Beginning Balance $4,326,140 $4,610,007 $4,989,742 $5,217,932 Current Year Contribution 34,342 110,798 80,190 31,750
Interest Earned 173,069 345,393 148,000 157,000
Ending Balance $4,610,007 $4,989,742 $5,217,932 $5,406,682 % of Projected Operating
Expenditures 25% 25% 25% 25%
482
General Fund
Expenditure by Category
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures by Category
Police
Salaries & Benefits 6,803,554 6,730,648 7,536,154 7,906,181 Contractual Services 1,200,396 1,089,136 853,671 1,155,514 Other Operating Expenditures 415,333 433,327 329,188 267,014 Cost Allocation 889,904 790,179 916,411 935,239
9,309,187 9,043,290 9,635,424 10,263,948
Public Works
Salaries & Benefits 37,086 35,457 40,107 41,576
Contractual Services 320,169 252,702 278,500 379,470
Other Operating Expenditures 16,163 54,853 27,900 30,100 Cost Allocation 93,974 89,320 96,874 98,492
467,392 432,332 443,381 549,638
Community Development
Salaries & Benefits 547,487 375,188 606,924 614,394
Contractual Services 279,325 249,835 378,887 303,100
Other Operating Expenditures 83,296 11,779 21,924 20,600 Cost Allocation 93,693 82,777 96,504 98,433
1,003,801 719,579 1,104,239 1,036,527
Parks & Recreation
Salaries & Benefits 2,116,581 1,847,313 1,879,831 2,057,145 Contractual Services 318,511 423,759 367,628 401,550
Other Operating Expenditures 162,474 95,495 101,600 104,100 Cost Allocation 275,778 306,983 351,687 291,169
2,873,344 2,673,550 2,700,746 2,853,964
City Council
Salaries & Benefits 69,775 75,146 63,000 78,157
Contractual Services 27,053 22,923 42,400 28,400
Other Operating Expenditures 42,004 30,921 51,400 53,100 Cost Allocation 193,538 176,924 199,344 203,331
332,370 305,914 356,144 362,988
City Manager
Salaries & Benefits 315,165 295,895 331,994 342,298
Contractual Services 136,309 132,659 101,400 104,100
Other Operating Expenditures 21,247 23,321 35,000 29,400 Cost Allocation 82,735 73,941 85,217 86,922
555,456 525,816 553,611 562,720
Human Resources
Salaries & Benefits 313,961 124,899 440,636 455,100
Contractual Services 155,780 289,654 86,400 42,900
Other Operating Expenditures 26,330 8,162 22,500 68,100 Cost Allocation 48,918 42,949 50,386 51,394
544,989 465,664 599,922 617,494
483
General Fund
Expenditure by Category
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures by Category
Legal
Contractual Services 206,188 223,043 255,000 260,000
206,188 223,043 255,000 260,000
City Clerk
Salaries & Benefits 254,931 214,886 271,048 283,057
Contractual Services 77,240 24,306 143,600 146,472
Other Operating Expenditures 16,606 19,212 29,800 30,396 Capital Outlay 5,000 5,000 5,400 5,508
Cost Allocation 85,095 75,966 87,648 89,401
438,872 339,370 537,496 554,834
Finance
Salaries & Benefits 686,191 663,783 713,338 810,156
Contractual Services 389,493 259,902 297,800 222,900
Other Operating Expenditures 209,259 274,339 282,200 290,600 Cost Allocation 160,444 144,566 165,257 168,562
1,445,387 1,342,590 1,458,595 1,492,218
Worker's Compensation/General Liability
Salaries & Benefits 33,660 31,760 35,619 37,665
Contractual Services 2,061,138 1,448,661 1,721,400 1,932,734 2,094,798 1,480,421 1,757,019 1,970,399
Non-Departmental
Debt Service - CalHFA 200,000 200,000 200,000 -
SOMAR benefit payments 84,756 60,000 60,000 62,000
284,756 260,000 260,000 62,000
Transfers Out
Engie Equipment Lease 235,026 235,897 245,079 255,609
Debt Service - 2020 PFA Lease Revenue
Refunding Bonds
568,252 563,316 561,212 563,162
803,278 799,213 806,291 818,771
Total, Ongoing Expenditures 18,610,782 20,359,818 20,467,868 21,405,501 484
General Fund
General Fund Projected Reserves
Reserve Description
Type of Reserves
Projected
Beginning
Balance
Surplus
Allocation
Interest
Income
(Operating
Reserve)
Capital
Improvement
Projects (CIP) One-Time
Projected
Ending
Balance
Section 115 Trust (Pension) Restricted $2,723,451 31,750 $2,755,201 General Fund Set-Aside:
Former RDA Project Negative Cash Balance Restricted 3,400,000 3,400,000Programs and Projects Unrestricted 3,373,376 (1,966,909) (56,000) 1,350,467 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 3,000,000Reserve for Capital Projects Designated 1,620,086 63,500 (683,586) 1,000,000 Reserve for Reusable Bags (remaining) Designated 13,930 13,930Reserve for PEG Fees Restricted 328,000 (18,000) 310,000 Reserve for Economic Uncertainty (25% target) Designated 5,217,932 31,750 157,000 5,406,682 Total, General Fund Reserves $22,676,775 $127,000 $157,000 ($2,650,495) ($74,000) $20,236,280 FY 26-27
485
General Fund
Five-Year Financial Forecast
Description / HighlightsFund Activity
Year 1 Year 2 Year 3 Year 4 Year 5
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 Actual Actual Budget Proposed Forecast Forecast Forecast Forecast Forecast Revenues
Taxes
Utility User Tax 4,011,166 4,212,443 4,202,000 4,371,000 4,505,000 4,581,000 4,753,000 4,932,000 5,129,000 Sales Tax 5,753,278 5,852,353 5,890,000 5,909,000 6,057,000 6,208,000 6,363,000 6,521,000 6,684,000 Property Taxes 1,658,630 1,732,725 1,674,000 1,724,000 1,771,000 1,806,000 1,842,000 1,879,000 1,917,000 Franchise Fees 972,391 918,508 1,382,000 1,396,000 1,424,000 1,452,000 1,481,000 1,511,000 1,541,000 Business Licenses 292,733 298,849 282,000 300,000 306,000 312,000 318,000 324,000 330,000 Transfer Tax 90,359 82,236 153,000 156,000 159,000 162,000 165,000 168,000 171,000 Transient Occupancy Tax 29,590 201,833 245,000 251,000 252,000 253,000 254,000 255,000 256,000 Vehicle License Fee (VLF) and Other Intergovernmental 2,650,830 2,708,899 2,763,000 2,818,000 2,874,000 2,931,000 2,990,000 3,050,000 3,111,000 Fines & Forefeitures 34,409 37,136 40,000 40,000 41,000 42,000 43,000 44,000 45,000 Program Revenues
Community Development 224,004 405,978 292,400 192,150 195,000 198,000 201,000 204,000 207,000 Parks and Recreation 1,648,866 1,741,983 1,649,000 1,742,000 1,777,000 1,813,000 1,849,000 1,885,000 1,921,000 Police 88,348 144,124 97,000 99,000 92,000 93,000 94,000 95,000 96,000 Public Works 32,054 50,454 31,000 49,000 50,000 51,000 52,000 53,000 54,000 Other 6,377 13,567 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Investment Income 1,412,799 1,563,434 991,100 1,200,000 1,224,000 1,248,000 1,273,000 1,298,000 1,324,000 Tower & Property Leases 210,368 316,123 218,000 222,000 227,000 232,000 238,000 244,000 249,000 Cost allocated to other funds 667,863 791,929 785,968 801,688 772,000 795,000 818,000 841,000 856,000 Transfers In 156,727 176,556 186,159 251,663 150,000 150,000 150,000 150,000 150,000 19,940,792 21,249,130 20,891,627 21,532,501 21,886,000 22,337,000 22,894,000 23,464,000 24,051,000 Expenditures
Police 9,043,290 9,309,187 9,635,424 10,263,948 10,422,000 10,732,000 11,052,000 11,384,000 11,724,000 Public Works 432,333 467,392 443,381 549,638 569,000 584,000 599,000 614,000 631,000 Community Development 719,579 1,003,801 1,104,239 1,036,527 1,068,000 1,098,000 1,128,000 1,160,000 1,192,000 Parks and Recreation 2,673,550 2,873,344 2,700,746 2,853,964 2,930,000 3,005,000 3,083,000 3,162,000 3,243,000 City Council 305,915 332,370 356,144 362,988 373,000 383,000 394,000 405,000 416,000 City Manager 525,815 555,456 553,611 562,720 579,000 593,000 607,000 622,000 637,000 Human Resources 465,665 544,989 599,922 617,494 636,000 654,000 672,000 690,000 709,000 Legal 223,043 206,188 255,000 260,000 267,000 275,000 283,000 291,000 299,000 City Clerk 339,370 438,872 537,496 554,834 567,000 581,000 595,000 610,000 626,000 The five-year financial forecast includes projections of revenues, expenses, and key financial factors that influence the organization. A comprehensive understanding of long-term trends and potential risk factors that may impact overall financial sustainability enables proactive measures to be taken. Engaging in a robust long-term financial planning process allows decision-makers to focus on strategic objectives, encourages thoughtful analysis, and promotes financial literacy throughout the organization. Furthermore, long-term financial planning fosters a sense of commitmentand motivation, providing a clear framework for informed decision-making.. 486
General Fund
Five-Year Financial Forecast
Description / HighlightsFund Activity
Year 1 Year 2 Year 3 Year 4 Year 5
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 Actual Actual Budget Proposed Forecast Forecast Forecast Forecast Forecast The five-year financial forecast includes projections of revenues, expenses, and key financial factors that influence the organization. A comprehensive understanding of long-term trends andpotential risk factors that may impact overall financial sustainability enables proactive measures to be taken. Engaging in a robust long-term financial planning process allows decision-makers tofocus on strategic objectives, encourages thoughtful analysis, and promotes financial literacy throughout the organization. Furthermore, long-term financial planning fosters a sense of commitmentand motivation, providing a clear framework for informed decision-making..
