ANNUAL
BUDGET
CITY OF HERCULES, CALIFORNIA
2026-2027
FISCAL YEAR
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET TABLE OF CONTENTS About Hercules..........................................................................................................1 Letter from the City Manager.....................................................................................3 Budget Awards........................................................................................................13 Budget at a Glance..................................................................................................14 Budget Process.......................................................................................................18 Statement of Financial Principles ............................................................................24 Local City Budget and Demographic Comparison..................................................27 Organizational Chart...............................................................................................28 Citywide Budget ......................................................................................................29 Authorized Full-Time Positions...........................................................................30 Labor Allocation..................................................................................................32 All Fund Summary..............................................................................................34 Citywide Expenditures........................................................................................36 Citywide Revenues.............................................................................................37 Summary of Transfers........................................................................................38 FY 2026-27 List of Additional Budget Requests......................................................40 Department Summaries..........................................................................................42 City Council........................................................................................................43 City Manager......................................................................................................48 Human Resources..............................................................................................54 City Clerk............................................................................................................56 City Attorney.......................................................................................................59 Finance...............................................................................................................62 Police..................................................................................................................66 Community Development...................................................................................69 Public Works ......................................................................................................72 Parks and Recreation.........................................................................................75 Non-Departmental..............................................................................................78 Fund Summaries.....................................................................................................79 General Fund.....................................................................................................83 Special Revenue Funds.....................................................................................98 Sewer Enterprise Funds...................................................................................125 Internal Service Funds.....................................................................................128 Debt Service Funds..........................................................................................134 Capital Projects Funds.....................................................................................147 Agency Funds..................................................................................................213 Successor Agency Fund..................................................................................217 Glossary of Budget Terms.....................................................................................219 Resolutions............................................................................................................223 5 Miles
Hercules
Napa
San Francisco Oakland
Richmond
Vallejo
Martinez
4 80
80 San
Pablo
Bay
Welcome: The City of Hercules
Annual Budget FY 2026-2027
About Hercules: Established as
a dynamite factory in the 1800s
and incorporated in 1900, the
City of Hercules is located on the
northeastern shore of San Pablo
Bay, conveniently located along the
I-80 corridor and within minutes of
both San Francisco and Napa. The
over 26,000 residents represent a
diverse mix of many ethnic groups.
Primarily a suburban, family-oriented
community, the City is transforming
into more than a suburban community
with a lively new waterfront, and a
new train and ferry terminal in the
works.
Hercules offers residents a range of
municipal services. The City provides
a full range of recreational programs
including youth/teen and adult
activities, and year-round child care.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET ABOUT HERCULES
HERCULES CITY COUNCIL
Mayor
Chris Kelley
Vice Mayor
Alexander Walker-Griffin
Council Members
Dion Bailey
Tiffany Grimsley
Dilli Bhattarai
EXECUTIVE LEADERSHIP TEAM
Interim City Manager
Patrick Tang
City Attorney
Christine Crowl
City Clerk
Eibleis Melendez
Finance Director
Edwin Gato
Public Works Director
Glenn Dombeck
Police Chief
Joseph Vasquez
Community Development
Director Tim Rood
Parks & Recreation Director
Christopher Roke
80 80
Refugio Valley Rd.
San Pablo Ave.
Syca more Ave.
4 HERCULES
The City of Hercules is a community of 26,225 residents located along the I-80 corridor and within minutes of both San Francisco and Napa. Hercules is in Contra Costa County in the San Francisco Bay Area. 1 CITY OF HERCULES FY 2026-27 ANNUAL BUDGET ABOUT HERCULES
HERCULES
AT WORK
FY 2024-25
14,400
Total City Labor Force
2,990
Total Employed by
Top 10 Employers, 2024-25
The City’s Senior Center provides daily senior programs and activities and sponsors special community events and trips.
Hercules maintains an abundance of open space
areas and trails throughout the community,
providing the opportunity for spotting various
types of wildlife and offering dazzling views
of the bay. Hercules also has two community
and five neighborhood parks. The City also has
approximately 950 acres of open space areas
and trails distributed throughout the community.
Together the open space areas and city parks
account for approximately 1/3 of the total land
area within the City. Future plans include redeveloping the historic Hercules Point as a public waterfront park.
Hercules is served by two public school districts: John Swett Unified School District and West Contra Costa Unified School District. Private elementary and secondary schools are also available in adjacent communities. At the post-secondary level, both public schools and private schools in the East Bay provide a variety of high-quality educational opportunities. The City Child Care Program provides before- and-after school day care and pre-school programs.
FINANCE
COMMISSIONERS:
Chair
Janet Stallman
Vice Chair
Sam Ahmad
Commissioners
Edward Ulle
Sandra Castaneda
Neeru Giri
2 To improve public understanding of the budget development process, the City has created an informative video that explains the complexities of financial planning and management. This resource guides viewers through the essential steps of budget formulation, offering clear explanations and valuable insights. The video is available on the City’s website at the following link: https:// www.ci.hercules.ca.us/government/finance/budgets.
The City operates under a fiscal operating budget. The Annual Budget presented in this report strives to balance one-time investments with ongoing projects and long-term financial stability strategies. It is crafted to address the community’s needs while considering the City’s current and anticipated financial resources. The proposed budget reflects the community’s long-term vision, strategic objectives, and priorities.
COMMUNITY NEEDS
As always, the City’s budget goals are to serve our community’s needs.
That’s why the City commissioned a Community Budget Priorities Survey in the first quarter of 2026. What we learned from that survey is that our residents want Hercules to remain a place where people want to live and raise families. Our community wants to maintain core services, including neighborhood police patrols, fast 911 response times, parks, and youth and senior services that make Hercules a safe, well-maintained place to live. Our residents identified the following priorities:
• Maintainin
g long-term financial stability
and accountability
• Retaining and attracting local businesses
• Meeting water quality health standards
• Maintaining fast 911 response times
On May 28, 2024, the City Council formally
adopted the Hercules City Council Strategic
Goals for FY 2024-2026. This establishes a
comprehensive framework for the Council’s
priorities and delineates multi-year objectives
to enhance the community’s overall well-
being. The goals are as follows:
G
oal #1: Promote the development of the
Hercules Hub to create a vibrant center for
community engagement and economic activity.
Goal #2: Enhance the City’s fiscal sustainability through prudent financial management, ensuring long-term economic viability.
Goal #3: Improve transparency and communication within the community, fostering a culture of openness and collaboration among residents and city officials.
Goal #4: Continue investing in a skilled and dedicated workforce at City Hall to ensure effective governance and high-quality service delivery.
Goal #5: Strategically plan and secure funding for major infrastructure projects to enhance connectivity and improve the quality of life for all residents.
Goal #6: Develop a comprehensive land-use strategy that promotes responsible development while preserving the distinct character of the neighborhoods.
Goal #7: Formulate a detailed economic development strategy to attract new businesses and stimulate local employment opportunities.
The City Manager’s proposed annual budget is designed to support long-term financial stability. It provides detailed estimates BUDGET 2019-21CITY OF HERCULES FY 2026-27 ANNUAL BUDGET LETTER FROM THE CITY MANAGER
LETTER FROM THE CITY MANAGER
Honorable Mayor and Members of the City Council:
On behalf of the Hercules team, we are honored to present the Recommended Annual Operating Budget for Fiscal Year (FY) 2026-27, along with the Capital Improvement Program (CIP) covering FY 2026-27 through 2035-36.
In executing the Annual budget, we remain steadfast in promoting our core organizational values:
fiscal responsibility, teamwork, customer service, innovation, resilience in the face of challenges, and professional development.
I w
ould like to extend my sincere gratitude to all individuals involved for their dedication to enhancing the community we serve. It is truly a privilege to work alongside such a committed and community-focused team of professionals.
3 LETTER FROM THE CITY MANAGER
of both revenue and expenditures across various funds, including the General Fund, restricted funds, sewer services, debt service, and internal service funds. This budget addresses all aspects of the City’s operations, including general functions, capital investments, and debt obligations.
ANNUAL BUDGET SUMMARY
The City provides a wide range of services to the Hercules community, resulting in a complex budget supported by various funding sources.
These funding sources include the General Fund, Special Revenue Funds, Capital Funds, Debt Service, Sewer Enterprise Fund, and Internal Service Funds. It is important to note that, except for the General Fund, most of these funds are subject to restrictions. Together, these funds make up the citywide budget, which covers both operating and capital expenditures. A detailed breakdown of revenue and expenditure for all funds is available in the financial summary section of the budget document.
The City Manager’s recommended annual budget aligns with the Council’s commitment to maintaining long-term financial stability.
This budget outlines estimated revenues and expenditures for the General Fund, other restricted funds, sewer operations, debt service, and internal service funds. It includes provisions for general operations, debt management, capital projects, and internal transfers, all of which are essential to the City’s programs and functions. Furthermore, the fund summaries and financial schedules compare prior-year actual results with the proposed budget for FY 2026-27 and with the previous year’s budget. The following categories detail the foundational assumptions that were used as a baseline for these estimations.
Salaries and Benefits
Labor accounts for the largest share of our overall expenses, representing nearly 60% of total expenditures. This significant category includes not only direct compensation, such as wages and salaries, but also a variety of essential benefits, including comprehensive health insurance, robust retirement plans, and other associated labor costs.
The following section details the key assumptions that have been meticulously considered in estimating the financial implications of salaries and benefits:
Base Salary
The costs related to personnel services include a 3% cost-of-living adjustment (COLA) aimed at helping employees keep up with inflation.
Additionally, a 2% equity adjustment has been implemented for members of the Police Officers Association (POA) bargaining group, in accordance with the terms outlined in the approved labor agreements.
These adjustments demonstrate our commitment to offering fair and competitive compensation for our law enforcement professionals.
Retirement Plans:
Normal Cost: The projected normal cost rates for the PERS Miscellaneous and Public Safety classifications have been determined through a comprehensive actuarial valuation based on data as of June 30, 2024. This analysis, conducted by CalPERS and specific to the City’s retirement plans, is essential for establishing the minimum required contributions for FY 2026-27. The term “normal cost” refers to the annual amount, expressed as a percentage of payroll, required to fund the pension benefits earned by current employees during the current fiscal year. Additionally, the accompanying table provides an overview of changes in contribution rates, making a clear comparison with the previous year’s budget. This information underscores the financial adjustments needed to ensure the sustainability and integrity of our retirement systems, which is crucial for policymakers and stakeholders involved in fiscal planning and management.
Unfunded Actuarial Liability (UAL) Analysis: The projected contribution amounts for the UAL for the PERS Miscellaneous and Public Safety classifications have been established through a thorough actuarial valuation conducted by CalPERS, using data as of June 30, 2024. This comprehensive analysis is vital for determining the minimum required contributions for the FY 2026-27. The UAL represents the discrepancy between the total cost of promised pension benefits and the currently available assets to fund those obligations.
This shortfall indicates that the existing assets are insufficient to fulfill all promised payments to both current and future retirees. A substantial UAL can create significant financial challenges for the pension system, potentially necessitating increased employer contributions to address the resulting deficit.
The City’s current funding ratio is approximately 76%. This figure is generally regarded as adequate by rating agencies, showing that the City’s financial health is considered “fairly healthy.” This evaluation indicates stable and responsible management of resources, which provides stakeholders and potential investors with a respectable level of confidence. However, it is essential to recognize that a funding ratio of 76% is not optimal. While it reduces the risk of immediate insolvency, it remains below the 80%–90% range that is typically classified as “resilient” or “strong”. Consequently, this situation reflects moderate long-term risk and emphasizes the necessity for ongoing, consistent contributions to ultimately achieve a funding level of 100%. Fortunately, the City has proactively established a section 115 trust, which allows for the prefunding of pension liabilities through an irrevocable, tax-exempt CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Plan Type Membership
Type
FY 25-26
Prior Year
Budget
FY 26-27
Proposed
Budget
Change from
Prior Year
Budget
Safety Classic 27.88% 27.42% 0.04%
Safety PEPRA 13.99% 13.91% -0.08%
Non-Safety Classic 11.94% 11.92% -0.02%
Non-Safety PEPRA 7.96% 7.93% -0.03%
Plan Type Membership
Type
FY 25-26
Prior Year
Budget
FY 26-27
Proposed
Budget
Change from
Prior Year
Budget
Safety Classic $1,049,426 $1,170,121 $120,695
Safety PEPRA $20,455 $20,455 -
Non-Safety Classic $862,624 $961,249 $98,625
Non-Safety PEPRA $10,296 $11,473 $1,177
$1,942,801 $2,163,298 $220,497
4 trust. This strategy not only aids in reducing
long-term costs through investment returns
but also safeguards assets from potential
budgetary reallocations. Furthermore, it
enhances fiscal stability, improves credit
ratings, and provides greater investment
flexibility than conventional municipal funds,
thereby supporting the effective management
of high pension volatility.
Employer-sponsored health insurance
Employer-sponsored health insurance, which
provides essential medical, dental, and vision
coverage, is projected to experience a modest
3% increase in premiums relative to the
prior year’s FY 2025-26 Kaiser rate. This
anticipated adjustment reflects prevailing
trends in healthcare expenses and underscores
our commitment to delivering valuable health
benefits to employees and their families. As
we navigate the complexities of the healthcare
landscape, we remain steadfast in our
commitment to ensuring our workforce has
access to comprehensive, vital health coverage.
Other Expenditures
All other discretionary expenditures are
projected to increase by an average of 2%.
This average increase is based on prevailing
economic trends, the Consumer Price Index
(CPI) for the San Francisco area as of February
2026, and efforts to reduce or eliminate non-
essential spending. This adjustment aims to
manage payroll increases while maintaining
overall financial stability effectively. To ensure
a balanced budget in FY 2026-27, it is essential
to reduce discretionary spending and optimize
operational efficiency. By implementing these
measures, we can streamline our resources
and address the financial challenges posed
by rising labor costs until we can generate
additional revenue.
In addition to the previous assumptions, the
following summarizes a comprehensive list of
significant budget increases. These additional
budget requests aim to enhance operational
efficiency and to adjust compensation to reflect
the increased responsibilities associated with
various roles. Each proposed enhancement
is clearly outlined, along with an explanation
of its expected impact on the overall budget.
Below is a summary of these increases,
highlighting their implications for our financial
planning and resource allocation strategies.
This approach will help us better align our
resources with organizational objectives and
ultimately support our overall success.
The City’s annual budget serves as an
essential planning instrument that aligns
community services with the resources
needed to implement them. These critical
services span multiple areas, including
public safety through the police department,
recreational opportunities in parks, community
development initiatives, significant public
works projects, and effective administrative
operations. This comprehensive budget
delineates a detailed financial strategy for the
forthcoming fiscal year. It includes a five-
year forecast for the General Fund, thereby
facilitating informed planning for future needs
and opportunities that will encourage growth
and improve the quality of life for all residents.
As the City prepares to formulate the annual
budget for FY 2026-27, we encourage
community members to share their valuable
insights on the priorities that matter most to
residents, businesses, and other stakeholders.
Our objective is to develop a budget that not
only ensures the City’s financial sustainability
but also supports the continuation of services
deemed essential by our community. Your
feedback is crucial to shaping a budget that
accurately reflects the collective needs and
expectations of our community.
The City utilizes fund accounting to ensure
compliance with financial regulations and
to exhibit transparency in its financial
management. A fund is a collection of related
accounts specifically organized to manage
resources allocated for activities or objectives.
In the Analysis section of this report,
readers will find comprehensive and detailed
information regarding the various categories
of funds, which underscore their unique
purposes and financial implications. This
section thoroughly presents information on the
following fund categories:
I. General Fund Revenue Estimates
II. General Fund Expenditures
Projections
III. General Fund Projected Net Annual
Result
IV. General Fund Reserves
V. General Fund Five-Year Forecast
VI. Non-General Fund Programs
General Fund Budget
The General Fund serves as the City’s primary
operating fund, providing essential financial
resources for a diverse array of services. It
is financed through various revenue sources,
including property taxes, sales taxes, utility
users tax, business licenses, fines, forfeitures,
fees, and intergovernmental revenue. This
fund plays a vital role in delivering critical
services such as law enforcement, parks and
recreation, public works—encompassing street
and facility maintenance—and fundamental
governmental functions, including
administration and finance.
Unlike other funds designated for specific
purposes, such as water and sewer projects
or capital improvements, the General Fund
supports a broad spectrum of City operations.
Its importance cannot be overstated, as
it ensures consistent delivery of essential
services and equips the City to respond
effectively to unexpected circumstances or
LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Ongoing costs:
Reallocation of Full-Time Parking Enforcement
Funding
$11,000 - $11,000
Full-Time Recreation Technician - Child Care $21,000 - $21,000 Finance Director Salary Grade from 056 to 057 $10,000 $10,000 $20,000 Reclassifying an Accounting Technician to an
Accountant position
$300 - $300
Total, Ongoing costs $42,300 $10,000 $52,300
One-Time Costs:
Automated External Defribrillator (AED) Replacement $26,000 - $26,000 Community Center Oven Replacement $30,000 - $30,000
Dispatch Firewall Replacement $11,036 - $11,036
Total, One-Time costs $67,036 - $67,036
TOTAL $109,336 $10,000 $119,336
BUDGET IMPACT
General Fund Other Funds TOTAL
5 economic fluctuations.
A General Fund revenue budget is a
comprehensive document that outlines
the anticipated financial resources for a
government’s primary operating fund. This
budget provides a detailed account of various
funding sources, including taxes, fees, and
other forms of revenue expected to be collected
throughout the fiscal year. It serves as a
strategic financial plan, crucial to supporting
essential services such as public safety,
infrastructure maintenance, and administrative
functions. Moreover, the General Fund
revenue budget serves as a benchmark for
measuring actual revenue performance against
projections, enabling staff to assess financial
stability and make informed decisions on fiscal
management.
The General Fund revenues for FY 2026-27
are projected to increase modestly by about
2% compared to the audited actuals for FY
2024-25. This expected growth is primarily
attributed to the new Franchise Fee agreement
with Republic Services and improvements in
investment income, which is mainly influenced
by rising interest rates and the reinvestment of
maturing, lower-yielding securities into higher-
yield instruments.
The foundation of the General Fund revenues
is composed of several essential tax sources,
including the Utility User’s Tax (UUT), Sales
Tax, Property Tax, Real Property Transfer
Tax (RPTT), and Transient Occupancy Tax
(TOT), among others. The interdependence of
these key revenue streams is crucial; should
one or more of these vital contributors cease
operations within the City of Hercules, it
could result in a significant decline in revenue.
