpose of
a gas tax fund is to ensure that the revenue
generated from fuel consumption is used to
maintain and improve the infrastructure that
supports transportation, including roads,
bridges, and public transportation systems.
The revenue for these funds comes from
excise taxes (a tax on the sale of a specific
good, in this case, gasoline and diesel fuel)
levied on the sale of these fuels. The revenue
estimate for FY 25-26 is $738K.
Measure J Street Fund (Fund #263): The
Measure J Fund is a specialized revenue
fund established to account for the income
generated by the County’s ½ cent sales tax
measure. This fund is exclusively designated
for initiatives related to street maintenance
and improvements, functioning in a manner
analogous to the Gas Tax. The resources
allocated to the Measure J Fund are intended
solely for purposes that enhance and preserve
the integrity of the County’s transportation
infrastructure. The revenue estimate for FY
25-26 is $493K.
SB1 Road Maintenance and Rehabilitation
Account (Fund #268): Senate Bill (SB)
1, Chapter 5, Statutes of 2017, was a
transformative piece of legislation aimed
at revitalizing the aging infrastructure of
California’s transportation systems. This
bill established the Road Maintenance
and Rehabilitation Program (RMRP), an
initiative designed to combat the significant
backlog of maintenance needs affecting both
the extensive State Highway System and
the intricate local street and road networks.
Furthermore, the legislation created the Road
Maintenance and Rehabilitation Account
(RMRA), a dedicated funding source to
support these vital efforts.
A portion of the funds generated through
the RMRA will be distributed according
to a specified formula to eligible cities
and counties, as stipulated in Streets
and Highways Code section 2032(h).
This funding is crucial for executing
essential maintenance tasks, undertaking
comprehensive rehabilitation projects, and
implementing critical safety enhancements
on local streets and roads. Through this
program, communities will be better
equipped to maintain their infrastructure,
ensuring safer and more reliable
transportation for all residents. The revenue
estimate for FY 25-26 is $684K.
Solid Waste and Recycling (Fund #291):
The funding is from the rate differential
between the fees collected by Richmond
Sanitary Services (RSS) per their franchise
agreement with Hercules and the “new”
fees for the post-collection agreement
negotiated in 2013 with the West Contra Cost
Integrated Waste Management Authority
(WCCIWMA), of which Hercules is a
member agency (RSS’s monthly bills to
residents and businesses includes both
the collection service component and
post-collection service component). The
differential occurred when lower post-
collection fees were adopted in late 2013
due to the payoff of the bond financing for
the Integrated Resource Recovery Facility
that was constructed in Richmond. In
January 2016, the City Council authorized
funding for several important initiatives
aimed at enhancing public infrastructure
and environmental sustainability. These
initiatives include repairs to streets impacted
by garbage trucks, comprehensive street
sweeping, the removal of debris from the
stormwater system, and the enforcement of
the plastic bag ban. FY 25-26, an estimated
ending available balance is $293K.
Water Quality Retention Basin (Fund
#387): This fund is established to collect
revenues generated from the Property Tax
Special Assessment associated with the
creation of the City of Hercules Community
Facilities District No. 2017-01, formed on
April 11, 2017. The development projects
at Bayfront and Muir Pointe necessitated
the construction of a water quality
detention basin to manage and mitigate
runoff produced by the enhancements
made to support these developments. The
establishment of this Community Facilities
District (CFD) provides a structured
funding mechanism to address the ongoing
maintenance costs linked to the water
quality detention basin, thus ensuring both
environmental protection and community
health within the district. FY 25-26
estimated ending available balance is $315K.
Regional Water Quality (Fund #521):
This fund accounts for 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 25-26 estimated ending available
balance is $55K.
BART Park & Ride (Fund #266): This
fund is designated for the maintenance of
BART’s park-and-ride facility, ensuring its
operational integrity and user satisfaction.
BART will finance the maintenance expenses
through a revolving fund mechanism, thereby
preventing any out-of-pocket expenditures for
the City. This approach facilitates consistent
upkeep and fosters an efficient transit
environment for all commuters.
General Plan Update Fee and Building
Training Fee (Fund #267): A general
plan update fee is a fee charged by local
jurisdictions in California to recover costs
associated with preparing, updating, and
revising their general plans and associated
elements, which are blueprints for meeting a
community’s long-term vision. These fees are
intended to cover the expenses incurred by
local agencies in developing and maintaining
their general plans, which are required by
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
7 LETTER FROM THE CITY MANAGER
California law to address various aspects
of community development, including land
use, circulation, housing, and more. FY
25-26 proposed budget of $1.3 million is to
acquire services of a consultant to develop a
comprehensive updates to the City’s general
plan land use, economic development, open
space & conservation, and noise elements,
and related updates. The projected ending
available balance for FY 25-26 is $94K.
Successor Housing: On February 27,
2024, the City Council adopted a resolution
designating the City as the Housing
Successor to the Hercules Redevelopment
Agency. This designation allows the City
to effectively manage $4.3 million in
outstanding loans and access $5.3 million
in Housing Funds. These resources will be
utilized to cover administrative expenses
and support the development of affordable
housing, particularly for households classified
as extremely low to low income.
Furthermore, on January 28, 2025, the
City Council approved a resolution
establishing the policies and procedures
manual for the administration of Hercules
Successor Housing loans. This manual is
designed to ensure consistency and fairness
in the administration and oversight of
approximately 41 collectible loans issued by
the former Redevelopment Agency, which
had a total collectible loan balance of $3.8
million as of June 30, 2024.
Debt Service Funds
The Debt Service Fund is responsible for
accumulating financial resources to cover the
payment of principal, interest, and related
costs for general long-term debt, primarily
funded by taxes levied by the City. Debt is
issued as necessary to support infrastructure
improvements.
CalHFA Loans
The City received loans from CalHFA
through the Residential Development Loan
Program (RDLP) and the Housing Enabled
by Local Partnerships (HELP) to build the
Sycamore North project, also known as the
Aventine development. The City expected
income from leasing the residential units to
be enough to repay these loans. However,
the actual cost to finish the project was much
higher than the budget set by the City and
the Redevelopment Agency. As a result, the
project failed and was put up for sale to find
a qualified developer who could offer the
best deal. Now, the City is responsible for
repaying the loans.
In 2012, City staff talked to CalHFA and
negotiated new loan terms after several
meetings. They extended the payment
deadline and lowered the interest rate from
3% to 1.5%. The updated loan agreements
for CalHFA Loan No. HELP-080604-03
and RDLP-060506-01 were signed on April
11, 2005, and February 15, 2007. These
agreements will end on April 11, 2027, and
August 15, 2026. The remaining loan balance
must be paid in full by the contract expiration
dates.
Capital Improvement Projects (CIP)
Each year, the staff prepares and presents a
Capital Improvement Program (CIP) budget
to the City Council for approval, alongside
the operating budget for the forthcoming
fiscal year. Although the CIP budget is
established for a single year, it encompasses
projected programming over ten years.
The development of the CIP is informed by
various sources, including assessments of
ongoing projects, active grant applications,
requests from the community and the
Council, regulatory mandates, and
various condition reports, studies, and
evaluations conducted by workgroups.
This comprehensive process evaluates and
prioritizes infrastructure needs. The staff
meticulously balances these requirements
with available funding to formulate the CIP,
prioritizing projects for funding as early
as possible within the five-year program,
contingent upon financial resources.
However, the project demand significantly
exceeds the available funding over the
ten-year timeline. Consequently, the staff
maintains a list of projects not recommended
for funding, referred to as ‘unfunded
projects,’ which may be considered in
subsequent years. As summarized below, the
CIP documents contain the project list and
the corresponding funding sources for FY
25-26.
Future Developments
The City is committed to expanding its
tax base and improving the quality of life
by implementing new developments in
strategically identified areas.
The approval of development projects is
essential to the City’s strategy for promoting
local economic growth, advancing fair
housing initiatives, and fulfilling its
obligation to provide 995 housing units under
the Regional Housing Needs Allocation
(RHNA) for the 2023-2031 Housing Element
cycle. However, recent economic changes,
including rising interest rates, decreased
rental rates, and increased construction costs,
have significantly affected the feasibility of
several previously approved developments. In
response, many developers have approached
the City requesting accommodation, such
as extending entitlements and utilizing
infrastructure financing programs allowed
under state law.
These factors highlight the challenges facing
the economic viability of developments in
recent years, including fluctuating interest
rates, construction costs, and prevailing
rental prices.
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.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
8 • 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
On May 28, 2024, the City Council formally
adopted the Hercule Strategic Plan for 2024-
2026. This plan delineates key priorities
that will steer our initiatives in serving the
residents of Hercules. It reflects a thorough
process of input and collaboration involving
staff, department heads, elected officials, and
City leadership. The strategic plan articulates
the goals we aspire to achieve in community
service, the strategies we will deploy to attain
those goals, and the metrics we will utilize
to ensure accountability throughout the
implementation process. It is anchored in the
City’s vision and mission statements, which
guide the strategic initiatives that inform our
work.
In the past year and continuing into
fiscal year 2025-2026, we will persist in
executing the objectives outlined in these
initiatives. We express our admiration for
the diligence, commitment, and creativity
exhibited by Hercules staff as we endeavor
to enhance constituent services, effectively
recruit and retain talented employees, and
coordinate efforts across departments and
with neighboring agencies to address the
community’s identified needs.
Staff members have made a concerted
effort to align the budgetary process with
the strategic plan. Each department has
reviewed its proposed initiatives for the
upcoming year, considering how they can
further our collective objectives. The budget
review team has systematically assessed
departmental goals and performance metrics,
prioritizing budget requests likely to yield
the most significant impact on the outcomes
outlined in the strategic plan. As a result, the
budget includes several recommendations
designed to facilitate further progress on our
initiatives.
In Closing
While uncertainties and unknowns persist,
the FY 2025-26 Recommended Annual
Budget provides the Council, City Staff, and
the community with a sense of informed
optimism. This budget effectively addresses
community priorities while ensuring the
continuation of the robust City services
that residents expect through balanced and
conservative strategies.
In light of various challenges, we are
collaboratively working to prepare Hercules
for the future by implementing strategic
fiscal decisions that adapt to our growing
and diversifying population. This budget is
designed to be responsible, responsive, and
balanced. Our objective is to foster growth
through planning, and this budget will
facilitate the advancement of the City.
Hercules is fortunate to be in a comparatively
strong financial position, which enables the
City to maintain the status quo. However, it is
essential to recognize that not every need can
be fully funded. Nonetheless, this position
allows the City to continue providing high-
level services to the community members
who rely on them.
This favorable status can largely be attributed
to the prudent fiscal policies enacted by
the Council. An unwavering commitment
to fiscal discipline will be essential in
maintaining financial stability amid current
economic uncertainties and preparing for
potential budgetary challenges. As spending
pressures continue to mount, the guiding
principles established by the City Council
will be instrumental in informing spending
decisions. To date, these principles have
effectively prioritized service delivery and
the welfare of city employees, benefiting both
the community and the workforce.
Acknowledgements
This budget constitutes a meaningful
advancement by preserving existing services
and investing in fundamental areas while
aiming for long-term financial stability in
alignment with the objectives set forth by the
City Council. Nevertheless, our projections
indicate we will face budgetary challenges
in the forthcoming years. Consequently,
the City has commenced planning efforts
currently to enable the City Council to
make informed decisions as we work toward
establishing a sustainable budget.
We sincerely thank all City staff for their
essential contributions in formulating
this adopted budget for the City Council.
Our employees are profoundly committed
to the City and the services extended to
our residents and community. Special
acknowledgment is warranted for the Finance
Department staff for their dedication and
diligence throughout the budget process and
in preparing the annual budget document.
The collective vision of the City Council,
coupled with a commitment to the
enhancement of Hercules, is integral to
the services we provide. We appreciate
the expertise and resourcefulness that the
Department Heads have exhibited throughout
this budget process and the outstanding
work each department has accomplished
over the past several years in readiness for
the impending cycle of growth, projects, and
services. The upcoming years are certain to
be both exciting and challenging. We wish to
convey our appreciation for the confidence
placed in the City’s management team during
this budget process. This document reflects
the significant time dedicated to discussion
and deliberation, as well as the valuable
directions and suggestions offered, all of
which highlight a shared commitment to the
future success of the City of Hercules.
Respectfully submitted,
LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
– Dante Hall
City Manager
– Edwin Gato
Finance Director
9 PRESENTED
TO
City of Hercules
California
For the Fiscal Year
Beginning
July 01, 2024
Executive Director
GOVERNMENT
FINANCE OFFICERS ASSOCIATION
Distinguished
Budget PresentationAward
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 FY2024-25 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 FY2025-26 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 FY2025-26 budget awards.
California Society of Municipal
Finance Officers
Certificate of Award
Operating Budget Excellence Award
Fiscal Year 2024-2025
Presented to the
City of Hercules
For meeting the criteria established to achieve a CSMFO Award in Budgeting.
February 7, 2025
Ernie Reyna James Russell-Field, Chair
2024 CSMFO President Recognition Committee
Dedicated to Excellence in Municipal Financial Reporting CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
10 The Budget
is the City’s
Roadmap
The City of Hercules’
annual budget is one of
our most important policy
documents. The Budget at a
Glance is a simplified version
of the comprehensive
budget document that
includes highlights, and an
overview of major revenue
sources and expenditures.
43.5 Median age of residents
$66,151
Per Capita Personal
Income
29,528
Student Enrollment
(Reflects the total number
of students enrolled in
the West Contra Costa
School District)
13,800
Total City Labor Force
Top 10 Employers, 2023-24
Employer Number of Employees
1. Bio-Rad Laboratories: 2,263
2. West Contra Costa Unified School
District: 297
3. Home Depot: 167
4. Safeway: 158
5. Pacific Bio Labs Inc: 130
6. Contra Costa County Social
Services: 87
7. Lucky Supermarkets: 60
8. City of Hercules: 61
9. Benda Tool & Model Works Inc: 47
10. Big Lots: 29
HERCULES
DATA DIGEST
FY 2025-2026
BUDGET
AT A GLANCE
FISCAL YEAR 2025-2026
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 2025/hyphen.case2026 BUDGET OVERVIEW Citywide Revenue
$47 million
$21 million
General Fund Expense
$21 million
General Fund Revenue
$26 million
Other Funds
$21 million
Other Funds
Citywide Expenses
$47 million
Accumulated Fund Balance $5 million
Source: CA Department of Finance
2015 2024
25,021
26,063
Population of the
City of Hercules
11 BUDGET 2019-21CITY OF HERCULES FY 2025-26 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE Figures are rounded
FY 2025-26:
Citywide Expenditures by Program
$47 million total
Police
$9.7
million
Wastewater
Improvements
$10
million
Streets & Others
$9.5
million
$9 million
$2.7 million
$2.6 million
$3.5 million
Lighting and
Landscaping
Assessment District
Community
Development
Parks & Recreation
Administration
CITY OF HERCULES
STRATEGIC GOALS
Goal #1: Advance the development of the Hercules
Hub, creating a dynamic center for community
engagement and economic activity.
Goal #2: Strengthen the city’s fiscal sustainability
through prudent financial management, ensuring
long-term economic viability.
Goal #3: Enhance transparency and communication
within the community, fostering a culture of
openness and collaboration between residents and
city officials.
Goal #4: Continue investing in a skilled and
dedicated team at City Hall to ensure effective
governance and service delivery.
Goal #5: Strategically plan and fund major
infrastructure projects to improve connectivity and
enhance the quality of life for all citizens.
Goal #6: Develop a comprehensive land-use
strategy that promotes responsible development
while preserving the unique character of our
neighborhoods.
Goal #7: Formulate a detailed economic
development strategy to attract new businesses and
stimulate local employment opportunities.
Based on CalPERS actuarial report, The Fitch (a credit rating agency) generally considers a funded ratio of 70% to be adequate.
CalPERS Pension Funding Status
Accrued LiabilityUnfunded
(in $ millions)
Plan Assets
(in $ millions)
Fund ratio: 74%
$67 million FY 20-21 $49 $18
$71 million FY 21-22 $61 $10
$77 million FY 22-23 $57 $20
$81 million FY 23-24 $60 $21
12 BUDGET 2019-21CITY OF HERCULES FY 2025-26 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE Revenues
by Type
2025-26
$47
million
Expenses
by Major
Category
2025-26
$47
million
CITY OF HERCULES BUDGET FY 2025-26:
CITYWIDE BUDGET
Figures are rounded
Figures are rounded
Special
Revenues,
Capital
and Debt
$13
million
General Fund
$21 million
Enterprise
$8
million
Capital
Projects
$7 million
Materials,
Supplies
& Services
$19
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
$7 million
Accumulated
Fund Balance $5 million
13 A LOOK
AHEAD
The Five-Year Forecast provides
a current and long-range
financial assessment of revenues,
expenditures, fund balance, and
operating reserves. The primary
objective is to provide the City
Council and the community with a
financial forecast and identify any
significant issues that may need to
be addressed in the annual budget
development process.
General Fund
Expenditures:
Where does
the money go?
For every dollar
spent on the
general fund:
General Fund
Revenue:
Where does
the money
come from?
Police Administration Parks & Recreation
Debt and Miscellaneous 5¢
Public Works 2¢
Insurance 9¢
Community Development 5¢
48¢ 18¢ 13¢
BUDGET 2019-21CITY OF HERCULES FY 2025-26 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE CITY OF HERCULES BUDGET FY 2025-26:
GENERAL FUND OPERATING BUDGET
Sales Tax (28%) Utility User
Tax (20%)
Vehicle License
Fees (13%)
Program
Revenues (10%)
$5.8
million
$4.2
million
$2.8
million
$1.7
million
$2.1
million
$2.2
million
Property Taxes (8%)
Other Taxes (10%)
Miscellaneous (11%)
$2.1
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
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 $20 million
$25 million
Expenditures
including One-Time
$24.8 million
$21.3
million
$21.8
million
$22.3
million
$22.2
million
$23.2
million
$20.5 million
$21.0 million
$22.9
million
$23.5 million
$23.4
million
$22.8
million
$20.9 million
$21.6 million
Expenditures
Revenues
14 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:
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
15 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.
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
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
16 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.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
17 BUDGET PROCESS
1. The City Manager submits to the City
Council a proposed operating budget for
the following fiscal year. This budget includes
proposed expenditures, by fund and department,
and the revenues expected to finance them.
2. Public hearings are conducted to obtain
taxpayer comments.
3. The budget is legally enacted through passage
of a resolution before July 1.
4. The City Manager is authorized to transfer
budgeted amounts between objects within the
same department; however, any revisions, which
alter total expenditures of any fund, must be
approved by the City Council.
5. Formal budgetary integration is employed
as a management control device. Special
Revenue Fund budgets are adopted on a basis
consistent with accounting principles generally
accepted in the United States (USGAAP) and
are consistent with the basis used for financial
reporting.
Accordingly, actual revenues and expenditures
can be compared with related budget amounts
without any reconciliation. The General Fund
budget is adopted on the budgetary basis, which
is not consistent with accounting principles
generally accepted in the United States of
America.
Commitments for material and services, such
as purchase orders and contracts, are recorded
during the year as encumbrances to assist in
controlling expenditures. Appropriations, which
are encumbered at year-end lapse, then are added
to the following year’s budgeted appropriations.
However, encumbrances at year-end are reported
as reservations of fund balance.
6. Under Article XIII B of the California
Constitution (the Gann Spending Limitation
Initiative), the City is restricted as to the
amount of annual appropriations from the
proceeds of taxes, and if proceeds of taxes
exceed allowed appropriations, the excess
must either be refunded to the State Controller,
returned to the taxpayers through revised tax
rates or revised fees schedules, or an excess in
one year may be offset against a deficit in the
following year. For the fiscal year ended June
30, 2018, based on the calculations by City
Management, proceeds of taxes did not exceed
the appropriations limit.
7. Budget revenue amounts represent the
original budget modified by adjustments
authorized during the year. Budgeted
expenditure amounts represent original
appropriations adjusted for supplemental
appropriations during the year, which were
contingent upon new or additional revenue
sources and re-appropriated amounts for prior
year encumbrances. The City Manager must
approve adjustments to departmental budgets;
however, management may amend the budgeted
amounts within departmental expenditure
classifications, with approval of the Finance
Director.
8. Certain appropriations carryover and are re-
appropriated for the subsequent year.
9. Budget appropriations for the various
governmental funds become effective July 1.
The City Council may amend the budget during
the fiscal year. The legal level of budgetary
control has been established at the fund level.
BUDGET PROCESS AND PROCEDURES
The City follows the following procedures in establishing the budgetary data reflected in this document:
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
18 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.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
19 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
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
20 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
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
21 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.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
22 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:
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
23 LOCAL CITY BUDGET AND DEMOGRAPHIC COMPARISON
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 $19,835,823 $54,367,874 $51,386,444 $28,219,433 General Fund Expenditures $19,445,717 $54,350,355 $51,352,492 $37,215,683 Total Full Time Equivalents 38 97 95 84
Sworn Personnel FTE 26 61 74 29
DEMOGRAPHICS
Population 26,063 31,088 25,700 18,192
Annual Percent Change -0.53% -0.24% 1.15% -0.47%
Median Age 44 34 42 44
Population per FTE 686 320 271 217
Population per Sworn FTE 1,002 510 347 627
Housing Units 9,165 9,941 10,996 7,106
Average Household Size 3 3 2 3
Labor Force 14,400 14,900 14,300 9,700
Unemployment Rate 4.1% 4.80% 3.5% 2.6%
Median Household Income $130,583 $78,215 $127,475 $120,833 Per Capital Income $56,098 $29,111 $47,977 $52,589
LOCAL CITY BUDGET AND DEMOGRAPHIC
COMPARISON FY 2024-2025
* The Budget Comparison data was obtained from the corresponding city’s Adopted Budget for FY 2024-25. *The Population and Housing Units was obtained from the State Deparment of Finance published on January 2024 * The median age, average household size, median household income, and the per capital income was obtained from the Census Bureau published on July 2023
* The Labor Force and Unemployment Rate was obtained from the California Employment Development Department published on March 2025
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
24 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 2025-26 CITY OF HERCULES
ORGANIZATION CHART
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.
Glenn
Dombecks
Public Works
Director
*Staff – 11
Functions:
• Engineering
• Streets
• Facility
Maintenance
• Solid Waste
• Wastewater
• Se
wer
Maintenance
• Lighting/
Landscaping
• Clean W
ater
Program
Christopher
Roke
Parks & Rec.
Director
*Staff - 4
55 PT
Functions:
• CLS
Commission
• Facility Rentals
• Child Cares
• S
ports
• 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
Kristi Carter
Human
Resources
Director
Functions:
Employee
life cycle:
• Recruitment
• Hiring
• Onboarding
• Training
• Termination.
Oversees
employee
relations
• Compensation
• Benefits,
• Performance
management,
• Learning
• Development.