Finance 1,342,588 1,445,387 1,458,595 1,492,218 1,539,000 1,582,000 1,626,000 1,670,000 1,715,000 Workers Comp/General Liability 1,480,421 2,094,798 1,757,019 1,970,399 2,007,000 2,047,000 2,087,000 2,128,000 2,170,000 Non-Department 260,000 284,756 260,000 62,000 64,000 66,000 68,000 70,000 72,000 Transfers Out (Debt Service Obligations) 799,213 803,278 806,291 818,771 808,000 820,000 832,000 845,000 853,000 18,610,782 20,359,818 20,467,868 21,405,501 21,829,000 22,420,000 23,026,000 23,651,000 24,287,000 Net Operating Results
Ongoing Operations $1,330,010 $889,312 $423,759 $127,000 $57,000 ($83,000) ($132,000) ($187,000) ($236,000)One-Time Revenues 731,717 916,991 - - - - - - - One-Time Expenditures (991,639) (1,103,771) - - - - - - - Outstanding Encumbrances (626,897) (565,165) -
Adjusted (Labor Agreements) - - (103,000)
Draw from/(Contribution to) Reserve (1) (443,191) (137,367) (320,759) (127,000) (57,000) 83,000 132,000 187,000 236,000 Net Operating Surplus (Deficit) $0 $0 $0 $0 $0 $0 $0 $0 $0 Note: CalHFA Loan Balance Payment (3) ($3,750,000) ($1,600,000) Transfer to Reserve (per Council Policy)
Operating Reserve 110,798 34,342 80,190 31,750 14,250 - - - - Section 115 Trust (Pension) 110,798 34,342 80,190 31,750 14,250 - - - - Capital Improvement Projetcts 221,595 68,683 160,379 63,500 28,500 - - - - 443,191 137,367 320,759 127,000 57,000 - - - -
Operating Reserve:
Beginning Balance $4,326,140 $4,610,007 $4,989,742 $5,217,932 $5,406,682 $5,583,932 $5,665,932 $5,699,932 $5,677,932 Contribution/(Draw) (1) 110,798 34,342 80,190 31,750 14,250 (83,000) (132,000) (187,000) (236,000) Interest Earned (2) 173,069 345,393 148,000 157,000 163,000 165,000 166,000 165,000 163,000 Ending Balance $4,610,007 $4,989,742 $5,217,932 $5,406,682 $5,583,932 $5,665,932 $5,699,932 $5,677,932 $5,604,932% of Projected Operating Expenditures 25% 25% 25% 25% 26% 25% 25% 24% 23% (1) In accordance with Council Policy (Resolution No. 22-056).(2) The projected interest earned is anticipated to be 3% of the operating reserve balance.(3) The remaining balance on the CalHFA loan is now due. There are sufficient reserves available to facilitate the payment 487
SPECIAL REVENUE FUNDS
488
Asset Seizure
Fund Summary - Fund 101
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 100,000$ -$
Revenues
Intergovernmental 1,133$ -$ - -
Interest Income 10,019 9,783 - -
Miscellaneous Revenues - - - -
11,152 9,783 - -
Transfers In - - - -
11,152 9,783 - -
Expenditures
Salaries and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Other Expenses 29,977 22,398 - -
Cost Allocation - - - -
Capital Outlay - - - -
Capital Improvement Projects (CIP) 21,066 - 100,000 -
Debt Service - - - -
51,043 22,398 100,000 -
Transfer Out - - - -
51,043 22,398 100,000 -
Changes in restricted reserves
Net Annual Activity (39,891) (12,615) (100,000) -
Ending Available Fund Balance 100,000$ $ - -$
The purpose of this fund is to manage monetary and property assets obtained through police confiscations related to drug offenses. These funds will be held until a final court determination is made and are earmarked exclusively for activities that support law enforcement efforts. 489
AB 3229 COPS Program
Fund Summary - Fund 201
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 80,822$ 44,663$
Revenues
Intergovernmental 186,159$ 194,663$ 150,000 207,000
Interest Income - - - -
Miscellaneous Revenues - - - -
186,159 194,663 150,000 207,000
Transfers In -$ - - -
186,159 194,663 150,000 207,000
Expenditures
Salaries and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - - -
Transfer Out 156,727 176,556 186,159 251,663
156,727 176,556 186,159 251,663
Changes in restricted reserves
Net Annual Activity 29,432 18,107 (36,159) (44,663)
Ending Available Fund Balance 80,822$ 44,663$ -$
California state legislation (AB 3229) established the Citizens' Options for Public Safety (COPS) program. This initiative provides funding to enhance frontline law enforcement services, with the funds being allocated to the General Fund.
490
Lighting and Landscape District 83-2
Fund Summary - Fund 220
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 1,269,818$ $ 1,422,553 Revenues
Assessment 2,218,229$ 2,265,856$ 2,315,737 2,362,533
Interest Income 57,238 65,982 - -
2,275,467 2,331,838 2,315,737 2,362,533
Transfers In 31,037 32,485 36,031 39,234
2,306,504 2,364,323 2,351,768 2,401,767
Expenditures
Salary and Benefits 546,550 494,687 654,852 714,313
Contractual Services 395,012 356,010 533,200 549,385
Utilities 378,032 468,828 448,688 477,090
Maintenance & Repairs 72,437 143,855 55,775 59,000
Other Expenses 7,604 1,576 14,317 14,316
Cost Allocation 200,830 140,517 144,731 147,626
Capital Improvement Projects (CIP) 116,319 2,496 - -
Loan Repayment (10 years) - - 59,829 59,829
1,716,784 1,607,969 1,911,392 2,021,559
Transfer Out 265,060 279,653 287,641 303,624
1,981,844 1,887,622 2,199,033 2,325,183
Changes in restricted reserves
Net Annual Activity 324,660$ 476,701 152,735 76,584
Ending Available Fund Balance 1,269,818$ 1,422,553$ $ 1,499,137 (Based on Engineer's Report)
The purpose of this fund is to effectively manage the financial requirements for Zones #1 through #10 of the Lighting and Landscape District No. 83-2, which focuses on financing landscaping and public lighting costs. In accordance with the provisions of the 1972 Act, the District has the authority to recover the total expenses for the installation, construction, operation, maintenance, and servicing of landscaping, street lighting, and park and recreational facilities. For additional information, please refer to the Engineer's Report. 491
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 108,166 82,960 124,237 100,631 49,161 33,021 102,437 128,650 205,630 101,265 1,326,375 2,362,533 Interest Income - - - - - - - - - - - -
General Benefit Contribution 1,288 825 949 1,558 385 143 866 984 2,691 1,377 28,168 39,234 109,454 83,785 125,186 102,189 49,546 33,164 103,303 129,634 208,321 102,642 1,354,543 2,401,767 Expenditures By Type
Salaries & Benefits 22,102 28,199 12,156 13,367 13,980 3,421 15,561 28,298 24,786 22,886 529,557 714,313 Contractual Services 11,346 4,888 8,627 15,959 2,395 1,149 4,888 3,642 34,799 6,134 455,558 549,385 Utilities 17,985 7,393 25,299 42,245 301 400 9,877 16,170 73,694 38,924 244,802 477,090 Tree Trimming 12,000 - - - - - 12,000 - - - 35,000 59,000 Other Expenses 947 750 883 310 269 292 982 1,098 1,295 925 6,565 14,316 Cost Allocation - - 470 6,026 2,328 1,872 - - - - 136,930 147,626 Capital Improvement Projects (CIP) - - - - - - - - - - - - Loan Repayment (10 years) 20,260 - 42,192 - - - 17,637 33,867 - - (54,127) 59,829 84,640 41,230 89,627 77,907 19,273 7,134 60,945 83,075 134,574 68,869 1,354,285 2,021,559 Transfers Out 32,233 24,284 32,980 24,229 13,337 17,339 28,848 37,295 60,856 32,223 - 303,624 116,873 65,514 122,607 102,136 32,610 24,473 89,793 120,370 195,430 101,092 1,354,285 2,325,183 Net Annual Results (7,419) 18,271 2,579 53 16,936 8,691 13,510 9,264 12,891 1,550 258 76,584 Estimated:
Beginning Balance, 7/1/2026 (46,590) 164,272 89,950 104,813 274,901 3,993 (70,750) 112,437 354,447 31,520 403,560 1,422,553 Ending Balance, 6/30/2027 (54,009) 182,543 92,529 104,866 291,837 12,684 (57,240) 121,701 367,338 33,070 403,818 1,499,137 (Based on Engineer's Report)
492
Victoria by the bay Lighting and Landscape District
Fund Summary - Fund 221
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance (703,095) $ (840,963) $ Revenues
Assessment 508,538$ 520,569$ 576,758 633,218
Interest Income - - - -
Miscellaneous Revenues - - - -
508,538 520,569 576,758 633,218
Transfers In 10,248$ 13,052 13,454 13,823
518,786 533,621 590,212 647,041
Expenditures
Salary and Benefits 98,644 71,966 121,368 100,808
Contractual Services 256,268 210,473 210,225 216,635
Utilities 303,488 330,406 280,000 292,000
Maintenance & Repairs 54,916 38,225 30,000 49,999
Other Expenses 974 410 854 854
Cost Allocation 28,523 29,379 30,260 30,865
Capital Outlay 23,575 - 25,000 25,000
766,388 680,859 697,707 716,161
Transfer Out 28,016 29,529 30,373 32,060
794,404 710,388 728,080 748,221
Changes in restricted reserves
Net Annual Activity $ (275,618) (176,767) (137,868) (101,180) Ending Fund Balance (703,095) $ (840,963) $ (942,143)
(Based on Engineer's Report)
The purpose of this fund is to manage the Victoria by the Bay Lighting and Landscape District No. 2002-1, which finances landscaping and lighting in public areas. The 1972 Act allows the District to recover the total expenses for the installation, construction, operation, maintenance, and servicing of landscaping, street lighting, and park and recreational facilities. For more detailed information, please refer to the Engineer's Report. 493
Hercules Village Lighting and Landscape District
Fund Summary - Fund 222
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Projection Proposed