Such a decrease would threaten our financial
stability and compromise the availability
of critical programs and services for the
community. This emphasizes the importance
of maintaining a stable and diverse revenue
base to ensure we can continue to meet the
needs of our residents effectively.
The General Fund monitors the sources and
applications of resources primarily determined
by the City Council. Its purpose is to facilitate
the provision of activities, programs, and
services the community identifies as essential
and desirable. Expenditures from the General
Fund are strategically allocated to enhance
public safety, maintain public infrastructure
through comprehensive public works
initiatives, promote community development,
and enrich recreational and park opportunities.
In addition, the fund underpins essential
administrative functions, ensuring that the
City operates efficiently and effectively and
addresses the needs of its citizens.
According to the assumptions previously
established, the ongoing expenditures for the
General Fund are projected to increase by 5%
in comparison to the budget of the preceding
fiscal year. This estimation seeks to guarantee
sufficient funding for essential services and
responsibilities.
A detailed breakdown of the General Revenues
and Expenditures is included in the General
Fund section of the budget book.
Several significant changes have been observed
compared to previous fiscal years. Notably,
there has been a 6% reduction in General
Liability insurance expenses, based on actual
figures for FY 2024-25. This decrease is
attributed to improved loss history, particularly
related to a single police incident. Additionally,
there has been a sustained increase in funding
for the County-administered animal control
program, which has risen by $100,000 to help
offset the County’s additional expenses from
prior years.
The General Fund is projected to conclude FY
2026-27 with a favorable net operating result
of $127,000. Additionally, it is expected to
maintain an accumulated operating reserve
of $5.4 million. This reserve constitutes 25%
of the overall General Fund budget, reflecting
our commitment to effective financial
management. Such a strong reserve not only
demonstrates fiscal discipline but also provides
a solid foundation for future planning and
strategic initiatives.
General fund reserves, commonly known
as rainy-day funds, are a critical component
of government financial management,
enabling the allocation of resources to address
unforeseen expenses or economic downturns.
These reserves function as a fundamental
financial buffer, enabling governments to
respond effectively to unexpected financial
demands that fall outside of the regular
budgeting process.
Typically utilized for one-time, unanticipated
expenditures—such as emergency response
efforts or sudden revenue declines—general
fund reserves play a significant role in
mitigating financial risks. The primary
objective of establishing these reserves is to
enhance fiscal stability, thereby facilitating
the management of unexpected costs while
diminishing the potential negative effects of
economic uncertainty. By implementing sound
strategies for maintaining these reserves,
governments can better navigate financial
challenges and uphold their commitment to
responsible fiscal governance.
The following is a comprehensive overview
of the General Fund reserves. It outlines the
various categories of reserves and provides
the projected ending balance for FY 2026-27,
offering a clear understanding of the financial
landscape and resources available:
General Fund Five-Year Forecast
The General Fund Five-Year Forecast offers
both a current and long-term financial
assessment of revenues, expenditures, fund
balances, and operating reserves. Its primary
goal is to provide the City Council and the
community with an economic outlook while
identifying significant issues that may need
to be addressed during the annual budget
development process.
It’s important to note that a forecast is not
a budget. Based on certain assumptions,
the Five-Year Forecast serves as a tool that
projects future financial conditions. If future
deficits are anticipated, the forecast provides
an opportunity to take corrective measures to
maintain financial stability.
This analysis focuses on the City’s General
Fund, which is the main operating budget for
tax-supported municipal services. Long-range
financial forecasting helps the City make
LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Restricted
Section 115 Trust (Pension) $2,755201
Former RDA Project Negative Cash
Balance
$3,400,000
Public Education and
Government (PEG) Fees
$310,000
Designated
Earthquake Insurance Deductible $500,000
Partial Repayment of
CalHFA Loan
$2,500,000
Hercules Hub
(Local Match Requirement)
$3,000,000
Capital Improvement Projects (CIP) $1,000,000
Reusable Bags $13,930
Economic Uncertainty
or Operating Reserve
$5,406,682
Unrestricted
Set-Aside for Programs
and Projects
$1,350,467
Total, General Fund Reserves $20,236,280
GENERAL FUND RESERVES OVERVIEW
6 LETTER FROM THE CITY MANAGER
informed decisions that enable us to sustain
the community’s core services. Best practices
recommend that the City update this plan
annually.
The General Fund forecast suggests a
potential structural deficit beginning FY
2028-29. This term indicates that, according
to current projections, expenditure growth is
beginning to outpace revenue growth. While
the budget for FY 2026-27 appears balanced,
the anticipated future gap underscores
that various structural factors—such as
rising pension costs, labor expenses, and
contractual obligations—may lead to a small
deficit, estimated at less than 1% of total
expenditures, if appropriate measures are
not taken. However, it is noteworthy that
the City has successfully built a sufficient
reserve to manage these projected deficits,
offering a financial safeguard for the future.
It is projected that the operating reserve will
decrease from 25% to 23% by the end of
FY 3031-32. This anticipated decline may
necessitate careful consideration of financial
strategies and resource allocation moving
forward.
The five-year forecast includes the following
assumptions, several of which are highly
important to maintaining City services:
• Annual growth in various revenue
sources is projected to be 0% to 3%, with
an overall average annual growth of 2%.
• Applied a Cost-of-Living (COLA)
Increase of 3% for salaries.
• PERS Miscellaneous and Public Safety
Normal Cost and Unfunded Actuarial
Liability (UAL) rates are projected as
follows based on 2026 CalPERS actuarial
assumptions.
• Health care costs, including medical,
dental and vision, are projected to
increase by 3% using current year
premium as base.
• All other expenditures are estimated to
increase by 3%.
Special Revenue Funds
Special revenue funds are established to
effectively monitor and manage revenues
allocated for specific programs or projects.
This structured approach enhances
transparency and accountability regarding
the utilization of these funds. Typically, such
revenues are obtained from grants or other
designated funding sources that support
particular initiatives, including transportation
projects, assessment districts, and various
specialized programs.
Given the restricted nature of these funding
sources, it is essential to maintain a clear
distinction in the tracking of revenues and
expenditures, separate from the City’s
primary operating fund, known as the
General Fund. Currently, sufficient funding
exists to complete ongoing projects and
programs, thereby ensuring the responsible
use of resources. However, the initiation of
new projects or programs will be contingent
upon the availability of future funding
sources, necessitating thorough planning
and consideration of potential funding
opportunities. The following are funds under
the Special Revenue category:
Asset Seizure (Fund #101): The City has
established a forfeited assets fund designed
to manage the financial proceeds obtained
from drug-related assets seized by the police.
This fund is essential for accounting for the
monetary amounts and property confiscated
during law enforcement operations addressing
illegal drug activities. The funds will remain
in custody until a final court determination
is made, ensuring compliance with legal
standards. Moreover, these resources
are strictly restricted for use in activities
pertaining to law enforcement.
AB 3229 COPS Program (Fund #201):
The California State Legislature initiated the
Citizens Options for Public Safety (COPS)
program, a vital initiative designed to enhance
front-line law enforcement services across
the state. Each year, the City benefits from
approximately $150,000 in funding through
this program. These essential funds are
seamlessly integrated into the General Fund,
providing crucial financial support that
helps offset the costs associated with police
services. This program plays a significant
role in ensuring the safety and security of
the community by bolstering the resources
available to law enforcement agencies.
Landscaping and Lighting Assessment
Districts (LLADs): This funding is
designated specifically for the maintenance
of landscaping and lighting, as well as for
capital improvements in city parks, along
major roadways, and within each of the
five Landscaping and Lighting Assessment
Districts (LLADs). These districts collectively
encompass approximately 8,500 parcels. An
annual assessment must be submitted to the
county and included on the county tax rolls.
To facilitate this process, an engineer’s report
outlining the budget and assessment amount
is required. It is important to note that the
Victoria by the Bay LLAD is expected to
continue in deficit. However, the assessment
increase approved by voters is projected to
address this gap within the next ten years.
In addition, the Hercules Village LLAD is
currently indicating a structural deficit for the
fiscal year and is likely to maintain this deficit
annually unless appropriate measures are
implemented.
Stormwater (Fund #231): Stormwater funds
are established to address the costs associated
with managing stormwater runoff. This
encompasses activities such as regulatory
compliance, planning, maintenance, capital
improvements, and infrastructure repairs.
Typically, these funds are financed through
user fees, ensuring that those who benefit from
stormwater management services contribute
to their expenses. The activities supported by
the Stormwater fund are currently exhibiting
a favorable trend and are anticipated to
continue improving as the years progresses.
Staff will persist in monitoring and analyzing
the financial health of the fund to ensure
adherence to the Clean Water Act and other
regulatory requirements.
Development Impact Fees (DIF): Under
the California Mitigation Fee Act (AB
1600), municipalities and counties may
implement Development Impact Fees
(DIFs). This legislative framework enables
local governments to impose fees on
new development projects to support the
financing of public infrastructure, facilities,
improvements, and community amenities that
are proportionate to the development’s impacts.
These fees play a crucial role in ensuring that
the financial responsibilities associated with
new developments are equitably distributed
and that infrastructure improvements align
with the community’s needs. It is important to
emphasize that DIFs are not intended to cover
operational and maintenance costs, nor can
they be utilized to remedy existing capital or
infrastructure deficiencies. Their primary aim
is to mitigate the effects of new development
projects on public facilities and services.
The City DIF funds are divided into specific
categories, each of which has a projected
available fund balance for FY 2026-27:
• Public Facilities (Fund #241): $202,753
• Community Development Tax Fund:
$79,564
• Other Development Fee (Fund #243):
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
7 LETTER FROM THE CITY MANAGER
$80,496
• Police Facilities (Fund #244): $156,088
• Parks & Recreation (Fund #247): $86,710
• Public Benefit Fee (Fund #249): $1,091,960
• Traffic Facilities (Fund #261): $748,541
State Gas Tax (Fund #262): A gas tax fund,
or Highway Users Tax Account (HUTA), is
a dedicated fund that receives revenue from
taxes on gasoline and diesel fuel, which is then
used to finance transportation-related projects
like road construction, maintenance, and
public transit. The primary purpose of a gas
tax fund is to ensure that the revenue generated
from fuel consumption is used to maintain
and improve the infrastructure that supports
transportation, including roads, bridges, and
public transportation systems. The revenue
for these funds comes from excise taxes (a
tax on the sale of a specific good, in this case,
gasoline and diesel fuel) levied on the sale of
these fuels. For the FY 2026-27, projections
indicate that the gas tax fund is expected to
generate approximately $770,000, providing
vital support for the ongoing development and
improvement of transportation.
Measure J Street Fund (Fund #263):
The Measure J Fund is a dedicated revenue
fund established to monitor and manage the
income generated from the County’s ½-cent
sales tax measure. This fund is specifically
designated for critical initiatives focused on the
maintenance and enhancement of local streets
and transportation systems, operating in a
manner similar to the Gas Tax. Funds collected
through Measure J are reserved exclusively
for projects that improve, repair, and preserve
the City’s transportation infrastructure,
ensuring that it remains safe and efficient
for all residents. For the FY 2026-27, the
Measure J Fund is anticipated to generate
$495,000 in revenue, underscoring its vital
role in supporting the agency’s commitment
to maintaining and advancing transportation
services.
SB1 Road Maintenance and Rehabilitation
Account (Fund #268): Senate Bill (SB)
1, Chapter 5, Statutes of 2017, represents
a significant advancement in the effort to
revitalize California’s aging transportation
infrastructure. This legislation established the
Road Maintenance and Rehabilitation Program
(RMRP), a strategic initiative designed to
address the significant backlog of maintenance
needs affecting the State Highway System
and local street networks. In addition, the
bill created the Road Maintenance and
Rehabilitation Account (RMRA), a dedicated
funding source intended to support essential
infrastructure improvements. The funds
generated through the RMRA will be
distributed to eligible cities and counties
according to a specific formula outlined in
Streets and Highways Code section 2032(h).
This funding is vital for conducting necessary
maintenance, undertaking comprehensive
rehabilitation projects, and implementing
crucial safety enhancements. Through the
implementation of this program, communities
will be better positioned to manage and
enhance their transportation infrastructure
effectively. This initiative aims to ensure
safer, more reliable transportation options for
all residents. For FY2026-27, the estimated
revenue is $736,000.
Solid Waste and Recycling (Fund #291): The
City of Hercules has entered into a Restated
Solid Waste Franchise Agreement with
Richmond Sanitary Service, Inc., operating
as Republic Services, to oversee municipal
waste and recycling services. This agreement
is set to take effect in the years 2025 and 2026
and aims to improve the overall efficiency and
effectiveness of waste management within the
community. A key aspect of this agreement
is the introduction of updated rate structures,
which will include a 3% increase for specific
services. This increase is necessary to address
the rising costs associated with post-collection
operations, ensuring the continued delivery
of high-quality services. Furthermore, the
agreement aligns with compliance initiatives
related to California’s Senate Bill 1383,
which focuses on reducing organic waste
and enhancing recycling efforts throughout
the state. To facilitate a smooth transition
to the new pricing structure, the remaining
balance in the waste management fund will be
designated as a rate stabilization fund. This
allocation is intended to offset the initial rate
increase of $243,000 that will be incurred by
the City Waste Program, thereby supporting
residents during this adjustment period while
ensuring the reliability of waste management
services.
Water Quality Retention Basin (Fund #387):
This fund is established to collect revenues
generated from the Property Tax Special
Assessment associated with the creation of the
City of Hercules Community Facilities District
No. 2017-01, formed on April 11, 2017. The
development projects at Bayfront and Muir
Pointe necessitated the construction of a water
quality detention basin to manage and mitigate
runoff produced by the enhancements made to
support these developments. The establishment
of this Community Facilities District (CFD)
provides a structured funding mechanism
to address the ongoing maintenance costs
linked to the water quality detention basin,
thus ensuring both environmental protection
and community health within the district. FY
2026-27 projected ending available balance is
$440K.
Regional Water Quality (Fund #521):
This fund accounts for Regional Water
Quality. Created by the State Legislature
in 1967, the Board protects water quality by
setting statewide policy, coordinating, and
supporting the Regional Water Board efforts,
and reviewing petitions that contest Regional
Board actions. There are nine regional water
quality control boards that exercise rulemaking
and regulatory activities by basins. FY 2026-
27 estimated ending available balance is $57K.
BART Park & Ride (Fund #266): This fund
is designated for the maintenance of BART’s
park-and-ride facility, ensuring its operational
integrity and user satisfaction. BART will
finance maintenance expenses through a
revolving fund mechanism, thereby preventing
the City from incurring any out-of-pocket
costs. This approach facilitates consistent
upkeep and fosters an efficient transit
environment for all commuters.
General Plan Update Fee and Building
Training Fee (Fund #267): A general
plan update fee is a fee established by local
jurisdictions in California to recover costs
associated with preparing, updating, and
revising their general plans and related
elements. These plans serve as fundamental
frameworks for guiding a community’s long-
term vision. The fees are designed to cover
the expenses incurred by local agencies in
developing and maintaining these general
plans, which are mandated by California law
to address various dimensions of community
development, including land use, circulation,
housing, and more. In addition, the cash
balance in the fund has been entirely allocated
for FY 2025-26 to facilitate the update of the
City’s general plan.
Successor Housing (Fund #640): On
February 27, 2024, the City Council adopted
a resolution that designates the City as
the Housing Successor to the Hercules
Redevelopment Agency. This designation
grants the City the authority to manage
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
8 outstanding loans effectively and access
resources within the Housing Funds.
These financial assets will be used to cover
administrative costs and to support the
development of affordable housing, with
particular focus on households categorized
as extremely low-income to low-income.
Moreover, on January 28, 2025, the City
Council approved a resolution to establish
a policies and procedures manual for the
administration of Hercules Successor Housing
loans. This manual is designed to promote
consistency and fairness in the management
and oversight of approximately 41 collectible
loans issued by the former Redevelopment
Agency.
Sewer Enterprise Fund
On January 23, 2001, the cities of Hercules
and Pinole formalized a joint letter agreement
concerning the operation and ownership of
the Pinole/Hercules Wastewater Treatment
Plant. The City of Hercules holds a fifty
percent undivided ownership interest in the
plant, while the City of Pinole is responsible
for its management and operations. Hercules is
responsible for the operation and maintenance
of its own wastewater collection system.
Furthermore, the City of Pinole is tasked
with managing the records and accounts for
all transactions related to the wastewater
treatment plant.
The City of Hercules operates a collection
system that consists of over 60 miles of
underground piping and five lift stations.
Wastewater collected through this system is
treated at the Hercules-Pinole Wastewater
Treatment Plant (WWTP), which is operated
by the City of Pinole. Hercules maintains a
50% ownership stake in the WWTP.
The City generates approximately $6 million
annually in service charges from more than
8,400 connections, with billing processed
through the County tax roll. Additionally,
developers are required to pay impact fees to
ensure that there is adequate capacity for the
wastewater produced by their projects.
On July 22, 2025, the City Council adopted
a resolution to increase sewer rates. This
adjustment, essential to the ongoing
improvement and maintenance of the city’s
sewer system, will take effect on July 1, 2025,
and remain in place until 2029. The rates
established by the resolution are as follows:
The Sewer Enterprise Fund is exclusively
designated for the operations, maintenance,
and capital improvements of the sewer system.
Revenues generated from sewer fees are
strictly allocated for sewer-related purposes
and may not be diverted to non-sewer-related
expenditures. For FY 2026-27, the proposed
operating budget is estimated at $10.3 million,
which includes planned capital improvements
totaling $3.2 and an annual debt obligation
payment of $2.1 million.
Internal Service Funds (ISF)
ISFs are established to account for activities
that provide goods or services to other
departments within a government, rather
than to the general public. The City uses five
Internal Service Funds (ISFs). Three of these
funds are dedicated to the management of
capital replacement and asset management for
vehicles, facilities, and technology items. The
remaining two ISFs focus on overseeing the
City’s Information Technology (IT) Operations
and Facilities Maintenance.
Vehicle Replacement: The City has developed
a vehicle replacement cycle plan. This model
outlines a schedule for replacing vehicles based
on their age and mileage. Some vehicles need
to be replaced before reaching their targeted
age and mileage thresholds, while others
may remain in service longer than planned.
Each vehicle is evaluated using these criteria,
along with an assessment of maintenance
and fuel costs, to determine the optimal
time for replacement. For FY 2026-27, the
police department plans to replace one patrol
vehicle and one unmarked administrative
vehicle at an estimated cost of $132,000. The
projected available balance for future vehicle
replacements is noted to be $476,000.