HUMAN
RESOURCES
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Staff – 2*
25 CITYWIDE BUDGET
CITYWIDE BUDGET
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
26 Authorized Full-Time Positions
By Classification Within Department
FTE Trends
Personnel by Department
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual 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 3 3 3 3
Parking Enforcement Officer 1 1
Administrative Specialist 1 1 1 1
30 30 31 31
Public Works
Public Works Director 1 1 1 1
Public Works Superintendent 1 1 1 1
Public Works Inspector/Specialist 1 1 1 1
Maintenance Supervisor 1 1 1
LLAD Coordinator 1 1
Associate Engineer 1 1 1 1
Maintenance Worker I 4 4 1 2
Maintenance Worker II 3 2 5 4
11 11 12 12
0 10
20 30
40 50
60 70
FY 22-23
Actual
FY 23-24
Actual
FY 24-25
Budget
FY 25-26
Proposed
Community Development
Parks & Recreation
Administration
Public Works
Police
CITYWIDE BUDGET
27 Authorized Full-Time Positions
By Classification Within Department
Community Development
Community Development Director 1 1 1 1
Senior Planner 1 1 1
Permit Technician 1
Community Development Specialist 1 1 1
2 3 3 3
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 1
4 4 5 5
Administration
Accounting Technician II 2 2 2 2
Administrative Specialist 1 1 1 1
Cable/Communications Technician 1
City Clerk 1 1 1
City Clerk/PIO 1
City Manager 1 1 1 1
Finance Director 1 1 1 1
Human Resources Manager 1 1 1 1
Human Resources Technician 1
Information Systems Administrator 1 1 1 1
Information Systems Specialist 1 1 1
Management Analyst 1 1 1 1
Senior Accountant 1 1 1 1
Senior Clerk 1 2 2 2
12 13 13 14
Total City-wide FTE Count 59 61 64 65
CITYWIDE BUDGET
28 Labor Allocation
By Fund
Fund No.
=================> 100 232 233 234 235 236 237 238 239 251 253 220 221 222 223 224 225 231 262 263 291 420 460 470 Position Title
Fund Name
===============> General
LLAD
No. 83-2
(Zone 1)
LLAD
No. 83-2
(Zone 2)
LLAD
No. 83-2
(Zone
3&4)
LLAD
No. 83-2
(Zone
5A)
LLAD
No. 83-2
(Zone
5B)
LLAD
No. 83-2
(Zone
5C)
LLAD
No. 83-2
(Zone 6)
LLAD
No. 83-2
(Zone 7)
LLAD
No. 83-2
(Zone 8)
LLAD
No. 83-2
(Zone 9)
LLAD
No. 83-2
(Zone
10)
LLAD
No. 2002-
1 (Victoria
by the
Bay)
LLAD
No.
2002-2
(Hercule
s
Village)
LLAD
No. 2004-
1 (Baywoo
d)
LLAD
No. 2005-
1 (Bayside
)
Arterial
Roadwa
y
Stormwa
ter
State
Gas Tax
Measure
"C"
Street
Fund
AB 939 -
JPA Sewer
IT Ops
and Repl
Facility
Maint Total
Full-Time Department
ADMINISTRATIVE SPECIALIST POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 CHIEF OF POLICE POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 POLICE COMMANDER POLICE 2.00 - - - - - - - - - - - - - - - - - - - - - - - 2.00 POLICE OFFICER POLICE 18.00 - - - - - - - - - - - - - - - - - - - - - - - 18.00 POLICE SERGEANT POLICE 5.00 - - - - - - - - - - - - - - - - - - - - - - - 5.00 PARKING ENFORCEMENT OFFICER* POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 POLICE SUPPORT SPECIALIST POLICE 3.00 - - - - - - - - - - - - - - - - - - - - - - - 3.00
31.00 - - - - - - - - - - - - - - - - - - - - - - - 31.00 ASSOCIATE ENGINEER PUBLIC WORKS - - - - - - - - - - - 0.15 - - - - - 0.15 0.20 0.20 - 0.30 - - 1.00 MAINTENANCE WORKER I PUBLIC WORKS - - - - - - - - - - - 0.35 - - 0.05 0.05 - 0.05 0.10 0.08 - 0.15 - 0.17 1.00 MAINTENANCE WORKER II PUBLIC WORKS 0.15 0.05 0.04 0.01 0.02 0.01 0.01 0.01 0.06 0.07 0.05 0.53 0.42 0.05 0.08 0.03 0.15 0.46 0.41 0.24 - 1.40 - 0.75 5.00 MAINTENANCE SUPERVISOR PUBLIC WORKS - - - - 0.00 - - 0.01 - - - 0.02 0.10 - 0.01 - - 0.05 0.10 0.08 - 0.15 - 0.47 1.00 LLAD COORDINATOR PUBLIC WORKS - 0.01 0.02 0.02 0.02 0.01 0.01 0.01 0.01 - 0.02 0.54 0.08 0.08 0.05 0.02 - - - - - - - 0.10 1.00 PUBLIC WORKS DIRECTOR PUBLIC WORKS 0.10 - - - - - - - - - - 0.05 - - - - - 0.10 0.20 0.20 - 0.30 - 0.05 1.00 PUBLIC WORKS SUPERINTENDENT PUBLIC WORKS 0.03 0.02 0.02 0.02 0.02 0.02 0.01 0.02 0.02 0.02 0.01 0.03 0.02 0.02 0.02 0.02 - 0.18 0.10 0.10 - 0.25 - 0.05 1.00 PUBLIC WORKS INSPECTOR/SPECIALIST PUBLIC WORKS 0.25 0.01 0.01 - - 0.01 - 0.01 0.01 0.01 0.01 0.12 0.04 0.00 0.04 0.04 - 0.05 0.13 0.12 - 0.05 - 0.09 1.00
0.53 0.09 0.09 0.05 0.06 0.05 0.03 0.07 0.10 0.10 0.09 1.79 0.66 0.15 0.25 0.16 0.15 1.04 1.24 1.02 - 2.60 - 1.67 12.00 COMMUNITY DEVELOPMENT DIRECTOR COMMUNITY DEVELOPMENT 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 SENIOR PLANNER COMMUNITY DEVELOPMENT 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 PERMIT TECHNICIAN COMMUNITY DEVELOPMENT 0.20 0.02 0.02 - - 0.02 - 0.02 0.02 0.02 0.02 0.17 0.05 0.05 0.05 0.05 - 0.03 0.07 0.05 - 0.07 - 0.07 1.00
2.20 0.02 0.02 - - 0.02 - 0.02 0.02 0.02 0.02 0.17 0.05 0.05 0.05 0.05 - 0.03 0.07 0.05 - 0.07 - 0.07 3.00 PARKS & RECREATION DIRECTOR PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION MANAGER PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION TECHNICIAN PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION SUPERVISOR PARKS & RECREATION 2.00 - - - - - - - - - - - - - - - - - - - - - - - 2.00
5.00 - - - - - - - - - - - - - - - - - - - - - - - 5.00 CITY MANAGER ADMINISTRATION 0.59 - - - - - - - - - - 0.12 - - - - - - - - - 0.29 - - 1.00 CITY CLERK ADMINISTRATION 0.64 - - - - - - - - - - 0.02 0.02 0.02 0.02 0.02 - - - - - 0.10 0.16 - 1.00 FINANCE DIRECTOR ADMINISTRATION 0.80 - - - - - - - - - - 0.10 - - - - - - - - - 0.10 - - 1.00 HUMAN RESOURCES MANAGER ADMINISTRATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 HUMAN RESOURCES TECHNICIAN ADMINISTRATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 MANAGEMENT ANALYST ADMINISTRATION 0.25 - - - - - - - - - - - - - - - - - - 0.25 0.10 0.30 - 0.10 1.00 INFORMATION SYSTEMS SPECIALIST ADMINISTRATION - - - - - - - - - - - - - - - - - - - - - - 1.00 - 1.00 INFORMATION SYSTEMS ADMINISTRATOR ADMINISTRATION - - - - - - - - - - - - - - - - - - - - - - 1.00 - 1.00 SENIOR CLERK ADMINISTRATION 2.00 - - - - - - - - - - - - - - - - - - - - - - - 2.00 SENIOR ACCOUNTANT ADMINISTRATION 0.80 - - - - - - - - - - 0.10 - - - - - - - - - 0.10 - - 1.00 ACCOUNTING TECHNICIAN II ADMINISTRATION 1.60 - - - - - - - - - - 0.20 - - - - - - - - - 0.20 - - 2.00 ADMINISTRATIVE SPECIALIST ADMINISTRATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00
9.68 - - - - - - - - - - 0.54 0.02 0.02 0.02 0.02 - - - 0.25 0.10 1.09 2.16 0.10 14.00
48.41 0.11 0.11 0.05 0.06 0.07 0.03 0.09 0.12 0.12 0.11 2.50 0.73 0.22 0.32 0.23 0.15 1.07 1.31 1.32 0.10 3.76 2.16 1.84 65.00
CITYWIDE BUDGET
29 Labor Allocation
By Fund
Fund No.
=================> 100 232 233 234 235 236 237 238 239 251 253 220 221 222 223 224 225 231 262 263 291 420 460 470 Position Title
Fund Name
===============> General
LLAD
No. 83-2
(Zone 1)
LLAD
No. 83-2
(Zone 2)
LLAD
No. 83-2
(Zone
3&4)
LLAD
No. 83-2
(Zone
5A)
LLAD
No. 83-2
(Zone
5B)
LLAD
No. 83-2
(Zone
5C)
LLAD
No. 83-2
(Zone 6)
LLAD
No. 83-2
(Zone 7)
LLAD
No. 83-2
(Zone 8)
LLAD
No. 83-2
(Zone 9)
LLAD
No. 83-2
(Zone
10)
LLAD
No. 2002-
1 (Victoria
by the
Bay)
LLAD
No.
2002-2
(Hercule
s
Village)
LLAD
No. 2004-
1 (Baywoo
d)
LLAD
No. 2005-
1 (Bayside
)
Arterial
Roadwa
y
Stormwa
ter
State
Gas Tax
Measure
"C"
Street
Fund
AB 939 -
JPA Sewer
IT Ops
and Repl
Facility
Maint Total
Part-Time
HUMAN RESOURCES SPECIALIST ADMINISTRATION - - - - - - - - - - - - - - - - - - - - - - - - - FACILITY ATTENDANT PARKS & RECREATION 0.89 - - - - - - - - - - - - - - - - - - - - - - - 0.89 LIFEGUARD/SWIM INSTRUCTOR I PARKS & RECREATION 3.49 - - - - - - - - - - - - - - - - - - - - - - - 3.49 LIFEGUARD/SWIM INSTRUCTOR II PARKS & RECREATION 0.57 - - - - - - - - - - - - - - - - - - - - - - - 0.57 OFFICE ASSISTANT I (PT) PARKS & RECREATION 0.21 - - - - - - - - - - - - - - - - - - - - - - - 0.21 OFFICE ASSISTANT II (PT) PARKS & RECREATION 1.27 - - - - - - - - - - - - - - - - - - - - - - - 1.27 RECREATION AIDE PARKS & RECREATION 1.06 - - - - - - - - - - - - - - - - - - - - - - - 1.06 RECREATION LEADER I PARKS & RECREATION 1.96 - - - - - - - - - - - - - - - - - - - - - - - 1.96 RECREATION LEADER II PARKS & RECREATION 2.66 - - - - - - - - - - - - - - - - - - - - - - - 2.66 RECREATION LEADER III PARKS & RECREATION 3.77 - - - - - - - - - - - - - - - - - - - - - - - 3.77 RECREATION SPECIALIST PARKS & RECREATION 0.75 - - - - - - - - - - - - - - - - - - - - - - - 0.75 SENIOR LIFEGUARD PARKS & RECREATION 0.15 - - - - - - - - - - - - - - - - - - - - - - - 0.15 POLICE SUPPORT SPECIALIST POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECORDS CLERK SPECIALIST POLICE 0.50 - - - - - - - - - - - - - - - - - - - - - - - 0.50
18.29 - - - - - - - - - - - - - - - - - - - - - - - 18.29
CITYWIDE BUDGET
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 23-24 FY 24-25 FY 24-25 FY 24-25 FY 24-25 FY 25-26 FY 25-26 FY 25-26 FY 25-26 General Fund
100 GENERAL FUND $0 $19,835,823 $19,445,717 ($390,106) $0 $20,891,627 $20,467,868 ($423,759) $0 401 FISCAL NEUTRALITY 4,610,007 $210,527 4,820,534 $253,940 5,074,474 General Fund Total 4,610,007 19,835,823 19,445,717 (179,579) 4,820,534 20,891,627 20,467,868 (169,819) 5,074,474 Special Revenue Funds
101 ASSET SEIZURE 217,000 - 117,000 100,000 - 100,000 - 201 AB 3229 COPS Program 62,715 150,000 176,556 36,159 150,000 186,159 - 220 CITYWIDE L&L DIST 83-2 1,145,759 2,298,346 2,217,733 - 1,226,372 2,351,768 2,199,033 1,379,107 221 VICTORIA BY THE BAY L&L (655,546) 660,174 707,109 (702,481) 590,212 728,080 (840,349) 222 HERCULES VILLAGE L&L DIST 102,163 183,048 225,414 - 59,797 188,241 245,104 2,934 223 BAYWOOD ASSESS 04-1 L&L 91,882 181,144 180,511 - 92,515 186,035 185,981 - 92,569 224 BAYSIDE ASSESS DIST L&L 165,282 165,678 161,240 169,720 170,209 169,187 170,742 225 ARTERIAL ROADWAYS 393,134 340,210 365,916 367,428 349,928 376,790 340,566 231 STORMWATER ASSESSMENT 84,422 355,645 449,029 (8,962) 375,000 392,606 - (26,568) 241 DIF-GEN PUBLIC FACILITIES 160,534 - - 160,534 - - 160,534 242 COMMUNITY DEVELOPMENT FND 180,478 - 170,000 10,478 - - 10,478 243 DEVELOPMENT FEE FUND 76,657 - - 76,657 - - 76,657 244 DIF-POLICE FACILITIES 281,366 - 200,000 81,366 - - 81,366 246 DIF-FIRE FACILITIES - - - - - - - - 247 DIF-PARK & REC 158,276 - - 158,276 - 150,000 8,276 249 PUBLIC BENEFIT FEE 1,039,867 - - 1,039,867 - - 1,039,867 261 DIF-TRAFFIC FACILITIES 477,493 - - 477,493 - - 477,493 262 STATE GAS TAX FUND 496,011 727,585 725,829 - 497,767 738,148 754,459 - 481,456 263 MEASURE "C" STREET FUND 678,765 520,000 601,186 - 597,579 493,303 612,868 - 478,014 264 STMP TRAFFIC IMPACT FUND - - - - - - - - 266 BART PARK & RIDE - 89,000 89,000 - - 92,000 92,000 - 267 GENERAL PLAN AND BLDG TRAINING 1,394,760 - - - 1,394,760 - 1,300,000 94,760 268 SB1 - RMRA 940,852 673,002 1,030,200 - 583,654 683,809 500,000 - 767,463 291 AB 939 - JPA FUND 878,373 185,000 388,340 675,033 - 381,852 293,181 387 WATER QUALITY RETENTION BASIN 287,000 62,000 48,000 301,000 63,000 49,000 315,000 521 REGIONAL WATER QUALITY 55,123 - - 55,123 - - 55,123 640 HOUSING SUCCESSOR 5,880,886 102,000 113,000 5,869,886 - 120,595 5,749,291 Special Revenue Funds Total 14,593,252 6,692,832 7,966,063 - 13,320,021 6,431,653 8,543,714 - 11,207,960 Capital Projects Funds
300 CITY - CAPITAL PROJECTS - 2,350,823 2,350,823 - 2,923,720 2,923,720 - 354 HERCULES HUB - 1,089,000 1,089,000 - 2,239,000 2,239,000 - 295 FEDERAL GRANTS - - - - - - -
296 STATE AND LOCAL GRANTS - 38,500 38,500 - 190,500 190,500 - Capital Projects Funds Total - 3,478,323 3,478,323 - - 5,353,220 5,353,220 - -
CITYWIDE 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 23-24 FY 24-25 FY 24-25 FY 24-25 FY 24-25 FY 25-26 FY 25-26 FY 25-26 FY 25-26 Debt Service Funds
672 2003B DEBT SERVICE PFA - 563,430 563,430 - 561,212 561,212 - 673 2009 DEBT SERVICE PFA - 905,296 905,296 - 906,578 906,578 - 383 SUNTRUST LEASE - - - - - - - -
388 EQUIPMENT LEASE - 235,027 235,027 - 245,079 245,079 - Debt Service Funds Total - 1,703,753 1,703,753 - 1,712,869 1,712,869 - - Enterprise Funds
420 SEWER FUND (OPERATIONS) 10,771,772 6,910,657 7,662,587 10,019,842 7,200,934 10,080,152 (4,977,934) 2,162,690 421 SEWER FUND (CAPITAL) - 1,100,000 1,100,000 - 536,680 536,680 - Sewer Fund Total 10,771,772 8,010,657 8,762,587 - 10,019,842 7,737,614 10,616,832 (4,977,934) 2,162,690 Internal Service Funds
450 VEHICLE REPLACEMENT FUND 314,637 158,000 150,000 322,637 163,000 - 485,637 460 IT OPERATING FUND 584,764 1,085,715 1,036,263 634,216 1,102,852 1,441,997 295,071 470 FACILITY MAINTENANCE FUND 267,437 1,046,683 1,137,470 176,650 1,047,125 1,201,184 22,591 480 IT EQUIPMENT REPLACEMENT FUND 363,172 - 309,000 - 54,172 292,000 - - 346,172 490 FACILITY REPLACEMENT FUND 247,669 - 92,254 - 155,415 - - - 155,415 Internal Service Funds Total 1,777,679 2,290,398 2,724,987 - 1,343,090 2,604,977 2,643,181 - 1,304,886 Total, City Budget $31,752,710 $42,011,786 $44,081,430 ($179,579) $29,503,487 $44,731,960 $49,337,684 ($5,147,753) $19,750,010 Agency Funds
382 ASSMT DIST 05-01 DEBT SVC - 226,873 226,873 - 229,356 229,356 - 501 TAYLOR WOODROW MAINT LMOD 75,156 - - 75,156 - - 75,156 511 OPEB & SOMAR 2,865,497 120,000 112,475 2,873,022 144,000 115,800 2,901,222 730 HERCULES GOLF CLUB - - - - - - -
Agency Funds Total 2,940,653 346,873 339,348 2,948,178 373,356 345,156 - 2,976,378 SUCCESSOR AGENCY & HOUSING - 8,587,154 8,587,154 - - 9,758,380 9,758,380 - - Totals 34,693,363 $50,945,813 $53,007,932 ($179,579) $32,451,665 $54,863,696 59,441,220 ($5,147,753) $22,726,388
CITYWIDE BUDGET
32 City-wide Expenditures
Summary by Fund Type
Expenditure Trends
Expenditures By Department
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
General Fund Operations by Department
Police 8,430,069$ 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 & Recreation 2,408,847 2,673,550 2,591,807 2,700,746 Administration 4,204,024 4,682,817 5,186,280 5,517,787 Non-Department 260,000 260,000 260,000 260,000 Transfers Out 822,559 799,213 798,457 806,291
16,951,399 18,610,782 19,405,717 20,467,868
One-time 1,644,194 991,639 40,000 -
18,595,593 19,602,421 19,445,717 20,467,868
Special Revenue, Capital and Debt
Special Revenues 10,161,374 6,111,060 7,966,063 8,543,714 Capital Projects 1,959,988 2,734,303 3,478,323 5,353,220 Debt Service 1,752,421 1,710,843 1,703,753 1,712,869 Enterprise
Sewer 22,324,123 16,344,904 8,762,587 10,616,832 Net City Budget 54,793,499 46,503,531 41,356,443 46,694,503 Internal Charges
Internal Service Funds 2,332,179 3,027,619 2,724,987 2,643,181 Total City Budget 57,125,678$ 49,531,150$ 44,081,430$ 49,337,684$ Fiduciary
Successor Agency 2,440,572 8,183,449 8,587,154 9,758,380 Other Agency 369,629 333,077 339,348 345,156
Total Organization 59,935,879$ 58,047,676$ 53,007,932$ 59,441,220$ -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
FY 22-23
Actual
FY 23-24
Actual
FY 24-25
Budget
FY 25-26
Proposed
Internal Service
Sewer
Debt Service
Capital Projects
Special Revenues
General Fund
CITYWIDE BUDGET
33 City-wide Revenues/Transfers In
Summary by Fund Type
Revenue Trends
Revenuess By Fund
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
General Fund
Taxes 13,241,060$ 12,808,147$ 13,551,000$ 13,828,000$ 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 1,909,358 1,999,649 1,822,350 2,079,400 Use of Money & Property 794,570 1,623,167 799,000 1,209,100 Cost allocated to other departments 588,529 667,863 786,917 785,968 Transfers In 150,000 156,727 176,556 186,159
19,257,440 19,940,792 19,835,823 20,891,627
One-time 169,461 731,717 - -
19,426,901 20,672,509 19,835,823 20,891,627
Special Revenue, Capital and Debt
Special Revenues 11,848,175 8,580,940 6,692,832 6,431,653 Capital Projects 474,045 2,307,981 3,478,323 5,353,220 Debt Service 1,668,349 1,814,172 1,703,753 1,712,869 Enterprise
Sewer 19,997,843 6,956,530 8,010,657 7,737,614 Net City Budget 53,415,313 40,332,132 39,721,388 42,126,983 Internal Charges
Internal Service Funds 2,218,712 2,747,989 2,290,398 2,604,977 Total City Budget 55,634,025$ 43,080,121$ 42,011,786$ 44,731,960$ Fiduciary
Successor Agency 5,562,048 7,046,757 8,587,154 9,758,380 Other Agency 423,432 547,635 346,873 373,356
Total Organization 61,619,505$ 50,674,513$ 50,945,813$ 54,863,696$ -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
FY 22-23
Actual
FY 23-24
Actual
FY 24-25
Budget
FY 25-26
Proposed
Internal Service
Sewer
Debt Service
Capital Projects
Special Revenues
General Fund
CITYWIDE BUDGET
34 City-wide Budget
Transfers
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Transferred From (Sender) Transferred To (Receiver)
Fund Name Fund No. Fund Name Fund No.