Beginning Available Fund Balance 62,402$ 5,539$
Revenues
Assessment 174,570$ 178,701$ 183,505 188,050
Interest Income 7,835 6,361 - -
Miscellaneous Revenues - - - -
182,405 185,062 183,505 188,050
Transfers In 4,062$ 4,347 4,736 5,281
186,467 189,409 188,241 193,331
Expenditures
Salary and Benefits 43,918 27,018 41,362 46,834
Contractual Services 48,609 58,533 68,625 84,540
Utilities 80,080 88,925 89,397 94,977
Maintenance & Repairs 22,543 11,820 24,000 24,000
Other Expenses - - 421 421
Cost Allocation 12,271 12,639 13,018 13,278
Capital Outlay - - - -
Debt Service - - - -
207,421 198,935 236,823 264,050
Transfer Out 7,725 8,051 8,281 8,741
215,146 206,986 245,104 272,791
Changes in restricted reserves
Net Annual Activity $ (28,679) (17,577) (56,863) (79,460) Ending Fund Balance 62,402$ $ 5,539 $ (73,921)
(Based on Engineer's Report)
The purpose of this fund is to manage the Hercules Village Lighting and Landscape District No. 2002-2, which finances landscaping and lighting in public areas. The 1972 Act allows the District to recover the total costs of installation, construction, operation, maintenance, and servicing of landscaping, street lighting, and park and recreational facilities. For more detailed information, please refer to the Engineer's Report. 494
Baywood Lighting and Landscape District
Fund Summary - Fund 223
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 96,547$ 96,601$
Revenues
Assessment 166,246$ 177,884$ 182,668 187,192
Interest Income 3,171 3,850 - -
Miscellaneous Revenues - - - -
169,417 181,734 182,668 187,192
Transfers In 2,665 3,259 3,367 3,426
172,082 184,993 186,035 190,618
Expenditures
Salary and Benefits 49,842 40,536 52,929 53,331
Contractual Services 39,479 3,281 49,195 50,347
Utilities 28,955 40,400 39,400 40,538
Maintenance & Repairs 10,985 42,816 14,000 14,001
Other Expenses - - 311 311
Cost Allocation 11,805 12,159 12,524 12,774
Capital Outlay - - 14,700 14,700
Debt Service - - - -
141,066 139,192 183,059 186,002
Transfer Out 2,781 2,841 2,922 3,084
143,847 142,033 185,981 189,086
Changes in restricted reserves
Net Annual Activity 28,235$ 42,960 54 1,532
Ending Fund Balance 96,547$ $ 96,601 98,133$
(Based on Engineer's Report)
The purpose of this fund is to manage Baywood Lighting and Landscape District No. 2004-1, which finances the costs associated with landscaping and lighting in public areas. According to the 1972 Act, the District can recover the total costs of installation, construction, operation, maintenance, and servicing of landscaping, street lighting, and park and recreational facilities. For more detailed information, please refer to the Engineer’s Report.
495
Bayside Lighting and Landscape District
Fund Summary - Fund 224
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 167,117$ 168,139$
Revenues
Assessment 159,093$ 162,856$ 167,239 171,381
Interest Income 7,432 6,592 - -
Miscellaneous Revenues - - - -
166,525 169,448 167,239 171,381
Transfers In 2,330 2,822 2,970 3,048
168,855 172,270 170,209 174,429
Expenditures
Salary and Benefits 40,332 31,677 36,351 37,532
Contractual Services 3,307 3,281 3,285 3,445
Utilities 68,533 71,680 38,790 39,966
Maintenance & Repairs 41,004 39,913 60,500 61,710
Other Expenses - - 618 618
Cost Allocation 8,419 8,672 8,932 9,111
Capital Outlay - - - -
Debt Service - - - -
161,595 155,223 148,476 152,382
Transfer Out 19,055 20,136 20,711 21,861
180,650 175,359 169,187 174,243
Changes in restricted reserves
Net Annual Activity $ (11,795) (3,089) 1,022 186
Ending Fund Balance 167,117$ $ 168,139 168,325$
(Based on Engineer's Report)
The purpose of this fund is to manage the Bayside Lighting and Landscaping District No. 2005-1, which finances landscaping and lighting costs in public areas. Under the 1972 Act, the District can recover the total costs of installing, constructing, operating, maintaining, and servicing landscaping, street lighting, and park and recreational facilities. For more detailed information, please refer to the Engineer’s Report. 496
Arterial Roadways
Fund Summary - Fund 225
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 320,815$ 293,953$
Revenues
Assessment -$ -$ - -
Interest Income 28,325 20,547 - -
Miscellaneous Revenues - - - -
28,325 20,547 - -
Transfers In 322,637 340,210 349,928 369,370
350,962 360,757 349,928 369,370
Expenditures
Salary and Benefits 25,151 42,106 26,772 47,654
Contractual Services 32,824 - - -
Utilities 192,320 242,560 275,200 283,456
Maintenance & Repairs 50,109 52,911 61,800 63,654
Other Expenses - - - -
Cost Allocation 8,327 12,639 13,018 13,278
Capital Outlay - - - -
Debt Service - - - -
308,731 350,216 376,790 408,042
Transfer Out - - - -
308,731 350,216 376,790 408,042
Changes in restricted reserves
Net Annual Activity 42,231$ 10,541 (26,862) (38,672)
Ending Fund Balance 320,815$ $ 293,953 255,281$
This fund has been established to effectively manage the Arterial Roadways Lighting and Landscape District. Its primary purpose is to finance the costs associated with landscaping and lighting in public areas, ensuring a wellmaintained and visually appealing environment for the community. 497
Stormwater Assessment
Fund Summary - Fund 231
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 90,331$ 72,725$
Revenues
Assessment 221,305$ 241,252$ 250,000 239,000
Interest Income - - - -
Miscellaneous Revenues - - - -
221,305 241,252 250,000 239,000
Transfers In 125,000 125,000 125,000 125,000
346,305 366,252 375,000 364,000
Expenditures
Salary and Benefits 217,583 208,241 214,406 235,417
Contractual Services 100,896 162,702 145,400 171,520
Utilities 2,226 2,187 2,200 2,200
Maintenance & Repairs 21,738 61,785 27,300 19,700
Other Expenses 2,728 2,445 3,300 3,400
Cost Allocation 52,869 57,959 - -
Capital Outlay - - - -
Debt Service - - - -
398,040 495,319 392,606 432,237
Transfer Out - - - -
398,040 495,319 392,606 432,237
Changes in restricted reserves
Net Annual Activity $ (51,735) (129,067) (17,606) (68,237) Ending Available Fund Balance 90,331$ $ 72,725 4,488$
A stormwater assessment fee is a charge applied to property owners to ensure the effective maintenance of drainage systems, pipes, pumps, and water quality programs. This fee supports essential infrastructure and environmental protection efforts within our community.
498
Development Impact Fee - Public Facilities
Fund Summary - Fund 241
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 202,753$ 202,753$
Revenues
Fees 5,670$ 33,462$ - -
Interest Income 7,828 9,639 - -
Miscellaneous Revenues - - - -
13,498 43,101 - -
Transfers In - - - -
13,498 43,101 - -
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 13,498$ 43,101 - -
Ending Available Fund Balance 202,753$ $ 202,753 202,753$ A Development Impact Fee (DIF) represents a charge imposed by local governmental entities on newly proposed development projects. This fee funds the essential public infrastructure required to adequately support the new development, including, but not limited to, educational institutions, recreational areas, and transportation networks. Authorized under the Mitigation Fee Act, these fees are explicitly prohibited from being allocated to rectify existing deficiencies within infrastructure. Moreover, a demonstrable "nexus" (or relationship) must be established between the development project and the costs associated with the facilities being financed. 499
Community Development Tax
Fund Summary - Fund 242
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 79,564$ 79,564
Revenues
Fees -$ 58,500$ - -
Interest Income 8,899 11,296 - -
Miscellaneous Revenues - - - -
8,899 69,796 - -
Transfers In - - - -
8,899 69,796 - -
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 8,899$ 69,796 - -
Ending Available Fund Balance 79,564$ $ 79,564 79,564$
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. 500
Development Fee Fund
Fund Summary - Fund 243
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 80,496$ 80,496$
Revenues
Fees -$ -$ - -
Interest Income 3,780 4,252 - -
Miscellaneous Revenues - - - -
3,780 4,252 - -
Transfers In - - - -
3,780 4,252 - -
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 3,780$ 4,252 - -
Ending Available Fund Balance $ 80,496 80,496$ 80,496$
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.
501
Development Impact Fee - Police Facilities
Fund Summary - Fund 244
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 156,088$ 156,088$
Revenues
Fees 2,530$ 59,358$ - -
Interest Income 13,848 16,910 - -
Miscellaneous Revenues - - - -
16,378 76,268 - -
Transfers In - - - -
16,378 76,268 - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Improvement Projects (CIP) 830 - - -
Debt Service - - - -
830 - - -
Transfer Out - - - -
830 - - -
Changes in restricted reserves
Net Annual Activity 15,548$ 76,268 - -
Ending Available Fund Balance 156,088$ $ 156,088 156,088$ 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.