Information Technology Operations: The
Information Technology Fund is critical in
providing the City with a comprehensive range
of technology-related services. It encompasses
components of essential networking and
infrastructure technologies, including
high-capacity servers and sophisticated
switching systems that facilitate efficient data
transmission. The fund strongly emphasizes
security and cyber protection, ensuring the
safeguarding of digital assets against potential
threats. Additionally, it guarantees reliable
internet connectivity, which is vital for
departments to access essential online services
and resources. The service desk operates
as a key support mechanism, addressing
and resolving technical issues as they arise.
Furthermore, well-defined disaster recovery
plans are implemented to protect critical
data and maintain operational continuity
in the event of unforeseen circumstances.
Collectively, these elements constitute a
robust framework of data communication
technologies designed to enhance the
efficiency and resilience of the City’s
technological infrastructure. For FY 2026-27,
the proposed IT operating Budget is estimated
to be $1.3 million. Resources are from
administrative charges to departments based
upon their proportional share of program costs.
Facilities Maintenance: The fund accounts
for Facility Maintenance and provides
and manages maintenance and emergency
structural repair services for all City facilities.
The source of revenue is reimbursement from
departments for the cost of providing facility
LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Minimum Fixed Charge: Existing
Rates
2026 2027 2028 2029 2030
Single-Family Residence (1) $625.80 $801.40 $857.50 $908.95 $949.85 $983.09 Multi-Family Residence (per
Dwelling Unit) (1)
$625.80 $690.23 $738.55 $782.86 $818.09 $846.72
Senior Living (per Dwelling
Unit)
(1) (2)
$427.16 $562.37 $601.74 $637.84 $666.54 $689.87
Non-Residential Metered (per
Business)
$120.00 $335.97 $359.49 $381.06 $398.21 $412.14
Volumetric Rates Per 100 Cubic Feet - Non-Residential Metered:
All Flow $3.87 $7.13 $7.63 $8.08 $8.45 $8.74
Notes:
(1) All residential customers only pay a flat fee per dwelling unit, regardless of usage. (2) Apartments are currrently charged the existing “Senior Living” flat fee per dwelling unit only, regardless of usage.
Under the proposed rates, starting in FYE 2026, apartments will pay the “Multi-Family Rsidence” flat fee per dwelling unit only, regardless of usage.
SEWER RATES Projected for Fiscal Year Ending June 30
9 LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
maintenance services. This interservice fund
pays for the maintenance and repair of the City’s
facilities which include:
• City Hall (including the Police
Department)
• Senior Center
• Library
• Lupin & Hanna Kids Center
• Teen Center
• Community Center
• Ohlone & Foxboro Community Center
Activities include contract janitorial, HVAC,
plumbing and other miscellaneous activities;
various repairs and improvements performed
by City staff, and utilities. FY 26-27 proposed
Facilities Maintenance Budget is estimated to
be $1.2 million. Resources are from charges to
departments based upon their proportional share
of program costs using the square footage of the
building they occupied.
Facility Replacement ISF: This fund is
designated to support the major replacement of
City buildings and facilities. Currently, there is a
considerable backlog of significant maintenance
projects, particularly at City Hall and the Police
Department.
IT Equipment Replacement ISF: This fund
will be utilized to replace the infrastructure
and equipment necessary to support the
city’s technological requirements, including
servers, switches, and data security systems.
A model is currently being developed for the
implementation of the IT Master Plan. Presently,
expenditures are recorded under IT Operations
using a “pay-as-you-go” approach.
The ISF plays a crucial role in financial
management by receiving contributions
from various operating funds, including the
General Fund, Special Revenue Fund, and
Sewer Enterprise Fund. These contributions
not only support the ongoing operations of the
organization but also facilitate future capital
replacements. The utilization of internal service
funds allows for a more equitable distribution of
costs over the asset’s useful life. This budgeting
approach is beneficial as it reduces the need
for substantial financial allocations in one
year followed by smaller ones in subsequent
years. Instead, it involves calculating estimates
for repairs or replacements in advance, with
allocations made from the operating budget
into the internal service funds. This proactive
strategy ensures that resources are available
when needed, promoting efficiency and financial
stability.
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 $158064 $97,545 $255,609 Wastewater Revenue Bonds, Series
2021A
Sewer Fund $395,000 $161,186 $556,186
Public Owned Treatment Works Con-
struction Loan
Sewer Fund $1,213,515 $297,322 $1,510,837
Total, Annual Debt Service $2,568,975 $1,222,615 $3,791,590
DEBT DESCRIPTION
Debt Service Funds
The Debt Service Fund is responsible for accumulating financial resources to cover the payment of principal, interest, and related costs for general long-term debt, primarily funded by taxes levied by the City. Debt is issued as necessary to support infrastructure improvements. Below is a summary of the City’s long-term debt and the debt service payment obligations for FY 2026-27:
CalHFA Loans: The City received loans
from CalHFA through the Residential
Development Loan Program (RDLP) and
the Housing Enabled by Local Partnerships
(HELP) to build the Sycamore North project,
also known as the Aventine development.
The City expected income from leasing the
residential units to be enough to repay these
loans. However, the actual cost of finishing the
project was much higher than the budget set
by the City and the Redevelopment Agency.
As a result, the project failed and was put up
for sale to find a qualified developer who could
offer the best deal. Now, the City is responsible
for repaying the loans.
In 2012, City staff talked to CalHFA and
negotiated new loan terms after several
meetings. They extended the payment deadline
and lowered the interest rate from 3% to 1.5%.
The updated loan agreements for CalHFA
Loan No. HELP-080604-03 and RDLP-
060506-01 were signed on April 11, 2005, and
February 15, 2007. These agreements will end
on April 11, 2027, and August 15, 2026. The
remaining loan balance must be paid in full by
the contract expiration dates.
On January 10, 2023, the City Council
approved a resolution to allocate funds
from the State Local Assistance Funds in
accordance with Senate Bill 154 (Skinner),
as specified in the Budget Act of 2022. The
Council has earmarked $2.5 million for a
partial repayment of loans from the California
Housing Finance Agency (CalHFA).
At present, the City is engaged in discussions
with CalHFA to establish a revised repayment
plan for the outstanding loan balance following
the application of the $2.5 million payment.
The proposed term for this repayment plan is
five years. The staff has submitted a formal
proposal to CalHFA and is currently awaiting
the Board’s approval. Upon receiving this
approval, the staff will provide an update to
the Council regarding the proposed repayment
terms.
Capital Improvement Projects (CIP)
Each year, the staff prepares and presents
a Capital Improvement Program (CIP)
budget to the City Council for adoption,
alongside the operating budget for the
upcoming fiscal year. The CIP budget is
established for a single year, while also
encompassing projected programming over
a ten-year period. The formulation of the
CIP is informed by a variety of sources,
including assessments of ongoing projects,
active grant applications, requests from the
community and the City Council, regulatory
mandates, as well as numerous condition
reports, studies, and evaluations conducted
by work groups. This comprehensive process
entails the identification and prioritization
of infrastructure needs. The staff diligently
balances these requirements with available
funding to develop the CIP, prioritizing
projects for funding consideration as early
as possible within the five-year framework,
subject to available financial resources.
10 LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
It is important to note that the demand for
projects significantly exceeds the available
funding over the ten-year horizon. Therefore,
the staff maintains a list of projects that are
not recommended for funding, referred to as
“unfunded projects,” which may be considered
in subsequent years. The CIP contains the
project list and its corresponding funding
sources for FY 2026-27, as summarized below.
Future Developments
The City is committed to expanding its
tax base and improving the quality of life
by implementing new developments in
strategically identified areas. The approval of
development projects is essential to the City’s
strategy for promoting local economic growth,
advancing fair housing initiatives, and fulfilling
its obligation to provide 995 housing units
under the Regional Housing Needs Allocation
(RHNA) for the 2023-2031 Housing Element
cycle. However, recent economic changes,
including rising interest rates, decreased
rental rates, and increased construction costs,
have significantly affected the feasibility of
several previously approved developments. In
response, many developers have approached
the City requesting accommodation, such
as extending entitlements and utilizing
infrastructure financing programs allowed
under state law.
These factors highlight the challenges facing
the economic viability of developments in
recent years, including fluctuating interest
rates, construction costs, and prevailing rental
prices.
The following are upcoming proposed
developments:
• Emblem Hercules (Loop Site): Proposed
rental apartment community consisting of 162
market rate and 18 low-income units with a
mixture of 1-, 2- and 3-bedroom units, surface
parking, clubhouse with fitness room, leasing
and management office, parcel storage and
s
ocial areas. Approval hearings were held in
May 2026.
• Bayline (Bayfront Blocks F & H): Proposed
100% affordable housing development project
consisting of 82 units restricted as affordable
housing plus manager market rate unit, for a
total of 83 units, on Bayfront Blocks F & H
(APNs 404-490-102-5 and 404-490-101-7).
• Bayfront final phases: (Bayfront Blocks
K-L-M-P-O, A-B-C-D-J, and E-G). The
development of Blocks K-L-M-P-O was
approved by the City Council in September
2025 for 171 townhouse units, including 9
affordable units.
• The Hercules Hub: Positioned to become
the first West Coast facility combining three
modes of transit (bus/rail/ferry) in one facility.
• Sycamore Crossing: Owned by the Lewis
Group, this 12-acre mixed-use property on the
south side of Sycamore Avenue is approved to
be developed with retail, hotel, and residential
uses to complement and expand on the
Aventine and Bayside projects.
• Hilltown (a.k.a., Hill Crest): Approved
mixed-use residential development of up to 598
attached multi-family units and 4,200 square
feet of neighborhood commercial uses on a 44-
acre former industrial site located on San Pablo
Ave near Victoria by the Bay.
Looking Ahead
On May 28, 2024, the City Council formally
approved the Hercules Strategic Plan for the
years 2024-2026. This comprehensive plan
outlines the key priorities that will guide our
initiatives in serving the residents of Hercules.
It reflects a collaborative process involving
valuable input from staff, department heads,
elected officials, and City leadership.
The strategic plan articulates the goals we
aspire to achieve in community service, the
strategies we will employ to reach them,
and the metrics we will establish to ensure
accountability throughout the implementation
process. It is firmly anchored in the City’s
vision and mission statements, which shape our
strategic initiatives.
Over the past year and into FY 2026-27, we
will continue to execute the objectives outlined
in this plan diligently. We wish to acknowledge
the dedication, commitment, and creativity
demonstrated by the Hercules staff as we strive
to enhance constituent services, effectively
recruit and retain talented employees, and
coordinate collaborative efforts across
departments and with neighboring agencies to
address the community’s identified needs.
Staff members have made a concerted effort to
align the budgetary process with the strategic
plan. Each department has meticulously
reviewed its proposed initiatives for the
upcoming year, considering how these can
best support our collective objectives. The
budget review team has systematically assessed
departmental goals and performance metrics,
prioritizing budget requests expected to have
the greatest impact on the outcomes specified
in the strategic plan. Consequently, the budget
includes several recommendations designed to
facilitate further progress in our initiatives.
In Closing
The FY 2026-27 Recommended Annual
Budget presents a framework that instills
informed optimism for the Council, City
Staff, and the community. This budget
effectively aligns with community priorities
while ensuring the continued provision of
high-quality City services that residents have
come to expect, through balanced, prudent
strategies.
In light of various challenges, we are
actively preparing Hercules for the future
by implementing strategic fiscal decisions
that address our expanding and diversifying
population. This budget is structured to be
responsible, responsive, and balanced. Our
objective is to promote growth through careful
planning, and this budget will help advance
the City.
Hercules is in a comparatively robust financial
position, allowing it to maintain current
service levels. However, it is crucial to
acknowledge that not every need can be fully
accommodated. Nevertheless, this financial
status permits the City to continue delivering
essential services to community members who
depend on them.
This favorable condition is largely due to
the prudent fiscal policies established by the
Council. A continued commitment to fiscal
discipline will be vital for sustaining financial
stability amidst current economic uncertainties
and preparing for potential budgetary
challenges. As pressures on spending increase,
the City Council’s guiding principles will be
instrumental in shaping informed spending
decisions. To date, these principles have
effectively prioritized service delivery and the
well-being of City employees, benefiting both
the community and our workforce.
CIP FUNDING SOURCES Fund
No.
Amount
General Fund 100 $2,650,495
SB1 RMRA 268 $260,000
Gas Tax 262 $455,000
Measure J 263 $225,000
Sewer 420 $444,700
MTC/TDA 3 296 $150,000
TIRCP 354 $1,000,000
$5,185,195
11 •
LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Acknowledgements
This budget proposal maintains existing
services while strategically investing in
essential areas to achieve long-term financial
stability, consistent with the objectives
outlined by the City Council. However, our
analysis indicates that we may encounter
budgetary challenges in the upcoming years. In
light of this, the City has initiated planning
efforts to ensure that the City Council is well-
informed to make prudent decisions as we
work towards establishing a sustainable
budget.
W
e extend our sincere gratitude to all City
staff for their invaluable contributions to
the development of this budget for the City
Council. Our employees are unwavering in
their commitment to serving the City and its
residents and community. Special recognition
is warranted for the Finance Department
staff, whose dedication and thoroughness
throughout the budget process have been
instrumental in preparing the annual budget
document.
The City Council’s shared vision, alongside
its commitment to enhancing the Hercules
community, is fundamental to the services we
deliver. We greatly appreciate the expertise
and resourcefulness of Department Heads
throughout this budget process and commend
each department for its exemplary work
over the past several years, in anticipation of
the forthcoming cycle of growth, projects,
and services. The years ahead are expected
to be both promising and challenging.
This document reflects the considerable
time devoted to thorough discussions and
deliberations, as well as the invaluable
insights and suggestions that demonstrate
our collective commitment to the City of
Hercules’s future success.
Respectfully submitted,
Patrick Tang
Interim City
Manager
Edwin Gato
Finance Director
12 PRESENTED TO
City of Hercules
California
For the Fiscal Year Beginning
July 01, 2025
Executive Director
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
BUDGET AWARDS
BUDGET AWARDS
The City of Hercules received the Government Finance Officers Association’s (GFOA) Distinguished Budget Award and the California Society of Municipal Finance Officer’s (CSMFO) Operating Budget Excellence Award for the FY2025-26 budget. These awards represent a significant achievement and reflect a commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In preparing the FY2025-26 budget, staff has once again followed the GFOA and CSMFO criteria as well as made enhancements.
This document will be submitted to the GFOA and CSMFO for consideration for the FY2026-27 budget awards.
California Society of Municipal
Finance Officers
Certificate of Award
Operating Budget Excellence Award
Fiscal Year 2025-2026
Presented to the
City of Hercules
For meeting the criteria established to achieve a CSMFO Award in Budgeting.
February 5, 2026
Jennifer Wakeman James Russell-Field, Chair
2025 CSMFO President Recognition Committee
Dedicated to Excellence in Municipal Financial Reporting CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
13 The Budget
is the City’s
R
oadmap
The City of Hercules’
annual budget is one of
our most important policy
documents. The Budget at a
Glance is a simplified version
of the comprehensive
budget document that
includes highlights, and an
overview of major revenue
sources and expenditures.
43.5 Median age of residents
$55,501
Per Capita Personal
Income
29,284
Student Enrollment
(Reflects the total number
of students enrolled in
the West Contra Costa
School District)
14,400
Total City Labor Force
Top 10 Employers, 2024-25
Employer Number of Employees
1. Bio-Rad Laboratories: 2,000
2. West Contra Costa Unified School
District: 243
3. Home Depot: 147
4. Safeway: 140
5. Contra Costa County Social
Services: 138
6. Pacific BioLabs Inc.: 99
7. City of Hercules: 64
8. Lucky Supermarkets: 60
9. Blize Healthcare California, Inc.:
53 10. Kinder’s Meats & Deli BBQ &
Catering: 46
HERCULES
DATA DIGEST
FY 2026-2027
BUDGET
AT A GLANCE
FISCAL YEAR 2026-2027
CITY OF HERCULES, CALIFORNIA
Hercules Budget 101 – an animated overview of the budget process: https://youtu.be/so3ScXZDpWY May June
July
Aug.
Sept.
Oct.Nov.Dec.
Jan.
Feb.
March
April
THE BUDGET
DEVELOPMENT
PROCESS
Intro, public hearings
& budget adoption
1 New fiscal
year & year
end review
2 Fiscal
year end
audit &
annual
report
prep
3 Finalize audit & annual
financial report
4Publish annual report
& mid year review
5 Budget
planning
Packages
6 Mid year
review &
department
budget
preparation
7 Funding
allocation
reviews &
budget
preparation
8 How is the budget developed? The City Council adopts the budget in June of each year for the following fiscal year, which runs from July 1 to June 30. The budget development process is continuous and includes public communication throughout the year.
CITY OF HERCULES FY 2026/hyphen.case2027 BUDGET OVERVIEW Citywide Revenue
$45 million
$21 million
General Fund Expense
$21 million
General Fund Revenue
$24 million
Other Funds
$20 million
Other Funds
Citywide Expenses
$45 million
Accumulated Fund Balance $4 million
Source: CA Department of Finance
2016 2025
25,299
26,225
Population of the
City of Hercules
14 BUDGET 2019-21CITY OF HERCULES FY 2026-27 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE Figures are rounded
FY 2026-27:
Citywide Expenditures by Program
$45 million total
Police
$10.3
million
Wastewater
Improvements
$10.7
million
$7.1 million
$9.3 million
$2.9 million
$3.7 millionLighting and
Landscaping
Assessment District
Community
Development
$1.0 million
Parks & Recreation
Administration
Streets & Other
CITY OF HERCULES
STRATEGIC GOALS
Goal #1: Advance the development of the Hercules
Hub, creating a dynamic center for community
engagement and economic activity.
Goal #2: Strengthen the city’s fiscal sustainability
through prudent financial management, ensuring
long-term economic viability.
Goal #3: Enhance transparency and communication
within the community, fostering a culture of
openness and collaboration between residents and
city officials.
Goal #4: Continue investing in a skilled and
dedicated team at City Hall to ensure effective
governance and service delivery.
Goal #5: Strategically plan and fund major
infrastructure projects to improve connectivity and
enhance the quality of life for all citizens.
Goal #6: Develop a comprehensive land-use
strategy that promotes responsible development
while preserving the unique character of our
neighborhoods.
Goal #7: Formulate a detailed economic
development strategy to attract new businesses and
stimulate local employment opportunities.