General Fund 100 Capital Projects 300 $500,000 $639,712 $2,350,823 2,923,720 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 383 102,549 - -
General Fund 100 OPEB Liability 511 60,000 60,000 60,000 60,000 General Fund 100 2003B Debt Service PFA 672 360,649 563,316 563,430 561,212 General Fund 100 2009 Debt Service PFA 673 5,300 - - - General Fund 100 Asset Seizure 101 - - - -
General Fund 100 Equipment Lease (Solar Project) 388 226,433 235,897 235,027 245,079 AB 3229 COPS Program 201 General Fund 100 150,000 156,727 176,556 186,159 Landscape & Lighting District 83-2 220 Arterial Roadways 225 - - - - Landscape & Lighting District Victoria by the Bay 2002-1 221 Arterial Roadways 225 27,200 28,016 29,529 30,373 Landscape & Lighting District Hercules Village 2002-2 222 Arterial Roadways 225 7,500 7,725 8,051 8,281 Landscape & Lighting District Baywood 2004-1 223 Arterial Roadways 225 2,700 2,781 2,841 2,922 Landscape & Lighting District Bayside 2005-1 224 Arterial Roadways 225 18,500 19,055 20,136 20,711 Landscape & Lighting District 83-2 (Zone 1) 232 Arterial Roadways 225 26,100 26,100 29,688 30,536 Landscape & Lighting District 83-2 (Zone 2) 233 Arterial Roadways 225 20,600 21,218 22,367 23,006 Landscape & Lighting District 83-2 (Zone 3&4) 234 Arterial Roadways 225 28,000 28,840 30,376 31,244 Landscape & Lighting District 83-2 (Zone 5A) 235 Arterial Roadways 225 20,600 21,218 22,316 22,953 Landscape & Lighting District 83-2 (Zone 5B) 236 Arterial Roadways 225 11,500 11,845 12,284 12,635 Landscape & Lighting District 83-2 (Zone 5C) 237 Arterial Roadways 225 16,100 16,583 15,970 16,426 Landscape & Lighting District 83-2 (Zone 6) 238 Arterial Roadways 225 24,500 25,235 26,570 27,329 Landscape & Lighting District 83-2 (Zone 7) 239 Arterial Roadways 225 31,700 32,651 34,351 35,332 Landscape & Lighting District 83-2 (Zone 8) 251 Arterial Roadways 225 51,600 53,148 56,052 57,653 Landscape & Lighting District 83-2 (Zone 9) 253 Arterial Roadways 225 27,400 28,222 29,679 30,527 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 10) 220 21,952 22,391 23,030 26,002 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 1) 232 871 888 921 1,000 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 2) 233 617 629 635 675 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 3&4) 234 891 909 829 890 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5A) 235 1,236 1,261 1,423 1,510 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5B) 236 277 283 345 367 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5C) 237 261 266 193 205 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 6) 238 631 644 592 633 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 7) 239 649 662 827 874
CITYWIDE BUDGET
35 City-wide Budget
Transfers
FY 22-23 FY 23-24 FY 24-25 FY 25-26
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 8) 251 1,966 2,005 2,457 2,571 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 9) 253 1,077 1,099 1,233 1,304 State Gas Tax 262 Landscape & Lighting District Victoria by the Bay 2002-1 221 10,047 10,248 13,052 13,454 State Gas Tax 262 Landscape & Lighting District Hercules Village 2002-2 222 3,982 4,062 4,347 4,736 State Gas Tax 262 Landscape & Lighting District Baywood 2004-1 223 2,613 2,665 3,259 3,367 State Gas Tax 262 Landscape & Lighting District Bayside 2005-1 224 2,284 2,330 2,822 2,970 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 - 250,000 - - City Capital Projects 311 Federal Grant 295 - - - - American Rescue Plan Act (ARPA) 353 General Fund - Loss of Revenue Component 100 3,142,889 - - - Sewer - Operation 420 Sewer - Capital 421 13,700,000 147,173 1,100,000 536,680 IT - Operation 460 IT - Replacement 480 - 365,516 - 292,000 Facility Maintenance 470 Facility Replacement 490 - 261,696 - - $19,680,140 $3,178,016 $5,007,011 $5,340,336
CITYWIDE BUDGET
36 CITY OF HERCULES
FY 25-26 LIST OF ADDITIONAL BUDGET REQUEST
Title Fund Department Description Justification General Fund Other Funds Total Ongoing costs:
Low-Income Home Repair
Program
General Fund Community
Development
Consultant support for implementation of new
home repair program mandated by the adopted 6th
Cycle Housing Element. The consulant will provide
minor home repair services to low-income
homeowners on an as-needed, first-come first-
served basis and leverage grant funds as
applicable. The City would pay the difference, and
there would be no cost to the homeowner. This
partnership would help the City fulfill Housing
Program H1-4: Monitor and Preserve Affordable
Housing and At-Risk Housing: “Throughout the
planning period, utilize CDBG or other funds, as
available, to provide financial assistance for minor
repairs of homes owned and occupied by lower-
income residents. Eligible repairs include
plumbing, electrical, painting, carpentry, roof, and
masonry, with a goal of assisting 16 households.”
Rebuilding Together East Bay Network, a nonprofit
organization based in Berkeley, provides similar
home repair program services to the cities of
Emeryville and Alameda and the Marin Housing
Authority and is interested in working with Hercules
on this program.
$30,000 $30,000
Housing Program Support General Fund Community
Development
Consultant support for implementation of new fair
housing programs mandated by the adopted 6th
Cycle Housing Element which are not eligible for
use of Housing Asset Funds, including coordination
with Contra Costa County Housing Authority, fair
housing outreach and assistance, preparation fo
public information, tenant and landlord outreach
and education to increase use of Housing Choice
Vouchers, stakeholder engagement, pursuit of
affordable housing funding, preparation of an ADU
information packet, preparaton of a database and
monitoring procedure for existing affordable units,
establishing guidelines and criteria for affordability
of replacement units and tracking mechanisms.
$67,390 $67,390
DocuSign Contract Lifecycle
Management Platform
Internal Service
Fund
Information Technology The contract management software will be implemented city-wide to enhance the processing
and storage of contracts. This represents an
ongoing annual renewal of the DocuSign e-
Signature Platform, aimed at streamlining the
operations and improving efficiency.
The implementation of the DocuSign Contract
Lifecycle Management (CLM) platform, along with a
customized build, is designed to enhance the
efficiency of administrative processes across all
departments. This solution will facilitate
compliance with contract policies and procedures
while ensuring effective organization of contracts
for improved record management. By streamlining
responsibilities and requirements at each phase of
the contract process, the City anticipates a
substantial reduction in the time staff members
spend communicating with vendors, consultants,
legal teams, and other internal departments.
Furthermore, this structured approach will
promote adherence to the latest versions of
agreements, necessary documentation, as well as
administrative and financial policies and
procedures prior to execution.
$19,624 $19,624
Total, Ongoing Costs $97,390 $19,624 $117,014
Budget Impact
FY 25-26 LIST OF ADDITIONAL BUDGET REQUEST
37 CITY OF HERCULES
FY 25-26 LIST OF ADDITIONAL BUDGET REQUEST
Title Fund Department Description Justification General Fund Other Funds Total Budget Impact
One-Time Costs:
Housing Transaction Support Housing
Successor Fund
Community
Development
RSG consultant support for housing program work
eligible for Housing Asset Fund as administration,
including preparation and issuance of a NOFA for
Housing Asset Funds, assistance with evaluation of
developer proposals, and transaction support for
mandated pursuit of affordable housing
development on Caltrans and BART park and ride
sites.
This work was mandated by the state through HCD
review of the 6th Cycle Housing Element.
$120,595 $120,595
General Plan Update and EIR General Plan
Update Fee
Community
Development
Planning, environmental and related consultant
services for comprehensive updates to the General
Plan Land Use, Economic Development, Open
Space & Conservation, and Noise Elements and
related updates to other elements as needed, and
preparation of an Environmental Impact Report.
California state law requires each city and county
to adopt a general plan for physical development,
including any relevant adjacent land. Per
Government Code Section 65400(a)(2)(A), the city
must submit an annual report to the state detailing
its progress in implementing the General Plan.
$1,300,000 $1,300,000
Motorola Radios for Police
Department
General
Fund/Asset
Seizure Fund
Police Replacement of existing 35 radios and associated equipment
The current portable handheld radios are over 15
years old and have already begun being replaced
county wide by all law enforcement agenices. The
technology is outdated and eventually will not be
able to support incoming software. Motoralla has
stopped making the models we currently have
which already has made it difficult to replace as
they continue to breakdown. Many of the batteries
have becomen inoperable or are not holding a
charge. Radios are a critical resource for the police
department and are essential for safety and
communication.
$143,647 $100,000 $243,647
Marshfield Consulting Internal Service
Fund
Information Technology This firm partners with DocuSign to assist agencies in implementation and training on the DocuSign
Contract Lifecycle Management Platform.
The implementation of the DocuSign Contract
Lifecycle Management (CLM) platform, along with a
customized build, is designed to enhance the
efficiency of administrative processes across all
departments. This solution will facilitate
compliance with contract policies and procedures
while ensuring effective organization of contracts
for improved record management. By streamlining
responsibilities and requirements at each phase of
the contract process, the City anticipates a
substantial reduction in the time staff members
spend communicating with vendors, consultants,
legal teams, and other internal departments.
Furthermore, this structured approach will
promote adherence to the latest versions of
agreements, necessary documentation, as well as
administrative and financial policies and
procedures prior to execution.
$50,000 $50,000
Quad-City CORE Homeless
Services Pilot Program
General Fund City Manager This program will effectively address homelessness. Contra Costa County has
established the Coordinated Outreach Referral and
Engagement (CORE) Program. This program serves
as the main entry point into the County's
Coordinated Entry System, providing crucial
outreach and stabilization services to individuals
and families experiencing homelessness. CORE
teams actively identify those living on the streets,
assess their needs, and connect them to essential
resources like shelter, healthcare, and long-term
housing.
Recognizing the need for regional solutions, the
cities of Hercules, Pinole, El Cerrito, and San Pablo
are proposing a multi-jurisdictional agreement with
the CORE Program. This initiative includes
coordinated outreach, shared funding, data
evaluation, and enhanced collaboration among law
enforcement and outreach teams. Launching as a
one-year pilot in Hercules, this program aims to
assess impact and inform long-term strategies for
addressing homelessness in our community.
$48,965 $48,965
Total, One-Time Costs $192,612 $1,570,595 $1,763,207
Total $290,002 $1,590,219 $1,880,221
FY 25-26 LIST OF ADDITIONAL BUDGET REQUEST
38 DEPARTMENT SUMMARIES
DEPARTMENT SUMMARIES
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
39 ALEXANDER
WALKER-GRIFFIN
Council Member
DION BAILEY
Mayor
CITY COUNCIL
CITY COUNCIL
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:
CITY OF HERCULES: VISION
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: MISSION
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.
DILLI BHATTARAI
Council Member
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
CHRIS KELLEY
Vice Mayor
TIFFANY GRIMSLEY
Council Member
40 CITY COUNCIL
CITY COUNCIL
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
FY 2025-26 STRATEGIC GOALS:
GOAL #1
Advance Progress of the Hercules Hub
GOAL #2
Take Steps to Address the City’s Fiscal
Sustainability
GOAL #3
Improve Community Transparency and
Communication
GOAL #4
Continue Investing in a Winning Team at
City Hall
GOAL #5
Plan and Fund Major Infrastructure
GOAL #6
Develop a Comprehensive Land-Use
Strategy
GOAL #7
Develop a Comprehensive Economic
Development Strategy
CITY OF HERCULES: VALUES
•INTEGRITY
Honesty, transparency, fair dealing
•PROFESSIONALISM
Exemplary conduct, competence,
continuous improvement, respect
•SERVICE
Customer orientation, courtesy, hard
work, striving for excellence
•COLLABORATION
Teamwork, communication, community
interaction and outreach
•CREATIVITY
Thinking, innovating, encouraging critical
analysis
•TENACITY
Setting priorities, staying focused, not
getting discouraged
•RESPONSIBILITY
Taking ownership of one’s work,
accountability, going the extra mile
41 City Council
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 71,066 $ 75,146 $ 75,625 $ 63,000 $ Contractual Services 1,231 22,923 41,200 42,400
Other Operating Costs 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 $
Expenditures By Fund/Program
General Fund 329,843 $ 305,915 $ 360,263 $ 356,144 $ Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY COUNCIL
42 CITY MANAGER
CITY MANAGER
CITY MANAGER’S
KEY PRIORITIES
FOR FY 25-26:
• To align Council’s
priorities, ongoing
programs, projects and
activities with the budget,
and staff resources.
• Develop a workplan
to accomplish Council’s
strategic goals.
• The mandated
obligations of local
government remain the
core function of the City
and need not be fully
detailed in the Work Plan,
including but not limited
to public infrastructure,
public safety, governmental
transparency, financial
accountability, and
implementation of
regulations.
This balance between
core services and
strategic goals is well
depicted by the
“Iceberg Model”
depicted left.
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 2025-26 ANNUAL BUDGET
The Iceberg Model of City Work
Vision for the
City’s Future:
Governing Body goals and priorities
Modernizing the Organization:
Staff initiatives for efficiency and innovation
The Routine Work of the City:
80 percent of what a city does is “below the surface”
The Governing Body usually does not need to make
decisions about these routine city services and activities, except as part of approving the annual budget.
The relationship between
above and below the surface
Successfully achieved goals and projects above the water line will eventually move to below the line and become part of the routine work of the city. They will become part of the general operating budget.
Water Line
Source: Nalbandian
Consulting & Training,
May 2003
43 CITY MANAGER
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Objective Tactical Steps Timeline
Develop regional partnerships Participate and collaborate with other agencies, their boards and commissions, and other stakeholder groups to raise awareness of the Hercules Hub and regional transit-related issues, surface opportunities for partnership, and support appropriate transportation revenue generating measures.
Ongoing
Enhance lobbying efforts/
contracts
Secure the services of a federal lobbyist as an advocate on behalf of the Hercules Hub.
Winter
2024
Continue to keep the community
informed
Utilize social media and other informational platforms to disseminate information regularly and when new developments occur.
Ongoing
Initiate the Train Station design Secure sufficient grant funding to begin the station design. Summer Objective Tactical Steps Timeline
Improve efficiency through a
budget review process
Continue to improve and create a more robust Capital Improvement Plan (CIP) with special attention to service delivery methodology, addressing deferred maintenance, and prioritizing projects.
Spring
2025;
Ongoing
Explore revenue sources to meet
current and future needs
Present to Council future revenue-generating options that include:
• Sales Tax • UUT (Utility User Tax) • Grant opportunities • Real Property Transfer Tax • General Obligation (GO) bonds • Lease Revenue/Certificate of Participation (COP) bonds Winter
2024
GOAL #1: ADVANCE PROGRESS OF THE HERCULES HUB
GOAL #2: TAKE STEPS TO ADDRESS THE CITY’S FISCAL SUSTAINABILITY
STRATEGIC GOAL WORKPLAN HIGHLIGHTS
CITY MANAGER
Objective Tactical Steps Timeline
Improve communication on the
progress of Strategic Goals
Provide quarterly updates at City Council meetings and post the progress to a dedicated strategic plan web page on the City’s website.
Fall 2024;
Ongoing
Provide community engagement
opportunities outside of Council
meetings
Provide twice-a-year workshops/town halls to allow residents to connect with the City outside of Council meetings and the rigid public comment process.
Winter
2024;
Ongoing
Encourage residents to be more
involved in civic affairs
Evaluate and report back on ways to improve resident engagement, such as a resident academy.
Winter
2024
GOAL #3: IMPROVE COMMUNITY TRANSPARENCY AND COMMUNICATION 44 CITY MANAGER
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Objective Tactical Steps Timeline
Address staff capacity • Initiate a gap analysis of strategic goal priorities and staff capacity. ------------------------------------------------------------------------- • Initiate a staffing comparison study of comparable cities (population, city services, department size, and total FTEs).
Spring 2025
-------------
Spring 2025
Develop a succession plan • Identify critical and vulnerable positions; Identify a talent pipeline; and identify employees in the qualified positions who could temporarily fill the vacancy and potentially apply as candidates for the position should the need arise.
------------------------------------------------------------------------- • Create a succession development plan with training and learning opportunities that are aligned with the successor position.
Winter 2024
-------------
Winter 2025
Invest in ongoing staff
education and training
through conferences
and other learning tools
• Survey staff to assess service and/or training gaps in each department and the City organization, as a whole.
------------------------------------------------------------------------- • Use the above-mentioned (succession plan) education/experience assessment and cross reference with survey/interviews.. ------------------------------------------------------------------------- • Identify training opportunities/conferences, including complimentary webinars, for each department.
Summer 2025
--------------
Spring 2026
---------------
Spring 2025;
Ongoing
Build a high-performance
culture that both yields
efficient results and increases
staff retention
• Review and analyze potential standards to define and measure high performance culture.
------------------------------------------------------------------------- • Survey and initiate standards for efficiency.
------------------------------------------------------------------------- • Survey and initiate standard retention goals, to include impediments and opportunities.
Spring 2025
-------------
Spring 2025
-------------
Spring 2025
GOAL #4:
CONTINUE INVESTING IN A
WINNING TEAM AT CITY HALL
STRATEGIC GOAL WORKPLAN HIGHLIGHTS
CITY MANAGER
45 CITY MANAGER
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Objective Tactical Steps Timeline
Complete the Housing Element
certification process and begin
implementation
Work with the State Department of Housing and Community Development to complete the review and certification of the Housing Element.
Spring 2025
Update the General Plan • Secure the services of a consultant to update the General Plan, which will include land-use st
rategies for the redevelopment of
shopping centers and commercial sites with mixed-use.
------------------------------------------------------------------------- •Complete the General Plan Update
Spring 2025
-------------
Spring 2027
Update Council and community
on affordable housing progress
and RHNA obligations
Continue annual reporting to the City Council on the status of development projects and Housing Element RHNA (Regional Housing Needs Allocation) progress.
Ongoing
GOAL #6: DEVELOP A COMPREHENSIVE LAND-USE STRATEGY
STRATEGIC GOAL WORKPLAN HIGHLIGHTS
CITY MANAGER
Objective Tactical Steps Timeline
Identify and set priorities
related to major infrastructure
Review and refine policy for prioritizing capital projects as part of the budgeting process.
Spring 2025
Continue progress on the
Capital Improvement Plan
Continue to update the City Council on progress during the mid-year CIP progress report process.
Spring 2025
Devise a plan for funding the
Parks and Recreation Facilities
Master Plan
Identify grant opportunities, sponsorships, partnerships, and available Capital Improvement funds for projects called out in the 5-year Park Master Plan Action Plan.
Ongoing
Devise a plan for funding
facilities assessment and
maintenance
Maintain and refine the recently established Facility Replacement Fund to address the backlog of large unfunded maintenance and infrastructure projects.
Spring 2025
GOAL #5: PLAN AND FUND MAJOR INFRASTRUCTURE
Objective Tactical Steps Timeline
Devise strategies to expand
retail and attract businesses
• Develop an Economic Development strategyin conjunction with the General Plan update.
------------------------------------------------------------------------- •Continue t
o implement the BusinessAttraction Grant program.
Spring 2026
-------------
Ongoing
GOAL #7: DEVELOP A COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 46 ADMINISTRATIVE SERVICES
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 2020 FY 2021 FY 2022 FY 2023 FY 2024 # of Workers Compensation claims 19 15 25 10 10
# of General Liability claims 17 17 14 20 20
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
47 City Manager
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 305,323 $ 334,817 $ 347,674 $ 367,613 $ Contractual Services 1,332,929 1,581,320 1,743,781 1,822,800 Other Operating Costs 17,520 23,320 37,400 35,000 Cost Allocation 79,000 73,941 82,735 85,217
1,734,772 $ 2,013,398 $ 2,211,590 $ 2,310,630 $
Expenditures By Fund/Program
General Fund
City Manager 493,247 $ 532,417 $ 505,924 $ 553,611 $ Risk Management 1,241,525 1,480,981 1,705,666 1,757,019 1,734,772 2,013,398 2,211,590 2,310,630
Expenditure Trends
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY MANAGER
48 HUMAN RESOURCES
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 2020 FY 2021 FY 2022 FY 2023 FY 2024 New Hires 46 13 42 44 44
Tuition Reimbursements 7 3 5 5 5
Tuition Reimbursement Amounts $11,590 $8,375 $13,054 $15,311 $15,311 CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
49 Human Resources
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 166,719 $ 127,931 $ 263,425 $ 440,636 $ Contractual Services 44,550 289,654 83,900 86,400 Other Operating Costs 8,122 8,163 21,900 22,500
Cost Allocation 41,000 42,949 48,918 50,386
260,391 $ 468,697 $ 418,143 $ 599,922 $
Expenditures By Fund/Program
General Fund
Human Resources 260,391 468,697 418,143 599,922
260,391 468,697 418,143 599,922
Expenditure Trends
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
HUMAN RESOURCES
50 The Office of the City Clerk serves as a liaison between the public and the City Council. The City Clerk ensures that the City’s democratic and legislative decision-making processes are properly executed, recorded, archived and administered in accordance with federal, state and local statutes and regulations.
As the City’s Elections Official and Political Reform Act compliance officer, the City Clerk administers municipal elections from election pre-planning to the declaration of election results; and ensures compliance and the timely filing of matters pertaining to the Political Reform Act.
The City Clerk serves as the Clerk of the City Council and ensures that meetings of the City Council follow the Brown Act (open meeting laws). The Office of the City Clerk prepares and distributes the legislative agenda, records all legislative actions of the Council, performs attestations, administers Oaths of Office, verifies that legal notices have been posted or published, and administers the boards and commissions appointment process.
The City Clerk is the Custodian of Records and archives and is responsible for compliance with the Public Records Act. The Office of the City Clerk administers the City’s Records Management Program for the Preservation, Protection, Retention and Legal Disposition of the City’s Records which includes receiving and responding to public records requests in adherence to all the provisions of the Public Records Act.
The Office of the City Clerk staff greet and assist the public at City Hall and provide administrative support for business license application processing and the filing of claims presented to the City.
CITY CLERK
CITY CLERK
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.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
51 CITY CLERK
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
PERFORMANCE MEASURE FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 City Council Meeting Agendas 21 21 21 21 25
Finance Commission Agendas 6 6 6 6 3
Planning Commission Agendas 23 24 24 24 8
Community & Library Services Commission Agendas 12 12 12 12 10 Economic Development Subcommittee Agendas - 1 2 - - Public Safety & Traffic Subcommittee Agendas 2 1 - 2 - West Contra County Mayors & Supervisors Association 4 - 5 - - Public Comments at City Council Meetings - - - - 41 Public Records Request 38 34 46 66 39
CITY CLERK
CITY CLERK PERFORMANCE GOAL:
Develop an updated comprehensive records management program including a records management policy and a retention schedule designed to control the creation, acquisition, processing, maintenance, storage, and final disposition of all recorded information, regardless of form or media, handled during normal business practices.
The Office of the City Clerk aligns its objectives and strategies with City Council Strategic Goal #3: Improve Community Transparency and Communication.
THE OFFICE OF THE CITY CLERK SERVICE AREA OBJECTIVES AND STRATEGIES PHASE Phase Tasks % Complete
Phase 1: Update current policies,
procedures and Retention Schedules
Review and assess current storage, records management policies, procedures and retention schedules. Research governmental and regulatory minimum required retention periods 80%
Phase 2: Retention Schedule Training Develop a records retention reference guide. Schedule training. – Phase 3: Inactive & Obsolete Records
Review
Identify and determine designation (permanent storage or disposition) of inactive and obsolete records. Repackage inactive records for proper permanent storage, prepare designated obsolete records for disposition.