502
Development Impact Fee - Parks & Recreation
Fund Summary - Fund 247
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 236,710 $ 86,710$
Revenues
Fees -$ 69,030$ - -
Interest Income 8,415 10,296 - -
Miscellaneous Revenues - - - -
8,415 79,326 - -
Transfers In - - - -
8,415 79,326 - -
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 $ (31,351) 79,326 (150,000) -
Ending Available Fund Balance 236,710$ $ 86,710 86,710$ 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.
503
Public Benefit Fee
Fund Summary - Fund 249
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 1,091,960$ 1,091,960$
Revenues
Fees -$ -$ - -
Interest Income 51,274 57,675 - -
Miscellaneous Revenues - - - -
51,274 57,675 - -
Transfers In - - - -
51,274 57,675 - -
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 51,274$ 57,675 - -
Ending Available Fund Balance 1,091,960$ $ 1,091,960 1,091,960$ 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. 504
Development Impact Fee - Transporation Facilities
Fund Summary - Fund 261
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 748,541$ 748,541$
Revenues
Fees 330,718$ 241,956$ - -
Interest Income 18,770 31,802 - -
Miscellaneous Revenues - - - -
349,488 273,758 - -
Transfers In - - - -
349,488 273,758 - -
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 349,488$ 273,758 - -
Ending Available Fund Balance 748,541$ $ 748,541 748,541$ 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).
505
State Gas Tax
Fund Summary - Fund 262
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 523,705 $ 507,394 $
Revenues
Gas Tax 721,198$ 733,801$ 738,148 769,563
Interest Income 24,710 32,155 - -
Miscellaneous Revenues - - - -
745,908 765,956 738,148 769,563
Transfers In - - - -
745,908 765,956 738,148 769,563
Expenditures
Salary and Benefits 264,427 267,744 282,940 312,032
Contractual Services 77,103 106,126 113,300 115,600
Utilities 15,064 16,475 13,100 13,400
Maintenance & Repairs 63,599 118,755 83,900 94,000
Other Expenses 9,857 22,962 20,800 21,300
Cost Allocation 102,413 126,078 129,861 132,459
Capital Outlay 21,682 31,653 50,000 51,000
Capital Improvement Projects (CIP) 49,320 - - 455,000
Debt Service - - - -
603,465 689,793 693,901 1,194,791
Transfer Out 50,342 55,965 60,558 64,812
653,807 745,758 754,459 1,259,603
Changes in restricted reserves
Net Annual Activity 92,101$ 20,198 (16,311) (490,040)
Ending Available Fund Balance 523,705$ $ 507,394 $ 17,354 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. 506
Measure "C" Street Fund
Fund Summary - Fund 263
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 719,878$ 600,313$
Revenues
Gas Tax 1,043,772$ 554,631$ 493,303 495,000
Interest Income 29,866 31,171 - -
Miscellaneous Revenues - - - -
1,073,638 585,802 493,303 495,000
Transfers In - - - -
1,073,638 585,802 493,303 495,000
Expenditures
Salary and Benefits 278,193 277,326 275,050 313,793
Contractual Services 9,982 146,870 68,300 69,700
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation 49,092 67,493 69,518 70,909
Capital Outlay 107,364 83,671 - 204,000
Capital Improvement Projects (CIP) - - 200,000 225,000
Debt Service - - - -
444,631 575,360 612,868 883,402
Transfer Out - - - -
444,631 575,360 612,868 883,402
Changes in restricted reserves
Net Annual Activity 629,007$ 10,442 (119,565) (388,402) Ending Available Fund Balance 719,878$ 600,313$ 211,911$ 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.
507
BART Park & Ride
Fund Summary - Fund 266
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance -$ -$
Revenues
Fees -$ -$ - -
Interest Income - - - -
Miscellaneous Revenues 32,318 33,500 92,000 92,000
32,318 33,500 92,000 92,000
Transfers In - - - -
32,318 33,500 92,000 92,000
Expenditures
Salary and Benefits - - - -
Contractual Services 245,897 13,273 25,000 25,000
Utilities 2,459 1,786 21,000 21,000
Maintenance & Repairs 3,532 4,140 46,000 46,000
Other Expenses 6,525.00 7,290 - -
Cost Allocation - - - -
Capital Outlay - - - -
Capital Improvement Project (CIP) 100,000 - - -
Debt Service - - - -
358,413 26,489 92,000 92,000
Transfer Out - - - -
358,413 26,489 92,000 92,000
Changes in restricted reserves
Net Annual Activity $ (326,095) 7,011 - -
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 508
General Plan Update Fee and Building Training Fee
Fund Summary - Fund 267
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 1,542,868$ -$
Revenues
Fees 254,542$ 269,265$ - -
Interest Income 42,315 68,184 - -
Miscellaneous Revenues - - - -
296,857 337,449 - -
Transfers In - - - -
296,857 337,449 - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - 1,300,000 -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
- - 1,300,000 -
Transfer Out - - - -
- - 1,300,000 -
Changes in restricted reserves (242,868)
Net Annual Activity 296,857$ 337,449 (1,542,868) -
Fund Balance
Ending Available Fund Balance 1,542,868$ -$ -$
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.
509
Road Maintenance Rehabilitation Account (SB1 - RMRA)
Fund Summary - Fund 268
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 981,630$ 1,165,439$
Revenues
RMRA 664,869$ 709,040$ 683,809 735,835
Interest Income 40,692 61,368 - -
Miscellaneous Revenues - - - -
705,561 770,408 683,809 735,835
Transfers In - - - -
705,561 770,408 683,809 735,835
Expenditures
Salary and Benefits - - - -
Pass through to other agency 87,930 - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Street Maintenance Program - - - -
Capital Improvement Projects (CIP) 161,766 65,091 500,000 260,000 Debt Service - - - -
249,696 65,091 500,000 260,000
Transfer Out - - - -
249,696 65,091 500,000 260,000
Changes in restricted reserves -
Net Annual Activity $ 455,865 705,317 183,809 475,835
Ending Available Fund Balance 981,630$ 1,165,439$ 1,641,274$ 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.
510
Solid Waste and Recycling
Fund Summary - Fund 291
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 630,079$ 248,227$
Revenues
Fees -$ -$ - -
Interest Income 44,590 50,950 - -
Miscellaneous Revenues 176,206 212,647 - -
220,796 263,597 - -
Transfers In - - - -
220,796 263,597 - -
Expenditures
Salary and Benefits 12,986 13,676 13,852 14,371
Contractual Services - 56,538 - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - 243,000 -
Cost Allocation - - - -
Capital Improvement Projects (CIP) - - - -
Debt Service - - - -
12,986 70,214 256,852 14,371
Transfer Out 125,000 125,000 125,000 125,000
137,986 195,214 381,852 139,371
Changes in restricted reserves
Net Annual Activity 82,810$ 68,383 (381,852) (139,371)
Ending Available Fund Balance 630,079$ $ 248,227 108,856$ 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.
511
Water Quality Retention Basin
Fund Summary - Fund 387
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 358,525$ 372,525$
Revenues
Property Tax 58,161$ 60,293$ 57,000$ 61,000
Interest Income 13,747 17,149 6,000 18,000
Miscellaneous Revenues - - - -
71,908 77,442 63,000 79,000
Transfers In - - - -
71,908 77,442 63,000 79,000
Expenditures
Salary and Benefits - - - -
Contractual Services 10,242 10,717 49,000 11,100
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
10,242 10,717 49,000 11,100
Transfer Out - - - -
10,242 10,717 49,000 11,100
Changes in restricted reserves
Net Annual Activity 61,666$ 66,725$ 14,000 67,900
Ending Available Fund Balance 358,525$ 372,525$ 440,425$ 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. 512
Regional Water Quality
Fund Summary - Fund 521
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 57,884$ 57,884$
Revenues
Fees - - - -
Interest Income 2,718 3,057 - -
Miscellaneous Revenues - - - -
2,718 3,057 - -
Transfers In - - - -
2,718 3,057 - -
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 2,718$ 3,057 - -
Fund Balance
Ending Available Fund Balance 57,884$ 57,884$ 57,884$
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. 513
Successor Housing Agency
Fund Summary - Fund 640
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance 5,879,840$ 5,759,245$
Revenues
Tax Increment (RPTTF) - - - -
Interest Income 478,616 505,725 - -
Miscellaneous Revenues 253,594 188,000 - -
732,210 693,725 - -
Transfers In - - - -
732,210 693,725 - -
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses (14,741) 66,115 120,595 -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service - - - -
(14,741) 66,115 120,595 -
Transfer Out - - - -
(14,741) 66,115 120,595 -
Changes in restricted reserves
Net Annual Activity 746,951$ 627,610 (120,595) -
Ending Available Fund Balance 5,879,840$ 5,759,245$ 5,759,245$ 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.