Based on June 2022 CalPERS actuarial report, The Fitch (a credit rating agency) generally considers a funded ratio of 70% to be adequate. Figures are rounded CalPERS Pension Funding Status
Safety/police pension funding
Accrued LiabilityUnfunded
(in $ millions)
Plan Assets
(in $ millions)
Fund ratio: 73%
Fund ratio: 86%
Fund ratio: 74%
Fund ratio: 74%
$67 million FY 20-21 $49 $18
$71 million FY 21-22 $61 $10
$77 million FY 22-23 $57 $20
$81 million FY 23-24 $60 $21
Fund ratio: 76%
$86 million FY 24-25 $65 $21
15 Revenues
by Type
2026-27
$45
million
Expenses
by Major
Category
2026-27
$45
million
CITY OF HERCULES BUDGET FY 2026-27:
CITYWIDE BUDGET
Figures are rounded
Figures are rounded
Special
Revenues,
Capital
and Debt
$12
million
General Fund
$21 million
Enterprise
$8 million
Materials,
Supplies
& Services
$17
million
Salaries
and Benefits
$16
million
Other
Expenses
Capital
Projects
The following is a breakdown of revenues
by fund type and expenditures by major category.
What the
City of
Hercules
takes
care of
Here is a look at some
of the services the City
provides and facilities
and infrastructure it
maintains:
58 miles
of city streets
1,494
street and
parking lot
features
14 traffic signals
7 miles
of bike lanes
62 miles
of sanitary sewers
13 parks
9 playground
structures
5 Recreation
Centers
$7 million $5 million
Accumulated
Fund Balance $4 million
BUDGET 2019-21CITY OF HERCULES FY 2026-27 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE 16 A LOOK
AHEAD
The Five-Year Forecast provides
a current and long-range
financial assessment of revenues,
expenditures, fund balance, and
operating reserves. The primary
objective is to provide the City
Council and the community with a
financial forecast and identify any
significant issues that may need to
be addressed in the annual budget
development process.
General Fund
Expenditures:
Where does
the money go?
For every dollar
spent on the
general fund:
General Fund
Revenue:
Where does
the money
come from?
Police Administration Parks & Recreation
Debt and Miscellaneous 4¢
Public Works 3¢
Insurance 9¢
Community Development 5¢
48¢ 18¢ 13¢
CITY OF HERCULES BUDGET FY 2026-27:
GENERAL FUND OPERATING BUDGET
Sales Tax (28%) Utility User
Tax (21%)
Vehicle License
Fees (13%)
Program
Revenues (10%)
$5.9
million
$4.4
million
$2.8
million
$1.7
million
$2.1
million
$2.4
million
Property Taxes (8%)
Other Taxes (10%)
Miscellaneous (11%)
$2.1
million
Figures are rounded
Figures are rounded
General Fund Five-Year Forecast
FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32
Expenditures
Revenues
$24.3 million
$21.9 million
$22.4 million
$23 million
$23.7 million
$21.9 million
$22.4 million
$22.9 million
$23.5 million
$24.1 million
$25 million
$20 million
BUDGET 2019-21CITY OF HERCULES FY 2026-27 ANNUAL BUDGET HERCULES BUDGET AT A GLANCE 17 BUDGET PROCESS
GOVERNMENTAL FUNDS
• General Fund: The General Fund is the general
operating fund of the City. It is used to account for
all financial resources except those required to be
accounted for in another fund.
• Special Revenue Funds: Special Revenue Funds are
used to account for the proceeds of specific revenue
sources (other than special assessments, expendable
trusts, or major capital projects) that are legally
restricted to expenditures for specified purposes.
• Capital Projects Funds: The Capital Projects Funds
are used to account for financial resources to be used
for the acquisition or construction of major capital
facilities (other than those financed by Proprietary
Funds and Trust / Agency Funds).
• Debt Service Funds: Debt Service Funds are used
to account for the accumulation of resources for, and
the payment of, general long-term debt principal,
interest, and related costs.
• Internal Service Funds: Internal Services Funds
are a type of proprietary fund used to report any
activity that provides goods and services on a
cost reimbursement basis to other City funds and
departments of the primary government and its
component units.
• Trust / Agency Funds: Trust Funds are used
to account for assets held by the City in a trustee
capacity for individuals, private organizations, other
governments, and/or other funds.
BUDGET PROCESS
GOVERNING STRUCTURE AND BASIS OF BUDGETING
The City of Hercules is a municipality
incorporated in 1900 under provisions
of the Constitution of the State of
California. The City operates under
a Council Manager general law form
of government and is governed by a
council of five elected members with
staggered four-year terms. Additionally,
City Council members act as the board
of directors of the Hercules Public
Financing Authority (PFA).
BASIS OF BUDGET AND FUND STRUCTURE
Local governments account for revenues and expenditures through separate funds such as General, Special Revenue, Enterprise, Internal Service and Fiduciary funds. The accounts of the City of Hercules are organized on the basis of funds, each of which is considered a separate financial entity. Each fund is comprised of a set of self-balancing accounts for its revenues and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped into generic fund types and fund categories as follows:
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
18 BUSINESS-TYPE FUNDS
Enterprise Funds: Enterprise Funds are used to
account for operations:
(a) that are financed and operated in a manner similar
to private business enterprises where the intent of
the governing body is that the full costs (expenses,
including depreciation) of providing goods or services
to the general public on a continuing basis be recovered primarily through user charges; or (b) where the
governing body has decided that periodic determination
of revenues earned, expenses incurred is appropriate
for capital maintenance, management control or
accountability. Because enterprise funds use the full-
accrual basis of accounting under FASB, all long-term
debt liabilities and debt service payments are recorded within the enterprise fund itself.
For tracking convenience, a separate fund for enterprise debt service payments is shown on the following table
although all transactions are reported together within
an enterprise fund’s financial statements. City budgets contain three major categories - operating, capital and debt. The table on the following page lists the City’s
funds and the categories in which a fund’s financial
transactions contain.
BUDGET PROCESS
Fund # Operating Capital Debt
GENERAL FUND (100) X X
SPECIAL REVENUE FUNDS
Asset Seizure 101 X
Ab 3229 Cops Program 201 X
Citywide L&L Dist 83-2 220 X X
Victoria By The Bay L&L 221 X X
Hercules Village L&L Dist 222 X X
Baywood Assess 04-1 L&L 223 X X
Bayside Assess Dist L&L 224 X X
Arterial Roadways 225 X
Stormwater Assessment 231 X
Dif-Gen Public Facilities 241 X
Community Development Fnd 242 X
Development Fee Fund 243 X
Dif-Police Facilities 244 X
Dif-Fire Facilities 246 X
Dif-Park & Rec 247 X
Public Benefit Fee 249 X
Dif-Traffic Facilities 261 X X
State Gas Tax Fund 262 X X
Measure "C" Street Fund 263 X X
Stmp Traffic Impact Fund 264 X
Solid Waste And Recycling 291 X
Regional Water Quality 521 X
Bart (Park & Ride) 266 X
CAPITAL PROJECT FUNDS
Street Cip Grants 295 X
City Capital Proj-Single 300, 310, 311 X
Energy Conservation Project 301 X
Grant Fund / Stip / Rip 340s, 350 X
Water Quality Ret Basin 387 X
DEBT SERVICE FUNDS
2003b Debt Service Pfa 672 X
2009 Debt Service Pfa 673 X
Suntrust Lease 383 X
Equipment Lease 388 X
FUND DESCRIPTION
HERCULES FINANCIAL REPORTING FUND STRUCTURE
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
19 BUDGET PROCESS
BASIS OF ACCOUNTING AND
FINANCIAL REPORTING
The basis of accounting refers to when revenues and
expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of
accounting depends on the purpose for which the fund
has been established and by its measurement focus.
All governmental and expendable trust funds use a
current financial resources measurement focus. With
this measurement focus, only current assets and current liabilities are included on the balance sheet. Operating statements of these funds present increases (i.e.,
revenue/other financing sources) and decreases (i.e.,
expenditures/other financing uses) of net current assets.
All proprietary funds, pension trust and agency funds
are accounted for on a flow of economic resources
measurement focus. With this measurement focus,
all assets and liabilities associated with operation
are included on the balance sheet. Fund equity for
proprietary funds (i.e., net total assets) is segregated into restricted net assets and unrestricted net assets.
Proprietary fund type operating statements present
increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. Agency
and trust funds are custodial in nature (assets equal
liabilities) and do not involve measuring the results of operations.
Modified Accrual Accounting. The modified accrual
basis of accounting is used by all governmental
funds and expendable trust funds, as required by
generally accepted accounting principles (GAAP), the
Governmental Accounting Standards Board (GASB)
and the State of California. Under the modified accrual basis of accounting, revenues are recognized when
they become measurable and available as net current
assets. Property tax and assessments are recognized
as revenues in the fiscal year in which the taxes were
levied. Sales and use taxes are reported as revenue
when collected by the State of California for subsequent remittance to the City. Intergovernmental revenues
and investment earnings are accrued when earned.
Revenues from grants, entitlements, and donations are
recognized in the fiscal year in which all eligibility
requirements are satisfied. Fines and permits revenue
are not susceptible to accrual as they generally are not measurable until received in cash.
Expenditures are generally recognized under the
modified accrual basis of accounting when the related
fund liability is incurred. Exceptions to this general
rule include principal and interest on general longterm debt, recognized when due, and accumulated unpaid
vacation and compensatory pay that is accrued and
reported on the government-wide financial statements
for governmental funds.
Full Accrual Accounting. As mentioned previously,
the full-accrual basis of accounting is used for the
enterprise and proprietary fund types. Under this
method, revenues are recognized when earned and
expenses are recognized at the time liabilities are
incurred. The City has chosen to utilize GASB as
its standard setting body for the accounting in its
proprietary funds, as allowed since November 30, 1989.
Deferred revenues arise when potential revenues
do not meet both the “measurable” and “available”
criteria for recognition in the current period. Deferred revenues also arise when resources are received by
the City before it has a legal claim to them, as when
loans are extended upon agreement for future lease or
loan repayment proceeds. In subsequent periods, when
both revenue recognition criteria are met, or when the
City has a legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and
revenue is recognized.
Past actual data presented in this budget document
reconcile to the City’s financial statements using the
GAAP basis of accounting for governmental funds and
full-accrual basis for enterprise funds.
Basis of Budgeting Method. The budget uses the cash
plus encumbrance basis budgeting. Cash plus
encumbrance basis budgeting is a method of accounting
that uses income when received and expenses when
paid and committed. This method contrasts with accrual
accounting, which recognizes income at the time the
revenue is earned and records expenses when incurred
regardless when cash is received or paid. The cash plus encumbrance basis of budgeting are the same for all
governmental funds. The budgeting basis for enterprise
or proprietary funds do not include depreciation and
also at cash plus encumbrance basis budgeting.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
20 BUDGET PROCESS
1. The City Manager submits to the City
Council a proposed operating budget for
the following fiscal year. This budget includes
proposed expenditures, by fund and department,
and the revenues expected to finance them.
2. Public hearings are conducted to obtain
taxpayer comments.
3. The budget is legally enacted through passage
of a resolution before July 1.
4. The City Manager is authorized to transfer
budgeted amounts between objects within the
same department; however, any revisions, which
alter total expenditures of any fund, must be
approved by the City Council.
5. Formal budgetary integration is employed
as a management control device. Special
Revenue Fund budgets are adopted on a basis
consistent with accounting principles generally
accepted in the United States (USGAAP) and
are consistent with the basis used for financial
reporting.
Accordingly, actual revenues and expenditures
can be compared with related budget amounts
without any reconciliation. The General Fund
budget is adopted on the budgetary basis, which
is not consistent with accounting principles
generally accepted in the United States of
America.
Commitments for material and services, such
as purchase orders and contracts, are recorded
during the year as encumbrances to assist in
controlling expenditures. Appropriations, which
are encumbered at year-end lapse, then are added
to the following year’s budgeted appropriations.
However, encumbrances at year-end are reported
as reservations of fund balance.
6. Under Article XIII B of the California
Constitution (the Gann Spending Limitation
Initiative), the City is restricted as to the
amount of annual appropriations from the
proceeds of taxes, and if proceeds of taxes
exceed allowed appropriations, the excess
must either be refunded to the State Controller,
returned to the taxpayers through revised tax
rates or revised fees schedules, or an excess in
one year may be offset against a deficit in the
following year. For the fiscal year ended June
30, 2018, based on the calculations by City
Management, proceeds of taxes did not exceed
the appropriations limit.
7. Budget revenue amounts represent the
original budget modified by adjustments
authorized during the year. Budgeted
expenditure amounts represent original
appropriations adjusted for supplemental
appropriations during the year, which were
contingent upon new or additional revenue
sources and re-appropriated amounts for prior
year encumbrances. The City Manager must
approve adjustments to departmental budgets;
however, management may amend the budgeted
amounts within departmental expenditure
classifications, with approval of the Finance
Director.
8. Certain appropriations carryover and are re-
appropriated for the subsequent year.
9. Budget appropriations for the various
governmental funds become effective July 1.
The City Council may amend the budget during
the fiscal year. The legal level of budgetary
control has been established at the fund level.
BUDGET PROCESS AND PROCEDURES
The City follows the following procedures in establishing the budgetary data reflected in this document:
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
21 BUDGET PROCESS
BUDGETARY PROCESS
There are two pieces to the budget: an operating
budget and a capital budget. The departmental
operating budgets represent current year operations
whereas the capital budget covers major construction
projects and the purchase of major equipment for
multiple fiscal years. The operating and capital
budgets are concurrently created and adopted in a
similar manner. However the operating budget covers
a one-year period while the capital budget covers a
five-year period with money being appropriated for the
first year along with the current year operating budget and the remaining four years of the capital plan being
approved in concept.
The budget and this document is the culmination of a
process in which the community -- through its elected
leaders, commission/committee members, public
hearings, and the advice of City staff -- decides upon
the services it shall receive from its government under the constraint of resources available to it through
taxes, fees, and transfers from the federal, state, and county governments.
Operating Budget Process
The budget process began in March with the request
by the Finance Department for revenue projections
and an estimation of operating expenditures requests.
City Council / Finance Commission Budget
Meetings. The City Manager and the City’s senior
staff discussed the City’s General Fund budget issues
with the City Council/Finance Commission as first
looks at revenues and expenditures. The Finance
Commission includes five appointed members from
the public. The budget work sessions provided time for
the Commission members to discuss issues related to
the budget.
Citizen Input on the Budget and Final Adoption.
Citizen participation was encouraged during the City
Council / Finance Commission budget work sessions.
Additionally, public notice of Council consideration of the City’s proposed budget resolution was advertised
per state law. A copy of the proposed Budget was
available at the City Clerk’s Office and on-line for
citizen review. Any amendments made by Council
will be incorporated into the final adopted budget.
Mid-Year Budget Review and Revision Process.
After the adoption of the budget, there are scheduled
reviews of the budget’s progress. In March of the fiscal year, there is a major mid-year (second quarter) review in which revenues and expenditures are examined and
adjustments made if necessary. There are also first,
third and fourth quarter reports prepared and reviewed
with the Finance Subcommittee of the City Council.
Any adjustments to the budget must be passed by City
Council resolution.
In addition to these scheduled reviews of the adopted
budget, there is a process for amending the budget
during the year if a department finds that more
money is needed to be spent on a program than was
originally anticipated, or finds that there are new
funded or unfunded needs to be met. In this case, the
department must present to City Council its reasons
for requesting a budget adjustment. As with the
scheduled budget reviews, these budget adjustments
must also be adopted by City Council resolution before
a department can spend money amounting to more
than the original appropriation.
Requests for adjustment to the budget fall into two
categories:
• Pre-Approval - Departments may present to Council
on an individual basis revised funding requests for
approval to proceed with a new initiative, program or
project. Council approval of such requests constitutes
formal budget appropriations authority.
• New Requests - Department requests may be
submitted through the mid-year revision resolution.
Departments submit a memorandum to the City
Manager outlining the cost of the requested item, its
justification, financing sources, whether the request
is a one-time or ongoing cost, and accounting codes
impacted. If approved by the City Manager, these
requests are listed on the subsequent mid-year
revision resolution. City Manager review includes a
determination of the necessity for the request and its
fiscal impact.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
22 BUDGET PROCESS
Capital Improvement Budget
The Capital Improvement Budget is a plan for capital
projects, fixed assets, and infrastructure owned by
the City of Hercules. Requests from senior staff are
reviewed by the City Manager as part of the annual
budget development process to insure that the City’s
assets are maintained in an efficient manner and
that Council long-term goals are met. The capital
budget is organized by the department and/or
fund responsible for the asset. The capital process
starts with departments submitting their requests
for maintenance, replacement, and the addition
of assets under their control. The City Manager
oversees a disciplined process to provide assurance
to citizens that the City’s assets and infrastructure are maintained within the constraints of available funding.
USING THIS BUDGET DOCUMENT
The first section of this document is a general
introduction to the budget and the document itself.
The document covers both the operating and capital
budgets for the City with most of this document being
devoted to the City’s operating budgets. In general, the document is organized by fund type with the majority
of it devoted to the General Fund.
The first section of this document gives a general
overview of the City’s revenues, expenditures, and
fund balances. This section gives a summary of the
fund balances for all of the funds and the resources
available to the City to meet current and future
obligations. Also presented are the detailed account
information of all the City’s revenues, and a list of the City employee positions for all departments.
The General Fund section shows budget expenditure
details of each General Fund department. The sections
following the General Fund are the City’s various
special revenue funds, capital project funds, debt
service funds, enterprise funds, and internal service
and trust funds. The Appendices section includes the
resolutions that adopted the budgets, and a glossary of budgeting and accounting terms.
CITY ORGANIZATIONAL
STRUCTURE
The organizational structure of the City of Hercules’
municipal departments is found in the chart on the
following page. The chart outlines the supervisory
reporting structure of the City’s senior staff. The City Manager reports to and serves at the pleasure of the
City Council, a five-member elected body.
The City Manager holds a weekly Department Head
Meeting to review the occurrences of the prior week
and the upcoming week. This meeting is also held to
discuss any items of special interest or concern.
CITY COMMISSIONS
AND SUB-COMMITTEES
The City has three (3) commissions and three (3) full/
sub committees appointed by the City Council.
Commissions and committees provide advisory
recommendations, counsel and guidelines on their
relevant topic areas.
These commissions and committees include
the following:
• Planning Commission
• Community and Library Services Commission
• Finance Commission
• Education Sub-Committee (Inactive)
• Economic Development Sub-Committee
• Public Safety/Traffic Sub-Committee
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
23 STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES
Establishing certain generalized principles governing
the financial affairs of the City is desirable to guide both the financial management and financial planning
for the City. The City of Hercules is accountable to its citizens, employees, and other stakeholders for the use of public funds and the best management of resources.