–
Municipal Elections Clerk of City Council Custodian of Records Objective 1: Ensure fair and impartial
elections.
Objective 2: Maintain the official
record of all City Council proceedings.
Objective 3: Ensure open access to information,
documents, and the legislative process.
Objective 1 Strategies:
1a. Open access to Municipal elections
information and resources including Public
Notices of Election, nomination process
and posting guidelines, candidates and filing
deadlines on the City website.
1b. Provide links to elections resources, voter
registration, polling information, and Election
results on the City website.
1c. Declare and attest election results and
retain election records as required by law.
Objective 2 Strategies:
2a. Post for open access City Council and
Commission meeting notices on the City
website, at City Hall, and the Community
Center.
2b. Record proceedings and attest to the
actions of City Council.
2c. Retain City Council records per the
adopted retention schedule.
Objective 3 Strategies:
3a. Accept public records requests online, in person, or over the phone.
3b. Post adopted minutes and video recording of meetings on the City website.
3c. Post link to access records repository on the City
website.
3d. Review and update the City’s records management
program as needed to ensure alignment with changes in
regulations/legal requirements.
52 City Clerk
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 201,214 $ 217,840 $ 244,095 $ 271,048 $ Contractual Services 100,165 24,306 139,400 143,600 Other Operating Costs 22,596 19,212 28,900 29,800 Cost Allocation 81,000 75,966 85,095 87,648
Capital Outlay 5,000 5,000 5,200 5,400
409,975 $ 342,324 $ 502,690 $ 537,496 $
Expenditures By Fund/Program
General Fund
City Clerk 372,172 $ 328,751 $ 463,690 $ 497,296 $ Outreach 343 413 400 400
Cable TV 37,460 13,160 38,600 39,800
409,975 $ 342,324 $ 502,690 $ 537,496 $
Expenditure Trends
-
100,000
200,000
300,000
400,000
500,000
600,000
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
CITY CLERK
53 CITY ATTORNEY
CITY ATTORNEY
KEY PRIORITIES
• 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.
PERFORMANCE INDICATOR FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 # of developer projects 7 5 9 7 7
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
54 • Perform all requested legal work
and review and prepare require
d
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 update
s, 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 attachm
ents 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
d
evelopment 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 exp
osure 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 2025-26 ANNUAL BUDGET
55 City Attorney
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Contractual Services $193,487 $223,043 $289,600 $255,000 $193,487 $223,043 $289,600 $255,000
Expenditures By Fund/Program
General Fund $193,487 $223,043 $289,600 $255,000
Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Contractual Services
CITY ATTORNEY
56 FINANCE
FINANCE
KEY PRIORITIES
2025-26:
• Budget
Development and
Management
• Financial
Reporting
• Financial Analysis
• Revenue
Collection:
• Debt Management
• Payroll Processing
• Vendor Payments
• Cash Flow
Management
• Procurement
Oversight
• Business License
Administration
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).
664 734 665 819 995 971
OPERATING INDICATORS
Number of Business Licenses Issued
2015 2016 2017 2018 2019 2020 2021
City of Hercules, Last Ten Fiscal Years
1,103
2022 2023 2024
1,184 1,147 1,157
PERFORMANCE INDICATOR FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Journal Entries 359 361 205 189 195
Cash Receipt 835 677 607 476 490
Accounts Payable 304 282 188 149 153
Budget Adjustments 20 9 5 12 13
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
57 FINANCE
Strategic Initiatives for Enhancing Fiscal
Sustainability
To ensure the fiscal sustainability of the city, it is essential to implement the following strategic initiatives:
• Conduct a comprehensive budget review process
aimed at improving efficiency.
• Continue to develop and enhance a more robust
Capital Improvement Plan (CIP), focusing on the
following areas:
o Service delivery methodologies
o Addressing deferred maintenance
o Prioritization of projects
• Investigate diverse revenue sources to fulfill both
current and future fiscal requirements.
• Present to the City Council potential revenue-
generating options, which may include:
o Sales Tax
o Utility Users Tax (UUT)
o Available grant opportunities
o General Obligation (GO) bonds
o Lease Revenue and Certificates of Participation (COP) bonds
o Real Property Transfer Tax
These initiatives will contribute to strengthening the city’s financial foundation and ensuring long-term sustainability.
FINANCE
COUNCIL STRATEGIC GOALS:
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
KEY PRIORITIES 2025-26:
The Finance Department prioritizes effective financial management to support the City’s sustainable growth and fiscal responsibility. Our key areas of focus include:
• Budget Development and Management: Responsible
for preparing and overseeing the City’s annual and multi- year budgets, ensuring alignment with City Council policies and priorities.
• Financial Reporting: Prepares accurate and transparent financial reports, including the Annual Comprehensive
Financial Report (ACFR), to facilitate informed decision- making and ensure accountability.
• Financial Analysis: Conduct a comprehensive financial analysis to assess the City’s financial health, identify potential risks, and formulate strategies for enhancement. • Revenue Collection: Our team oversees the collection
of diverse revenue streams, including taxes, fees, and
grants, to ensure adequate funding for essential City
services.
• Debt Management: Manage the City’s debt portfolio,
encompassing the issuance and repayment of bonds to
maintain long-term financial stability.
• Payroll Processing: The department efficiently
processes employee payroll to ensure timely and accurate payments while adhering to all relevant regulations.
• Vendor Payments: Ensure the timely processing of
vendor payments and maintain meticulous records for all transactions.
• Cash Flow Management: Oversight of cash flow
management ensures sufficient funds are available to
meet all financial obligations while maximizing investment returns.
• Procurement Oversight: Manage the procurement of
goods and services for the City, ensuring cost-effectiveness and compliance with applicable regulations.
• Business License Administration: The department
administers business licenses and ensures a streamlined compliance and regulation process.
Through these activities, the Finance Department strives to uphold the highest standards of financial integrity and contribute to the City’s overall fiscal health.
58 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.
IT STRATEGIC GOALS
OBJECTIVES:
• Provide technological desktop
computer support to City staff
within four hours of request.
• Maintain and support
approximately 40 software
a
pplications, including those
specific to public safety services.
• Implement upgraded software
applications as required.
• M
aintain connectivity among
network routers, switche
s, and
devices to ensure availability
and reliability for City staff and
external customers.
• Implement and maintain
servers for new application
s.
• Implement the prioritized
recommendations from the IT
Ca
pital Project Plan.
The City’s IT strategic goals are designed
to enhance service delivery through
modernization and innovation, foster
digital inclusion, improve customer
experience, and fortify cybersecurity
measures.
Customer Service and Engagement:
• Enhance online access to City services.
• Streamline interactions and
communication with citize
ns.
• Employ technology to elevate customer
experience.
Digital Workplace:
•
Support a flexible and efficient digital
workforce.
• Modernize inter
nal processes and
workflows to enhance product
ivity.
• Foster collaboration and communication
within city government.
Infrast
ructure and Operations:
• Maintain and upgrade the City’s
IT infrastructure to ensur
e optimal
performance.
• Provide reliable and secure IT services for
all city operations.
• Opti
mize resource allocation and
budgeting for maximum efficie
ncy.
Security:
• Safeguard city data and systems against
cyber threats.
• Ensure the re
silience of City services
in the face of natural disaste
rs and
emergencies.
Innovation and Technology Roadmap:
• Develop a comprehensive roadmap for
future technology invest
ments.
• Explore and implement emerging
technologies to enhance City
services.
• Stay proactive in navigating the evolving
technology landscape.
Data a
nd Analytics:
• Leverage data to inform strategic
decision-making and improve c
ity services.
• Evaluate the effectiveness of IT initiatives
and programs through robust da
ta analysis.
PERFORMANCE MEASURE FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 # tickets 2,043 2,080 2,500 3,000 3,100
# of upgrades 80 10 120 150 150
# of software installation 5 15 10 10 5
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
PERFORMANCE GOALS FY 2023 FY 2024 FY 2025
Percentage of software applications supported citywide 70% 70% 80% Employee service request fulfilled with 7-10 days 90% 90% 95%
FINANCE
59 Finance
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $992,064 $1,093,374 $1,126,584 $1,185,837 Contractual Services 699,674 723,187 806,950 900,924 Other Operating Costs 264,865 276,987 287,611 296,146 Cost Allocation 250,000 242,755 219,112 225,685
Capital Outlay 149,021 56,002 309,000 -
Debt Service - - - -
2,355,624 $ 2,392,305 $ 2,749,257$ 2,608,592 $
Expenditures By Fund/Program
General Fund $1,290,670 $1,355,417 $1,403,994 $1,458,595 Internal Service Fund
Information Technology (IT) Operations 1,064,954 1,036,888 1,036,263 1,149,997 IT Equipment Replacement - - 309,000 -
2,355,624 $ 2,392,305 $ 2,749,257$ 2,608,592 $
Expenditure Trends
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Debt Service
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
FINANCE
60 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.
OPERATING INDICATORS
Calls for Service Hercules Police Department Last Ten Fiscal Years 2015 2024 2015 2024 2015 2024
2015 2016 2017 2018 2019 2020
1,843 7,707 13,142 16,245 16,918 29,935
2021 2022
25,784 26,071
2023
25,196
2024
24,223
0 500
1000
1500
2000
2500
Part 1 & 2
Crimes
Arrests Traffic
Violations
96 1,060
45 480
85 987
CONTACT INFORMATION
Phone: (510) 799 8260
Office Address:
111 Civic Drive,
Hercules CA, 94547
Office Hours:
M-TH, 8 AM-5 PM
Website: herculesca.gov
Facebook: Hercules
Police Department
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
61 POLICE
POLICE
CRIME PREVENTION
Keeping our community, and visitors safe while
improving the overall quality of life.
BUILDING TRUST
through open and honest engagement with the
community we serve.
RESPOND WITH COMPASSION
and empathy during all contacts with the public..
PROVIDE EFFICIENT COMMUNICATION
utilizing technology and social media
AUTHENTIC COMMUNITY EVENTS
to build and foster positive relationships with our
community which instills trust in our department.
• 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 to maintain quality
service for the present and future of this community
5 CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
62 Police
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 6,365,810 $ 6,848,157 $ 7,149,757 $ 7,536,154 $ Contractual Services 924,130 1,089,136 765,700 853,671 Other Operating Costs 447,487 463,305 319,600 329,188 Cost Allocation 813,000 790,179 889,904 916,411
Capital Outlay 54,102 20,227 117,000 100,000
8,604,529 $ 9,211,004 $ 9,241,961 $ 9,735,424 $
Expenditures By Fund/Program
General Fund
Administration/Inspection/Support 3,987,421 $ 4,288,984 $ 3,936,596 $ 4,289,699 $ Patrol 4,605,491 4,870,976 5,188,365 $ 5,345,725
8,592,912 9,159,960 9,124,961 $ 9,635,424
Asset Forfeiture 11,617 51,044 117,000 $ 100,000 8,604,529 $ 9,211,004 $ 9,241,961 $ 9,735,424 $
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 22-23 FY 23-24 FY 24-25 FY 25-26
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
POLICE
63 COMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT
KEY PRIORITIES
2025-26:
• Begin a comprehensive
General Plan Update,
including the Land Use,
Economic Development,
Circulation, Open Space &
Conservation, and Noise
Elements
•Develop a strategy to bring
the Hercules Hub station
area into partial compliance
with the regional Transit-
Oriented Communities
Policy
•Steward the City’s Housing
Successor Agency funds
and loans
•Expand the City’s tax
base through quality
development, including
Owl Ranch, the Bayfront
project, Sycamore Crossing,
and the North Shore
Business Park
•Continue attracting
desired new businesses to
Hercules by replenishing
the funds for the successful
Business Attraction Grant
program
•Pursue other new business
attraction and retention
initiatives as directed by the
Council
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.
OPERATING INDICATORS
Number of Building Permits issued
622
782 778 756 811 815
675
1,016 1,013
2015 2016 2017 2018 2019
City of Hercules, Last Ten Fiscal Years
2020 2021 2022 2023 2024
944
PERFORMANCE INDICATOR FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 # of Administrative Use Permits 58 59 49 38 38
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
64 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 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 2025-26 ANNUAL BUDGET
65 Community Development
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $172,501 $378,754 $577,500 $606,924 Contractual Services 328,283 306,904 435,790 1,799,482 Other Operating Costs 288,369 (60,031) 190,261 21,924 Cost Allocation 87,000 82,777 93,693 96,504
Capital Outlay 24,313 40,596 200,000 150,000
$900,466 $749,000 $1,497,244 $2,674,834
Expenditures By Fund/Program
General Fund $410,822 $723,145 $1,014,244 $1,104,239
Community Development Fund - - 170,000 -
DIF-Police Facilities 4,259 830 200,000 -
DIF-Park & Recreation - 39,766 - 150,000
DIF-Traffic Facilities 33,003 - - -
General Plan and Training Fees 168,202 - - 1,300,000 Successor Housing 284,180 (14,741) 113,000 120,595 900,466 $749,000 $1,497,244 $2,674,834
Expenditure Trends
-$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
COMMUNITY DEVELOPMENT
66 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 13 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.
PUBLIC WORKS
PUBLIC WORKS
KEY PRIORITIES
2025-26:
• 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
• Improve Day to
Day oversite of L&L
Contracts
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
67 PUBLIC WORKS
PUBLIC WORKS
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.
• Continue to implement
recommendations of Parks Master P
lan,
Pavement Management Plan, and Facilities
Master Plan
• Advance the Capital Improvement
Program, Completing the $14M
S
ycamore Sewer Trunk Main Replacement
Project, and Park Improvement Projects
throughout the City and $1.15M Design
Contract for the RITC.
• Facilitate the successful completion of
the Sycamore Crossing Proje
ct, including
roadway improvements and utility
relocations.
• Utilize Capital Reserve funding to
enhance the public infrastruc
ture
• Increase focus on Maintenance &
Operations organizational de
velopment
and training, including cross training on
core equipment such as the backhoe and
operation of sewer lift stations and HVAC
systems in buildings.
WORKPLAN HIGHLIGHTS:
The Public Works inventory includes:
58 miles
of city streets
1,494
street and
parking lot
features
14 traffic signals
7 miles
of bike lanes
62 miles
of sanitary sewers
PERFORMANCE INDICATOR FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Facility Projects 0 1 0 3 2
Parks and Open Space Projects 1 7 4 6 6
Streets Projects 4 5 5 5 5
Sewer Projects 4 7 1 2 1
Regional Transit Intermodal Center Phases 1 3 1 3 2
# of Sewer Lateral Permits Issued 115 143 145 98 100
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
68 Public Works
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $2,525,753 $2,618,517 $2,827,485 $2,919,989 Contractual Services 2,364,485 3,275,993 3,535,208 3,705,184 Other Operating Costs 2,837,284 3,128,898 3,515,364 6,707,642 Cost Allocation 874,986 979,194 1,113,767 1,087,563 Capital Outlay 6,636,788 13,792,114 6,547,060 6,742,729 Debt Service 2,092,199 2,063,430 2,080,050 2,066,304 $17,331,495 $25,858,146 $19,618,934 $23,229,411
Expenditures By Fund/Program
General Fund $417,627 $433,138 $429,968 $443,381
Citywide L&L 83-2 1,529,797 1,716,785 1,938,080 1,911,392 Victoria By The Bay L&L 2002-1 547,731 766,388 677,580 697,707 Hercules Village L&L 2002-2 186,144 207,422 217,363 236,823 Baywood L&L 2004-1 285,495 141,066 177,670 183,059 Bayside L&L 2005-1 149,524 161,595 141,104 148,476 Arterial Roadways 423,871 308,731 365,916 376,790 Stormwater 422,703 398,039 449,029 392,606
State Gas Tax 586,051 603,463 669,864 693,901
Measure "C" Street Fund 418,300 444,631 601,186 612,868 BART Park & Ride 31,237 358,411 89,000 92,000
SB1 - RMRA 349,361 249,696 1,030,200 500,000
Solid Waste and Recycling 121,571 12,986 263,340 256,852 Grants 492,000 473,609 - -
GRANT FUND / STIP / RIP 193,541 1,101,014 38,500 190,500 City Capital Project 1,288,400 673,876 2,350,823 2,923,720 Hercules HUB (13,953) 235,804 1,089,000 2,239,000 Water Quality Retention Basin 10,747 10,242 48,000 49,000 Sewer - Operations 5,339,268 5,613,269 6,562,587 9,543,472 Sewer - Capital 3,284,855 10,584,462 1,100,000 536,680 ISF - Equipment Replacement 484,713 162,900 150,000 - ISF - Facilities Maintenance 782,512 1,184,248 1,137,470 1,201,184 ISF - IT Replacement - 2,344 - -
ISF - Facilities Replacement - 14,027 92,254 -
Regional Water Quality - - - -
$17,331,495 $25,858,146 $19,618,934 $23,229,411
Expenditure Trends
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 FY 22-23
FY 23-24
FY 24-25
FY 25-26
Salaries & Benefits
Contractual Services
Other Operating Costs
Cost Allocation
Capital Outlay
Debt Service
PUBLIC WORKS
69 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 FY 2025-26
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 2025-26 ANNUAL BUDGET
70 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
• Completed Parks and
Recreation Facilities
Mast
er Plan; begin
implementation of the
plan; paint exterior of
Community Swim Center.
• Continue to grow
and refine citywide
communit
y events (i.e.
Cultural Festival, 4th of
July Fireworks, NNO, etc).
• Continue to add new
contractors to meet
needs.
• Fo
llow the trends
(re-imagine programs),
c
reate new programs
based on community
input.
• Modify current
programs to follow
industry tr
ends 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 p
rojects: New water bottle refill stations at the Senior Center and City Hall, Painte
d 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, Na
tional 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 Pleasa
nt Hill Recreation & Park District, new staff
attended an all-day summer staff training led by veteran staff, and more.
EVENTS:
• Cultural Festival
• Movie Nights –
Summer Series
• Fireworks Celebration
•National Night Out
• Unity Day
• Trunk or Treat &
PUMPKATAAZ
• Youth In Government Day
• Holiday Tree Lighting
• Breakfast with Santa
• All In One Day
• Rec EGGs-Po
featuring Hydro Hunt
• Spring Into Wellness
• Community Clean-up
Day
• And more…
PERFORMANCE INDICATOR FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 YOUTH & TEENS: # of youth programs 8 - 10 13 -
# of youth attendees 112 - 243 178 -
AQUATICS: # of aquatics programs 2 4 9 308 328
# of aquatics attendees 533 1,098 1,943 2,128 2,390 RECREATION CLASSES: # of recreation programs 4 3 16 24 397 # of recreation attendees 124 16 500 398 3,746
PRESCHOOL/GRADESCHOOL:
# of preschool/gradeschool programs
8 - 11 9 9
# of preschool/gradeschool attendees 869 - 2,510 2,482 3,755 SENIOR S: # of senior programs 14 - 14 21 25
# of senior attendees 2,778 - 5,984 15,655 21,045
# of meals served 3,399 8,212 5,124 6,662 8,858
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
71 Parks & Recreation
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 1,682,116 $ 1,874,264 $ 1,792,879 $ 1,879,831 $ Contractual Services 314,003 423,759 359,700 367,628 Other Operating Costs 74,428 95,496 99,600 101,600 Cost Allocation 360,300 306,983 339,628 351,687
2,430,847 $ 2,700,502 $ 2,591,807 $ 2,700,746 $
Expenditures By Fund/Program
General Fund
Library 117,558 147,422 137,850 140,466
Administration 103,503 136,980 143,400 152,900
Facility Rentals 186,424 241,164 172,260 181,283
Lupine Day Camp 177,540 203,822 163,779 145,804
Ohlone Day Camp 11,803 11,253 5,796 5,962
Ohlone Child Care 191,853 181,093 222,826 236,224 Hanna Child Care 263,439 295,476 243,173 257,142
Lupine School Child Care 285,134 316,879 237,228 251,177 Recreation Classes 92,066 108,750 96,463 100,264
Senior Citizens 41,048 36,222 76,410 79,989
Tiny Tots 235,183 236,802 305,226 322,066
Swim Center 402,772 455,309 475,600 511,831
Sport Program 114,851 120,444 115,764 117,675
Teen Program 28,309 27,856 21,995 21,266
Community Center-Concession Stand 384 368 - 400
Youth/Teen Resource Center 178,980 180,662 174,037 176,297 2,430,847 $ 2,700,502 $ 2,591,807 $ 2,700,746 $
Expenditure Trends
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY 22-23
FY 23-24
FY 24-25
FY 25-26
Salaries & Benefits
Contractual Services
Other Operating Costs
Cost Allocation
PARKS AND RECREATION
72 Non-Departmental
Department Expenditure Summary
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures By Type
Contractual Services 404,347 134,827 - -
Reserve and Pension Contribution - 34,027 - -
Settlement Payment 537,341 9,103 40,000 -
Debt Service 1,952,421 1,910,843 1,903,753 1,912,869 Transfers 19,680,140 3,178,016 2,656,188 2,416,616 22,574,249$ 5,266,816$ 4,599,941$ 4,329,485$ Expenditures By Fund/Program
General Fund 941,688$ 177,957$ 40,000$ - $
American Rescue Plan Act (ARPA) - - - -
941,688 177,957 40,000 -
Debt Service
CalHFA Loans 200,000 200,000 200,000 200,000
Suntrust Lease 102,549 - - -
Equipment Lease 226,432 235,897 235,027 245,079 2003B PFA Lease Revenue Bonds 514,769 566,537 563,430 561,212 2009 PFA Taxable Lease Revenue Bonds 908,671 908,409 905,296 906,578 1,952,421 1,910,843 1,903,753 1,912,869
Transfers
General Fund 1,382,559 1,498,925 858,457 866,291 AB3229 COPS Program 150,000 156,727 176,556 186,159 Citywide L&L 83-2 258,100 265,060 279,653 287,641 Victoria By The Bay L&L 2002-1 27,200 28,016 29,529 30,373 Hercules Village L&L 2002-2 7,500 7,725 8,051 8,281 Baywood L&L 2004-1 2,700 2,781 2,841 2,922
Bayside L&L 2005-1 18,500 19,055 20,136 20,711 State Gas Tax 602,937 50,342 55,965 60,558
SB1 RMRA 262,755 - - -
Solid Waste and Recycling 125,000 125,000 125,000 125,000 City Capital Projects - 250,000 - -
City Capital Projects - - - -
American Rescue Plan Act (ARPA) 3,142,889 - - -
Sewer - Capital 13,700,000 147,173 1,100,000 536,680 Information Technology (IT) Operations 365,516 - 292,000 ISF - Facilities Maintenance - 261,696 - -
19,680,140 3,178,016 2,656,188 2,416,616
22,574,249$ 5,266,816$ 4,599,941$ 4,329,485$ Expenditure Trends
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 FY 22-23
FY 24-25 Contractual Services
Reserve and Pension
Contribution
NON-DEPARTMENTAL
73 FUND SUMMARIES
FUND SUMMARIES
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
74 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
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.