514
SEWER ENTERPRISE FUND
515
Sewer - Operations
Fund Summary - Fund 420
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Projection Proposed
Beginning Available Fund Balance $ 13,919,941 $ 11,040,723 Revenues
Charges for Services $ 5,891,836 $ 6,330,490 6,235,000 6,235,000 Interest Income 577,482 819,177 270,000 154,000
Rate Stabilization Fund 340,039 130,689 695,934 1,114,360 Miscellaneous Revenues - - - -
6,809,357 7,280,356 7,200,934 7,503,360
Transfers In - - - -
6,809,357 7,280,356 7,200,934 7,503,360
Expenditures
Salary and Benefits 756,775 705,152 797,035 965,055
Contractual Services 1,062,574 1,078,622 475,100 484,600 Utilities 78,634 82,761 93,400 95,200
Maintenance & Repairs 24,489 18,945 53,200 54,300
Sewer Plant Operating Expenses 2,128,446 2,490,580 2,862,426 2,974,801 Other Expenses 11,262 5,986 6,800 6,900
Cost Allocation 271,061 420,784 433,408 442,076
Capital Outlay - - - -
Capital Improvement Projects (CIP) - - - -
Capital Outlay - Pinole (Hercules' Share) 79,226 2,755,799 2,755,799 Debt Service 2,063,430 2,064,605 2,066,304 2,067,023
6,475,897 6,867,435 9,543,472 9,845,754
Transfer Out 147,173 1,100,000 536,680 444,700
6,623,070 7,967,435 10,080,152 10,290,454
Changes in restricted reserves (5,472,360)
Net Annual Activity 186,287 (687,079) (2,879,218) (8,259,454) Ending Available Fund Balance $ 13,919,941 $ 11,040,723 $ 2,781,269 Debt Service Coverage Ratio 1.20 1.20 1.20 1.20
Operating & Maintenance Reserve (180 days) 1,256,000
Capital Reserve (Equal to annual system depreciation) 1,002,000 Debt Service Reserve (Equivalent to 1-year of debt service) 2,100,000 The Sewer Enterprise Fund is exclusively allocated to the operations, maintenance, and capital improvements of the sewer system. Revenues derived from sewer fees are designated specifically for sewer-related activities and are strictly prohibited from being redirected toward non-sewer-related expenditures. 516
Sewer - Capital Projects
Fund Summary - Fund 421
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Projection Proposed
Beginning Available Fund Balance $ - $ -
Revenues
Charges for Services $ - $ - - -
Interest Income - - - -
Bond Proceeds - - - -
Miscellaneous Revenues - - - -
- - - -
Transfers In 147,173 1,100,000 536,680 444,700
147,173 1,100,000 536,680 444,700
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Sewer Plant Operating Expenses - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Capital Improvement Projects (CIP) 10,584,462 1,439,324 536,680 444,700 Debt Service - - - -
10,584,462 1,439,324 536,680 444,700
Transfer Out - - - -
10,584,462 1,439,324 536,680 444,700
Changes in restricted reserves
Net Annual Activity $ (10,437,289) (339,324) - -
Ending Fund Balance $ - $ - $ -
A sewer capital project fund is a designated governmental or enterprise fund to manage financial resources for constructing, upgrading, or replacing major sewer and wastewater infrastructure. 517
INTERNAL SERVICE FUNDS
518
Vehicle Replacement
Fund Summary - Fund 450
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance $ 279,650 $ 442,650
Revenues
Charges for Services $ 153,000 $ 158,000 163,000 166,000 Interest Income 8,914 - - -
Miscellaneous Revenues - - - -
161,914 158,000 163,000 166,000
Transfers In - - - -
161,914 158,000 163,000 166,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay 162,900 192,987 132,645 -
Debt Service - - - -
162,900 192,987 132,645 -
Transfer Out - - - -
162,900 192,987 132,645 -
Changes in restricted reserves
Net Annual Activity $ (986) (34,987) 163,000 33,355
Ending Available Fund Balance 279,650 $ 442,650 $ 476,005 An Internal Service Fund (ISF) for vehicle replacement serves as a specialized accounting framework to systematically gather funds through charges imposed on user departments. This mechanism is designed to facilitate the acquisition of new fleet assets when existing vehicles need to be replaced. By operating as an internal business unit, the ISF effectively reduces the risk of substantial, unpredictable budgetary fluctuations associated with the purchase of high-cost equipment, thereby enhancing financial planning and ensuring stable fiscal management.
519
Information Technology (IT) Operations
Fund Summary - Fund 460
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance $ 780,553 $ 441,408
Revenues
Charges for Services $ 1,013,843 $ 1,070,728 $ 1,102,852 1,124,911 Interest Income - - - -
Miscellaneous Revenues 6,065 165,137 - -
1,019,908 1,235,865 1,102,852 1,124,911
Transfers In - - - -
1,019,908 1,235,865 1,102,852 1,124,911
Expenditures
Salary and Benefits 416,762 478,257 472,499 495,692
Contractual Services 2,708 1,068 100,524 120,925
Utilities 53,678 28,352 54,800 32,750
Maintenance and Subscriptions 406,899 473,321 447,800 543,020 Other Expenses 2,650 6,393 13,946 5,446
Cost Allocation 98,189 58,668 60,428 61,637
Capital Outlay 56,002 5,473 - -
1,036,888 1,051,532 1,149,997 1,259,470
Transfer Out 365,516 292,000 - 30,000
1,402,404 1,051,532 1,441,997 1,289,470
Changes in restricted reserves
Net Annual Activity $ (382,496) 184,333 (339,145) (164,559) Ending Available Fund Balance $ 780,553 $ 441,408 $ 276,849 An Information Technology (IT) Internal Service Fund serves as a proprietary accounting entity to streamline, oversee, and bill back IT services to various departments on a cost-reimbursement basis. It functions like a business, providing essential services such as application development, security, and hardware procurement. 520
Facility Maintenance
Fund Summary - Fund 470
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance $ 573,344 $ 419,285
Revenues
Charges for Services $ 938,955 $ 1,046,683 1,047,125 1,000,985 Interest Income - - - -
Miscellaneous Revenues - - - -
938,955 1,046,683 1,047,125 1,000,985
Transfers In - - - -
938,955 1,046,683 1,047,125 1,000,985
Expenditures
Salary and Benefits 247,854 307,085 362,965 323,777
Contractual Services 165,432 217,596 199,300 203,300
Utilities 461,122 397,190 289,700 295,500
Maintenance & Repairs 140,513 176,196 184,800 188,600
Other Expenses 25,063 32,200 29,000 34,200
Cost Allocation 144,264 131,474 135,419 138,128
1,184,248 1,261,741 1,201,184 1,183,505
Transfer Out 261,696 - - -
1,445,944 1,261,741 1,201,184 1,183,505
Changes in restricted reserves
Net Annual Activity $ (506,989) (215,058) (154,059) (182,520) Ending Available Fund Balance $ 573,344 $ 419,285 236,765 A Facility Maintenance Internal Service Fund (ISF) serves as a dedicated financial mechanism to consolidate the costs associated with the maintenance, repair, and remodeling of city or county facilities. This fund operates on a cost-reimbursement model, in which other departments are charged usage-based fees to cover maintenance, utilities, and facility enhancements.
521
Information Technology (IT) Equipment Replacement
Fund Summary - Fund 480
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance $ 8,000 $ 300,000
Revenues
Charges for Services $ - $ - - -
Interest Income - - - -
Miscellaneous Revenues - 200 - -
- 200 - -
Transfers In 365,516 292,000 - 30,000
365,516 292,000 200 30,000
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - 30,000
Debt Service - - - -
- - - 30,000
Transfer Out - - - -
- - - 30,000
Changes in restricted reserves
Net Annual Activity $ 365,516 292,000 200 -
Ending Available Fund Balance $ 8,000 $ 300,000 $ 300,000 An Information Technology (IT) internal service fund for equipment replacement centralizes funding for the management, maintenance, and replacement of essential technology infrastructure. By accumulating resources through internal billing, this approach stabilizes IT expenses and mitigates the risk of substantial, unforeseen financial impacts associated with technology lifecycle replacements. 522
Facilities Replacement
Fund Summary - Fund 490
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance $ 150,000 $ 150,000
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 - - -
Debt Service - - - -
14,027 - - -
Transfer Out - - - -
14,027 - - -
Changes in restricted reserves
Net Annual Activity $ 247,669 - - -
Ending Available Fund Balance $ 150,000 $ 150,000 $ 150,000 The Facility Replacement Internal Service Fund serves as a specialized accounting mechanism for accumulating funds for the future maintenance, repair, and replacement of infrastructure components. This fund collects resources through internal billing, enabling costs to be allocated to departments based on their usage. This strategy effectively reduces the likelihood of substantial, unanticipated increases in capital expenditures, thereby promoting more efficient financial planning and resource allocation. 523
DEBT SERVICE FUNDS
524
2020 DEBT SERVICE PFA
Fund Summary - Fund 672
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance $ - $ -
Revenues
Property Lease Revenue - - - -
Interest Income - - - -
Miscellaneous Revenues - - - -
- - - -
Transfers In/General Fund 563,316 568,252 561,212 563,162 563,316 568,252 561,212 563,162
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses 1,600 1,600 - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 564,937 563,430 561,212 563,162
566,537 565,030 561,212 563,162
Transfer Out - - - -
566,537 565,030 561,212 563,162
Changes in restricted reserves
Net Annual Activity $ (3,221) 3,222 - -
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.
525
2009 DEBT SERVICE PFA
Fund Summary - Fund 673
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance $ - $ -
Revenues
Property Lease Revenue $ 921,499 $ 927,751 906,578 905,796 Interest Income 93,460 86,882 - -
1,014,959 1,014,633 906,578 905,796
Transfers In - 2,625 - -
1,014,959 1,017,258 906,578 905,796
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 908,409 906,671 906,578 905,796
908,409 906,671 906,578 905,796
Transfer Out - - - -
908,409 906,671 906,578 905,796
Changes in restricted reserves
Net Annual Activity $ 106,550 110,587 - -
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.