These Financial Principles will provide City staff
with guidance in preparing and submitting the annual
budget for the City and in the preparation of financial forecasts. The adoption of certain financial policies is necessary and appropriate to implement the financial
principles and to help ensure financial sustainability
and to improve the City’s credit worthiness and bond
rating.
Financial Principles
• Adopt a balanced operating budget by June 30th of
each year for the following fiscal year without using
General Fund undesignated fund balances or reserves.
The budget thus adopted shall include expenditures
necessary to provide for the well-being and safety of
the community subject to available revenues;
• Fees for services shall be updated annually to
recover, as much as possible, the cost of providing the services and to allow for the impacts of inflation, with fees not exceeding the cost of providing the service.
In some instances, the City Council may elect to not
recover the full cost of providing the service and the
City Council shall determine the appropriate cost
recovery level of individual services;
• Revenues in excess of expenditures at the end of a
fiscal year shall be applied on a priority basis to satisfy the general fund reserve requirements, capital projects reserves, capital equipment reserves, and liability
reserves before being appropriated for other uses.
• Current year operating expenditures shall be funded
by current year operating revenues;
• Manage the City’s finances as to ensure repayment
of debt and improvement in the City’s bond rating in
order to minimize future issuance and interest costs to the City.
• Meet all financial reporting requirements in a timely manner and ensure appropriate internal controls are in
place to ensure financial accountability.
General City Financial Policies
• Employees are one of the most important assets of
the City and should be compensated at an appropriate
level and commensurately with the City’s ability to
pay;
• Establish, and then maintain, a “minimum reserve”
for economic uncertainties equal to one month or
8.33% of expenditures of the current year General
Fund budget exclusive of Nonspendable, Restricted,
and Assigned fund balance with a goal of increasing
that to two months or 16.66% of expenditures in the
future.
• The General fund reserve shall provide for meeting
contingency needs, investment earnings, and shall
serve as a cash flow reserve.
• Provide for capital equipment replacement
as necessary to achieve greater efficiency and
effectiveness in the City’s operations;
• One-time revenues shall be utilized for one-
time expenditures or to enhance reserve funds as
appropriate or necessary;
• The City shall maintain, replace, and improve its
infrastructure and the City shall set aside a reasonable and prudent amount of General Fund monies for
capital projects including the repair of various
facilities as part of its annual budget process to the
greatest extent possible.
CITY OF HERCULES
STATEMENT OF FINANCIAL
PRINCIPLES AND
POLICIES Adopted December 16, 2015
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
24 STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES
Revenue & Expenditure Policies
• Realistic and prudent estimates of revenues shall be
used to maintain financial flexibility;
• Revenue raising alternatives shall be explored as
necessary and the City shall pursue grants available to local government;
• Programs funded through user fees shall be self-
supporting to
the greatest
extent possible
or at a level
proscribed
by the City
Council;
• Full recovery
of overhead
and internal
services
from grant
and special or enterprise funds shall be pursued to
the greatest extent possible and as permitted by the
restrictions associated with each fund.
Special Revenue, Enterprise,
and Internal Service Fund Policies
• The City shall abide by applicable rules and
regulations pertaining to the expenditures of special
revenue funds as required by each funding source;
• Enterprise activities shall be programmed to
generate sufficient revenues to support the enterprise’s operations including overhead and internal services,
debt service requirements, and current and future
capital needs;
• Special Revenue and Enterprise funds shall adhere
to all other applicable fiscal policies of the City.
• Internal Service funds shall be established as
appropriate to ensure cost recovery on a fair and
equitable basis;
• Transfers to the General fund from other funds
for overhead costs shall be reviewed annually and
conform to the Federal Office of Management &
Budget A-97 Guidelines.
Debt Policies
• Debt shall only be incurred for capital improvement
projects and only if the project cannot be funded by
recurring or one-time revenues;
• Proceeds from long-term debt shall not be used for
current on-going expenditures;
• Short-term borrowing shall not be used for operating
expenditures unless it is a Tax & Revenue anticipation
Note or other short-term cash flow borrowing and
shall be limited to repayment in the same fiscal year;
• The use of the City’s General Fund as security for
debt issues should be limited to the greatest extent
possible to capital projects which serve the general
benefit for the City.
Forecasting Policies
• The City shall develop and maintain a five to ten
year Financial Forecast which shall be updated
two times each year with any unexpected changes
in economic conditions or other circumstances
prompting more frequent updates;
• The Financial Forecast should recognize the effects
of economic cycles and shall differentiate between
one-time revenues associated with one-time economic
activities and revenues resulting from base economic
growth;
• Financial Forecasts shall identify the assumptions
used in their preparation and the risks associated with those assumptions;
• Revenue and expenditure estimates should be
prepared on a realistic basis with a target of +/- 2
percent variance from the estimate for revenues and a
+/- 1 percent variance for expenditures;
• On-going revenue increases based upon site specific
development shall be incorporated using a realistic
estimation of timing and shall not exceed the midpoint
of the range of estimated revenues.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
25 STATEMENT OF FINANCIAL PRINCIPLES AND POLICIES
a. Service Level Expectations - Defining the
types and levels of services expected in a given
year includes a process of public engagement,
understanding current services, identifying the
City’s mission, long-term vision, and goals of the
community. Based on the goals established by the
City Council, the City Manager identifies the
resources required to deliver services, how best
to organize those resources to achieve the City
Council’s vision for the community and presents
those recommendations in the proposed Budget for
the City Council review, consideration, and direction.
In a service-oriented organization such as a city,
it takes a combination of staff and consultants to
provide services. As important as it is for a city to
invest in its physical capital, it is just as important for a city to ensure it is investing appropriately in its human capital and to determine what is the proper
level of staffing and the necessary skill sets required to deliver on the city’s mission. City staff is currently evaluating potential needs for additional personnel and resources necessary to accomplish tasks related to the
established priorities.
b. Reserve Policy - Increasing the general fund
reserve policy limit from 16% to 25% (equal to three
months of the General Fund Operating Budget) to
protect the City from fluctuations in the economy
or other significant unplanned needs. Once a 25%
funding level is reached, available surplus funds
would be directed to other Council priorities.
c. Long-Term Capital Improvement Project
Funding – During the April 26, 2022, Budget
Workshop, the current funding strategy for capital
projects entail a detailed analysis of the long-term
capital improvement project funding needs based on a
5-year forecast. This strategy assumes a “pay as you
go” philosophy that does not anticipate the use of debt financing.
d. General Fund Surplus Allocation – A surplus
occurs when income exceeds expenditures. The
term is often referred to in government as savings.
A surplus is an indication that the City’s finances are being effectively managed. Staff recommends that
Available resources as determined annually through
the closing of the financial records will be used as a
basis for the following allocation:
i. 25% contribution to Pension/OPEB - The
City has established an Internal Revenue Service
Code Section 115 irrevocable trust which achieves
a higher rate of return on investments than that
earned on the pooled investment portfolio, LAIF.
25% of the available fund balance shall be put
into a Trust Fund or directly into paying off the
CalPERS unfunded liability for either pensions or
post-employment benefits.
ii. 25% to Operating Reserve – 25% be put into
operating reserves up to the 25% policy limit.
iii. 50% contribution to unmet/deferred
infrastructure and maintenance needs – A
funding mechanism to fund projects included
in the Long-Term Capital Improvement Project
Funding, as described in section c above.
1. The City Council hereby approve the following additions to the Statement of Financial Principles and Policies:
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
26 LOCAL CITY BUDGET AND DEMOGRAPHIC COMPARISON
HERCULES SAN PABLO EL CERRITO PINOLE
Form of Government Council-Manager
General Law
Council-Manager
General Law
Council-Manager
General Law
Council-Manager
General Law
Year Incorporated 1900 1948 1917 1903
BUDGET COMPARISON
General Fund Revenue $20,891,627 $56,320,577 $53,779,792 $31,537,898 General Fund Expenditures $20,647,868 $56,304,989 $53,764,017 $32,801,047 Total Full Time Equivalents 39 103 90 89
Sworn Personnel FTE 26 62 74 28
DEMOGRAPHICS
Population 26,499 31,562 26
,409 18,663
Annual Percent Change 1.80% -1.80% 1.70% -1.90%
Median Age 44 35 42 45
Population per FTE 679 306 2,401 579
Population per Sworn FTE 1,019 509 714 667
Housing Units 9,355 9,743 10,831 6,588
Average Household Size 3 3 2 3
Labor Force 14,300 14,700 14,200 9,300
Unemployment Rate 3.7% 4.40% 3.7% 2.6%
Median Household Income $129,397 $79,478 $127,876 $127,717 Per Capital Income $55,501 $30,103 $73,055 $51,487
LOCAL CITY BUDGET AND DEMOGRAPHIC
COMPARISON FY 2025-2026
* The Budget Comparison data was obtained from the corresponding city’s Adopted Budget for FY 2025-26 * The median age was obtained from the Census Reporter
* The population, average household size, household units, median household income, and the per capital income was obtained from the Census Bureau published on July 2024 * The Labor Force and Unemployment Rate was obtained from the California Employment Development Department published on December 2025
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
27 Tim Rood
Community
Development
Director
*Staff – 3
Functions:
• Long Range
Planning
• Short R
ange
Planning
• Planning
Counter
• Hous
ing
Element
• General
Plan
• Zoning
Ordinance
• CEQ
A Mgmt.
• Planning
Commission
• Permit
s
• Building
Inspection
• Pla
n Checking
• Code
Enforcement
ORGANIZATIONAL CHART
FY 2026-27 CITY OF HERCULES
ORGANIZATION CHART
CITIZENS OF HERCULES
HERCULES CITY COUNCIL
CITY ATTORNEY
Christine Crowl
INTERIM CITY MANAGER
Patrick Tang
BOARDS, COMMISSIONS
& COMMITTEES
Eibleis
Melendez
City Clerk
*Staff – 3
Functions:
• City Clerk
• Elections
• Agendas
• Council Mtgs
• Cable/Web
Broadcasts.
• Records Admin.
• Contract Mgmt.
• Reception
• Meeting
Coordinate
Edwin Gato
Finance Director
*Staff – 6
Functions:
Financial Services:
• General
Accounting
• Accounts
Payable
• Accounts
Receivable or
Collections
• Payroll
• Budget
• Audit and
Financial
Reporting
• Investment
Mgmt.
• Cash Mgmt.
• Debt Mgmt.
IT Services:
• Network
Services and
Infrastructure
Security
• Telecommuni-
cation Support
• Desktop &
Server Support
• GIS Support
Patrick Tang
Interim City
Manager
*Staf f – 2
Function
s:
• Executive Mgmt.
• Real Estate
(Incl. RITC)
• F
ranchises
• RDA Successor
• Economic
Development
• L
egislative
• Inter-
Governmental
• Ca
ble/Web
Broadcasts
• Ri
sk
management
• Contract Mgmt.
Glenn
Dombecks
Public Works
Director
*Staf f – 14
Function
s:
• Engineering
• Streets
• Facility
Maintenance
• So
lid Waste
• Wastewater
• Sewer
Maintenance
• L
ighting/
Landscaping
• Clean Water
Program
Christopher
Roke
Parks & Rec.
Director
*Staff - 5
55 PT
Functions:
• CLS
Commission
• Faci
lity Rentals
• Child Cares
• Sports
• Rec Classes
• Seniors
• Tiny Tots
• Camps
• Youth/Teen
• Swim Center
• Library
• Rec. Volunteers
Joseph
Vasquez
Police Chief
*Staff –
26 Sworn
5 Non-Sw
orn
1 PT
Functions:
• Patrol and
Special Enfo
rce.
• School Safety
(SRO)
• Criminal/
Int.
Invest
• Record
s/ Evid
Mgmt.
• Police R
eserve
• Explorer
Program
• City Vol
unteer
Coord.
• Emergenc
y
OPS/SRT
• Crim
e
Prevention
• A
llied agency
Liaison
• Counci
l
Meetings
• Trai
ning /
certification
• Grants
• PD Finance
CITY
CLERK &
ADMINISTRATION
PARKS &
RECREATION
POLICE
DEPARTMENT
PUBLIC
WORKS,
ENGINEERING &
MAINTENANCE
OFFICE OF THE
CITY
MANAGER
FINANCE COMMUNITY
DEVELOPMENT
*includes department heads
Kristi Carter
Human
Resources
Director
*Staf f - 2
Function
s:
Employee
life cycle:
• Recruitment
• Hiring
• Onboarding
• Training
• Terminatio
n.
Oversees
employee
relations
• Compensation
• Benefits,
• Performance
m
anagement,
• Learning
• Development
.
HUMAN
RESOURCES
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
28 CITYWIDE BUDGET
29 Authorized Full-Time Positions
By Classification Within Department
FTE Trends
Personnel by Department
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Budget Budget Proposed
Police
Chief of Police 1 1 1 1 Police Commander 2 2 2 2 Police Sergeant 5 5 5 6 Police Officer 18 18 18 17 Police Support Specialist 3 3 3 3 Parking Enforcement Officer 1 1 1 Administrative Specialist 1 1 1 1 30 31 31 31 Public Works
Public Works Director 1 1 1 1 Public Works Superintendent 1 1 1 1 Public Works Inspector/Specialist 1 1 1 1 Sewer and Stormwater Supervisor 1
Maintenance Supervisor 1 1 1 1 LLAD Coordinator 1 1 1 Associate Engineer 1 1 1 1 Maintenance Worker I 4 1 1 2 Maintenance Worker II 2 5 5 4 11 12 12 13 0 10
20 30
40 50
60 70
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Budget
FY 26-27
Proposed
Community Development
Parks & Recreation
Administration
Public Works
Police
30 Authorized Full-Time Positions
By Classification Within Department
Personnel by Department
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Budget Budget Proposed
Community Development
Community Development Director 1 1 1 1 Senior Planner 1 1 1 1 Permit Technician
Community Development Specialist 1 1 1 1 3 3 3 3 Parks & Recreation
Parks & Recreation Director 1 1 1 1 Recreation Manager 1 1 1 1 Recreation Supervisor 2
Recreation Coordinator 2 2 2 Recreation Technician 1 1 1 4 5 5 5 Administration
Accounting Technician II 2 2 2 2 Administrative Specialist 1 1 1 1 City Clerk 1 1 1 1 City Manager 1 1 1 1 Finance Director 1 1 1 1 Human Resources Manager 1 1 1 1 Human Resources Technician 1 1
Information Systems Administrator 1 1 1 1 Information Systems Specialist 1 1 1 1 Management Analyst 1 1 1 1 Senior Accountant 1 1 1 1 Senior Clerk 2 2 2 2 13 13 14 14 Total City-wide FTE Count 61 64 65 66 31 Labor Allocation
By Fund
Fund No.
=================> 100 232 233 234 235 236 237 238 239 251 253 220 221 222 223 224 225 231 262 263 291 420 460 470 Position Title
Fund Name
===============> General
LLAD
No. 83-2
(Zone 1)
LLAD
No. 83-2
(Zone 2)
LLAD
No. 83-2
(Zone
3&4)
LLAD
No. 83-2
(Zone
5A)
LLAD
No. 83-2
(Zone
5B)
LLAD
No. 83-2
(Zone
5C)
LLAD
No. 83-2
(Zone 6)
LLAD
No. 83-2
(Zone 7)
LLAD
No. 83-2
(Zone 8)
LLAD
No. 83-2
(Zone 9)
LLAD
No. 83-2
(Zone
10)
LLAD
No. 2002-
1 (Victoria
by the
Bay)
LLAD
No.