75 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 Police, Public Works, and Parks & Recreation
460 IT OPERATIONS Finance
470 FACILITY MAINTENANCE FUND Public Works
480 IT EQUIPMENT REPLACEMENT Finance
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 service fund.
These funds are used for operations serving other funds or departments within a government on a cost- reimbursement basis.
76 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. 77 GENERAL FUND
GENERAL FUND
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
78 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 strategically relies on several key revenue sources to support its General Fund budget effectively. The accompanying graph illustrates that projected General Fund revenues for Fiscal Year 2025-26 are anticipated to increase by approximately 5% compared to the Fiscal Year 2024-25 budget. This projected revenue growth is primarily attributed to enhancements in general tax proceeds, investment income, program fees associated with the reopening of Parks and Recreation programs, and adjusted franchise fees from Republic Services. A significant portion of the General Fund revenues is derived from various taxes, including the Utility User’s Tax (UUT), Sales Tax, Property Tax, Real Property Transfer Tax (RPTT), and Transient Occupancy Tax (TOT), among other tax sources.
0 5
10 15
$ 20 million
FY 22-23
Actual
FY 23-24
Actual
General Fund Revenue Major
Revenue
Sources:
$19.3 million $20 million $19.8 million
$15.8
million
$15.5
million
$16.2
million
$1.8 million
$0.8 million
$1 million
$2 million
$0.7 million
$1.8 million
$1.9 million
$0.6 million
$1 million
FY 24-25
Budget
$20.9 million
$16.6
million
$2.1 million
$0.8 million
$1.4 million
Misc.
Interfund
Program
Revenue
Taxes
FY 25-26
Proposed
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
79 GENERAL FUND OVERVIEW
Sales and Use Tax
Sales tax revenue is the main funding
source for the City’s General Fund, essential
for financial stability. Recent data from
the California Department of Tax and Fee
Administration (CDTFA) indicates a projected
2% increase in sales tax revenues for Fiscal
Year 2023-2024. However, a decline may
be anticipated for Fiscal Year 2025-2026
due to economic factors and shifts in
consumer spending, particularly toward
online shopping. Notably, over 50% of the
City’s sales tax revenues come from just
three key operators, meaning fluctuations in
their contributions could significantly impact
future funding for programs and services.
Utility User’s Tax
The Utility User’s Tax (UUT) is an 8%
tax on essential utilities that residents
and businesses use daily. This tax
includes services like electricity, gas,
water, and sewer, as well as types of
communication like telephone (including
cell phone use and long-distance calls)
and cable television. The City sets the
tax rate and decides how to spend the
money from this tax on community
needs and services. For the fiscal year
2025-2026, the City expects UUT
revenues to be about $4.2 million.
However, there is a worrying trend:
UUT revenues from Wireless Telecom
are decreasing. This decline is mainly
because telecom companies have
changed how they bundle their services,
moving more costs into non-taxable data
services. On a positive note, the drop in
Wireless Telecom revenues should be
balanced by increasing UUT revenues
from other essential utilities, like
electricity, gas, and water. This increase
comes from recent rate hikes for these
services, which are meant to address
growing infrastructure needs and ensure
quality utilities for the community. So,
while there are challenges, the overall
outlook for UUT revenue in the City
remains stable.
Gas
Cable
Water
Telephone
Electricity
Utility User’s Tax (UUT)
$1.9$1.6$1.7$1.5
$0.4
$0.4$0.4$0.5
$0.8$0.8$0.8$0.7
$0.5
$0.5$0.5$0.5
$0.6
$0.7$0.6$0.7
FY 22-23
Actual
FY 23-24
Actual
FY 24-25
Budget
FY 25-26
Proposed
(In Millions)
$3.9 $4.0 $4.0 $4.2
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
FY 22-23
Actual
FY 23-24
Actual
FY 24-25
Budget
FY 25-26
Proposed
Sales and Use Tax
Prop 172
1/2 Percent
(Measure B)
Bradley Burns
$6.19
Million $5.75
Million
$6.3
Million $5.9
Million
$3.87
Million
$3.69
Million
$4.11
Million
$3.79
Million
$2.13
Million
$1.88
Million
$1.99
Million
$1.91
Million
$193,028
$188,751
$199,000
$191,000
80 Property Tax
The City of Hercules is classified as a low-to-no
property tax jurisdiction, which significantly limits
its capacity for revenue generation. As a result, the
City receives only 5% of the base 1% property tax
rate, a figure that is notably lower than the amounts
collected by most other jurisdictions. In the current
fiscal period, the Assessor’s Office has instituted a
Consumer Price Index (CPI) factor of 2% for non-Prop 8
parcels, reflecting prevailing economic conditions and
considerations of inflation. For the fiscal year 2025-26, the City’s projected share of the 1% assessed property
value tax is estimated to be approximately $1.6 million.
FY 22-23
FY 21-22
FY 23-24
FY 24-25
Budget
FY 25-26
Proposed
Property Tax
$1.52
million
$1.52
million
$1.50
million
$1.56
million
$1.67
million
GENERAL FUND OVERVIEW
Transient
Occupancy
Tax (TOT)
$30,518 $30,518
$215,000
$245,000
FY 22-23 FY 23-24 FY 24-25
Budget
FY 25-26
Proposed
Transient Occupancy Tax (TOT)
The TOT, or “hotel tax,” is a fee for guests staying in rental properties, amounting to 10% of the rental price set by the owner. This tax helps fund the City’s General Fund for public services. The City expects a significant increase in TOT revenue due to the growth of options
like Airbnb and short-term rentals. Hercules Self-Storage Management LLC will also contribute. According to
their agreement, the City will receive 10% of the storage facility’s rental income instead of the TOT, starting when either 90% occupancy is reached, or three years pass
since the Certificate of Occupancy. Starting in FY 24-
25, the City will collect this revenue, projected to add $200,000 annually to support local projects and services.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Franchise Fee
A City franchise fee is a charge imposed by local
governments on utility companies, allowing them
to use public rights-of-way for essential services like electricity, water and garbage. This fee helps fund
infrastructure maintenance and provides revenue for
local governments. Typically outlined in a franchise
agreement, this formal contract details the terms of
public space usage. On March 25, 2025, the City Council reaffirmed the Solid Waste Franchise Agreement with
Richmond Sanitary Service, Inc., which will increase its annual payment to the City by approximately $195,000.
Gas
Cable
Garbage
Electric
FY 22-23
Actual
FY 22-23
Actual
FY 25-26
Actual
FY 24-25
Budget
Franchise Fee $1.38 million
$979,000$972,391$1.38 million
$407,965 $421,103 $406,000
$805,000
$402,470 $371,000 $409,000
$402,470
$67,467 $72,629
$107,659$110,206
$63,000
$101,000
$71,000
$111,000
81 GENERAL FUND OVERVIEW
Parks & Recreation
Program Revenues
Hercules Parks & Recreation
provides a comprehensive
program to serve the community.
These offerings include summer
camps, organized sports leagues,
educational classes, and various
cultural events. The revenue
generated by Parks & Recreation
experienced a significant
decline during the pandemic,
primarily due to reduced
available programs and the
temporary closure of facilities.
Nevertheless, the proposed
FY25-26 budget projects a
continued increase in program
revenues, leveraging the actual
revenue data from FY 23-24. This
forecast reflects a positive trend,
indicating a renewed community
engagement in recreational
activities.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Fees for Services
The City implements fees that accurately reflect the costs associated with the various services provided to the community. These fees are detailed in the City’s Master Fees Schedule and are subject to periodic approval by the City Council. Individual fees may be adjusted at any time during the fiscal year, provided there is a clear linkage to the costs incurred in delivering those services. On October 10, 2023, the City completed a comprehensive user fee study aimed at determining appropriate cost recovery levels for services that primarily benefit specific individuals or groups rather than the public. Following this thorough analysis, the newly established fee structure was officially adopted on October 24, 2023, ensuring alignment with the value delivered to the community.
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
Parks & Recreation Program Revenues
(Based on Actual Receipts)
FY 22-23
Actual
FY 23-24
Actual
FY 24-25
Budget
FY 25-26
Proposed
$1.65
million
$1.46
million
$1.64
million
$1.42
million
$14,000
$21,000
$1,900
$63,700
$96,200
$254,100
$155,300
$109,800
$279,100
$195,700
$167,600
$293,900
$15,344
$23,406
$12,530
$46,838
$70,786
$215,937
$102,091
$171,263
$216,453
$180,344
$134,806
$276,552
$14,053
$20,971
($1,466)
$63,689
$96,195
$254,082
$155,323
$109,792
$279,055
$195,652
$167,604
$293,898
$14,898
$22,724
$12,165
$45,474
$68,724
$209,647
$99,118
$166,275
$210,149
$175,091
$130,880
$268,497
82 GENERAL FUND OVERVIEW
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Indirect Cost
The City of Hercules General
Fund includes expenses for all
administrative services (e.g.,
finance, human resources,
attorney services, etc.). A portion
of these services support the
enterprise funds, and other
restricted funds. The City uses a
fair and equitable indirect cost
allocation process to allocate
departmental costs from the
General Fund to all funds that
benefit from the services that
the General Fund departments
provide. The plan is completed
under generally accepted
accounting principles (GAAP) as
recognized by the Governmental
Accounting Standards Board
(GASB). The primary principles
used to develop the plan are: 1)
the allocated cost is necessary
and reasonable for the proper
performance of a department,
division, unit, and program; 2)
the allocated cost is charged to
departments, divisions, units,
and programs relative to the
benefits received; and 3) costs are
consistently treated as direct or
indirect. Those costs that cannot
reasonably be directly charged are
included in the Cost Plan.
Capital and Debt
Expenditures
The General Fund includes
Capital Improvement Projects
(CIPs) related to public buildings,
general improvements, street
improvements, drainage
improvements, and park
improvements.
The detail for each CIP that
includes additional funding in the
upcoming budget year can be
found in the Capital Improvement
Program section of this
document. Debt in the General
Fund includes the principal
payments on outstanding loans
that are the obligation of the
General Fund.
Transfers Out
Funds are transferred out of the
General Fund for debt service,
loan repayments, and capital
projects. Future budgets will
include a transfer Capital Reserve
Fund for future capital needs,
Pension Reserve Trust Fund to
assist in funding future pension
contributions and Operating
Reserve up to the reserve limit.
Non-Recurring
Expenditures
These include projects that are
related to special studies. For
example, full cost projects related
to future developments and
engineering projects, such as traffic
studies, all of which are 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.
83 GENERAL FUND OVERVIEW
FIVE-YEAR GENERAL FUND FORECAST
The Five-Year Forecast presents a comprehensive financial analysis, encompassing current and long-term assessments of revenues, expenditures, fund balances, and operating reserves. The primary objective of this forecast is to equip the City Council and the community with an economic outlook while identifying significant issues that may require attention during the annual budget development process.
It is essential to emphasize that a forecast should not be confused with a budget. The Five-Year Forecast is a strategic tool for anticipating future financial conditions based on specific assumptions. Should projections indicate potential deficits, this forecast enables timely corrective actions to ensure ongoing financial stability.
This analysis is focused on the City’s General Fund, which represents the principal operating budget for tax-supported municipal services. Engaging in long-range financial forecasting is vital for making informed decisions that uphold the community’s core services. As a best practice, the City should update this plan annually.
The General Fund is anticipated to conclude the fiscal year with a positive net balance, according to current projections.
This positive outlook is extended through a five-year forecast period ending in 2031, under the assumption that service levels will remain consistent. Revenue forecasts indicate an expected annual increase in general tax revenues ranging from 2% to 3%. Conversely, expenditures are projected to increase at an average rate of 3% per year.
Furthermore, the five-year forecast includes a provision for a one-time repayment to fully retire all CalHFA loans, in accordance with the agreement established on October 18, 2013. The City has adequately reserved funds to ensure this loan repayment can be fulfilled.
Forecast
General Fund Five-Year Forecast
FY 2025-26
Proposed
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
$20 million
$25 million
Expenditures including One-Time
$24.8 million
$21.3
million
$21.8
million
$22.3
million
$22.2
million
$23.2
million
$20.5 million
$21.0 million
$22.9
million
$23.5 million
$23.4
million
$22.8
million
$20.9 million
$21.6 million
Expenditures
Revenues
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
84 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.
85 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%
86 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 50,386 258,427 465,665 418,143 599,922 87 General Fund
Expenditure by Category
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Expenditures by Category
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 88 General Fund
General Fund Projected Reserves
Reserve Description
Type of
Reserves
Beginning
Balance
Surplus
Allocation
Interest Income
(Operating
Reserve)
Capital
Improvement
Projects (CIP)
One-Time
Expenses
Projected
Ending Balance
Section 115 Trust (Pension) Restricted $2,489,351 105,940 $2,595,291 General Fund Set-Aside:
Former RDA Project Negative Cash Balance Restricted 3,400,000 3,400,000 Programs and Projects Unrestricted 3,863,238 (192,612) 3,670,626 General Fund Reserve or Designations:
Reserve for Earthquake Insurance Deductible Designated 500,000 500,000 Reserve for Partial repayment of CalHFA loan Designated 2,500,000 2,500,000 Reserve for Hercules HUB (Local Match) Designated 3,000,000 3,000,000 Reserve for Capital Projects Designated 4,072,242 211,879 (2,923,720) 1,360,401 Reserve for Reusable Bags (remaining) Designated 13,930 13,930 Reserve for PEG Fees Designated 274,000 274,000 Reserve for Economic Uncertainty (25% target) Unrestricted 4,820,534 105,940 148,000 5,074,474 Total, General Fund Reserves $24,933,295 $423,759 $148,000 ($2,923,720) ($192,612) $22,388,722 Projected Annual Activities:
Coucil Reserve Policy (Surplus Allocation)
25% to Operating Reserve for Economic Uncertainty 105,940 25% to Section 115 Trust (Pension) 105,940
50% to Capital Projects 211,879
$423,759
One-Time Employee Retention Pay
Police Officer's Association (POA)
Teamsters
Non-Represented
Interest Income (Operating Reserve) $148,000
Capital Improvement Projects (CIP) ($2,923,720)
One-Time Expenses
Replace 35 Police Radios ($143,647)
Quad-City CORE Homeless Services Pilog Program ($48,965) ($192,612)
FY 25-26 (Proposed)
89 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 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.
90 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 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 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.
91 SPECIAL REVENUE FUNDS
SPECIAL REVENUE FUNDS
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
92 Asset Seizure
Fund Summary - Fund 101
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 217,000 $ 100,000 $ Revenues
Intergovernmental 159,854 $ 1,133 $ - - Interest Income 2,732 10,019 - - Miscellaneous Revenues - - - - 162,586 11,152 - -
Transfers In - - - - 162,586 11,152 - -
Expenditures
Salaries and Benefits - - - - Contractual Services - - - - Utilities - - - - Other Expenses 8,654 29,977 - - Cost Allocation - - - - Capital Outlay - - - - Capital Improvement Projects (CIP) 2,964 21,066 117,000 100,000 Debt Service - - - - 11,618 51,043 117,000 100,000 Transfer Out - - - - 11,618 51,043 117,000 100,000 Changes in restricted reserves
Net Annual Activity 150,968 (39,891) (117,000) (100,000) Ending Available Fund Balance 217,000 $ 100,000 $ - $ 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.
93 AB 3229 COPS Program
Fund Summary - Fund 201
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 62,715 $ 36,159 $ Revenues
Intergovernmental 165,271 $ 186,159 $ 150,000 150,000 Interest Income - - - - Miscellaneous Revenues - - - - 165,271 186,159 150,000 150,000 Transfers In - $ - - - 165,271 186,159 150,000 150,000 Expenditures
Salaries and Benefits - - - - Contractual Services - - - - Utilities - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - - - - -
Transfer Out 150,000 156,727 176,556 186,159 150,000 156,727 176,556 186,159 Changes in restricted reserves
Net Annual Activity 15,271 29,432 (26,556) (36,159) Ending Available Fund Balance 62,715 $ 36,159 $ - $ California state legislation (AB 3229) created the Citizens Options for Public Safety (COPS) program. These funds are used for front line law enforcement services. 94 Lighting and Landscape District 83-2
Fund Summary - Fund 220
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 1,145,759 $ 1,226,372$ Revenues
Assessment 2,075,134 $ 2,218,229 $ 2,265,861 2,315,737 Interest Income 24,478 57,238 - - Miscellaneous Revenues - - - - 2,099,612 2,275,467 2,265,861 2,315,737
Transfers In 30,428 31,037 32,485 36,031 2,130,040 2,306,504 2,298,346 2,351,768
Expenditures
Salary and Benefits 562,164 546,550 631,231 654,852 Contractual Services 89,849 395,012 401,335 533,200 Utilities 526,174 378,032 411,140 448,688 Maintenance & Repairs 8,982 72,437 166,960 55,775 Other Expenses 3,178 7,604 18,814 14,317 Cost Allocation 191,000 200,830 140,517 144,731 Capital Improvement Projects (CIP) 148,451 116,319 - - Loan Repayment (10 years) - - 168,083 59,829 1,529,798 1,716,784 1,938,080 1,911,392
Transfer Out 258,100 265,060 279,653 287,641 1,787,898 1,981,844 2,217,733 2,199,033
Changes in restricted reserves
Net Annual Activity 342,142 $ 324,660 80,613 152,735 Ending Available Fund Balance 1,145,759 $ 1,226,372 $ 1,379,107$ (Based on Engineer's Report)
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. 95 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 105,559 82,961 122,137 98,202 49,160 32,222 100,836 125,540 205,630 98,822 1,294,668 2,315,737 General Benefit Contribution 1,000 675 890 1,510 367 205 633 874 2,571 1,304 26,002 36,031 106,559 83,636 123,027 99,712 49,527 32,427 101,469 126,414 208,201 100,126 1,320,670 2,351,768 Expenditures By Type
Salaries & Benefits 21,001 21,289 10,844 12,892 13,185 6,628 16,563 23,694 23,442 21,327 483,987 654,852 Contractual Services 10,995 4,725 8,355 15,615 2,305 1,095 4,725 3,515 33,765 5,935 442,170 533,200 Utilities 17,050 7,007 23,942 40,778 300 400 3,581 15,400 70,048 37,037 233,145 448,688 Maintenance & Repairs - - - - - - 5,775 - - - 50,000 55,775 Other Expenses 947 750 883 310 269 292 982 1,099 1,295 925 6,565 14,317 Cost Allocation - - 461 5,908 2,282 1,835 - - - - 134,245 144,731 Capital Improvement Projects (CIP) - - - - - - - - - - - - Loan Repayment (10 years) 20,260 - 42,192 - - - 17,637 33,867 - - (54,127) 59,829 70,253 33,771 86,677 75,503 18,341 10,250 49,263 77,575 128,550 65,224 1,295,985 1,911,392 Transfers Out 30,536 23,006 31,244 22,953 12,635 16,426 27,329 35,332 57,653 30,527 - 287,641 100,789 56,777 117,921 98,456 30,976 26,676 76,592 112,907 186,203 95,751 1,295,985 2,199,033 Net Annual Results 5,770 26,859 5,106 1,256 18,551 5,751 24,877 13,507 21,998 4,375 24,685 152,735 Beginning Balance (50,174) 131,674 81,301 108,815 245,644 (1,685) (91,634) 94,799 318,566 26,012 363,054 1,226,372 Ending Balance (44,404) 158,533 86,407 110,071 264,195 4,066 (66,757) 108,306 340,564 30,387 387,739 1,379,107 (Based on Engineer's Report)
96 Victoria by the bay Lighting and Landscape District
Fund Summary - Fund 221
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance (655,546)$ (702,481)$ Revenues
Assessment 472,851 $ 508,538 $ 647,122 576,758 Interest Income - - - - Miscellaneous Revenues - - - - 472,851 508,538 647,122 576,758 Transfers In 10,047 $ 10,248 13,052 13,454 482,898 518,786 660,174 590,212 Expenditures
Salary and Benefits 112,286 98,644 122,347 121,368 Contractual Services 168,675 256,268 185,500 210,225 Utilities 229,920 303,488 265,000 280,000 Maintenance & Repairs 4,400 54,916 39,500 30,000 Other Expenses - 974 10,854 854 Cost Allocation 28,000 28,523 29,379 30,260 Capital Outlay 4,450 23,575 25,000 25,000 Debt Service - - - - 547,731 766,388 677,580 697,707 Transfer Out 27,200 28,016 29,529 30,373 574,931 794,404 707,109 728,080 Changes in restricted reserves
Net Annual Activity (92,033)$ (275,618) (46,935) (137,868) Ending Fund Balance (655,546) (702,481)$ (840,349)$ (Based on Engineer's Report)
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. 97 Hercules Village Lighting and Landscape District
Fund Summary - Fund 222
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Projection Proposed
Beginning Available Fund Balance 102,163 $ 59,797 $ Revenues
Assessment 162,323 $ 174,570 $ 178,701 183,505 Interest Income 3,706 7,835 - - Miscellaneous Revenues - - - - 166,029 182,405 178,701 183,505 Transfers In 3,982 $ 4,062 4,347 4,736 170,011 186,467 183,048 188,241 Expenditures
Salary and Benefits 47,608 43,918 38,333 41,362 Contractual Services 58,483 48,609 59,100 68,625 Utilities 63,033 80,080 80,070 89,397 Maintenance & Repairs 5,020 22,543 25,300 24,000 Other Expenses - - 1,921 421 Cost Allocation 12,000 12,271 12,639 13,018 Capital Outlay - - - - Debt Service - - - - 186,144 207,421 217,363 236,823 Transfer Out 7,500 7,725 8,051 8,281 193,644 215,146 225,414 245,104 Changes in restricted reserves
Net Annual Activity (23,633)$ (28,679) (42,366) (56,863) Ending Fund Balance 102,163 $ 59,797 $ 2,934 $ (Based on Engineer's Report)
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. 98 Baywood Lighting and Landscape District
Fund Summary - Fund 223
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 91,882 $ 92,515 $ Revenues
Assessment 154,648 $ 166,246 $ 177,885 182,668 Interest Income 3,491 3,171 - - Miscellaneous Revenues - - - - 158,139 169,417 177,885 182,668 Transfers In 2,613 2,665 3,259 3,367 160,752 172,082 181,144 186,035 Expenditures
Salary and Benefits 56,676 49,842 51,680 52,929 Contractual Services 49,417 39,479 3,000 49,195 Utilities 24,192 28,955 37,220 39,400 Maintenance & Repairs 4,210 10,985 57,100 14,000 Other Expenses - - 1,811 311 Cost Allocation 11,000 11,805 12,159 12,524 Capital Outlay 140,000 - - 14,700 Debt Service - - 14,700 - 285,495 141,066 177,670 183,059 Transfer Out 2,700 2,781 2,841 2,922 288,195 143,847 180,511 185,981 Changes in restricted reserves
Net Annual Activity (127,443)$ 28,235 633 54 Ending Fund Balance 91,882 $ 92,515 $ 92,569 $ (Based on Engineer's Report)
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.