526
Equipment Lease
Fund Summary - Fund 388
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Beginning Available Fund Balance $ - $ -
Revenues
Charges for Services $ - $ - - -
Interest Income - - - -
Property Lease Revenue - - - -
- - - -
Transfers In 235,897 235,026 245,079 255,609
235,897 235,026 245,079 255,609
Expenditures
Salary and Benefits - - - -
Contractual Services - - - -
Utilities - - - -
Maintenance & Repairs - - - -
Other Expenses - - - -
Cost Allocation - - - -
Capital Outlay - - - -
Debt Service 235,897 235,026 245,079 255,609
235,897 235,026 245,079 255,609
Transfer Out - - - -
235,897 235,026 245,079 255,609
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. 527
CAPITAL PROJECT FUNDS
528
SUMMARY OF CAPITAL IMPROVEMENT PROJECT
PROGRAM SPENDING PLAN FY 2026-2036
Prior Year 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 FY 2035-36 Total Project Name Balance Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection City Hall 335,256 - 440,700 445,000 793,700 67,000 105,000 - - 157,800 595,000 2,939,456 Community Swim Center 30,200 - 172,200 370,300 660,700 22,100 - 196,000 - - - 1,451,500 Senior Center 38,649 - 123,400 21,000 28,000 22,400 - - - - 51,800 285,249 Library 91,577 - - 286,300 324,500 283,600 - 119,000 - - - 1,104,977 Foxboro Community Center 10,200 - - 35,000 - - 54,100 - 14,000 - - 113,300 Ohlone Community Center 82,684 - - 80,700 121,200 65,100 41,700 - 3,500 - - 394,884Ohlone Childcare Center - - 5,300 43,800 35,400 - - 18,200 - - - 102,700 Lupine Kidz Center 16,660 - - 27,300 490,000 - - - - - - 533,960 Teen Center 30,612 - 49,500 - 130,200 - 30,100 56,000 3,500 - - 299,912 Hanna Ranch Childcare Center 41,187 - 120,100 103,600 64,400 - - - 29,400 - - 358,687 Public Works Maintenance Yard 8,650 - 49,100 201,300 258,700 116,200 - - - - 2,200 636,150 Leila's By The Bay Roof 30,000 - - - 65,500 - - - - - - 95,500 Total, Facilities 715,675 - 960,300 1,614,300 2,972,300 576,400 230,900 389,200 50,400 157,800 649,000 8,316,275 Refugio Valley Park Capital Improvements 55,000 - 355,000 1,485,000 1,503,000 1,300,000 150,000 1,600,000 - - - 6,448,000 Refugio Lake Restoration Project 23,546 1,870,700 50,000 50,000 - - - - - - - 1,994,246 Beechnut Park 444,705 15,295 - - - - - 700,000 - - - 1,160,000 Duck Pond Park - - - - - - - - 100,000 680,000 - 780,000 Foxboro Park 418,595 - - - - - 74,000 - - - - 492,595
Hanna Ranch Park - - - - - - - - 3,780,000 2,730,000 - 6,510,000 Ohlone Park - - 100,000 - - - 1,500,000 1,500,000 3,000,000 3,000,000 - 9,100,000 Bayside Park - - - - - - - - - 1,183,000 - 1,183,000
Woodfield Park - - - 215,000 375,000 738,000 1,500,000 2,217,000 - - - 5,045,000 Hercules Point - Nuisance Abatement - - - - - 150,000 200,000 150,000 - - - 500,000Shoreline Park - - - - - 749,000 931,000 - - - - 1,680,000 Frog Pad Park - - - - - 630,000 - - - - - 630,000
Total, Parks 941,846 1,885,995 505,000 1,750,000 1,878,000 3,567,000 4,355,000 6,167,000 6,880,000 7,593,000 - 35,522,841 Willow-Newbury Sewer Rehabilitation 200,000 269,700 1,206,100 1,080,000 - - - - - - - 2,755,800 Lower Sycamore Ave. SS Overflow Pipeline 151,680 - - - - 151,700 1,650,000 - - - - 1,953,380 Sycamore Ave. Upper Trunk Main - - - - - - - - 50,000 1,241,800 - 1,291,800 Promenade Lift Station - - - 450,463 2,928,008 2,928,008 - - - - - 6,306,479 Condition Assessment Projects - 175,000 175,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,150,000 Annual Sewer System Improvements - - 100,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 2,500,000 Total, Sewer 351,680 444,700 1,481,100 1,930,463 3,328,008 3,479,708 2,050,000 400,000 450,000 1,641,800 400,000 15,957,459 Foxboro 890,569 1,036,000 940,000 1,915,000 - - - - - - - 4,781,569 Hercules By The Bay 150,000 - - - 1,051,000 1,051,500 - - - - - 2,252,500 Green Infrastructure Project - Public ROW Bioretention 150,000 250,000 - - - - - - - - - 400,000 John Muir Parkway Traffic Calming Improvements
- - 50,000 500,000 74,000 - - - - - - 624,000
Annual Street Repair Project 450,009 - 640,000 - 515,000 515,000 940,000 940,000 940,000 940,000 940,000 6,820,009 Sycamore Ave Bike/Ped Connector Project - 150,000 - 165,000 1,395,000 - - - - - - 1,710,000 Gateway Monument Sign Project 90,000 - - - - 80,000 80,000 - - - - 250,000 Total, Streets 1,730,578 1,436,000 1,630,000 2,580,000 3,035,000 1,646,500 1,020,000 940,000 940,000 940,000 940,000 16,838,078 Hercules HUB 850,000 1,418,500 5,988,544 4,279,644 3,920,344 42,118,030 38,658,087 38,658,087 31,665,173 - - 167,556,409 Chelsea Wetlands - - - - 1,500,000 - - - - - - 1,500,000 Total, Transportation 850,000 1,418,500 5,988,544 4,279,644 5,420,344 42,118,030 38,658,087 38,658,087 31,665,173 - - 169,056,409 Total, CIP 4,589,779 5,185,195 10,564,944 12,154,407 16,633,652 51,387,638 46,313,987 46,554,287 39,985,573 10,332,600 1,989,000 245,691,062 529
SUMMARY OF CAPITAL IMPROVEMENT PROJECT
PROGRAM SPENDING PLAN FY 2026-2036
Prior Year 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 FY 2035-36 Total Project Name Balance Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Funding Sources:
General Fund/Capital Reserves 2,601,428 2,650,495 740,000 218,335 626,000 3,208,000 - - - - - 10,044,258 Eastbay Regional Park District WW Grant Funds
40,095 - - - - - - - - - - 40,095
Prop. 68 156,610 - - - - - - - - - - 156,610
Parks Impact Fee Fund 150,000 - - - - - - - - - - 150,000 Sewer Fund - 421 351,680 444,700 1,481,100 2,930,463 3,328,008 3,479,708 2,050,000 400,000 450,000 1,641,800 400,000 16,957,459 SB1 RMRA 300,000 260,000 260,000 260,000 260,000 260,000 260,000 260,000 260,000 260,000 260,000 2,900,000 Measure J Fund - 263 139,966 225,000 225,000 200,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 2,364,966 Gas Tax - 455,000 455,000 455,000 455,000 455,000 455,000 455,000 455,000 455,000 455,000 4,550,000 MTC TDA3 - 150,000 - - - - - - - - - 150,000
HSIP - - - 165,000 165,000 - - - - - - 330,000
FSP/ NRPP - - 2,188,544 4,279,644 3,920,344 6,129,468 - - - - - 16,518,000 Grant WCCTAC STMP Funding - - 2,400,000 - - 2,000,000 - - 2,000,000 - - 6,400,000 Grant TIRCP - 1,000,000 1,400,000 - - - - - - - - 2,400,000 Grant Garamendi Earmark 850,000 - - - - - - - - - - 850,000 AHSC - - - - - 15,000,000 - - - - - 15,000,000
Corridor ID - - - - - 8,207,062 30,658,087 30,658,087 18,165,173 - - 87,688,409 Future CCTA Measure - - - - - 3,200,000 - - 2,500,000 - - 5,700,000 TCC - - - - - 5,000,000 8,000,000 8,000,000 9,000,000 - - 30,000,000 Unfunded - - 1,415,300 3,645,965 7,654,300 4,223,400 4,665,900 6,556,200 6,930,400 7,750,800 649,000 43,491,265 Total, Funding 4,589,779 5,185,195 10,564,944 12,154,407 16,633,652 51,387,638 46,313,987 46,554,287 39,985,573 10,332,600 1,989,000 245,691,062 530
Annual Proposed Budget
Fiscal Year (FY) 2026-27
City Council
May 12, 2026
1 531
Budget Discussion
Community Priorities Survey
Council priorities and multi-year goals
Overall general assumptions applied - Baseline
Budget Requests and Financial Impact
General Fund
Non-General Fund programs
2 532
Community Priorities Survey
• The City conducted a Community Budget Priorities Survey in early 2026 to consider for future planning.
• Residences emphasized the importance of Hercules remaining a safe and wellmaintained place to live with essential services that residence depend on.
Key Community Priorities:
• Maintaining long-term financial stability and accountability • Retaining and attracting local businesses
• Meeting water quality health standards
• Maintaining fast 911 response times
3 533
Council’s FY 24-26 Strategic Goals
Goal #1: Advance the development of the Hercules Hub
Goal #2: Strengthen the city's fiscal sustainability
Goal #3: Enhance transparency and communication
Goal #4: Continue investing in a skilled and dedicated team at City Hall Goal #5: Strategically plan and fund major infrastructure projects Goal #6: Develop a comprehensive land-use strategy.
Goal #7: Formulate a detailed economic development strategy 4 534
Overall Assumptions Used
(Baseline)
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Salaries and Benefits
3% Cost of Living Adjustments (COLA)
2% Equity Adjustments for Police Officers Association (POA) CalPERS actuarial assumptions - Normal Rate and Unfunded Actuarial Liability (UAL)
Assumed 3% increase in healthcare cost from FY 25-26
Kaiser Rate
The picture can't be displayed.