2002-2
(Hercule
s
Village)
LLAD
No. 2004-
1 (Baywoo
d)
LLAD
No. 2005-
1 (Bayside
)
Arterial
Roadwa
y
Stormwa
ter
State
Gas Tax
Measure
"C"
Street
Fund
AB 939 -
JPA Sewer
IT Ops
and Repl
Facility
Maint Total
Full-Time Department
ADMINISTRATIVE SPECIALIST POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 CHIEF OF POLICE POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 POLICE COMMANDER POLICE 2.00 - - - - - - - - - - - - - - - - - - - - - - - 2.00 POLICE OFFICER POLICE 18.00 - - - - - - - - - - - - - - - - - - - - - - - 18.00 POLICE SERGEANT POLICE 5.00 - - - - - - - - - - - - - - - - - - - - - - - 5.00 PARKING ENFORCEMENT OFFICER* POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 POLICE SUPPORT SPECIALIST POLICE 3.00 - - - - - - - - - - - - - - - - - - - - - - - 3.00
31.00 - - - - - - - - - - - - - - - - - - - - - - - 31.00 ASSOCIATE ENGINEER PUBLIC WORKS - - - - - - - - - - - 0.15 - - - - - 0.15 0.20 0.20 - 0.30 - - 1.00 MAINTENANCE WORKER I PUBLIC WORKS - - - - - - - - - - - 0.35 - - 0.05 0.05 - 0.05 0.10 0.08 - 0.15 - 0.17 1.00 MAINTENANCE WORKER II PUBLIC WORKS 0.13 0.05 0.04 0.00 0.01 0.01 0.01 0.00 0.06 0.07 0.06 0.80 0.22 0.04 0.12 0.07 0.15 0.40 0.51 0.29 - 1.05 - 0.92 5.00 MAINTENANCE SUPERVISOR PUBLIC WORKS - - - - 0.00 - - 0.02 - - - 0.02 0.10 - 0.01 - - 0.05 0.10 0.08 - 0.15 - 0.47 1.00 LLAD COORDINATOR PUBLIC WORKS - 0.01 0.02 0.02 0.02 0.01 0.01 0.01 0.01 - 0.02 0.54 0.08 0.08 0.05 0.02 - - - - - - - 0.10 1.00 PUBLIC WORKS DIRECTOR PUBLIC WORKS 0.10 - - - - - - - - - - 0.05 - - - - - 0.10 0.20 0.20 - 0.30 - 0.05 1.00 PUBLIC WORKS SUPERINTENDENT PUBLIC WORKS 0.03 0.02 0.02 0.01 0.02 0.02 0.02 0.01 0.02 0.02 0.01 0.03 0.02 0.02 0.02 0.02 0.02 0.20 0.10 0.10 - 0.25 - 0.02 1.00 SEWER AND STROMWATER SUPERVISOR PUBLIC WORKS - - - - - - - - - - - - - - - - - - - - - 1.00 - - 1.00 PUBLIC WORKS INSPECTOR/SPECIALIST PUBLIC WORKS 0.25 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.10 0.04 0.04 0.04 0.04 0.04 0.05 0.13 0.12 - 0.05 - - 1.00
0.51 0.09 0.09 0.04 0.06 0.05 0.05 0.05 0.10 0.10 0.10 2.04 0.46 0.18 0.29 0.20 0.21 1.00 1.34 1.07 - 3.25 - 1.73 13.00 COMMUNITY DEVELOPMENT DIRECTOR COMMUNITY DEVELOPMENT 0.95 - - - - - - - - - - - - - - - - - - 0.05 - - - - 1.00 SENIOR PLANNER COMMUNITY DEVELOPMENT 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 PERMIT TECHNICIAN COMMUNITY DEVELOPMENT 0.20 0.02 0.02 0.02 0.02 0.02 0.02 - 0.02 0.02 0.02 0.13 0.05 0.05 0.05 0.05 0.05 0.05 0.07 0.05 - 0.07 - - 1.00
2.15 0.02 0.02 0.02 0.02 0.02 0.02 - 0.02 0.02 0.02 0.13 0.05 0.05 0.05 0.05 0.05 0.05 0.07 0.10 - 0.07 - - 3.00 PARKS & RECREATION DIRECTOR PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION MANAGER PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION TECHNICIAN PARKS & RECREATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 RECREATION SUPERVISOR PARKS & RECREATION 2.00 - - - - - - - - - - - - - - - - - - - - - - - 2.00
5.00 - - - - - - - - - - - - - - - - - - - - - - - 5.00 CITY MANAGER ADMINISTRATION 0.59 - - - - - - - - - - 0.12 - - - - - - - - - 0.29 - - 1.00 CITY CLERK ADMINISTRATION 0.64 - - - - - - - - - - 0.02 0.02 0.02 0.02 0.02 - - - - - 0.10 0.16 - 1.00 FINANCE DIRECTOR ADMINISTRATION 0.70 - - - - - - - - - - 0.10 - - - - - - - - - 0.10 0.10 - 1.00 HUMAN RESOURCES MANAGER ADMINISTRATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 HUMAN RESOURCES TECHNICIAN ADMINISTRATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00 MANAGEMENT ANALYST ADMINISTRATION 0.25 - - - - - - - - - - - - - - - - - - 0.25 0.10 0.30 - 0.10 1.00 INFORMATION SYSTEMS SPECIALIST ADMINISTRATION - - - - - - - - - - - - - - - - - - - - - - 1.00 - 1.00 INFORMATION SYSTEMS ADMINISTRATOR ADMINISTRATION - - - - - - - - - - - - - - - - - - - - - - 1.00 - 1.00 SENIOR CLERK ADMINISTRATION 2.00 - - - - - - - - - - - - - - - - - - - - - - - 2.00 SENIOR ACCOUNTANT ADMINISTRATION 0.80 - - - - - - - - - - 0.10 - - - - - - - - - 0.10 - - 1.00 ACCOUNTING TECHNICIAN II ADMINISTRATION 1.60 - - - - - - - - - - 0.20 - - - - - - - - - 0.20 - - 2.00 ADMINISTRATIVE SPECIALIST ADMINISTRATION 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00
9.58 - - - - - - - - - - 0.54 0.02 0.02 0.02 0.02 - - - 0.25 0.10 1.09 2.26 0.10 14.00
48.24 0.11 0.11 0.06 0.08 0.07 0.07 0.05 0.12 0.12 0.12 2.71 0.53 0.25 0.36 0.27 0.26 1.05 1.41 1.42 0.10 4.41 2.26 1.83 66.00 32 Labor Allocation
By Fund
Fund No.
=================> 100 232 233 234 235 236 237 238 239 251 253 220 221 222 223 224 225 231 262 263 291 420 460 470 Position Title
Fund Name
===============> General
LLAD
No. 83-2
(Zone 1)
LLAD
No. 83-2
(Zone 2)
LLAD
No. 83-2
(Zone
3&4)
LLAD
No. 83-2
(Zone
5A)
LLAD
No. 83-2
(Zone
5B)
LLAD
No. 83-2
(Zone
5C)
LLAD
No. 83-2
(Zone 6)
LLAD
No. 83-2
(Zone 7)
LLAD
No. 83-2
(Zone 8)
LLAD
No. 83-2
(Zone 9)
LLAD
No. 83-2
(Zone
10)
LLAD
No. 2002-
1 (Victoria
by the
Bay)
LLAD
No.
2002-2
(Hercule
s
Village)
LLAD
No. 2004-
1 (Baywoo
d)
LLAD
No. 2005-
1 (Bayside
)
Arterial
Roadwa
y
Stormwa
ter
State
Gas Tax
Measure
"C"
Street
Fund
AB 939 -
JPA Sewer
IT Ops
and Repl
Facility
Maint Total
Part-Time
FACILITY ATTENDANT PARKS & RECREATION 0.89 - - - - - - - - - - - - - - - - - - - - - - - 0.89 LIFEGUARD/SWIM INSTRUCTOR I PARKS & RECREATION 3.49 - - - - - - - - - - - - - - - - - - - - - - - 3.49 LIFEGUARD/SWIM INSTRUCTOR II PARKS & RECREATION 0.57 - - - - - - - - - - - - - - - - - - - - - - - 0.57 OFFICE ASSISTANT I (PT) PARKS & RECREATION 0.21 - - - - - - - - - - - - - - - - - - - - - - - 0.21 OFFICE ASSISTANT II (PT) PARKS & RECREATION 1.27 - - - - - - - - - - - - - - - - - - - - - - - 1.27 RECORDS CLERK SPECIALIST POLICE 0.50 - - - - - - - - - - - - - - - - - - - - - - - 0.50 RECREATION AIDE PARKS & RECREATION 1.06 - - - - - - - - - - - - - - - - - - - - - - - 1.06 RECREATION LEADER I PARKS & RECREATION 1.96 - - - - - - - - - - - - - - - - - - - - - - - 1.96 RECREATION LEADER II PARKS & RECREATION 2.66 - - - - - - - - - - - - - - - - - - - - - - - 2.66 RECREATION LEADER III PARKS & RECREATION 3.77 - - - - - - - - - - - - - - - - - - - - - - - 3.77 RECREATION SPECIALIST PARKS & RECREATION 0.75 - - - - - - - - - - - - - - - - - - - - - - - 0.75 SENIOR LIFEGUARD PARKS & RECREATION 0.15 - - - - - - - - - - - - - - - - - - - - - - - 0.15 POLICE SUPPORT SPECIALIST POLICE 1.00 - - - - - - - - - - - - - - - - - - - - - - - 1.00
18.29 - - - - - - - - - - - - - - - - - - - - - - - 18.29 33 City-Wide Budget
All Funds Summary
Projected Projected Changes in Projected Proposed Proposed Changes in Proposed Available Revenues/ Expenses/ Commitments/ Available Fund Revenues/ Expenses/ Commitments/ Available Fund Fund Balance Transfers In Transfers Out Reserves Balance Transfers In Transfers Out Reserves Balance FY 24-25 FY 25-26 FY 25-26 FY 25-26 FY 25-26 FY 26-27 FY 26-27 FY 26-27 FY 26-27 General Fund
100 GENERAL FUND $0 $20,891,627 $20,570,868 ($320,759) $0 $21,532,501 $21,405,501 $127,000 General Fund Total - 20,891,627 20,570,868 (320,759) - 21,532,501 21,405,501 - 127,000 Special Revenue Funds
101 ASSET SEIZURE 100,000 - 100,000 - - - - 201 AB 3229 COPS Program 80,822 150,000 186,159 44,663 207,000 251,663 - 220 CITYWIDE L&L DIST 83-2 1,269,818 2,351,768 2,199,033 - 1,422,553 2,401,767 2,325,183 1,499,137 221 VICTORIA BY THE BAY L&L (703,095) 590,212 728,080 (840,963) 647,041 748,221 (942,143) 222 HERCULES VILLAGE L&L DIST 62,402 188,241 245,104 - 5,539 193,331 272,791 (73,921) 223 BAYWOOD ASSESS 04-1 L&L 96,547 186,035 185,981 - 96,601 190,618 189,086 - 98,133 224 BAYSIDE ASSESS DIST L&L 167,117 170,209 169,187 168,139 174,429 174,243 168,325 225 ARTERIAL ROADWAYS 320,815 349,928 376,790 293,953 369,370 408,042 255,281 231 STORMWATER ASSESSMENT 90,331 375,000 392,606 72,725 364,000 432,237 - 4,488 241 DIF-GEN PUBLIC FACILITIES 202,753 - - 202,753 - - 202,753 242 COMMUNITY DEVELOPMENT FND 79,564 - - 79,564 - - 79,564 243 DEVELOPMENT FEE FUND 80,496 - - 80,496 - - 80,496 244 DIF-POLICE FACILITIES 156,088 - - 156,088 - - 156,088 247 DIF-PARK & REC 236,710 - 150,000 86,710 - - 86,710 249 PUBLIC BENEFIT FEE 1,091,960 - - 1,091,960 - - 1,091,960 261 DIF-TRAFFIC FACILITIES 748,541 - - 748,541 - - 748,541 262 STATE GAS TAX FUND 523,705 738,148 754,459 - 507,394 769,563 1,259,603 - 17,354 263 MEASURE "C" STREET FUND 719,878 493,303 612,868 - 600,313 495,000 883,402 - 211,911 266 BART PARK & RIDE - 92,000 92,000 - - 92,000 92,000 - 267 GENERAL PLAN AND BLDG TRAINING 1,542,868 - 1,300,000 (242,868) - - - - 268 SB1 - RMRA 981,630 683,809 500,000 - 1,165,439 735,835 260,000 - 1,641,274 291 AB 939 - JPA FUND 630,079 - 381,852 248,227 - 139,371 108,856 387 WATER QUALITY RETENTION BASIN 358,525 63,000 49,000 372,525 79,000 11,100 440,425 521 REGIONAL WATER QUALITY 57,884 - - 57,884 - - 57,884 640 HOUSING SUCCESSOR 5,879,840 - 120,595 5,759,245 - - 5,759,245 Special Revenue Funds Total 14,775,278 6,431,653 8,543,714 (242,868) 12,420,349 6,718,954 7,446,942 - 11,692,361 Capital Projects Funds
300 CITY - CAPITAL PROJECTS - 2,923,720 2,923,720 - 2,650,495 2,650,495 - 354 HERCULES HUB - 2,239,000 2,239,000 - 1,000,000 1,000,000 - 295 FEDERAL GRANTS - - - - - - - 296 STATE AND LOCAL GRANTS - 190,500 190,500 - 150,000 150,000 - Capital Projects Funds Total - 5,353,220 5,353,220 - - 3,800,495 3,800,495 - - Debt Service Funds
34 City-Wide Budget
All Funds Summary
Projected Projected Changes in Projected Proposed Proposed Changes in Proposed Available Revenues/ Expenses/ Commitments/ Available Fund Revenues/ Expenses/ Commitments/ Available Fund Fund Balance Transfers In Transfers Out Reserves Balance Transfers In Transfers Out Reserves Balance FY 24-25 FY 25-26 FY 25-26 FY 25-26 FY 25-26 FY 26-27 FY 26-27 FY 26-27 FY 26-27 672 2003B DEBT SERVICE PFA - 561,212 561,212 - 563,162 563,162 - 673 2009 DEBT SERVICE PFA - 906,578 906,578 - 905,796 905,796 - 383 SUNTRUST LEASE - - - - - - - - 388 EQUIPMENT LEASE - 245,079 245,079 - 255,609 255,609 - Debt Service Funds Total - 1,712,869 1,712,869 - 1,724,567 1,724,567 - - Enterprise Funds
420 SEWER FUND (OPERATIONS) 13,919,941 7,200,934 10,080,152 11,040,723 7,503,360 10,290,454 (5,472,360) 2,781,269 421 SEWER FUND (CAPITAL) - 536,680 536,680 - 444,700 444,700 - Sewer Fund Total 13,919,941 7,737,614 10,616,832 - 11,040,723 7,948,060 10,735,154 (5,472,360) 2,781,269 Internal Service Funds
450 VEHICLE REPLACEMENT FUND 279,650 163,000 - 442,650 166,000 132,645 476,005 460 IT OPERATING FUND 780,553 1,102,852 1,441,997 441,408 1,124,911 1,289,470 276,849 470 FACILITY MAINTENANCE FUND 573,344 1,047,125 1,201,184 419,285 1,000,985 1,183,505 236,765 480 IT EQUIPMENT REPLACEMENT FUND 8,000 292,000 - - 300,000 30,000 30,000 - 300,000 490 FACILITY REPLACEMENT FUND 150,000 - - - 150,000 - - - 150,000 Internal Service Funds Total 1,791,547 2,604,977 2,643,181 - 1,753,343 2,321,896 2,635,620 - 1,439,619 Total, City Budget $30,486,766 $44,731,960 $49,440,684 ($563,627) $25,214,415 $44,046,473 $47,748,279 ($5,472,360) $16,040,249 Agency Funds
382 ASSMT DIST 05-01 DEBT SVC - 229,356 229,356 - 233,360 233,360 - 501 TAYLOR WOODROW MAINT LMOD 78,504 - - 78,504 - - 78,504 511 OPEB & SOMAR 3,091,977 144,000 115,800 3,120,177 183,000 119,400 3,183,777 730 HERCULES GOLF CLUB - - - - - - - Agency Funds Total 3,170,481 373,356 345,156 3,198,681 416,360 352,760 - 3,262,281 SUCCESSOR AGENCY & HOUSING - 9,758,380 9,758,380 - - 10,066,491 10,066,491 - - Totals 33,657,247 $54,863,696 $59,544,220 ($563,627) $28,413,096 $54,529,324 58,167,530 ($5,472,360) $19,302,530 35 City-wide Expenditures
Summary by Fund Type
Expenditure Trends
Expenditures By Department
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
General Fund Operations by Department
Police 9,043,290$ 9,309,187$ 9,635,424$ 10,263,948$ Public Works 432,333 467,392 443,381 549,638 Community Development 719,579 1,003,801 1,104,239 1,036,527 Parks & Recreation 2,673,550 2,873,344 2,700,746 2,853,964 Administration 4,682,817 5,618,060 5,517,787 5,820,653 Non-Department 260,000 284,756 260,000 62,000 Transfers Out 799,213 803,278 806,291 818,771 18,610,782 20,359,818 20,467,868 21,405,501 One-time 991,639 1,103,771 103,000 - 19,602,421 21,463,589 20,570,868 21,405,501 Special Revenue, Capital and Debt
Special Revenues 6,111,060 5,851,617 8,543,714 7,446,942 Capital Projects 2,734,303 784,014 5,353,220 3,800,495 Debt Service 1,710,843 1,706,728 1,712,869 1,724,567 Enterprise
Sewer 16,344,904 8,544,132 10,616,832 10,735,154 Net City Budget 46,503,531 38,350,080 46,797,503 45,112,659 Internal Charges
Internal Service Funds 3,027,619 2,508,738 2,643,181 2,635,620 Total City Budget 49,531,150$ 40,858,818$ 49,440,684$ 47,748,279$ Fiduciary
Successor Agency 8,183,449 7,143,882 9,758,380 10,066,491 Other Agency 333,077 333,786 345,156 352,760 Total Organization 58,047,676$ 48,336,486$ 59,544,220$ 58,167,530$ -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Budget
FY 26-27
Proposed
Internal Service
Sewer
Debt Service
Capital Projects
Special Revenues
General Fund
36 City-wide Revenues/Transfers In
Summary by Fund Type
Revenue Trends
Revenuess By Fund
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
General Fund
Taxes 12,808,147$ 13,298,947$ 13,828,000$ 14,107,000$ Intergovernmental 2,650,830 2,708,899 2,763,000 2,818,000 Fines & Forefeitures 34,409 37,136 40,000 40,000
Program Revenues 1,999,649 2,356,106 2,079,400 2,092,150 Investment Income 1,412,799 1,563,434 991,100 1,200,000 Tower & Property Leases 210,368 316,123 218,000 222,000 Cost allocated to other departments 667,863 791,929 785,968 801,688 Transfers In 156,727 176,556 186,159 251,663
19,940,792 21,249,130 20,891,627 21,532,501 One-time 731,717 916,991 - -
20,672,509 22,166,121 20,891,627 21,532,501 Special Revenue, Capital and Debt
Special Revenues 8,580,940 8,511,218 6,431,653 6,718,954 Capital Projects 2,307,981 2,840,901 5,353,220 3,800,495 Debt Service 1,814,172 1,820,536 1,712,869 1,724,567 Enterprise
Sewer 6,956,530 8,380,356 7,737,614 7,948,060 Net City Budget 40,332,132 43,719,132 42,126,983 41,724,577 Internal Charges
Internal Service Funds 2,747,989 2,440,749 2,604,977 2,321,896 Total City Budget 43,080,121$ 46,159,881$ 44,731,960$ 44,046,473$ Fiduciary
Successor Agency 7,046,757 10,101,312 9,758,380 10,066,491 Other Agency 547,635 586,520 373,356 416,360
Total Organization 50,674,513$ 56,847,713$ 54,863,696$ 54,529,324$ -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Budget
FY 26-27
Proposed
Internal Service
Sewer
Debt Service
Capital Projects
Special Revenues
General Fund
37 City-wide Budget
Transfers
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Transferred From (Sender) Transferred To (Receiver)
Fund Name Fund No. Fund Name Fund No.