99 Bayside Lighting and Landscape District
Fund Summary - Fund 224
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 165,282 $ 169,720 $ Revenues
Assessment 147,933 $ 159,093 $ 162,856 167,239 Interest Income 3,029 7,432 - - Miscellaneous Revenues - - - - 150,962 166,525 162,856 167,239 Transfers In 2,284 2,330 2,822 2,970 153,246 168,855 165,678 170,209 Expenditures
Salary and Benefits 43,159 40,332 37,264 36,351 Contractual Services 3,826 3,307 3,000 3,285 Utilities 53,535 68,533 35,050 38,790 Maintenance & Repairs 41,004 41,004 55,000 60,500 Other Expenses - - 2,118 618 Cost Allocation 8,000 8,419 8,672 8,932 Capital Outlay - - - - Debt Service - - - - 149,524 161,595 141,104 148,476 Transfer Out 18,500 19,055 20,136 20,711 168,024 180,650 161,240 169,187 Changes in restricted reserves
Net Annual Activity (14,778)$ (11,795) 4,438 1,022 Ending Fund Balance 165,282 $ 169,720 $ 170,742 $ (Based on Engineer's Report)
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.
100
Arterial Roadways
Fund Summary - Fund 225
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 393,134 $ 367,428 $ Revenues
Assessment - $ - $ - - Interest Income (2,022) 28,325 - - Miscellaneous Revenues - - - - (2,022) 28,325 - -
Transfers In 314,000 322,637 340,210 349,928 311,978 350,962 340,210 349,928 Expenditures
Salary and Benefits 23,062 25,151 26,077 26,772 Contractual Services 2,614 32,824 - - Utilities 341,547 192,320 267,200 275,200 Maintenance & Repairs 50,648 50,109 60,000 61,800 Other Expenses - - - - Cost Allocation 6,000 8,327 12,639 13,018 Capital Outlay - - - - Debt Service - - - - 423,871 308,731 365,916 376,790 Transfer Out - - - - 423,871 308,731 365,916 376,790 Changes in restricted reserves
Net Annual Activity (111,893)$ 42,231 (25,706) (26,862) Ending Fund Balance 393,134 $ 367,428 $ 340,566 $ 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.
101
Stormwater Assessment
Fund Summary - Fund 231
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 84,422 $ (8,962)$ Revenues
Assessment 336,987 $ 221,305 $ 230,645 250,000 Interest Income - - - - Miscellaneous Revenues - - - - 336,987 221,305 230,645 250,000 Transfers In 125,000 125,000 125,000 125,000 461,987 346,305 355,645 375,000 Expenditures
Salary and Benefits 214,259 217,583 218,014 214,406 Contractual Services 123,405 100,896 141,228 145,400 Utilities 1,849 2,226 2,122 2,200 Maintenance & Repairs 32,422 21,738 26,523 27,300 Other Expenses 3,768 2,728 3,183 3,300 Cost Allocation 47,000 52,869 57,959 - Capital Outlay - - - - Debt Service - - - - 422,703 398,040 449,029 392,606 Transfer Out - - - - 422,703 398,040 449,029 392,606 Changes in restricted reserves
Net Annual Activity 39,284 $ (51,735) (93,384) (17,606) Ending Available Fund Balance 84,422 $ (8,962)$ (26,568)$ 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. 102
Development Impact Fee - Public Facilities
Fund Summary - Fund 241
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 160,534 $ 160,534 $ Revenues
Fees 391 $ 5,670 $ - - Interest Income 2,926 7,828 - - Miscellaneous Revenues - - - - 3,317 13,498 - -
Transfers In - - - - 3,317 13,498 - -
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 3,317 $ 13,498 - - Ending Available Fund Balance 160,534 $ 160,534 $ 160,534 $ 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) 103
Community Development Tax
Fund Summary - Fund 242
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 180,478 $ 10,478
Revenues
Fees 750 $ - $ - - Interest Income 3,411 8,899 - - Miscellaneous Revenues - - - - 4,161 8,899 - -
Transfers In - - - - 4,161 8,899 - -
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 4,161 $ 8,899 (170,000) - Ending Available Fund Balance 180,478 $ 10,478 $ 10,478 $ 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. 104
Development Fee Fund
Fund Summary - Fund 243
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 76,657 $ 76,657 $ Revenues
Fees - $ - $ - - Interest Income 1,453 3,780 - - Miscellaneous Revenues - - - - 1,453 3,780 - -
Transfers In - - - - 1,453 3,780 - -
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 1,453 $ 3,780 - - Ending Available Fund Balance 76,657 $ 76,657 $ 76,657 $ 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.
105
Development Impact Fee - Police Facilities
Fund Summary - Fund 244
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 281,366 $ 81,366 $ Revenues
Fees 692 $ 2,530 $ - - Interest Income 5,339 13,848 - - Miscellaneous Revenues - - - - 6,031 16,378 - -
Transfers In - - - - 6,031 16,378 - -
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) 4,259 830 200,000 - Debt Service - - - - 4,259 830 200,000 -
Transfer Out - - - - 4,259 830 200,000 -
Changes in restricted reserves
Net Annual Activity 1,772 $ 15,548 (200,000) - Ending Available Fund Balance 281,366 $ 81,366 $ 81,366 $ 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.
106
Development Impact Fee - Fire Facilities
Fund Summary - Fund 246
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Projection Proposed
Beginning Available Fund Balance - $ - $
Revenues
Fees 915 $ - $ - - Interest Income (27) 21 - - Miscellaneous Revenues - - - - 888 21 - - Transfers In - - - - 888 21 - - 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 $ 21 - - 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. 107
Development Impact Fee - Parks & Recreation
Fund Summary - Fund 247
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 158,276$ 158,276 $ Revenues
Fees 805 $ - $ - - Interest Income 3,774 8,415 - - Miscellaneous Revenues - - - - 4,579 8,415 - - Transfers In - - - - 4,579 8,415 - - Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) - 39,766 - 150,000 Debt Service - - - - - 39,766 - 150,000 Transfer Out - - - - - 39,766 - 150,000 Changes in restricted reserves
Net Annual Activity 4,579 $ (31,351) - (150,000) Ending Available Fund Balance 158,276 $ 158,276$ 8,276 $ 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.
108
Public Benefit Fee
Fund Summary - Fund 249
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 1,039,867 $ 1,039,867 $ Revenues
Fees - $ - $ - - Interest Income 19,938 51,274 - - Miscellaneous Revenues - - - - 19,938 51,274 - -
Transfers In - - - - 19,938 51,274 - -
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 19,938 $ 51,274 - - Ending Available Fund Balance 1,039,867 $ 1,039,867 $ 1,039,867 $ 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. 109
Development Impact Fee - Transporation Facilities
Fund Summary - Fund 261
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 477,493 $ 477,493 $ Revenues
Fees 2,820 $ 330,718 $ - - Interest Income 3,078 18,770 - - Miscellaneous Revenues - - - - 5,898 349,488 - -
Transfers In - - - - 5,898 349,488 - -
Expenditures
Salary and Benefits - - - - Contractual Services 12,949 - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay 20,055 - - - Debt Service - - - - 33,004 - - -
Transfer Out - - - - 33,004 - - -
Changes in restricted reserves
Net Annual Activity (27,106)$ 349,488 - - Ending Available Fund Balance 477,493 $ 477,493 $ 477,493 $ 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).
110
State Gas Tax
Fund Summary - Fund 262
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 496,011$ 497,767$ Revenues
Gas Tax 664,094 $ 721,198 $ 727,585 738,148 Interest Income 12,548 24,711 - - Miscellaneous Revenues - - - - 676,642 745,909 727,585 738,148
Transfers In 262,755 - - - 939,397 745,909 727,585 738,148
Expenditures
Salary and Benefits 259,269 264,427 269,408 282,940 Contractual Services 30,442 77,103 109,978 113,300 Utilities 12,195 15,064 12,700 13,100 Maintenance & Repairs 74,881 63,599 81,500 83,900 Other Expenses 17,301 9,856 20,200 20,800 Cost Allocation 96,986 102,413 126,078 129,861 Capital Outlay 94,977 21,682 50,000 50,000 Capital Improvement Projects (CIP) - 49,320 - - Debt Service - - - - 586,051 603,464 669,864 693,901
Transfer Out 602,937 50,342 55,965 60,558 1,188,988 653,806 725,829 754,459
Changes in restricted reserves
Net Annual Activity (249,591)$ 92,103 1,756 (16,311) Ending Available Fund Balance 496,011 $ 497,767$ 481,456$ 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. 111
Measure "C" Street Fund
Fund Summary - Fund 263
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 678,765 $ 597,579 $ Revenues
Gas Tax 510,780 $ 1,043,772 $ 520,000 493,303 Interest Income 1,735 29,866 - - Miscellaneous Revenues - - - - 512,515 1,073,638 520,000 493,303
Transfers In - - - - 512,515 1,073,638 520,000 493,303
Expenditures
Salary and Benefits 259,116 278,193 265,415 275,050 Contractual Services 3,501 9,982 68,278 68,300 Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation 51,000 49,092 67,493 69,518 Capital Outlay 104,683 107,364 200,000 - Capital Improvement Projects (CIP) - - - 200,000 Debt Service - - - - 418,300 444,631 601,186 612,868 Transfer Out - - - - 418,300 444,631 601,186 612,868 Changes in restricted reserves
Net Annual Activity 94,215 $ 629,007 (81,186) (119,565) Ending Available Fund Balance 678,765 $ 597,579 $ 478,014 $ 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.
112
BART Park & Ride
Fund Summary - Fund 266
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Fees - $ - $ - - Interest Income - - - - Miscellaneous Revenues 81,187 32,318 89,000 92,000 81,187 32,318 89,000 92,000 Transfers In - - - - 81,187 32,318 89,000 92,000 Expenditures
Salary and Benefits - - - - Contractual Services 14,674 245,897 24,000 25,000 Utilities 10,900 2,459 20,000 21,000 Maintenance & Repairs 5,663 3,532 45,000 46,000 Other Expenses - 6,525 - - Cost Allocation - - - - Capital Outlay - - - - Capital Improvement Project (CIP) - 100,000 - - Debt Service - - - - 31,237 358,413 89,000 92,000 Transfer Out - - - - 31,237 358,413 89,000 92,000 Changes in restricted reserves
Net Annual Activity 49,950 $ (326,095) - - Fund Balance
Ending Available Fund Balance - $ - $ - $ 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. 113
General Plan Update Fee and Building Training Fee
Fund Summary - Fund 267
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 1,394,760 $ 1,394,760 $ Revenues
Fees 164,192 $ 254,542 $ - -
Interest Income 22,898 42,315 - - Miscellaneous Revenues - - - - 187,090 296,857 - -
Transfers In 953,800 - - - 1,140,890 296,857 - -
Expenditures
Salary and Benefits - - - - Contractual Services 168,202 - - 1,300,000 Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - 168,202 - - 1,300,000 Transfer Out - - - - 168,202 - - 1,300,000 Changes in restricted reserves
Net Annual Activity 972,688 $ 296,857 - (1,300,000) Fund Balance
Ending Available Fund Balance 1,394,760 $ 1,394,760 $ 94,760 $ 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.
114
Road Maintenance Rehabilitation Account (SB1 - RMRA)
Fund Summary - Fund 268
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 940,852 $ 583,654 $ Revenues
RMRA 576,570 $ 664,869 $ 673,002 683,809 Interest Income 12,020 40,692 - - Miscellaneous Revenues - - - - 588,590 705,561 673,002 683,809 Transfers In 553,583 - - - 1,142,173 705,561 673,002 683,809
Expenditures
Salary and Benefits - - - - Pass through to other agency 44,832 87,930 - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Street Maintenance Program - - - Capital Improvement Projects (CIP) 304,529 161,766 1,030,200 500,000 Debt Service - - - - 349,361 249,696 1,030,200 500,000
Transfer Out 262,755 - - - 612,116 249,696 1,030,200 500,000
Changes in restricted reserves -
Net Annual Activity 530,057 $ 455,865 (357,198) 183,809 Ending Available Fund Balance 940,852 $ 583,654 $ 767,463 $ 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.
115
Solid Waste and Recycling
Fund Summary - Fund 291
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 878,373 $ 675,033 $ Revenues
Fees - $ - $ - - Interest Income 19,420 44,590 9,000 - Miscellaneous Revenues 176,184 176,206 176,000 - 195,604 220,796 185,000 -
Transfers In - - - - 195,604 220,796 185,000 -
Expenditures
Salary and Benefits 12,377 12,986 13,340 13,852 Contractual Services 9,194 - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - 243,000 Cost Allocation - - - - Capital Improvement Projects (CIP) 100,000 - 250,000 - Debt Service - - - - 121,571 12,986 263,340 256,852 Transfer Out 125,000 125,000 125,000 125,000 246,571 137,986 388,340 381,852 Changes in restricted reserves
Net Annual Activity (50,967)$ 82,810 (203,340) (381,852) Ending Available Fund Balance 878,373 $ 675,033 $ 293,181 $ 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.
116
American Recovery Plan Act ("ARPA")
Fund Summary - Fund 353
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
ARPA (Non-Entitlement) 3,142,889 $ - $ - - Interest Income - - - - Miscellaneous Revenues - - - - 3,142,889 - - -
Transfers In - - - - 3,142,889 - - -
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - - - - -
Transfer Out - General Fund 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).
117
Water Quality Retention Basin
Fund Summary - Fund 387
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 287,000 $ 301,000 $ Revenues
Property Tax 55,077 $ 58,161 $ 56,000 57,000 Interest Income 4,156 13,747 6,000 6,000 Miscellaneous Revenues - - - - 59,233 71,908 62,000 63,000 Transfers In - - - - 59,233 71,908 62,000 63,000 Expenditures
Salary and Benefits - - - - Contractual Services 10,747 10,242 48,000 49,000 Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - 10,747 10,242 48,000 49,000 Transfer Out - - - - 10,747 10,242 48,000 49,000 Changes in restricted reserves
Net Annual Activity 48,486 $ 61,666 $ 14,000 14,000 Ending Available Fund Balance 287,000 $ 301,000 $ 315,000 $ 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. 118
Regional Water Quality
Fund Summary - Fund 521
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 55,123 $ 55,123 $ Revenues
Fees - - - - Interest Income 1,045 2,718 - - Miscellaneous Revenues - - - - 1,045 2,718 - -
Transfers In - - - - 1,045 2,718 - -
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 1,045 $ 2,718 - - Fund Balance
Ending Available Fund Balance 55,123 $ 55,123 $ 55,123 $ 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. 119
Successor Housing Agency
Fund Summary - Fund 640
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 5,880,886 $ 5,869,886 $ Revenues
Tax Increment (RPTTF) - - - - Interest Income 388,208 478,616 102,000 - Miscellaneous Revenues - 253,594 - - 388,208 732,210 102,000 -
Transfers In - - - - 388,208 732,210 102,000 -
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses 284,180 (14,741) 113,000 120,595 Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - 284,180 (14,741) 113,000 120,595 Transfer Out - - - - 284,180 (14,741) 113,000 120,595 Changes in restricted reserves
Net Annual Activity 104,028 $ 746,951 (11,000) (120,595) Ending Available Fund Balance 5,880,886 $ 5,869,886 $ 5,749,291 $ 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.
120
SEWER ENTERPRISE FUND
SEWER ENTERPRISE FUND
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
121
Sewer - Operations
Fund Summary - Fund 420
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Projection Proposed
Beginning Available Fund Balance 10,771,772$ 10,019,842$ Revenues
Charges for Services 5,922,758$ 5,891,836$ 6,053,000 6,235,000 Interest Income 375,085 577,482 238,000 270,000 Rate Stabilization Fund - 340,039 619,657 695,934 Miscellaneous Revenues - - - - 6,297,843 6,809,357 6,910,657 7,200,934 Transfers In - - - - 6,297,843 6,809,357 6,910,657 7,200,934 Expenditures
Salary and Benefits 727,572 756,775 791,861 797,035 Contractual Services 74,250 1,062,574 461,267 475,100 Utilities 65,929 78,634 90,700 93,400 Maintenance & Repairs 41,507 24,489 51,600 53,200 Sewer Plant Operating Expenses 1,994,792 2,128,446 2,609,425 2,862,426 Other Expenses 5,740 11,262 6,600 6,800 Cost Allocation 258,000 271,061 420,784 433,408 Capital Outlay 5,596 - - - Capital Improvement Projects (CIP) 53 - - - Capital Outlay - Pinole (Hercules' Share) 79,226 79,226 65,000 2,755,799 Debt Service 2,092,199 2,063,430 2,065,350 2,066,304 5,344,864 6,475,897 6,562,587 9,543,472 Transfer Out 13,700,000 147,173 1,100,000 536,680 19,044,864 6,623,070 7,662,587 10,080,152 Changes in restricted reserves (4,977,934)
Net Annual Activity (12,747,021) 186,287 (751,930) (7,857,152) Ending Available Fund Balance 10,771,772$ 10,019,842$ 2,162,690$ Debt Service Coverage Ratio 1.50 1.20 1.20 1.20 Operating & Maintenance Reserve (180 days) 1,180,000
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.
122
Sewer - Capital Projects
Fund Summary - Fund 421
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Projection Proposed
Beginning Available Fund Balance - $ - $
Revenues
Charges for Services - $ - $ - - Interest Income - - - - Bond Proceeds - - - - Miscellaneous Revenues - - - - - - - -
Transfers In 13,700,000 147,173 1,100,000 536,680 13,700,000 147,173 1,100,000 536,680
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 10,584,462 1,100,000 536,680 Debt Service - - - - 3,284,855 10,584,462 1,100,000 536,680
Transfer Out - - - - 3,284,855 10,584,462 1,100,000 536,680
Changes in restricted reserves
Net Annual Activity 10,415,145 (10,437,289) - - 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.
123
INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
124
Vehicle Replacement
Fund Summary - Fund 450
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 314,637 $ 322,637 $ Revenues
Charges for Services 148,300 $ 153,000 $ 158,000 163,000 Interest Income 6,050 8,914 - - Miscellaneous Revenues - - - - 154,350 161,914 158,000 163,000 Transfers In - - - - 154,350 161,914 158,000 163,000 Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay 484,713 162,900 150,000 - Debt Service - - - - 484,713 162,900 150,000 -
Transfer Out - - - - 484,713 162,900 150,000 -
Changes in restricted reserves
Net Annual Activity (330,363)$ (986) 8,000 163,000 Ending Available Fund Balance 314,637 322,637 $ 485,637 $ 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. 125
Information Technology (IT) Operations
Fund Summary - Fund 460
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 584,764 $ 634,216 $ Revenues
Charges for Services 1,271,986 $ 1,013,843 $ 1,085,715 $ 1,102,852 Interest Income - - - - Miscellaneous Revenues 5,376 6,065 - - 1,277,362 1,019,908 1,085,715 1,102,852
Transfers In - - - - 1,277,362 1,019,908 1,085,715 1,102,852
Expenditures
Salary and Benefits 375,984 416,762 446,034 472,499 Contractual Services 46,209 2,708 30,000 100,524 Utilities 46,521 53,678 53,200 54,800 Maintenance and Subscriptions 355,354 406,899 434,750 447,800 Other Expenses 2,865 2,650 13,611 13,946 Cost Allocation 89,000 98,189 58,668 60,428 Capital Outlay 149,021 56,002 - - 1,064,954 1,036,888 1,036,263 1,149,997
Transfer Out - 365,516 - 292,000 1,064,954 1,402,404 1,036,263 1,441,997
Changes in restricted reserves
Net Annual Activity 212,408 $ (382,496) 49,452 (339,145) Ending Available Fund Balance 584,764 $ 634,216 $ 295,071 $ 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. 126
Facility Maintenance
Fund Summary - Fund 470
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 267,437 $ 176,650 $ Revenues
Charges for Services 787,000 $ 938,955 $ 1,046,683 1,047,125 Interest Income - - - - Miscellaneous Revenues - - - - 787,000 938,955 1,046,683 1,047,125 Transfers In - - - - 787,000 938,955 1,046,683 1,047,125 Expenditures
Salary and Benefits 155,241 247,854 323,801 362,965 Contractual Services 65,954 165,432 193,495 199,300 Utilities 355,016 461,122 281,300 289,700 Maintenance & Repairs 111,707 140,513 179,300 184,800 Other Expenses 22,593 25,062 28,100 29,000 Cost Allocation 72,000 144,264 131,474 135,419 782,511 1,184,247 1,137,470 1,201,184 Transfer Out - 261,696 - - 782,511 1,445,943 1,137,470 1,201,184 Changes in restricted reserves
Net Annual Activity 4,489 $ (506,988) (90,787) (154,059) Ending Available Fund Balance 267,437 $ 176,650 $ 22,591 $ 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.
127
Information Technology (IT) Equipment Replacement
Fund Summary - Fund 480
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 363,172 $ 54,172 $ Revenues
Charges for Services - $ - $ - - Interest Income - - - - Miscellaneous Revenues - - - - - - - -
Transfers In - 365,516 - 292,000 - 365,516 - 292,000 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 - $ 365,516 (309,000) 292,000 Ending Available Fund Balance 363,172 $ 54,172 $ 346,172 $ 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.
128
Facilities Replacement
Fund Summary - Fund 490
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 247,669 $ 155,415 $ Revenues
Charges for Services - $ - $ - - Interest Income - - - - Miscellaneous Revenues - - - - - - - -
Transfers In - 261,696 - - - 261,696 - -
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) - 14,027 92,254 - Debt Service - - - - - 14,027 92,254 -
Transfer Out - - - - - 14,027 92,254 -
Changes in restricted reserves
Net Annual Activity - $ 247,669 (92,254) - Ending Available Fund Balance 247,669 $ 155,415 $ 155,415 $ 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. 129
DEBT SERVICE FUNDS
DEBT SERVICE FUNDS
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
130
Summary of Annual Debt Service Obligation from FY 2025-26 through Maturity
Total Outstanding Debt Obligation
by Debt Category in FY 2025-26 Principal Interest Total 2020 Public Financing Authority (PFA)
Lease Revenue Bonds
$4,584,558 $470,188 $5,054,746
2009 Public Financing Authority (PFA)
Taxable Lease Revenue Bonds
$7,400,000 $5,135,449 $12,535,449
California Housing Finance Agency
(CalHFA) HELP Loan
$1,211,455 $18,733 $1,230,188
California Housing Finance Agency
(CalHFA) RDLP Loan
$3,750,000 $213,572 $3,963,572
Engie Construction Loan $3,743,099 $930,018 $4,673,117 2021 Public Financing Authority (PFA)
Wastewater Revenue Bonds
$7,355,000 $1,487,917 $8,842,917
Public Owned Treatment Works
Construction Loan
$19,856,033 $2,806,523 $22,662,556
Total $47,900,145 $11,062,400 $58,962,545
Note: In FY 2026-27 and FY 2027-28, the remaining balances for CalHFA loans are due in full.