All other discretionary expenses are
estimated to increase by an average of 2%
535
CalPERS
Funding Ratio6
Funding Ratio: 76%
536
Budget Requests
and Financial
Impact
7 General
Fund
Other
Funds
Total
Ongoing costs:
Reallocate Full-Time Parking
Enforcement
$11,000 $11,000
Full-Time Child Care Technician 21,000 21,000
Finance Director Salary Upgrade 10,000 10,000 20,000
Reclass Technician to Accountant 300 300
Total Ongoing 42,300 10,000 52,300
One-Time costs:
AED Replacement 26,000 26,000
Community Center Oven
Replacement
30,000 30,000
Total, One-Time 56,000 - 56,000
Total $98,300 $10,000 $108,300
537
General
Fund
Analysis
I. General Fund • Revenue Estimates • Expenditures Projections • Projected Net Annual Results • Five Year Forecast 8 538
General Fund
Revenue Estimates
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Sales tax is likely to remain
flat compared to FY 25-26
budget figures.
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Utility User’s Tax (UUT) –
Projected $4.3 million, a 4%
increase compared to FY 25-
26 Budget.
Property Tax – applied CPI
factor of 2%.
The picture can't be displayed.
Transient Occupancy Tax –
Include Self Storage In-lieu
of TOT, Airbnb and other
short-term rental operation.
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Franchise Fee – New
franchise agreement with
Republic Services will add
$195K to the General Fund.
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Parks & Recreation Programs
– Growth in both program
revenues and program
offerings.
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Fees for Services – Based on
the current fees charged.
539
General Fund
Expenditure Projections
By Category
• Salaries and benefits – accounts for
59% of total General Fund
expenses.
• The General Fund expenditures are
projected to increase by about a $1
million or 5% compared to the prior
fiscal year budget.
10 540
General Fund
Expenditure Projections
By Department/Programs
11 541
General Fund
Projected Annual
Operating Results
12 Revenues
Taxes $14,107,000
VLF and Other Inter-Govt 2,818,000
Program 2,092,150
Other revenues 2,515,351
Total, Revenues 21,532,501
Expenditures 21,405,501
Annual Operating Results $127,000
% Reserve 25%
542
General Fund
Five-Year Forecast
13 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32
Year 1 Year 2 Year 3 Year 4 Year 5
Revenues $21,886,000 $22,337,000 $22,894,000 $23,464,000 $24,051,000 Expenditures $21,829,000 $22,420,000 $23,026,000 $23,651,000 $24,287,000 Annual Operating Results $57,000 ($83,000) ($132,000) ($187,000) ($236,000) Deficit as % of Expenditures 0.4% 0.6% 0.8% 1.0%
% Operating Reserve 26% 25% 25% 24% 23%
543
Non-General Fund
Budget Highlights
14 Victoria by the Bay
LLAD is expected
to continue carrying
a deficit; however,
the recently
approved
assessment increase
is anticipated to
bridge this gap over
the next 10 years.
Victoria
by the Bay
LLAD
The Hercules
Village LLAD is
currently facing a
structural deficit and
is expected to
continue this trend
annually unless
appropriate
measures are
implemented.
Hercules
Village
LLAD
544
Sewer Enterprise Fund
Budget Highlights
• The Sewer Enterprise Fund pays for the sewer system’s operations, maintenance, and capital improvement
• FY 26-27 operating budget is estimated to be:
• $4.6 million in ongoing operating expenditures;
• $2.1 million in debt service obligation; and
• $3.2 in capital improvements projects
• The City collects approximately $6 million a year in service charges from over 8,400 connection
• The City Council on July 22, 2025, adopted a resolution to increase sewer rates
15 545
Internal Service Funds (ISF)
16 • Three of the ISF funds manage capital replacement and asset management for vehicles, facilities, and technology.
The two ISFs oversee the City’s Information System
(IT) Operations and Facilities Maintenance.
The City utilizes five ISF funds
546
Debt Service
Obligations
17 Debt Description Fund No. Principal Interest Total
2020 Lease Revenue Refunding Bond 672 $477,396 $85,766 $563,162 Taxable Lease Revenue Bonds,
Series 2009 (Bio-RAD Project)
673 325,000 580,796 905,796
Engie Energy Construction Loan 388 158,064 97,545 255,609 Wastewater Revenue Bonds, Series
2021A
Sewer Fund 395,000 161,186 556,186
Public Owned Treatment Works
Construction Loan
Sewer Fund 1,213,515 297,322 1,510,837
Total, Annual Debt Service
Payment
$2,568,975 $1,222,615 $3,791,590
547
Capital Improvement
Projects (CIP)
FY 26-27
Streets
Foxboro $1,036,000
Green Infrastructure Project - Public ROW
Bioretention
250,000
Sycamore Ave Bike/Ped Connector Project 150,000
1,436,000
Parks
Refugio Valley Park Capital Improvements 1,870,700
Beechnut Park 15,295
1,885,995
Sewer
Willow-Newbury Sewer Rehabilitation 269,700
Condition Assesment Projects 175,000
444,700
Hercules Hub 1,418,500
Total, FY 26-27 Capital Improvement Projects $5,185,195 18 548
Capital Improvement
Projects (CIP)
FY 26-27
Funding Sources
19 Funding Sources
General Fund $2,650,495
SB1 RMRA 260,000
Gas Tax 455,000
Measure J 225,000
Sewer 444,700
MTC/TDA 3 150,000
TIRCP 1,000,000
$5,185,195
549
Questions &
Comments
20 550
DISCUSSION AND/OR ACTION ITEM
AGENDA ITEMS
4. 26-110
551
STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 12, 2026
TO: Mayor and Members of the City Council
VIA: Patrick Tang, Interim City Manager
SUBMITTED BY: Christopher Roke, Parks and Recreation Director Christie Crowl, City Attorney
SUBJECT: Allocation of $1,000 for Juneteenth Event 2026; Amendment to Flag Policy; Approval of Juneteenth and Pride Flag Raising for 2026 and Annually
RECOMMENDED ACTION:
The City Council should receive a presentation on the proposed Juneteenth event at the library and direct staff to allocate $1,000 for the event by minute order.
The City Council should further consider taking the following actions by minute order: (1) approval of a minor amendment to the City’s flag policy, (2) authorize the raising of the Juneteenth and Pride flags this year, and (3) authorize the raising of those flags annually as described herein.
EXECUTIVE SUMMARY:
As directed by City Council, staff is planning a Juneteenth event this year. The event is proposed to be similar to the 2025 event as the City plans to partner with the Hercules Library. There will be flag raising ceremony with a dance element, speakers, light refreshments, and a visual exhibit with quilts that tell the African American story at the Hercules Library. Staff is proposing a minor amendment to the City Council’s adopted flag policy to clarify that staff can bring commemorative flag requests for approval.
Consistent with that understanding of the existing policy, staff is requesting that the City Council approve the annual raising of the Juneteenth and Pride flags. 552
BACKGROUND:
Juneteenth became the eleventh federal holiday in the United States on June 17, 2021 when the Juneteenth National Independence Day Act was signed into law. The day was officially designated Juneteenth National Independence Day, also known as Jubilee Day and Black Independence Day. Juneteenth has been celebrated on June 19th in various parts of the United States since 1865. In celebration of this historically significant event, the City Council approved raising the Juneteenth Flag at the Hercules Civic Center, and has done so for the past 4 years. The City has previously provided a short ceremony that has included opening remarks, guest speakers, poetry, a vocalist singing the Black National Anthem and the raising of the Pan-African flag.
Pride Month is celebrated each year in the month of June to honor the 1969 Stonewall uprising in Manhattan. The purpose of the commemorative month is to recognize the impact that lesbian, gay, bisexual and transgender individuals have had on history locally, nationally and internationally. The City has previously flown the Pride flag in June in recognition of Pride Month.
ANALYSIS:
Staff plans to work with the Hercules Library staff to help tell the African American story through readings and tapestries. There will also be refreshments at the flag ceremony and at the library. The event will take place on Saturday, June 13, 2026, and staff is requesting allocation of $1,000 to facilitate the event which will included costs associated with bringing a quilt exhibit to the library and with event refreshments. Staff notes that the Council may be asked to consider future Juneteenth celebrations in Refugio Valley Park, but at this time there are public works construction projects that preclude use of the park for this type of event or any expanded version.
The City adopted its flag policy in January 2020 to establish guidelines for: (1) the exhibition of the flag of the United States of America, the California State flag, and the Hercules City flag from City buildings; and (2) the display of ceremonial flags. The City Council has previously authorized staff to display the Juneteenth flag in accordance with the policy. Staff has noted that the policy expressly states that Council members can request approval of a commemorative flag display, and staff would like to clarify that the policy allows staff to bring the request to the Council as well. The proposed amendment is included in Attachment 1.
Adoption of the proposed amendment would allow the City Council to (1) authorize staff to raise the Juneteenth flag on the date of the proposed event (Saturday, June 13, 2026) and to continue flying the flag through Friday, June 19, 2026, and (2) authorize staff to raise the Pride flag during the rest of the month of June. In addition, staff is also requesting that the City Council approve the annual raising of the Juneteenth flag for June 13-19, as well as to raise the Pride flag beginning June 1 and authorize its flying for the rest of the month of June with the exception of the period when the Juneteenth flag is flying.
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FISCAL IMPACT:
Staff recommends that the City Council allocate $1,000 from the General Fund to help pay for the cost to bring the quilts to the library as well as to pay for refreshments for the event. The General Fund has adequate resources to support this expense.