General Fund 100 Capital Projects 300 $639,712 $0 $0 $0 General Fund 100 Capital Projects 300 - - - - General Fund 100 Hercules HUB 340 - - - - General Fund 100 Hercules HUB 340 - - - - General Fund 100 SunTrust Lease 383 - - - - General Fund 100 OPEB Liability 511 60,000 84,756 60,000 62,000 General Fund 100 2003B Debt Service PFA 672 563,316 568,252 561,212 563,162 General Fund 100 2009 Debt Service PFA 673 - 2,625 - - General Fund 100 Asset Seizure 101 - - - - General Fund 100 Equipment Lease (Solar Project) 388 235,897 235,026 245,079 255,609 AB 3229 COPS Program 201 General Fund 100 156,727 176,556 186,159 251,663 Landscape & Lighting District 83-2 220 Arterial Roadways 225 - - - - Landscape & Lighting District Victoria by the Bay 2002-1 221 Arterial Roadways 225 28,016 29,529 30,373 32,060 Landscape & Lighting District Hercules Village 2002-2 222 Arterial Roadways 225 7,725 8,051 8,281 8,741 Landscape & Lighting District Baywood 2004-1 223 Arterial Roadways 225 2,781 2,841 2,922 3,084 Landscape & Lighting District Bayside 2005-1 224 Arterial Roadways 225 19,055 20,136 20,711 21,861 Landscape & Lighting District 83-2 (Zone 1) 232 Arterial Roadways 225 26,100 29,688 30,536 32,233 Landscape & Lighting District 83-2 (Zone 2) 233 Arterial Roadways 225 21,218 22,367 23,006 24,284 Landscape & Lighting District 83-2 (Zone 3&4) 234 Arterial Roadways 225 28,840 30,376 31,244 32,980 Landscape & Lighting District 83-2 (Zone 5A) 235 Arterial Roadways 225 21,218 22,316 22,953 24,229 Landscape & Lighting District 83-2 (Zone 5B) 236 Arterial Roadways 225 11,845 12,284 12,635 13,337 Landscape & Lighting District 83-2 (Zone 5C) 237 Arterial Roadways 225 16,583 15,970 16,426 17,339 Landscape & Lighting District 83-2 (Zone 6) 238 Arterial Roadways 225 25,235 26,570 27,329 28,848 Landscape & Lighting District 83-2 (Zone 7) 239 Arterial Roadways 225 32,651 34,351 35,332 37,295 Landscape & Lighting District 83-2 (Zone 8) 251 Arterial Roadways 225 53,148 56,052 57,653 60,856 Landscape & Lighting District 83-2 (Zone 9) 253 Arterial Roadways 225 28,222 29,679 30,527 32,223 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 10) 220 22,391 23,030 26,002 28,168 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 1) 232 888 921 1,000 1,288 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 2) 233 629 635 675 825 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 3&4) 234 909 829 890 949 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5A) 235 1,261 1,423 1,510 1,558 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5B) 236 283 345 367 385 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 5C) 237 266 193 205 143 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 6) 238 644 592 633 866 38 City-wide Budget
Transfers
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Transferred From (Sender) Transferred To (Receiver)
Fund Name Fund No. Fund Name Fund No.
State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 7) 239 662 827 874 984 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 8) 251 2,005 2,457 2,571 2,691 State Gas Tax 262 Landscape & Lighting District 83-2 (Zone 9) 253 1,099 1,233 1,304 1,377 State Gas Tax 262 Landscape & Lighting District Victoria by the Bay 2002-1 221 10,248 13,052 13,454 13,823 State Gas Tax 262 Landscape & Lighting District Hercules Village 2002-2 222 4,062 4,347 4,736 5,281 State Gas Tax 262 Landscape & Lighting District Baywood 2004-1 223 2,665 3,259 3,367 3,426 State Gas Tax 262 Landscape & Lighting District Bayside 2005-1 224 2,330 2,822 2,970 3,048 State Gas Tax 262 Arterial Roadways 225 - - - - State Gas Tax 262 SB1 Road Maintenance and Repair Account (RMRA) 268 - - - - Measure "C" Street Fund 263 Arterial Roadways 225 - - - - SB1 Road Maintenance and Repair Account (RMRA) 268 State Gas Tax 262 - - - - Solid Waste and Recycling 291 Stormwater Assessment 231 125,000 125,000 125,000 125,000 City Capital Projects 300 General Fund 100 250,000 - - - City Capital Projects 311 Federal Grant 295 - - - - American Rescue Plan Act (ARPA) 353 General Fund - Loss of Revenue Component 100 - - - - Sewer - Operation 420 Sewer - Capital 421 147,173 1,100,000 536,680 444,700 IT - Operation 460 IT - Replacement 480 365,516 - 292,000 30,000 Facility Maintenance 470 Facility Replacement 490 261,696 - - - $3,178,016 $2,688,390 $2,416,616 $2,166,316
39 CITY OF HERCULES
FY 26-27 LIST OF ADDITIONAL BUDGET REQUEST
Title Fund One-Time/
Ongoing Department Description Justification General Fund Other Funds Total Budget Impact
Finance Director
Salary Grade from
056 to 057
Internal Service
Fund (ISF)
Ongoing IT Operations To address the adjustment of the salary grade for the Finance Director position. This revision
reflects the additional responsibility of
overseeing the Information Technology (IT)
division.
Adjust the salary grade from 056 to 057. The
Finance Director oversees both Finance and IT
operations. Recently, the Finance Director
completed an IT Strategic Plan designed to align
technology investments with business goals.
This plan evaluates current systems and
outlines initiatives in security, data
management, and digital transformation. It also
includes a SWOT analysis, an action plan, and
budget details. In addition to managing IT, the
Finance Director is responsible for the
administration of the Housing Successor Loan.
$10,000 $20,000
Reclassifying
an Accounting Technician
to an Accountant position
General Fund Ongoing Finance Reclassifying an accounting technician as an accountant to perform higher-level, complex
tasks—such as financial analysis,
reconciliations, and month-end closing—along
with routine clerical duties (accounts payable).
Reclassifying an accounting technician
position to an accountant role acknowledges a
significant increase in the complexity,
responsibility, and required knowledge of the
position, along with transactional, day-to-day
bookkeeping to professional-level analysis,
reporting, and strategic financial control. This
shift aligns the employee’s duties with their
actual workload, providing better alignment
with organizational needs and ensuring proper
compensation, including succession planning.
$300 $300
Total, Ongoing Costs $42,300 $10,000 $52,300
One-Time Costs:
Automated
External
Defibrillator
(AED)
Replacement
General Fund One-time Parks &
Recreation
Replace 14 units that have been discontinued,
specifically those related to pads and batteries
that are no longer in production. This
replacement will entail 9 units for the Parks and
Recreation department and 5 units for the Police
Department.
A total of fourteen AED units require
replacement. Although all units are presently in
good working condition, their model has been
discontinued, and there will be no availability of
replacement pads or batteries in the future.
$26,000 $26,000
$10,000
CITY OF HERCULES
FY 26-27 LIST OF ADDITIONAL BUDGET REQUEST
Title Fund One-Time/
Ongoing Department Description Justification General Fund Other Funds Total Ongoing costs:
Reallocation of Full-
Time Parking
Enforcement Funding
General
Fund
Ongoing Police The Parking Enforcement Officer has recently resigned from his full-time position, leaving a
vacancy in the department. In response, the
department intends to transition this position
to part-time status. The funds saved from this
reclassification will be reallocated to support
the promotion of a Police Support Specialist
to a Supervisor role and to elevate a Police
Officer to the position of Administrative
Sergeant.
The full-time Parking Enforcement Officer has
resigned, creating a vacancy in this position. Staff
will reclassify the role from full-time to part-time
and believe that funds would be better
reallocated to support the creation of an
Administrative Sergeant position and the
establishment of a Police Support Specialist
Supervisor position for retention, recruitment,
and succession planning purposes.
Furthermore, as technology, social media, legal
mandates, training requirements, and community
engagement have increased, the need for an
Administrative Sergeant has become more
pressing.
Also, the Police Support Specialist position has
long required supervision to handle records,
property, and evidence effectively, as well as the
responsibilities associated with the
Administrative Specialist role. This new
supervisory position will not only provide backup
for all administrative roles but will also promote
opportunities for advancement to enhance
employee retention.
$11,000 $11,000
Full-Time Recreation
Technician - Child
Care
General
Fund
Ongoing Parks &
Recreation
Conversion of a part-time employee (30 hours
per week) to a full-time employee (38 hours per
week).
The Childcare Program is developing a
sustainability initiative focused on staffing.
Currently, the department has four part-time
employees, each working 30 hours per week,
assigned to the childcare sites: Hanna, Lupine,
Ohlone, and Preschool. Converting one of these
part-time positions to a full-time role would not
only help preserve valuable institutional
knowledge but also enhance our succession
planning efforts.
$21,000 $21,000
Budget Impact
FY 26-27 LIST OF ADDITIONAL BUDGET REQUEST
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
ONGOING COSTS
CITY OF HERCULES
FY 2026-27 LIST OF ADDITIONAL BUDGET REQUEST
Title Fund One-Time /
Ongoing
Department Description Justification General
Fund
Other
Funds
Total
BUDGET IMPACT
40 CITY OF HERCULES
FY 26-27 LIST OF ADDITIONAL BUDGET REQUEST
Title Fund One-Time/
Ongoing Department Description Justification General Fund Other Funds Total Budget Impact
Community Center Oven
Replacement
General Fund� One-time Parks &
Recreation
Replace the Commercial Oven at the Community
Swim Center
The oven at the Community Swim Center has
surpassed its expected lifespan, as it is the
original unit installed during the building's
construction in 1991. Commercial ovens
generally have a life expectancy of 10 to 20
years, meaning this appliance has far exceeded
its useful period. A recent malfunction during a
December event prompted an inspection that
confirmed the need to replace the oven for
both efficiency and safety reasons.
$30,000 $30,000
Dispatch Firewall
Replacement
General Fund� One-time Police The City of Hercules is accountable for the costs associated with replacing the dispatch
firewall, as specified in the terms of the "Tri-
City Agreement." This replacement is crucial
for ensuring the security and efficiency of
communication systems within the city's
emergency services.
Nearly ten years ago, the West County
Consortium was dissolved, which left seven law
enforcement agencies without a host for record
management and dispatch services. In
response, the San Pablo, Pinole, and Hercules
Police Departments formed a "Tri-City
Consortium."
San Pablo implemented a shared records
management system, and Pinole upgraded its
dispatch center to serve all three departments.
The costs for construction and maintenance are
shared based on personnel size and call
volume.
In the upcoming fiscal year, the Hercules Police
Department needs to replace its dispatch
firewall at a cost of $11,036.00. The Pinole
Police Department is currently pursuing a grant
that may cover these expenses. However, we
recommend preparing to pay the full amount,
as this service is essential for public safety.
$11,036 $11,036
Total, One-Time Costs $67,036 $0 $67,036
Total $109,336 $10,000 $119,336
CITY OF HERCULES
FY 2026-27 LIST OF ADDITIONAL BUDGET REQUEST
FY 26-27 LIST OF ADDITIONAL BUDGET REQUEST
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
ONE-TIME COSTS
CITY OF HERCULES
FY 26-27 LIST OF ADDITIONAL BUDGET REQUEST
Title Fund One-Time/
Ongoing Department Description Justification General Fund Other Funds Total Budget Impact
Finance Director
Salary Grade from
056 to 057
Internal Service
Fund (ISF)
Ongoing IT Operations To address the adjustment of the salary grade for the Finance Director position. This revision
reflects the additional responsibility of
overseeing the Information Technology (IT)
division.
Adjust the salary grade from 056 to 057. The
Finance Director oversees both Finance and IT
operations. Recently, the Finance Director
completed an IT Strategic Plan designed to align
technology investments with business goals.
This plan evaluates current systems and
outlines initiatives in security, data
management, and digital transformation. It also
includes a SWOT analysis, an action plan, and
budget details. In addition to managing IT, the
Finance Director is responsible for the
administration of the Housing Successor Loan.
$10,000 $20,000
Reclassifying
an Accounting Technician
to an Accountant position
General Fund Ongoing Finance Reclassifying an accounting technician as an accountant to perform higher-level, complex
tasks—such as financial analysis,
reconciliations, and month-end closing—along
with routine clerical duties (accounts payable).
Reclassifying an accounting technician
position to an accountant role acknowledges a
significant increase in the complexity,
responsibility, and required knowledge of the
position, along with transactional, day-to-day
bookkeeping to professional-level analysis,
reporting, and strategic financial control. This
shift aligns the employee’s duties with their
actual workload, providing better alignment
with organizational needs and ensuring proper
compensation, including succession planning.
$300 $300
Total, Ongoing Costs $42,300 $10,000 $52,300
One-Time Costs:
Automated
External
Defibrillator
(AED)
Replacement
General Fund One-time Parks &
Recreation
Replace 14 units that have been discontinued,
specifically those related to pads and batteries
that are no longer in production. This
replacement will entail 9 units for the Parks and
Recreation department and 5 units for the Police
Department.
A total of fourteen AED units require
replacement. Although all units are presently in
good working condition, their model has been
discontinued, and there will be no availability of
replacement pads or batteries in the future.
$26,000 $26,000
$10,000
Title Fund One-Time /
Ongoing
Department Description Justification General
Fund
Other
Funds
Total
BUDGET IMPACT
41 DEPARTMENT SUMMARIES
42 ALEXANDER
WALKER-GRIFFIN
Vice Mayor
CITY COUNCIL
CITY COUNCIL
The five members of the City Council are
elected at-large by the voters of Hercules, with
one of the Council Members selected each year
to serve as Mayor by their colleagues. Their
primary responsibilities are to establish public
policy, enact ordinances, adopt an annual budget
for each fiscal year, and take other actions which
guide and determine how to best provide services
and enhance the quality of life in Hercules.
The City Council typically meets the second
and fourth Tuesday of for their regular meetings,
with special meetings called as needed, and this
provides the primary means to hear from the
City’s residents and other stakeholders. Another
important role is that Council Members represent
the City on a number of regional boards and
agencies including the WestCAT, the West Contra
Costa Transportation Advisory Committee,
the West Contra Costa Regional Integrated
Waste management Authority, the Contra Costa
Mayors Conference, the Association of Bay Area
Governments, and the League of California
Cities, among others.
As the City’s main policy making body, the
City Council is charged with guiding the
City towards the realization of the Vision for
our community as established in the current
Strategic Plan:
CITY OF HERCULES: VISION
The City of Hercules is a richly diverse
community, serving as a major transportation
hub and a prime destination for the Bay Area.
It is built on a sound economic and physical
infrastructure, and its residents enjoy public
safety, security, well-maintained parks, streets
and public facilities. We conduct our work in an
atmosphere of trust and respect. We constantly
look for better ways to deliver services and
always strive for excellence.
CITY OF HERCULES: MISSION
Our mission is to lead our diverse community
and enhance the quality of life in the City of
Hercules, now and in the future. We do this
by providing effective, efficient, responsive, and
innovative services with integrity and a culture of
transparency.
DILLI BHATTARAI
Council Member
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
CHRIS KELLEY
Mayor
TIFFANY GRIMSLEY
Council Member
DION BAILEY
Council Member
43 CITY COUNCIL
CITY COUNCIL
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
FY 2026-27 STRATEGIC GOALS:
GOAL #1
Advance Progress of the Hercules Hub
GOAL #2
Take Steps to Address the City’s Fiscal
Sustainability
GOAL #3
Improve Community Transparency and
Communication
GOAL #4
Continue Investing in a Winning Team at
City Hall
GOAL #5
Plan and Fund Major Infrastructure
GOAL #6
Develop a Comprehensive Land-Use
Strategy
GOAL #7
Develop a Comprehensive Economic
Development Strategy
CITY OF HERCULES: VALUES
•INTEGRITY
Honesty, transparency, fair dealing
•PROFESSIONALISM
Exemplary conduct, competence,
continuous improvement, respect
•SERVICE
Customer orientation, courtesy, hard
work, striving for excellence
•COLLABORATION
Teamwork, communication, community
interaction and outreach
•CREATIVITY
Thinking, innovating, encouraging critical
analysis
•TENACITY
Setting priorities, staying focused, not
getting discouraged
•RESPONSIBILITY
Taking ownership of one’s work,
accountability, going the extra mile
44 CITY COUNCIL
CITY COUNCIL
ACCOMPLISHMENTS
• The City of Hercules received
$850,000 of Federal funds through
Congressman John Garamendi to
advance the Hercules HUB project.
• Hercules Launches New Volunteer
‘Team Up to Clean Up’ Pilot Program.
• The City Council Adopted the
Parks and Recreation Facilities
Master Plan, representing the
culmination of years of effort
and collaboration between the
City Council, City staff, a Steering
Committee, community leaders,
stakeholders, and residents.
• Hercules Assumes Role of Housing
Successor, Paving the Way for New
Affordable Housing Solutions.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
45 CITY COUNCIL
STRATEGIC GOAL WORKPLAN
CITY COUNCIL
GOAL #1
Advance Progress of the
Hercules Hub
• Develop regional
partnerships
• Enhance lobbying efforts/
contracts
• Continue to keep the
community informed
• Initiate the Train Station
GOAL #2
Take Steps to Address the
City’s Fiscal Sustainability
• Improve efficiency
through a budget review
process
• Explore revenue sources
to meet current and future
needs
GOAL #3
Improve Community
Transparency and
Communication
• Improve communication
on the progress of Strategic
Goals
• Provide community
engagement opportunities
outside of Council meetings
• Encourage residents to be
more involved in civic affairs
GOAL #4
Continue Investing in a
Winning Team at City Hall
• Address staff capacity
• Develop a succession plan
• Invest in ongoing staff
education and training
through conferences and
other learning tools
• Build a high-performance
culture that both yields
efficient results and
increases staff retention
GOAL #5
Plan and Fund Major
Infrastructure
• Identify and set
priorities related to major
infrastructure
• Continue progress on the
Capital Improvement Plan
• Devise a plan for funding
the Parks and Recreation
Facilities Master Plan
• Devise a plan for funding
facilities assessment and
maintenance
GOAL #6
Develop a Comprehensive
Land-Use Strategy
•Complete the Housing
Element certification
process and begin
implementation
•Update the General Plan
• Update Council and
community on affordable
housing progress and
Regional Housing Needs
Allocation (RHNA)
obligations
GOAL #7
Develop a Comprehensive
Economic Development
Strategy
•Devise strategies to expand
retail and attract businesses
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
46 City Council
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 75,146$ 69,775$ 63,000$ 78,157$ Contractual Services 22,923 27,053 42,400 28,400 Other Operating Costs 30,922 42,004 51,400 53,100 Cost Allocation 176,924 193,538 199,344 203,331 Capital Outlay - - - - Debt Service - - - - 305,915$ 332,370$ 356,144$ 362,988$
Expenditures By Fund/Program
General Fund 305,915$ 332,370$ 356,144$ 362,988$ Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
47 CITY MANAGER
CITY MANAGER
CITY MANAGER’S
KEY PRIORITIES
FOR FY 2026-27:
• To align Council’s
priorities, ongoing
programs, projects and
activities with the budget,
and staff resources.
• Develop a workplan
to accomplish Council’s
strategic goals.
• The mandated
obligations of local
government remain the
core function of the City
and need not be fully
detailed in the Work Plan,
including but not limited
to public infrastructure,
public safety, governmental
transparency, financial
accountability, and
implementation of
regulations.
This balance between
core services and
strategic goals is well
depicted by the
“Iceberg Model”
depicted left.