FY 2025-26 DEBT DETAIL
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
$3.88
Million
$5.03
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
2026 2027 2028 2029 2030 2031
FISCAL YEAR
DEBT SERVICE OBLIGATION
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
131
DEBT LIMITS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$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 $4,675,468,550 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
$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 $1,168,867,138 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
$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 $175,330,071
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.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
132
DEBT DETAIL
FY 2025-26 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 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 $380,000 $522,840 $902,840
FY 2029 to Maturity $6,045,000 $2,872,283 $8,917,283 Total $7,400,000 $5,135,449 $12,535,449
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
133
DEBT DETAIL
FY 2025-26 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 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 $500,055 $64,157 $564,212
FY 2029 to Maturity $2,653,000 $148,998 $2,801,998
Total $4,584,558 $470,188 $5,054,746
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
134
DEBT DETAIL
FY 2025-26 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 2025-26 – – –
FY 2026-27 – – –
FY 2027-28 $1,211,455 $18,733 $1,230,188
Total $1,211,455 $18,733 $1,230,188
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
135
DEBT DETAIL
FY 2025-26 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 2025-26 – $100,000 $100,000
FY 2026-27 $3,750,000 $113,572 $3,863,572
FY 2027-2028 – – –
Total $3,750,000 $213,572 $3,963,572
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
136
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 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 $189,633 $88,563 $278,196
FY 2029 to Maturity $3,078,382 $549,210 $3,627,592
Total $3,743,099 $930,018 $4,673,117
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 2025-26 DEBT DETAIL
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
137
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 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 $410,000 $142,086 $552,086
FY 2029 to Maturity $5,765,000 $862,453 $6,627,453
Total $7,355,000 $1,487,917 $8,842,917
DEBT DETAIL
FY 2025-26 DEBT DETAIL
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
138
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 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 $1,234,145 $276,692 $1,510,837
FY 2029 to Maturity $15,041,858 $1,577,350 $16,619,208 Total $19,856,033 $2,806,523 $22,662,556
DEBT DETAIL
FY 2025-26 DEBT DETAIL
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
139
2020 DEBT SERVICE PFA
Fund Summary - Fund 672
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Property Lease Revenue - - - - Interest Income - - - - Miscellaneous Revenues - - - - - - - -
Transfers In/General Fund 360,649 563,316 563,430 561,212 360,649 563,316 563,430 561,212 Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses 2,500 1,600 - - Cost Allocation - - - - Capital Outlay - - - - Debt Service 512,269 564,937 563,430 561,212 514,769 566,537 563,430 561,212 Transfer Out - - - - 514,769 566,537 563,430 561,212 Changes in restricted reserves
Net Annual Activity (154,120)$ (3,221) - - Ending Available Fund Balance - $ - $ - $ (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.
140
2009 DEBT SERVICE PFA
Fund Summary - Fund 673
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Property Lease Revenue 915,949 921,499 905,296 906,578 Interest Income 57,470 93,460 - - 973,419 1,014,959 905,296 906,578
Transfers In 5,300 - - - 978,719 1,014,959 905,296 906,578
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service 908,671 908,409 905,296 906,578 908,671 908,409 905,296 906,578 Transfer Out - - - - 908,671 908,409 905,296 906,578 Changes in restricted reserves
Net Annual Activity 70,048 $ 106,550 - - 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.
141
SunTrust Lease
Fund Summary - Fund 383
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Charges for Services - $ - $ - - Interest Income - - - - Property Lease Revenue - - - - - - - -
Transfers In 102,549 - - - 102,549 - - -
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service 102,549 - - - 102,549 - - -
Transfer Out - - - - 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.
142
Equipment Lease
Fund Summary - Fund 388
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Charges for Services - $ - $ - - Interest Income - - - - Property Lease Revenue - - - - - - - -
Transfers In 226,432 235,897 235,027 245,079 226,432 235,897 235,027 245,079 Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service 226,432 235,897 235,027 245,079 226,432 235,897 235,027 245,079 Transfer Out - - - - 226,432 235,897 235,027 245,079 Changes in restricted reserves (1,053)
Net Annual Activity (1,053)$ - - - Ending Available Fund Balance - $ - $ - $ This fund accounts for Engie Solar Project Lease. On August 14, 2020, the City entered into master lease agreements with Sterling National Bank in order to provide funds for the financing of the Solar Energy Project by ENGIE Services U.S. Inc. Payments are due annually and the payments are offset by the energy savings of approximately $28,000 annually. The Master Lease Agreement matures on September 14, 2040. 143
CAPITAL PROJECT FUNDS
CAPITAL PROJECT FUNDS
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
144
2025-26 CAPITAL PROJECTS BUDGET &
TEN-YEAR CAPITAL IMPROVEMENT PLAN (CIP)
Hercules Capital Improvement Projects (CIP) is committed to preserving and enhancing the city’s aging public infrastructure within the constraints of available resources.
The maintenance of existing infrastructure is essential for fostering a resilient community. This plan emphasizes a balanced approach to capital improvements, focusing on the rehabilitation of outdated infrastructure while also pursuing critical enhancement projects that address vital priorities, including 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 Council Strategic Goals, specific to CIP:
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Objective Tactical Steps Timeline
Develop regional partnerships Participate and collaborate with other agencies, their boards and commissions, and other stakeholder groups to raise awareness of the Hercules Hub and regional transit-related issues, surface opportunities for partnership, and support appropriate transportation revenue generating measures.
Ongoing
Enhance lobbying efforts/
contracts
Secure the services of a federal lobbyist as an advocate on behalf of the Hercules Hub.
Winter
2024
Continue to keep the community
informed
Utilize social media and other informational platforms to disseminate information regularly and when new developments occur.
Ongoing
Initiate the Train Station design Secure sufficient grant funding to begin the station design. Summer GOAL #1: ADVANCE PROGRESS OF THE HERCULES HUB
145
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
Public infrastructure includes essential elements
such as the City’s streets, sewers, storm drains,
transportation systems, facilities, and parks. The
Capital Improvement Program (CIP) is structured
for a ten-year horizon; however, the City Council
will allocate funds specifically for the fiscal year
2025-26. This CIP and the associated budget will
be presented for approval by the City Council
during the annual budget adoption process.
The CIP articulates a comprehensive vision for
short-term and long-term project delivery and
funding. Its primary focus is on maintaining,
improving, and developing new and existing
infrastructure assets to serve the needs of residents,
businesses, property owners, and visitors. The
program is designed to align with the General
Plan, the Parks Master Plan, and other relevant
master planning documents while maximizing
available resources. This alignment ensures a
structured approach to the planning, scheduling,
and implementing of capital projects over the next
decade.
Furthermore, the CIP integrates the City’s
infrastructure development and maintenance
investments, which are classified as capital
improvements, with other significant capital
expenditures that enhance the City’s asset
inventory. Projects included in the CIP are
characterized as long-term investments that involve
the construction, replacement, or enhancement of
assets (such as facilities, roadways, parks, sewer
systems, and drainage lines), possess a valuable life
of at least five years, and entail a minimum cost of
$50,000.
It is essential to note the distinction between
capital and operating budgets. Capital projects
are approved for funding in one fiscal year, but
their completion may extend over several years.
Conversely, operating budgets are typically focused
on continuous maintenance and utilize a “use-it-
or-lose-it” principle at the end of the fiscal year,
resulting in any unspent funds being returned to
the funds.
The projects included in the Ten-Year Capital
Improvement Plan (CIP) have been prioritized in
alignment with the Ten-Year Action Plan derived
from the recently completed Parks Master Plan, the
Sanitary Sewer Master Plan, the City’s Pavement
Management Program, and the Building Facilities
Assessment.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Objective Tactical Steps Timeline
Identify and set priorities
related to major infrastructure
Review and refine policy for prioritizing capital projects as part of the budgeting process.
Spring 2025
Continue progress on the
Capital Improvement Plan
Continue to update the City Council on progress during the mid-year CIP progress report process.
Spring 2025
Devise a plan for funding the
Parks and Recreation Facilities
Master Plan
Identify grant opportunities, sponsorships, partnerships, and available Capital Improvement funds for projects called out in the 5-year Park Master Plan Action Plan.
Ongoing
Devise a plan for funding
facilities assessment and
maintenance
Maintain and refine the recently established Facility Replacement Fund to address the backlog of large unfunded maintenance and infrastructure projects.
Spring 2025
GOAL #5: PLAN AND FUND MAJOR INFRASTRUCTURE
146
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
The FY 2025-26 Proposed CIP are fully funded by various funding sources as specified below:
Capital Improvement Projects are primarily funded through revenues from restricted funds. • The Sewer Fund is specifically designated for maintaining and replacing the City’s sewer systems, and a significant portion of the capital budget is allocated to this fund. • The Transportation Fund includes revenue sources such as the Gas Tax, Measure J, and the SB1 Road Maintenance and Repair Account, resulting from voter-approved increases to enhance transportation infrastructure. Furthermore, transportation projects benefit from Development Impact Fees (DIF), which are imposed on new residential and commercial developments. Nonetheless, these fees can vary considerably and are subject to specific restrictions. • The General Fund is the only non-restricted funding source that can be utilized for public infrastructure expenses. Due to the limitations imposed by restricted funds this fiscal year, staff propose that 43% of the Fiscal Year 2025-26 Capital Improvement Program (CIP) be funded from this source.
The Ten-Year Capital Improvement Plan (CIP) has revealed many unfunded projects. Approximately $112 million, representing 83% of the total Ten-Year CIP, remains without funding. This amount comprises $101 million for the Hercules HUB, $3.2 million allocated for streets, $3.9 million for parks, and $3.5 million designated for facilities, as detailed in the CIP documents. Below is a range of financing options for the City Council to consider regarding funding for the future CIP.
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Measure J Fund 263 $200,000
$6,731,900 Total Funding
$2,915,500 $2,429,500
General Fund/ Capital Reserve Grant
FY 2025-26 Proposed CIP Funding Sources
$536,680 $500,000
Parks Impact Fee $150,000
Sewer
Fund
412
SB1
RMRA
147
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
Capital Grants
The City has retained the services of California
Consulting, a grant-writing consultancy, to assist
in identifying and applying for relevant grants for
approved Capital Improvement Projects.
Bond Financing
1. General Obligation Bonds (GOs): These
municipal bonds enable state and local
governments to raise funds for projects that
do not necessarily generate direct revenue.
They are called “general obligation” bonds
because a specific revenue-generating
asset does not underpin them. Instead,
their repayment relies on the issuer’s “full
faith and credit,” which illustrates the
government’s ability to impose taxes and
generate revenue to meet its obligations to
bondholders, typically through property
taxes.
2. Lease Revenue Bonds: This financing
method is effective and increasingly favored
by state and local governments for acquiring
equipment, constructing public facilities,
and expanding or rehabilitating existing
infrastructures. Lease financing allows cities
to undertake various governmental projects
without incurring traditional debt that would
necessitate voter approval.
Projects previously appropriated by the City
Council that have not been fully expended carry
remaining appropriations known as carryover
amounts. These figures are estimates that will
be reconciled at the close of the fiscal year. It
is essential to clarify that the amounts listed in
the projected carryover column should not be
interpreted as funds available for commitment,
as this estimate may encompass funds already
encumbered due to executed contracts for services
or goods.
The ten-year CIP correlates physical improvements
with financial planning, optimizing the advantages
of available funding sources. The funding
primarily originates from capital and special
revenue funds, with allocations usually restricted
to specified purposes. Further descriptions of these
funding sources can be found in the City’s adopted
budget. Additionally, the City has implemented a
policy to allocate resources for a capital reserve to
address future capital needs.
Given the identification of numerous unfunded
projects in the upcoming decade, staff
recommends that the City Council explore the
possibility of financing these projects through the
issuance of bonds. By embarking on long-term
debt to support significant infrastructure initiatives
with extended service lives, the City can promote
equity among generations while maintaining the
integrity of the operating budget.
148
CIP SPENDING PLAN
CITY OF HERCULES
TEN-YEAR CAPITAL IMPROVEMENT PROJECT
PROGRAM SPENDI
NG PLAN FY 2025-2035
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
SUMMARY OF CAPITAL IMPROVEMENT PROJECT
PROGRAM SPENDING PLAN FY 2025-26 to FY 2034-35
PPrriioorr YYeeaarr FFYY 22002255--2266 FFYY 22002266--2277 FFYY 22002277--2288 FFYY 22002288--2299 FFYY 22002299--3300 FFYY 22003300--3311 FFYY 22003311--3322 FFYY 22003322--3333 FFYY 22003333--3344 FFYY 22003344--3355 TToottaall Project Name FFuunnddiinngg SSoouurrcceess BBaallaannccee PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn City Hall General Fund/Capital Reserves 126,270 337,700 - - - - - - - - - 463,970 Senior Center General Fund/Capital Reserves 22,715 19,250 - - - - - - - - - 41,965 Library General Fund/Capital Reserves 107,254 - - - - - - - - - - 107,254 Community Swim Center General Fund/Capital Reserves 132,638 100,000 - - - - - - - - - 232,638 Teen Center General Fund/Capital Reserves 20,460 11,000 - - - - - - - - - 31,460 Hanna Ranch Childcare Center General Fund/Capital Reserves 6,820 34,650 - - - - - - - - - 41,470 Lupine Kidz Center General Fund/Capital Reserves 17,380 - 17,160 - - - - - - - - 34,540 Public Works Maintenance Yard General Fund/Capital Reserves 8,650 - - - - - - - - - - 8,650 Ohlone Community Center General Fund/Capital Reserves 113,905 37,620 - - - - - - - - - 151,525 Foxboro Community Center General Fund/Capital Reserves 9,735 - - - - - - - - - - 9,735 Police Impact Fee 200,000 - - - - - - - - - - 200,000 Asset Seizure Fund 112,722 - - - - - - - - - - 112,722 Leila's By The Bay Roof General Fund/Capital Reserves 30,000 - - - - - - - - - 30,000 Main & Play Pool Maintenance & Repairs Unfunded - 100,000 - - - - - - - - 100,000 Pool Pump Room Unfunded - 75,000 - - - - - - - - 75,000 Future Facility Capital Improvement Project Unfunded - - 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 - 3,320,000 Total, Facilities 878,549 570,220 607,160 415,000 415,000 415,000 415,000 415,000 415,000 415,000 - 4,960,929 General Fund/Capital Reserves 920,505 - - - - - - - - - - 920,505 SB1 RMRA 400,000 - - - - - - - - - - 400,000 Solid Waste Fund 250,000 - - - - - - - - - - 250,000 General Fund/Capital Reserves - 750,000 - - - - - - - - - 750,000 SB1 RMRA 150,000 250,000 - - - - - - - - - 400,000 Measure J Fund - 263 - 100,000 - - - - - - - - - 100,000 SB1 RMRA - - 250,000 - - - - - - - - 250,000 Measure J Fund - 263 - - 100,000 - - - - - - - - 100,000 General Fund/Capital Reserves - 150,000 - - - - - - - - - 150,000 Unfunded - 1,150,000 - - - - - - - - 1,150,000 Green Infrastructure Project General Fund/Capital Reserves - 150,000 - - - - - - - - - 150,000 SB1 RMRA - 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 - 2,250,000 Measure J Fund - 263 - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 - 900,000 General Fund/Capital Reserves - 150,000 - - - - - - - - - 150,000 Unfunded - - 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 - 2,000,000 John Muir Parkway Traffic Calming Imp General Fund/Capital Reserves 258,000 - - - - - - - - - 258,000 Total, Streets 1,720,505 2,158,000 2,100,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 - 10,178,505 Sycamore Ave (Upper Trunk Main) Sewer Fund - 421 - - - - - - - - - - - - Sycamore Ave (Lower Trunk Main) Sewer Fund - 421 - - -
Promenade Lift Station Sewer Fund - 421 - 185,000 1,170,450 - - - - - - - - 1,355,450 Repair/Replace Sewer Lines under SR-4 &
Along Willow Avenue Sewer Fund - 421 - 200,000 100,000 1,080,000 - - - - - - - 1,380,000 Lower Sycamore Ave. SS Overflow Pipeline Sewer Fund - 421 151,680 1,648,320 1,800,000 Total, Sewer - 536,680 2,918,770 1,080,000 - - - - - - - 4,535,450 Eastbay Regional Park District
WW Grant Fund 39,494 - - - - - - - - - - 39,494 Prop 64 Grant Funds 151,097 190,500 - - - - - - - - - 341,597 Parks Impact Fee - 150,000 - - - - - - - - - 150,000 General Fund/Capital Reserves - 50,000 - - - - - - - - 50,000 Unfunded - - 550,000 - - - - - - - - 550,000 Foxboro Basketball Court General Fund/Capital Reserves 118,241 - - - - - - - - - - 118,241 General Fund/Capital Reserves 537,917 - - - - - - - - - - 537,917 Community Development Tax 170,000 - - - - - - - - - - 170,000 General Fund/Capital Reserves - 55,000 - - - - - - - - 55,000 Unfunded 135,000 135,000 270,000 General Fund/Capital Reserves 132,101 120,000 450,000 - - - - - - - - 702,101 Unfunded - 225,000 - - - - - - - - 225,000 Woodfield Basketball Court Unfunded - 215,000 - - - - - - - - 215,000 Woodfield Tennis Court Unfunded - - 320,000 - - - - - - - 320,000 Woodfield Replace Restroom Unfunded - - - - - 465,000 - - - - 465,000 Woodfield Accessibility Route Unfunded - - - - 55,000 273,000 - - - - - 328,000 Transportation Impact Fee - - - - 240,000 - - - - - - 240,000 Unfunded - - - - 1,440,000 - - - - - 1,440,000 Slurry Seal the Bay Trail Unfunded - - - 132,000 - - - - - - - 132,000 Bay Trail Wall Repair SB1 RMRA 100,000 - - - - - - - - - - 100,000 Total, Parks 1,248,850 565,500 1,575,000 587,000 295,000 1,713,000 465,000 - - - - 6,449,350 Grant - Measure J SP 89,000 89,000 89,000 267,000 Grant - Measure J TLC 117,972 117,972
Grant - WCCTAC STMP 264,340 950,000 - 1,214,340 Grant - Garamendi Earmark 822,973 822,973
Grant - TIRCP 1,200,000 1,200,000 2,400,000 General Fund/Capital Reserves 670,500 2,329,500 3,000,000 Unfunded 4,250,000 29,085,319 30,162,080 30,162,080 7,540,520 101,199,999 TToottaall,, TTrraannssppoorrttaattiioonn 11,,229944,,228855 22,,990099,,550000 55,,553399,,000000 3311,,441144,,881199 3300,,116622,,008800 3300,,116622,,008800 77,,554400,,552200 -- -- -- -- 110099,,002222,,228844 TToottaall,, CCIIPP 55,,114422,,118899 1122,,773399,,993300 3344,,009966,,881199 3311,,447722,,008800 3322,,889900,,008800 99,,002200,,552200 11,,001155,,000000 11,,001155,,000000 11,,001155,,000000 -- 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
Foxboro Playground
Refugio Tennis Court
135,146,5186,739,900
149
CIP SPENDING PLAN
CITY OF HERCULES
TEN-YEAR CAPITAL IMPROVEMENT PROJECT
PROGRAM SPE
NDING PLAN FY 2025-2035
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::
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
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
SUMMARY OF CAPITAL IMPROVEMENT PROJECT
PROGRAM SPENDING PLAN FY 2025-26 to FY 2034-35
PPrriioorr YYeeaarr FFYY 22002255--2266 FFYY 22002266--2277 FFYY 22002277--2288 FFYY 22002288--2299 FFYY 22002299--3300 FFYY 22003300--3311 FFYY 22003311--3322 FFYY 22003322--3333 FFYY 22003333--3344 FFYY 22003344--3355 TToottaall Project Name FFuunnddiinngg SSoouurrcceess BBaallaannccee PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn PPrroojjeeccttiioonn FFuunnddiinngg SSoouurrcceess::
Fund #296 Grant Funds - State 190,591 190,500 - - - - - - - - - 381,091 Fund #354 Grant Funds - HUB 1,294,285 2,239,000 1,289,000 - - - - - - - - 4,822,285 Fund #247 Parks Impact Fee - 150,000 - - - - - - - - - 150,000 Fund #261 Transportation Impact Fee - - - - 240,000 - - - - - - 240,000 Fund #244 Police Impact Fee 200,000 - - - - - - - - - - 200,000 Fund #100 General Fund/Capital Reserves 2,274,591 467,160 2,329,500 - - - - - - - 7,986,971 Fund #262 State Gas Tax Fund - 262 - - 250,000 - - - - - - - - 250,000 Fund #268 SB1 RMRA 650,000 500,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 - 3,150,000 Fund #101 Asset Seizure Fund 112,722 - - - - - - - - - - 112,722 Fund #263 Measure J Fund - 263 - 200,000 200,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 - 1,100,000 Fund #291 Solid Waste Fund 250,000 - - - - - - - - - - 250,000 Fund #421 Sewer Fund - 421 - 536,680 2,918,770 1,080,000 - - - - - - - 4,535,450 Fund #242 Community Development Tax 170,000 - - - - - - - - - - 170,000 Fund #220 LLAD 83-2 Zone 10 - 220 - - - - - - - - - - - - Unfunded - Hercules HUB Unfunded - Hercules HUB - - 4,250,000 29,085,319 30,162,080 30,162,080 7,540,520 - - - - 101,199,999 Unfunded - Facilities Unfunded - Facilities - - 590,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 - 3,495,000 Unfunded - Streets Unfunded - Streets - - 1,400,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 - 3,150,000 Unfunded - Parks Unfunded - Parks - - 1,125,000 587,000 55,000 1,713,000 465,000 - - - - 3,945,000 Total, Funding 5,142,189 6,739,900 12,739,930 34,096,819 31,472,080 32,890,080 9,020,520 1,015,000 1,015,000 1,015,000 - 135,146,518 2,923,720
150
Project Funding Source: Prior 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection City Hall General Fund/Capital Reserves $ 126,270.00 $ 337,700.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 463,970$ Senior Center General Fund/Capital Reserves 22,715.00$ 19,250.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 41,965$ Library General Fund/Capital Reserves 107,254.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 107,254$ Community Swim Center General Fund/Capital Reserves 132,638.00$ 100,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 232,638$ Main & Play Pool Maintenance Unfunded - $ - $ 100,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ Pool Pump Room Unfunded - $ - $ 75,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ 75,000$ 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$ Public Works Maintenance Yard General Fund/Capital Reserves 8,650.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 8,650$ 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 112,722.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 112,722$ Leila's By The Bay Roof General Fund/Capital Reserves - $ 30,000.00$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 30,000$ 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 878,549$ 570,220$ 607,160$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ - $ 4,960,929$ Funding Source:
- $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ General Fund/Capital Reserves 565,827$ 570,220$ 17,160$ - $ - $ - $ - $ - $ - $ - $ - $ 1,153,207$ Police Development Impact Fee 200,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200,000$ Facility Maintenance Fund - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Asset Seizure Fund 112,722$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 112,722$ Unfunded - $ - $ 590,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ - $ 3,495,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Total 878,549$ 570,220$ 607,160$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ - $ 4,960,929$ City of Hercules
Facilities CIP Summary
Police Department Lobbies
151
Project Number: 63065
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 126,270$ 337,700$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 463,970$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 126,270$ 337,700$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 463,970$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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 $150,000
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
152
Project Number: 63066
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 22,715$ 19,250$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 41,965$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 22,715$ 19,250$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 41,965$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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 $2,500
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
153
Project Number: PW0004
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 107,254$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 107,254$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 107,254$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 107,254$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Library
Seal the Starry Cone with elastomeric paint.