ATTACHMENTS:
Attachment 1 – Flag Policy with proposed amendments
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City of Hercules, California
Council Policy
PURPOSE
To establish guidelines for: (1) the exhibition of the flag of the United States of America, the California State flag, the Hercules City flag from City buildings and (2) the display of ceremonial flags.
POLICY
It is the policy of the City of Hercules that flags should be displayed in conformance with Federal and State policies, as stated in the Federal Public Law 94-344 94th Congress Joint Resolution; and the State of California Government Code Sections 430 through 439.
In order to establish a policy with respect to the locations and days when the United States of America, California State, and Hercules City flags should be displayed, the following standards should be followed.
The Director of Public Works is responsible for ensuring the proper execution of this policy at all City facilities.
STANDARDS
A. Federal, State and City Flags
1. Outdoor flags will be flown at City facilities in the following order of precedence: first, the United States flag; second, the California State flag; third, the Hercules City flag.
2. Weather permitting, flags should be displayed daily in front of or at a location near City Hall, and other public facilities equipped to do so during business hours.
3. Flags should not be displayed in inclement weather. However, all-weather flags may be flown on a 24-hour basis as long as they are illuminated from sunset to sunrise.
4. The Hercules City flag will be flown wherever there are sufficient poles to do so in accordance with #2 above. The City flag may be displayed on the same pole with, and underneath the State flag, whenever the pole is of sufficient height.
5. New City facilities where any flags are to be flown shall be constructed with a sufficient number of poles to allow the City flag to be flown.
6. Indoor City flags shall be displayed in the City Council Chambers.
7. On recognized Federal and/or State holidays, and on other special occasions flags should be flown from all locations listed in paragraph A-2 above. 555
City of Hercules, California
8. Flags at all City facilities shall be displayed in accordance with the above standards.
However, the City Manager may order flags to be lowered to half-staff including, but not limited to flags of the United States of America and State of California in honor of the death of a City employee killed in the line of duty.
B. Ceremonial Flags
The City's flagpoles are not intended to serve as a forum for free expression by the public. The City shall display commemorative flags only if authorized by the City Council as an expression of the City's Official sentiments. Any such authorization shall be given at a duly noticed meeting of the City Council.
1. The City Council shall consider a request to display a commemorative flag if the request is made by a member of the Hercules City Council and approved by the City Council at a City Council meeting pursuant to the two-step process set forth in the City Council’s adopted Rules of Procedure. Staff may also make a request for City Council approval to display a commemorative flag.
2. Commemorative flags shall be displayed for a period of time that is reasonable or customary for the subject that is to be commemorated, but no longer than thirty-one (31) continuous days.
3. Commemorative flags shall be displayed exclusively at the Hercules Civic Center. Such flags may be displayed on the Civic Center flag poles or on one or more buildings at the Civic Center. Only one (1) commemorative flag will be allow to be flown at a time on the flag pole at the Hercules Civic Center.
4. Commemorative flags displayed on the Hercules Civic Center flagpoles shall be displayed in the last position of honor beneath the City of Hercules Flag, and to the extent such display does not conflict with federal law, state law, or this policy.
5. Commemorative flags are not consider as religious flags and religious flags are not allow to be flown on the City’s flag poles. Religious flags symbolize a set of beliefs concerning the cause, nature, and purpose of the universe, especially when considered as the creation of a superhuman agency or agencies, usually involving devotional and ritual observances, and often containing a moral code governing the conduct of human affairs. 556
DISCUSSION AND/OR ACTION ITEM
AGENDA ITEMS
5. 26-108
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STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 12, 2026
TO: Mayor and Members of the City Council
VIA: Patrick Tang, Interim City Manager
SUBMITTED BY: Glenn Dombeck, Public Works Director/City Engineer SUBJECT: Acceptance of the Falcon Way Pavement Rehabilitation Project RECOMMENDED ACTION:
Adopt a resolution accepting the Falcon Way Pavement Rehabilitation Project as complete for a total amount of $773,946.26 and authorizing the filing of the Notice of Completion with the Contra Costa County Recorder’s Office.
BACKGROUND:
The Falcon Way Pavement Rehabilitation Project (Project), including the Wren Court and Finch Court Alternate Bid Items, was awarded at the October 14, 2025, City Council meeting to MCK Services, Inc. (MCK) for the low bid amount of $770,982.96 with provisions for a 10 percent contingency of up to $77,098.30 for a total authorized expenditure amount of $848,081.26. A Notice to Proceed was issued to MCK on January 12, 2026. The primary scope of work consisted of asphalt pavement grinding, asphalt pavement removal and asphalt overlay on Falcon Way, between Wren Court and Refugio Valley Road, and on all of Wren Court and Finch Court. Two change orders were issued on the project, a deductive change order for a savings of $6,521.05 and a final change order to reconcile the actual material quantities used on the project for $9,484.35.
ANALYSIS:
MCK commenced work on the Project on February 2, 2026. The City and MCK agreed to a Change Order to eliminate the cape seal application (an asphalt-rubber chip seal layer followed by a slurry seal surface coat) on Wren Court and Finch Court and instead authorize a 2-inch removal and replacement (mill and fill) of the existing asphalt pavement 558
on those streets. The mill and fill operation authorized by the Change Order provides a much better finished product and longer service life than the originally specified cape seal application and also reduced the original Contract Price by $6,521.05.
MCK has completed all work on the Project, including paving, new curb ramps, utility cover adjustments, pavement striping and markings, and sign installation, in accordance with the plans, specifications and change order and to the satisfaction of the City Engineer. A final Change Order for $9,484.35 was issued to reconcile the actual quantities of materials used in the work based upon the unit prices provided in the Bid Schedule. The final cost to complete the project was $773,946.26 (0.4% more than the original Contract Price).
It is recommended the City Council accept the Falcon Way Pavement Rehabilitation Project at this time so the Notice of Completion can be filed with the Contra Costa County Recorder’s Office to allow final payment to be made to the contractor.
FISCAL IMPACT:
This Project was identified in the 2025 Capital Improvement Program and was included in the adopted FY 25-26 Budget. General Fund/Capital Reserves, SB1 RMRA funds and Solid Waste funds were allocated to fund the Project. The final cost was well within the available contingency assigned for use on this project. Unused funds will be unobligated and available for assignment to other capital projects.
ATTACHMENTS:
Attach 1- Resolution
Attach 2- Notice of Completion
Attach 3- Project Location Map
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HERCULES CITY COUNCIL
RESOLUTION NO. 26-_____
RESOLUTION ACCEPTING THE FALCON WAY PAVEMENT REHABILITATION PROJECT CONTRACT WITH MCK SERVICES, INC. AS COMPLETE FOR A TOTAL AMOUNT OF $773,946.26 AND AUTHORIZING THE FILING OF THE NOTICE OF COMPLETION WITH THE CONTRA COSTA COUNTY RECORDER’S OFFICE WHEREAS, the Falcon Way Pavement Rehabilitation Project contract was awarded to MCK Services, Inc. (Contractor) for the low bid amount of $770,982.96 with a 10% contingency of up to $77,098.30 at the October 14, 2025 Council meeting; and WHEREAS, Contractor began the work on February 2, 2026; and WHEREAS, the project was completed for $773,946.26, which included a change order that reduced the original contract price by $6,521.05 and a final change order to reconcile the actual material quantities used on the project for $9,484.35; and WHEREAS, the project has been completed in accordance with the approved plans, specifications and change orders to the satisfaction of the City Engineer; and WHEREAS, the Notice of Completion must be filed with the Contra Costa Recorder’s Office to allow final payment to be made to the Contractor.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Council hereby accepts the Falcon Way Pavement Rehabilitation Project as complete for a total amount of $773,946.26 and authorizes the filing of the Notice of Completion, attached hereto with the Contra Costa County Recorder’s Office.
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 12
th day of May, 2026 by the following vote of
the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
___________________________
Chris Kelley, Mayor
ATTEST:
Eibleis Melendez, City Clerk
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Falcon Way Pavement Rehabilitation Project 2026 Form NOTICE OF COMPLETION 63074
Recording Requested By:
City of Hercules
When Recorded Mail To:
City Clerk
City of Hercules
111 Civic Drive
Hercules, CA 94547
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE § 27383
SPACE ABOVE THIS LINE IS FOR RECORDER’S USE
NOTICE OF COMPLETION
Civil Code §§ 9204 and 9208
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is the agent of the owner of the Project described below.
2. Owner’s full name is __CITY OF HERCULES ___________________________ (“City”)
3. City’s address is _111 CIVIC DRIVE, HERCULES, CA 94547 ___________________
4. The nature of City’s interest in the Project is:
X Fee Ownership __ Lessee __ Other:___________ _______
5. Construction work on the Project performed on City’s behalf is generally described as follows: Falcon Way Pavement Rehabilitation Project _________________________________
6. The name of the original Contractor for the Project is: MCK Services, Inc. located at 865 Howe Road, Martinez, CA 94553_________________________________ _
7. The Project was accepted as complete on: May 12, 2026_ _
8. The Project is located at: Falcon Way, between Wren Court and Refugio Valley Rd., and all of Wren Court and Finch Court _______________________ ______ Verification: In signing this document, I, the undersigned, declare under penalty of perjury under the laws of the State of California that I have read this notice, and I know and understand the contents of this notice, and that the facts stated in this notice are true and correct. __________________________ ______________________ __________ Date and Place Signature
GLENN DOMBECK, P.E.
PUBLIC WORKS DIRECTOR/CITY ENGINEER
Name and Title
EXEMPT FROM NOTARY ACKNOWLEDGMENT REQUIREMENTS PER
GOVERNMENT CODE § 27287 AND CIVIL CODE § 9208
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LOCATION MAP
City of Hercules
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