RESOLUTION NO. 25-____
Resolution of the City Council of the City of Hercules AUTHORIZING THE CITY MANAGER AND FINANCE DIRECTOR TO EXECUTE ANY AND ALL NECESSARY DOCUMENTATION TO REPAY THE GENERAL FUND FOR MONIES LOANED TO VICTORIA BY THE BAY LANDSCAPING AND LIGHTING DISTRICT IN AN AMOUNT NOT TO EXCEED $700,000 OVER 10 YEARS WHEREAS, the City of Hercules Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 (hereinafter referred to as the “District”) was formed on May 14, 2002 by Resolution No. 02-050 of the City Council pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500 et. Seq. and State Law); and WHEREAS, in the fall of 2023 and spring of 2024, the City conducted Proposition 218 proceedings to increase assessments for the District to eliminate an increasing operating and fund deficit. District property owners did not approve the proposed increases, with votes of 77% to 23% in the fall of 2023 and 70.3% to 29.7% in the spring of 2024, respectively; and WHEREAS, the District has since incurred another year of operating deficit, bringing the projected beginning Fiscal Year 2025/26 cumulative deficit to approximately $700,000, all of which standard accounting principles require the City to cover as an inter-fund loan from the General Fund; and WHEREAS, on March 11, 2025, City Council authorized Proposition 218 proceedings to notice and ballot property owners within the Victoria by the Bay LLAD again to approve an assessment increase beginning in Fiscal Year 2025/26 of $50 annually over a 10-year period ($500 total). On May 8, 2025, notices and ballots were mailed to all affected property owners in the Victoria by the Bay LLAD, in accordance with Proposition 218. The instructions included that ballots had to be returned by mail by 5:00 PM on June 24, 2025, or in person by the conclusion of public testimony of the Public Hearing that same evening; and WHEREAS, on March 11, 2025, the City Council adopted Resolution No. 25-011, designating Francisco & Associates as Engineer of Work for the District, authorizing Proposition 218 proceedings for the purposes of increasing assessments for the District in Fiscal Year 2025/26, and directing the filing of the Fiscal Year (FY) 2025/26 Engineer’s Report, pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, on April 22, 2025, the City Council adopted Resolution No. 25-022 preliminarily approving the Engineer’s Report, declaring the intention to levy and collect assessments for FY 2025/26 within the District, and setting a public hearing for June 24, 2025; and WHEREAS, on May 8, 2025, the City Council mailed notices and ballots to property owners within the District to approve an increase to District maximum assessment rates pursuant to Proposition 218; and WHEREAS, at the appointed time on June 24, 2025, the City Council conducted a public hearing at which all interested persons were afforded an opportunity to be heard. Approval of the FY 2025/26 Engineer’s Report and assessments for the District was continued to July 22, 2025 to allow for the tabulation of returned ballots; and WHEREAS, by separate resolutions, the Council declared the results of the property owner protest ballot proceedings conducted for the District (50.02% in favor and 49.98% opposed) and levied the assessments based on the adopted map; and WHEREAS, the City now desires to replenish the approximately $700,000 in General Fund monies that were the subject of the inter-fund loan to the District.
NOW, THEREFORE, BE IT RESOLVED by City Council of the City of Hercules that the City Manager and City Finance Director are hereby authorized to use District funds to replenish the General Fund to cover all funds that were the subject of the inter-fund loan, in an amount that is approximately $700,000, which repayment will occur within 10 years and will bear no interest.
BE IT FURTHER RESOLVED that the City Manager and Finance Director are authorized to execute any and all documentation necessary to effectuate the repayment authorized herein.
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 22nd day of July 2025, by the following vote of the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
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Dion Bailey
Mayor
ATTEST:
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Eibleis Melendez
City Clerk