FY 24-25
Seal Starry Cone $15,000
Elastomeric paint could prevent leaking from re-occurring for 2-3 Years. 154
Project Number: 63067
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 132,638$ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 232,638$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 132,638$ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 232,638$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Community Swim 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 Stands 15k? Pool Filter Media $3,600
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
155
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Unfunded - $ - $ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Main & Play Pool Maintenance & Repairs
Replace or repair concrete bib around the main pool.
The bib is approximately 500 feet x 18” wide.
Concrete around pool deck chipping, fragmenting, showing rebar, or has chunks missing.
Bib with starting blocks anchors failing need replacing Recommend partner with swim teams to replace starting blocks at same time Replace 1” tiles around both pools, and coping tiles on main pool.
Replace directional marker tiles or bead blasted (to be seen clearly).
Replace Sikaflex (caulk) & backer rod (foam) around deck between tiles and overflow drain gutters.
Repair coping around play pool. Coping blocks are approximately 18” x 24”. Need to be reattached and level.
156
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Unfunded - $ - $ 75,000$ - $ - $ - $ - $ - $ - $ - $ - $ 75,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ 75,000$ - $ - $ - $ - $ - $ - $ - $ - $ 75,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Pool Pump Room
Surge pit needs to be re-plastered (approx. 10’ diameter x 10’ deep), ($20,000) Move Chlorine tank(s) above ground. The city currently has (1) 1,000 gallon in-ground tank in a vault.
County Health would like the tank to be above ground. The city has been grandfathered, but get asked annually what our plans are to remove the in-ground tank. Best option for Hercules… Old snack shack (adjacent to vault) could accommodate (2) 500 gallon Cl2 tanks & a chemical shower Shack would need demo inside.
Shack has plumbed water line, that could be used for the chemical shower/eye wash station.
Surrounding deck of shack is failing, consider removing or repairing existing deck 157
Project Number: 63068
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 20,460$ 11,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 31,460$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 20,460$ 11,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 31,460$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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 $8,000
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
158
Project Number: 63069
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 6,820$ 34,650$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 41,470$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 6,820$ 34,650$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 41,470$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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 $6,500
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
159
Project Number: 63070
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 17,380$ - $ 17,160$ - $ - $ - $ - $ - $ - $ - $ - $ 34,540$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 17,380$ - $ 17,160$ - $ - $ - $ - $ - $ - $ - $ - $ 34,540$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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 $9,600
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
160
Project Number: 63071
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 8,650$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 8,650$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 8,650$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 8,650$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Public Works Maintenance Yard
FY 24-25
Replace or Repair Trailer $30,000
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community. The Roof and siding needs to be repaired. 161
Project Number: 63072
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 113,905$ 37,620$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 151,525$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 113,905$ 37,620$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 151,525$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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 $16,200
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
162
Project Number: 63073
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 9,735$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,735$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 9,735$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,735$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Foxboro Community Center
FY 24-25
HVAC Needed $6,750
Inspect and update Exit Lights as needed $2,100
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
163
Project Number: 63054
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Police Development Impact Fee 200,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200,000$ Asset Seizure Fund 112,722$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 112,722$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 312,722$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 312,722$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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. 164
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 30,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 30,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 30,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 30,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Leila's By The Bay Roof
Replace the asphalt shingle roof.
The shingles are worn and the roof is due for replacement. 165
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Unfunded - $ - $ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ - $ 3,320,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ - $ 3,320,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Future Facility Capital Improvement Project
Future facility capital improvement projects to be determined.
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.
166
Project Name Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 920,505.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 920,505$ SB1 RMRA 400,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 400,000$ Measure J Fund - 263 250,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 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$ General Fund/Capital Reserves $ - $ 150,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 150,000$ Unfunded $ - $ - $ 1,150,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 1,150,000$ Green Infrastructure Project General Fund/Capital Reserves $ - $ 150,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 150,000$ SB1 RMRA $ - $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ - 2,250,000$ 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 $ 100,000.00 $ 100,000.00 $ - 900,000$ General Fund/Capital Reserves $ - $ 150,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 150,000$ Unfunded $ - $ - $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ - 2,000,000$ John Muir Parkway Traffic Calming
Improevements General Fund/Capital Reserves -$ 258,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 258,000$ Total 1,720,505$ 2,158,000$ 2,100,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ -$ 10,178,505$ Funding Sources:
General Fund/Capital Reserves 920,505$ 1,458,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,378,505$ SB1 RMRA 550,000$ 500,000$ 500,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ -$ 3,300,000$ Measure J Fund - 263 250,000$ 200,000$ 200,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ -$ 1,350,000$ Solid Waste Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ 1,400,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ -$ 3,150,000$ Total 1,720,505$ 2,158,000$ 2,100,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ -$ 10,178,505$ Annual Street Repair Project
City of Hercules
Streets CIP Summary
Falcon Way
Foxboro
Hercules By The Bay
167
Project Number: 63074
Project Name:
Description:
Justification:
v
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 920,505$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 920,505$ SB1 RMRA 400,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 400,000$ Measure J Fund - 263 250,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 250,000$ Solid Waste Fund - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 1,570,505$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,570,505$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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
168
Project Number: 63075
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves - $ 750,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 750,000$ SB1 RMRA 150,000$ 250,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 400,000$ Measure J Fund - 263 - $ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 150,000$ 1,100,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,250,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Foxboro
Repair and Resurface residential streets in Foxboro as funding allows.
The Foxboro neighborhood, as a whole, has the most degraded streets in Hercules.
Design = $100,000
Construction = $1,100,000
Contract Project Management Cost = $50,000
Design FY24-25
construct FY25-26
169
Project Number:
Project Name:
Description:
Justification:
v
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection SB1 RMRA -$ - $ 250,000$ - $ - $ - $ - $ - $ - $ - $ - $ 250,000$ Measure J Fund - 263 -$ - $ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ General Fund/Capital
Reserves -$ 150,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150,000$ Unfunded -$ - $ 1,150,000$ - $ - $ - $ - $ - $ - $ - $ - $ 1,150,000$ Adjustment -$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total -$ 150,000$ 1,500,000$ - $ - $ - $ - $ - $ - $ - $ - $ 1,650,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Hercules By The Bay
Repair and Resurface residential streets in Hercules By The Bay as funding allows.
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 = $50,000
Design FY25-26
construct FY26-27
170
Project Number:
Project Name:
Description:
Justification:
v
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital
Reserves -$ 150,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150,000$ -$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment -$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total -$ 150,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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
171
Project Number:
Project Name:
Description:
Justification:
v
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 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$ 250,000$ 250,000$ - $ 2,250,000$ Measure J Fund - 263 - $ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ - $ 900,000$ General Fund/Capital
Reserves - $ 150,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150,000$ Unfunded - $ - $ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ - $ 2,000,000$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 500,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ 600,000$ - $ 5,300,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Annual Street Repair Project
Repair and Resurface City streets at miscellaneous locations. 172
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves - $ 258,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 258,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 258,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 258,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
John Muir Parkway Traffic Calming Improevements
Design and install Recommended and Approved Traffic Calming on John Muir from Alfred Noble to Transit loop
John Muir Pkwy was design to meet the needs of planned commercial use of adjacent parcel. With the change of use it necessitates the modifying of John Muir Pkwy to better fulfill neighborhood needs. 173
Project Name Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Promenade Lift Station Sewer Fund - 421 -$ 185,000.00$ 1,170,450.00$ -$ -$ - $ - $ - $ - $ - $ -$ 1,355,450$ Repair/ Replace Sewer Lines under
SR-4 & Along Willow Ave Sewer Fund - 421 -$ 200,000.00$ 100,000.00$ 1,080,000.00$ -$ - $ - $ - $ - $ - $ -$ 1,380,000$ Lower Sycamore Ave. SS Overflow
Pipeline Sewer Fund - 421 -$ 151,680.00$ 1,648,320.00$ -$ -$ - $ - $ - $ - $ - $ -$ 1,800,000$ Total -$ 536,680$ 2,918,770$ 1,080,000$ -$ -$ -$ -$ -$ -$ -$ 4,535,450$ City of Hercules
Sewer CIP Summary
174
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 - $ 185,000$ 1,170,450$ - $ - $ - $ - $ - $ - $ - $ - $ 1,355,450$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 185,000$ 1,170,450$ - $ - $ - $ - $ - $ - $ - $ - $ 1,355,450$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Promenade Lift Station
As part of the Bay Front Development Project, the Promenade Lift Station will be taken off-line and bypassed using gravity piping. The Project includes decommissioning the Promenade Lift Station and installing 1,1200 feet of 12-inch diameter gravity main.
The relocation is required by the Development Agreement.
Design = $135,000
Construction = $1,170,450
Contract Project Management = $50,000
175
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 - $ 200,000 $ 100,000 $ 1,080,000$ - $ - $ - $ - $ - $ - $ - $ 1,380,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 200,000 $ 100,000 $ 1,080,000$ - $ - $ - $ - $ - $ - $ - $ 1,380,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Repair/ Replace Sewer Lines under SR-4 & Along Willow Ave.
Repair existing main under SR-4 between Willow and Foxboro and 2 sections of main along Willow near Sycamore.
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. 176
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 - $ 151,680 $ 1,648,320$ - $ - $ - $ - $ - $ - $ - $ - $ 1,800,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 151,680 $ 1,648,320$ - $ - $ - $ - $ - $ - $ - $ - $ 1,800,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Lower Sycamore Ave. SS Overflow Pipeline
Install the 500 foot long overflow pip in the vicinity of Main streey and Apollo court to complete project
This Section of pipe is 30 feet deep and under the effiuent main and requires special design and installation
177
Project Name Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Eastbay Regional Park District WW
Grant Funds $ 39,494.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 39,494.00$ Prop. 68 Grant Funds 151,097.00$ 190,500.00$ - $ - $ -$ -$ - $ - $ - $ - $ -$ 341,597.00$ 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 118,241.00$ - $ - $ - $ -$ -$ - $ - $ - $ - $ -$ 118,241.00$ General Fund/Capital Reserves $ 537,917.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 537,917.00$ Community Development Tax Fund $ 170,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 170,000.00$ Refugio Tennis Courts Unfunded $ - $ 55,000.00 $ 135,000.00 $ 135,000.00 $ - $ - $ - $ - $ - $ - $ - 325,000.00$ General Fund/Capital Reserves $ 132,101.00 $ 50,000.00 $ 450,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 632,101.00$ 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 1,248,850$ 565,500$ 1,575,000$ 587,000$ 295,000$ 1,713,000$ 465,000$ -$ -$ -$ -$ 6,449,350$ Funding Source:
Transportation Impact Fee Fund - $ - $ - $ - $ 240,000$ -$ - $ - $ - $ - $ -$ 240,000$ Eastbay Regional Park District WW
Grant Funds 39,494$ - $ - $ - $ -$ -$ - $ - $ - $ - $ -$ 39,494$ Prop. 68 Grant Funds 151,097$ 190,500$ - $ - $ -$ -$ - $ - $ - $ - $ -$ 341,597$ General Fund/Capital Reserves 788,259$ 50,000$ 450,000$ - $ -$ -$ - $ - $ - $ - $ -$ 1,288,259$ 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 - $ 175,000$ 1,125,000$ 587,000$ 55,000$ 1,713,000$ 465,000$ - $ - $ - $ -$ 4,120,000$ - $ - $ - $ - $ -$ -$ - $ - $ - $ - $ -$ -$ Total 1,248,850$ 565,500$ 1,575,000$ 587,000$ 295,000$ 1,713,000$ 465,000$ -$ -$ -$ -$ 6,449,350$ Sycamore Avenue Bicycle
City of Hercules
Parks CIP Summary
Dredge Refugio Lake
Beechnut Park
Refugio Picnic Area
178
Project Number: 63063
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Eastbay Regional Park
District WW Grant Funds 39,494 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 39,494$ Prop. 68 Grant Funds 151,097 $ 190,500$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 341,597$ Parks Impact Fee Fund - $ 150,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150,000$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 190,591 $ 340,500$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 531,091$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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 179
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ 50,000 $ 550,000 $ - $ - $ - $ - $ - $ - $ - $ - $ 600,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 50,000 $ 550,000 $ - $ - $ - $ - $ - $ - $ - $ - $ 600,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Foxboro Playground Equipment and Safety Surfacing Replacement Project Playground Equipment and Safety Surfacing Replacement Project.
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
180
Project Number: PR2501
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 118,241 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 118,241$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 118,241 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 118,241$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Foxboro Basketball Court Surfacing & Relocate/Replace Hoops Resurface the basketball court and relocate/replace the hoops.
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
181
Project Number: 63061
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 537,917 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 537,917$ Community Development Tax Fund 170,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 170,000$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 707,917 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 707,917$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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 182
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ 55,000 $ 135,000 $ 135,000 $ - $ - $ - $ - $ - $ - $ - $ 325,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ 55,000 $ 135,000 $ 135,000 $ - $ - $ - $ - $ - $ - $ - $ 325,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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
183
Project Number: 63079
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 132,101 $ 50,000$ 450,000$ - $ - $ - $ - $ - $ - $ - $ - $ 632,101$ Unfunded - $ 70,000$ 225,000$ - $ - $ - $ - $ - $ - $ - $ - $ 295,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 132,101 $ 120,000$ 675,000$ - $ - $ - $ - $ - $ - $ - $ - $ 927,101$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Dredge Refugio Lake
Dredge Refugio Lake which is filling in the lake with sediment.
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
184
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ - $ 215,000 $ - $ - $ - $ - $ - $ - $ - $ - $ 215,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ 215,000 $ - $ - $ - $ - $ - $ - $ - $ - $ 215,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Woodfield Basketball Court Renovation Project
Resurface and restripe courts, replace posts, backboards, hoops.
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
185
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ - $ - $ 320,000 $ - $ - $ - $ - $ - $ - $ - $ 320,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ - $ 320,000 $ - $ - $ - $ - $ - $ - $ - $ 320,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Woodfield Tennis Court Renovation Project
Resurface and restripe tennis courts, install new nets, perimeter seating and storage, remove trees in the perimeter lifting the courts. New courts will support tennis and/or pickleball.
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
186
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ - $ - $ - $ - $ - $ 465,000 $ - $ - $ - $ - $ 465,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ - $ - $ - $ - $ 465,000 $ - $ - $ - $ - $ 465,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Woodfield Replace Restroom Project
Replace the existing restroom building with a prefab restroom, similar to Duck Pond Park.
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
187
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ - $ - $ - $ 55,000 $ 273,000 $ - $ - $ - $ - $ - $ 328,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ - $ - $ 55,000 $ 273,000 $ - $ - $ - $ - $ - $ 328,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Woodfield Accessibility Route Project
Install an accessible pathway between the restrooms, fields, courts, playground, picnic areas, and street parking. Relocate and enhance entrance to park, pending on funding availability (not included in budget).
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
188
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 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 2025-26 through 2034-35
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
189
Project Number:
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded - $ - $ 132,000$ - $ - $ - $ - $ - $ - $ - $ 132,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total - $ - $ - $ 132,000$ - $ - $ - $ - $ - $ - $ - $ 132,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Slurry Seal the Bay Trail
Crack seal and slurry seal the City’s section of the Bay Trail from approximately 1,100 feet south of Railroad Avenue to the northern City limits.
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
190
Project Number: PR2503
Project Name:
Description:
Justification:
Projected Timing:
Estimated Start Date:
Estimated End Date:
Funding Source: Prior Year 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 FY 2034-35 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection State Gas Tax Fund - 262 100,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Adjustment - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ Total 100,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
Bay Trail Wall Repair
Install a cut-off wall below the Bay Trail wall to prevent soil from migrating under the wall onto the trail. Backfill soil on the private property above the wall.
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
191
Project Number: 63056
Project Name:
Description:
Justification:
Phase: Funding Source: Prior 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 FY 2034-35 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 117,972 - - - - - - - - - - 117,972 Grant WCCTAC STMP Funding 264,340 150,000 - - - - - - - - - 414,340 Grant WCCTAC STMP Funding - 800,000 - - - - - - - - - 800,000 Grant TIRCP - 1,200,000 1,200,000 - - - - - - - - 2,400,000 Grant Garamendi Earmark 822,973 - 822,973 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 1,294,285 2,909,500 5,539,000 31,414,819 30,162,080 30,162,080 7,540,520 - - - - 109,022,284 ROW/Utility Relocations
City of Hercules
Capital Improvement Plan
Fiscal Years 2025-26 through 2034-35
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.
192
Federal Grants - CIP
Fund Summary - Fund 295
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Federal Grants 19,885 $ 472,098 $ - - Interest Income - - - - Miscellaneous Revenues - - - - 19,885 472,098 - -
Transfers In - - - - 19,885 472,098 - -
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 - 473,609 - - 492,000 473,609 - -
Changes in restricted reserves
Net Annual Activity (472,115)$ (1,511) - - 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.
193
State and Local Grants - CIP
Fund Summary - Fund 296
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
State/Local Grants - $ 1,095,913 $ 38,500 190,500 Interest Income - - - - Miscellaneous Revenues - - - - - 1,095,913 38,500 190,500 Transfers In - - - - - 1,095,913 38,500 190,500 Expenditures
Salary and Benefits - - - - Contractual Services - 35,948 - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) 193,541 1,065,066 38,500 190,500 Debt Service - - - - 193,541 1,101,014 38,500 190,500 Transfer Out - - - - 193,541 1,101,014 38,500 190,500 Changes in restricted reserves
Net Annual Activity (193,541)$ (5,101) - - 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.
194
City - Capital Projects
Fund Summary - Fund 300
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Fees - $ - - - Interest Income - - - - Miscellaneous Revenues - - - - - - - -
General Fund Capital Reserves 500,000 639,712 2,350,823 2,923,720 500,000 639,712 2,350,823 2,923,720
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) 1,288,400 673,876 2,350,823 2,923,720 Debt Service - - - - 1,288,400 673,876 2,350,823 2,923,720
Transfer Out - 250,000 - - 1,288,400 923,876 2,350,823 2,923,720
Changes in restricted reserves
Net Annual Activity (788,400)$ (284,164) - - 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.
195
Energy Conservation Project
Fund Summary - Fund 301
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Loan Proceeds - $ - $ - - Interest Income 386 1,049 - - Miscellaneous Revenues - - - - 386 1,049 - -
Transfers In - - - - 386 1,049 - -
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 386 1,049 - - Ending Available Fund Balance - $ - $ - $ This fund accounts for funds expended for the energy conservation project by Engie Services. This fund is funded by proceeds from the Equipment Lease Purchase Agreement with Sterling National Bank. 196
HERCULES HUB
Fund Summary - Fund 354
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Grant (46,226)$ 99,209 $ 1,089,000 2,239,000 Interest Income - - - - Miscellaneous Revenues - - - - (46,226) 99,209 1,089,000 2,239,000 Transfers In - - - - (46,226) 99,209 1,089,000 2,239,000 Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) (14,003) 235,804 1,089,000 2,239,000 Debt Service - - - - (14,003) 235,804 1,089,000 2,239,000 Transfer Out - General Fund (Loss of Revenue) 50 - - - (13,953) 235,804 1,089,000 2,239,000 Changes in restricted reserves
Net Annual Activity (32,273)$ (136,595)$ - - 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. 197
AGENCY FUNDS
AGENCY FUNDS
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
198
Assessment District 05-01 Debt Service
Fund Summary - Fund 382
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Assessment 230,700$ 228,616 $ 226,873 229,356 Interest Income 6,758 17,664 - - Miscellaneous Revenues - - - - 237,458 246,280 226,873 229,356 Transfers In - - - - 237,458 246,280 226,873 229,356 Expenditures
Salary and Benefits - - - - Contractual Services 6,620 6,885 6,900 7,100 Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service 222,754 220,638 219,973 222,256 229,374 227,523 226,873 229,356 Transfer Out - - - - 229,374 227,523 226,873 229,356 Changes in restricted reserves
Net Annual Activity 8,084$ 18,757 - - 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.
199
Taylor Woodrow Maintenance LMOD
Fund Summary - Fund 501
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 75,156 $ 75,156 $ Revenues
Charges for Services - $ - $ - - Interest Income 1,419 3,691 - - Miscellaneous Revenues - - - - 1,419 3,691 - -
Transfers In - - - - 1,419 3,691 - -
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 1,419 $ 3,691 - - Ending Available Fund Balance 75,156 $ 75,156 $ 75,156 $ 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.
200
Other Post-Employment Benefits (OPEB) and SOMAR
Fund Summary - Fund 511
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance 2,865,497 $ 2,873,022 $ Revenues
Charges for Services - $ - $ - - Interest Income 124,555 237,664 60,000 84,000 Miscellaneous Revenues - - - - 124,555 237,664 60,000 84,000 Transfers In 60,000 60,000 60,000 60,000 184,555 297,664 120,000 144,000 Expenditures
Salary and Benefits 125,209 88,335 92,475 95,200 Contractual Services 15,045 17,219 20,000 20,600 Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - 140,254 105,554 112,475 115,800 Transfer Out - - - - 140,254 105,554 112,475 115,800 Changes in restricted reserves
Net Annual Activity 44,301 $ 192,110 7,525 28,200 Ending Available Fund Balance 2,865,497 $ 2,873,022 $ 2,901,222 $ (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.
201
SUCCESSOR AGENCY
SUCCESSOR AGENCY
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
202
Successor Agency
Fund Summary - Fund 600
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24 FY 24-25 FY 25-26
Actual Actual Budget Proposed
Beginning Available Fund Balance - $ - $
Revenues
Tax Increment (RPTTF) 5,484,039 6,910,188 8,587,154 9,758,380 Interest Income 77,775 136,569 - - Miscellaneous Revenues 234 - - - 5,562,048 7,046,757 8,587,154 9,758,380
Transfers In - - - - 5,562,048 7,046,757 8,587,154 9,758,380
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses 65,909 4,732,088 2,349,400 1,821,590 Cost Allocation - - - - Capital Outlay - - - - Debt Service 2,374,663 3,451,361 6,237,754 7,936,790 2,440,572 8,183,449 8,587,154 9,758,380
Transfer Out - - - - 2,440,572 8,183,449 8,587,154 9,758,380
Changes in restricted reserves
Net Annual Activity 3,121,476$ (1,136,692) - - 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.
203
GLOSSARY OF BUDGET TERMS
GLOSSARY OF BUDGET TERMS
CITY OF HERCULES FY 2025-26 ANNUAL BUDGET
204
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 2025-26 ANNUAL BUDGET
205
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.
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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.
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COUNCIL RESOLUTIONS
COUNCIL RESOLUTIONS
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