The City Manager is appointed by and serves at the pleasure of the City Council and is responsible for implementing the policy direction provided by the City Council as given in City Council meetings based on the recommendations made by the City Manager and his staff, providing leadership to the City organization and employees, fostering a level of community engagement, and keeping the community informed through a variety of means.
The City Manager also works with the City Council in regard to their regional and other agency assignments and support the City Council in the City’s legislative advocacy efforts.
As the City’s Chief Executive Officer, the City Manager responsible for ensuring the City organization is focused on meeting the Mission as defined Strategic Plan:
Our mission is to lead our diverse community and enhance the quality of life in the City of Hercules, now and in the future. We do this by providing effective, efficient, responsive, and innovative services with integrity and a culture of transparency.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
The Iceberg Model of City Work
Vision for the
City’s Future:
Governing Body goals and priorities
Modernizing the Organization:
Staff initiatives for efficiency and innovation
The Routine Work of the City:
80 percent of what a city does is “below the surface”
The Governing Body usually does not need to make
decisions about these routine city services and activities, except as part of approving the annual budget.
The relationship between
above and below the surface
Successfully achieved goals and projects above the water line will eventually move to below the line and become part of the routine work of the city. They will become part of the general operating budget.
Water Line
Source: Nalbandian
Consulting & Training,
May 2003
48 CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Objective Tactical Steps
Develop regional partnerships Participate and collaborate with other agencies, their boards and commissions, and other stakeholder groups to raise awareness of the Hercules Hub and regional transit-related issues, surface opportunities for partnership, and support appropriate transportation revenue generating measures.
Enhance lobbying efforts/contracts Secure the services of a federal lobbyist as an advocate on behalf of the Hercules Hub.
Continue to keep the community
informed
Utilize social media and other informational platforms to disseminate information regularly and when new developments occur.
Initiate the Train Station design Secure sufficient grant funding to begin the station design.
Objective Tactical Steps
Improve efficiency through a budget
review process
Continue to improve and create a more robust Capital Improvement Plan (CIP) with special attention to service delivery methodology, addressing deferred maintenance, and prioritizing projects.
Explore revenue sources to meet
current and future needs
Present to Council future revenue-generating options that include:
• Sales Tax • UUT (Utility User Tax) • Grant opportunities • Real Property Transfer Tax • General Obligation (GO) bonds • Lease Revenue/Certificate of Participation (COP) bonds GOAL #1: ADVANCE PROGRESS OF THE HERCULES HUB
GOAL #2: TAKE STEPS TO ADDRESS THE CITY’S FISCAL SUSTAINABILITY
STRATEGIC GOAL WORKPLAN HIGHLIGHTS
CITY MANAGER
Objective Tactical Steps
Improve communication on the
progress of Strategic Goals
Provide quarterly updates at City Council meetings and post the progress to a dedicated strategic plan web page on the City’s website.
Provide community engagement
opportunities outside of Council
meetings
Provide twice-a-year workshops/town halls to allow residents to connect with the City outside of Council meetings and the rigid public comment process.
Encourage residents to be more
involved in civic affairs
Evaluate and report back on ways to improve resident engagement, such as a resident academy.
GOAL #3: IMPROVE COMMUNITY TRANSPARENCY AND COMMUNICATION 49 CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Objective Tactical Steps
Address staff capacity • Initiate a gap analysis of strategic goal priorities and staff capacity. ------------------------------------------------------------------------- • Initiate a staffing comparison study of comparable cities (population, city services, department size, and total FTEs).
Develop a succession plan • Identify critical and vulnerable positions; Identify a talent pipeline; and identify employees in the qualified positions who could temporarily fill the vacancy and potentially apply as candidates for the position should the need arise. ------------------------------------------------------------------------- • Create a succession development plan with training and learning opportunities that are aligned with the successor position.
Invest in ongoing staff education and
training through conferences
and other learning tools
• Survey staff to assess service and/or training gaps in each department and the City organization, as a whole.
------------------------------------------------------------------------- • Use the above-mentioned (succession plan) education/experience assessment and cross reference with survey/interviews..
------------------------------------------------------------------------- • Identify training opportunities/conferences, including complimentary webinars, for each department.
Build a high-performance culture
that both yields efficient results and
increases staff retention
• Review and analyze potential standards to define and measure high performance culture.
------------------------------------------------------------------------- • Survey and initiate standards for efficiency.
------------------------------------------------------------------------- • Survey and initiate standard retention goals, to include impediments and opportunities.
GOAL #4:
CONTINUE INVESTING IN A
WINNING TEAM AT CITY HALL
STRATEGIC GOAL WORKPLAN HIGHLIGHTS
CITY MANAGER
50 CITY MANAGER
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Objective Tactical Steps
Complete the Housing Element
certification process and begin
implementation
Work with the State Department of Housing and Community Development to complete the review and certification of the Housing Element.
Update the General Plan • Secure the services of a consultant to update the General Plan, which will include land-use strategies for the redevelopment of shopping centers and commercial sites with mixed-use.
------------------------------------------------------------------------- •Complete the General Plan Update
Update Council and community on
affordable housing progress and RHNA
obligations
Continue annual reporting to the City Council on the status of development projects and Housing Element RHNA (Regional Housing Needs Allocation) progress.
GOAL #6: DEVELOP A COMPREHENSIVE LAND-USE STRATEGY
STRATEGIC GOAL WORKPLAN HIGHLIGHTS
CITY MANAGER
Objective Tactical Steps
Identify and set priorities related to
major infrastructure
Review and refine policy for prioritizing capital projects as part of the budgeting process.
Continue progress on the Capital
Improvement Plan
Continue to update the City Council on progress during the mid-year CIP progress report process.
Devise a plan for funding the Parks and
Recreation Facilities Master Plan
Identify grant opportunities, sponsorships, partnerships, and available Capital Improvement funds for projects called out in the 5-year Park Master Plan Action Plan.
Devise a plan for funding facilities
assessment and maintenance
Maintain and refine the recently established Facility Replacement Fund to address the backlog of large unfunded maintenance and infrastructure projects.
GOAL #5: PLAN AND FUND MAJOR INFRASTRUCTURE
Objective Tactical Steps
Devise strategies to expand retail and
attract businesses
• Develop an Economic Development strategyin conjunction with the General Plan update.
------------------------------------------------------------------------- •Continue to implement the BusinessAttraction Grant program.
GOAL #7: DEVELOP A COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 51 ADMINISTRATIVE SERVICES
RISK MANAGEMENT
Risk Management is a unit under the Administrative Services Department. The Administrative Services Director works with Departments to eliminate or mitigate potential risk and preserve public property, as well as manage the City’s Workers’ Compensation Program.
The City is a member of the Municipal Pooling Authority (“MPA”), a joint powers agency that is governed by a board of member municipalities. The City’s deposits with the Municipal Pooling Authority are in accordance with formulas established by the Municipal Pooling Authority. Actual surpluses or losses are shared in accordance with a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
COUNCIL STRATEGIC GOAL
OBJECTIVES:
• Preservation of the
City’s assets and public
service capabilities
from loss, destruction
and depletion.
• Systematized
internal procedures
for identifying and
constantly reassessing
the fluctuating
exposures to risk, and
implementing courses
of action to minimize
or eliminate that risk.
• The establishment,
to the extent possible
of an exposure-free
work and service
environment in which
the City personnel and
members of the public
can enjoy safety and
security in the course
of their daily pursuits.
• Protection against
the financial
consequences of
catastrophic loss
through avoidance,
risk transfer, and/or
purchased insurance.
Reduce exposure to litigation and claims.
• The City has been successful in reducing claims and litigation over the past few years. Efforts to continue this trend include updates to the city’s standard form of contracts and the development of specialty contract models, the investment of monies to address key infrastructure issues like the maintenance of trees and the filling of major potholes. However, the more recent period has seen an uptick in claims and possible litigation.
PERFORMANCE MEASURE FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 # of Workers Compensation claims 19 15 25 10 10
# of General Liability claims 17 17 14 20 20
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
52 City Manager
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 334,817$ 359,572$ 367,613$ 379,963$ Contractual Services 1,581,320 2,197,448 1,822,800 2,036,834 Other Operating Costs 23,320 21,247 35,000 29,400 Cost Allocation 73,941 82,735 85,217 86,922 2,013,398$ 2,661,002$ 2,310,630$ 2,533,119$
Expenditures By Fund/Program
General Fund
City Manager 532,417$ 565,210$ 553,611$ 562,720$ Risk Management 1,480,981 2,095,792 1,757,019 1,970,399 2,013,398 2,661,002 2,310,630 2,533,119
Expenditure Trends
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
53 ADMINISTRATIVE SERVICES
HUMAN RESOURCES
In support of the City’s principles, values and vision, it is the goal of the Human Resources Department to support the total operation in meeting its goals through its most valuable resource – its people. The Human Resources office strives to develop an attitude of teamwork and quality in
our day-to-day
operations; create
an atmosphere that
fosters challenges,
fun and safety;
and commit to
doing and to acting
openly, equitably
and consistently
in our pursuit of
uncompromising
quality.
OBJECTIVES:
To act as a catalyst
to enable all
City of Hercules
employees to contribute
at optimum levels
toward the success of a
greater community by:
• Attract and retain a
highly qualified, diverse
workforce.
• Offering a competitive
salary and benefits
package and developing
the full potential of
our workforce by
providing training and
development for career
enhancement.
• Foster amicable
employee/labor
relations.
• Promote employee
safety, wellness, high
productivity and
performance.
• Ensure compliance
with laws and regulations
• Maintain consistency
and fairness when
implementing and
administering policy
decisions and direction.
COUNCIL STRATEGIC GOAL
Provide a means for employees to report concerns of possible wrong doing (whistle-blowing).
• The City maintains a whistleblower hotline through a third party and regularly makes that information available to employees.
Continue a formal volunteer program to help various departments. • The Police Department makes good use of volunteers in a variety of roles with two volunteers added to the roster recently.
A cadre of Police volunteers is also now working in support of our voluntary code compliance efforts to enhance the community.
Volunteers were utilized in the recent upgrades at the Ohlone and Foxboro community Centers. In Parks & Recreation volunteers support a variety of events and activities.
PERFORMANCE MEASURE FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 New Hires 46 13 42 44 44
Tuition Reimbursements 7 3 5 5 5
Tuition Reimbursement Amounts $11,590 $8,375 $13,054 $15,311 $15,311 CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
54 Human Resources
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 127,931$ 315,408$ 440,636$ 455,100$ Contractual Services 289,654 155,780 86,400 42,900 Other Operating Costs 8,163 26,330 22,500 68,100 Cost Allocation 42,949 48,918 50,386 51,394 468,697$ 546,436$ 599,922$ 617,494$
Expenditures By Fund/Program
General Fund
Human Resources 468,697 546,436 599,922 617,494 468,697 546,436 599,922 617,494
Expenditure Trends
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
55 The Office of the City Clerk serves as a liaison between the public and the City Council. The City Clerk ensures that the City’s democratic and legislative decision-making processes are properly executed, recorded, archived and administered in accordance with federal, state and local statutes and regulations.
As the City’s Elections Official and Political Reform Act compliance officer, the City Clerk administers municipal elections from election pre-planning to the declaration of election results; and ensures compliance and the timely filing of matters pertaining to the Political Reform Act.
The City Clerk serves as the Clerk of the City Council and ensures that meetings of the City Council follow the Brown Act (open meeting laws). The Office of the City Clerk prepares and distributes the legislative agenda, records all legislative actions of the Council, performs attestations, administers Oaths of Office, verifies that legal notices have been posted or published, and administers the boards and commissions appointment process.
The City Clerk is the Custodian of Records and archives and is responsible for compliance with the Public Records Act. The Office of the City Clerk administers the City’s Records Management Program for the Preservation, Protection, Retention and Legal Disposition of the City’s Records which includes receiving and responding to public records requests in adherence to all the provisions of the Public Records Act.
The Office of the City Clerk staff greet and assist the public at City Hall and provide administrative support for business license application processing and the filing of claims presented to the City.
CITY CLERK
CITY CLERK
OBJECTIVES:
• To ensure open
access to information,
documents, and the
legislative process.
• To ensure fair and
impartial elections.
• To maintain the
official record of
all City Council
proceedings.
• To develop and
maintain on-going
efforts that increase
transparency in city
government.
• Perform other
State and municipal
statutory duties.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
56 CITY CLERK
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
PERFORMANCE MEASURE FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 City Council Meeting Agendas 21 21 21 21 25 26
Finance Commission Agendas 6 6 6 6 3 9
Planning Commission Agendas 23 24 24 24 8 5
Community & Library Services Commission Agendas 12 12 12 12 10 10 Economic Development Subcommittee Agendas - 1 2 - - 2 Public Safety & Traffic Subcommittee Agendas 2 1 - 2 - 1 West Contra County Mayors & Supervisors Association 4 - 5 - - 2 Public Comments at City Council Meetings - - - - 41 114 Public Records Request 38 34 46 66 39 92
CITY CLERK
CITY CLERK PERFORMANCE GOAL:
Develop an updated comprehensive records management program including a records management policy and a retention schedule designed to control the creation, acquisition, processing, maintenance, storage, and final disposition of all recorded information, regardless of form or media, handled during normal business practices.
The Office of the City Clerk aligns its objectives and strategies with City Council Strategic Goal #3: Improve Community Transparency and Communication.
THE OFFICE OF THE CITY CLERK SERVICE AREA OBJECTIVES AND STRATEGIES PHASE Phase Tasks % Complete
Phase 1: Update current policies,
procedures and Retention Schedules
Review and assess current storage, records management policies, procedures and retention schedules. Research governmental and regulatory minimum required retention periods 100%
Phase 2: Retention Schedule Training Develop a records retention reference guide. Schedule training. 25% Phase 3: Inactive & Obsolete Records
Review
Identify and determine designation (permanent storage or disposition) of inactive and obsolete records. Repackage inactive records for proper permanent storage, prepare designated obsolete records for disposition.
50%
Municipal Elections Clerk of City Council Custodian of Records Objective 1: Ensure fair and impartial
elections.
Objective 2: Maintain the official
record of all City Council proceedings.
Objective 3: Ensure open access to information,
documents, and the legislative process.
Objective 1 Strategies:
1a. Open access to Municipal elections
information and resources including Public
Notices of Election, nomination process
and posting guidelines, candidates and filing
deadlines on the City website.
1b. Provide links to elections resources, voter
registration, polling information, and Election
results on the City website.
1c. Declare and attest election results and
retain election records as required by law.
Objective 2 Strategies:
2a. Post for open access City Council and
Commission meeting notices on the City
website, at City Hall, and the Community
Center.
2b. Record proceedings and attest to the
actions of City Council.
2c. Retain City Council records per the
adopted retention schedule.
Objective 3 Strategies:
3a. Accept public records requests online, in person, or over the phone.
3b. Post adopted minutes and video recording of meetings on the City website.
3c. Post link to access records repository on the City
website.
3d. Review and update the City’s records management
program as needed to ensure alignment with changes in
regulations/legal requirements.
57 City Clerk
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 217,840$ 273,646$ 271,048$ 283,057$ Contractual Services 24,306 77,240 143,600 146,472 Other Operating Costs 19,212 16,606 29,800 30,396 Cost Allocation 75,966 85,095 87,648 89,401 Capital Outlay 5,000 5,000 5,400 5,508 342,324$ 457,587$ 537,496$ 554,834$
Expenditures By Fund/Program
General Fund
City Clerk 328,751$ 443,422$ 497,296$ 513,830$ Outreach 413 405 400 408 Cable TV 13,160 13,760 39,800 40,596 342,324$ 457,587$ 537,496$ 554,834$
Expenditure Trends
-
100,000
200,000
300,000
400,000
500,000
600,000
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
58 CITY ATTORNEY
CITY ATTORNEY
KEY PRIORITIES
2026-27:
• Provide high-
quality legal services
in a cost-effective
manner
• Develop and
recommend
strategies to reduce
legal risk and
exposure to liability
• Work to minimize
litigation exposure
and resolve litigation
in an effective
manner
• Effectively manage
special counsel
contracts and
services
Appointed by the City Council as the City’s chief legal advisor, the City Attorney provides all legal services and advice to the City Council, Commissions, and staff. The City Attorney represents the City in all litigation, and manages any special counsel services, including when used for litigation. Elements of the City’s risk management efforts and claims administration are also handled by the City Attorney.
Serving as the City’s legal counsel, the City Attorney contributes to the City’s overall operation in a multiplicity of service areas and in support of all Strategic Plan goals, and in particular Goal H and two related strategies:
Continue to Provide Exemplary Governance and City Administration Strategy 1: Improve administrative processes and overall quality of executive and administrative management.
Strategy 3: Provide and enhance exemplary governance.
PERFORMANCE INDICATOR FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 # of developer projects 7 5 9 7 7
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
59 • Perform all requested legal work
and review and prepare required
documents and contracts in a
timely manner, including ordinances,
resolutions, legal opinions, and contracts
and agreements.
• Provide the City Council with regular
litigation and claims updates, including
assessment of success, liability, and
advise as to how to best manage and
respond to pending or active litigation
and claims.
• Review all agenda items, staff
reports, and related attachments for
consideration by the City Council, and
Commissions as needed, including
assessing and ensuring compliance
with law and best practices from a
legal perspective, approving required
documents as to form, advising staff and
the City Council on those matters.
• Facilitate the City’s public
improvements and private
development projects through on-
going support of these activities,
including consideration by the Planning
Commission and City Council of private
development, preparation and award
of bids for public projects, assisting
with contract award and management,
resolution of legal issues which may
arise, and close-out of completed
projects and assisting with any claims
which may arise.
• Identify on a pro-active basis any
opportunities to avoid exposure to
legal risk or concerns and take steps to
do so, including regularly consulting with
the City Council, City Manager, and staff
on up-coming projects and activities,
monitoring the changing legal landscape
and new case law, and engaging with a
variety of stakeholders to better assess
areas of possible concern.
CITY ATTORNEY
CITY ATTORNEY
WORKPLAN HIGHLIGHTS:
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
60 City Attorney
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits - - - - Contractual Services $223,043 $206,188 $255,000 $260,000 Other Operating Costs - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - $223,043 $206,188 $255,000 $260,000
Expenditures By Fund/Program
General Fund $223,043 $206,188 $255,000 $260,000
Expenditure Trends
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Contractual Services
61 FINANCE
FINANCE
KEY PRIORITIES
2026-27:
• Budget
Development and
Management
• Financial
Reporting
• Financial Analysis
• Revenue
Collection:
• Debt Management
• Payroll Processing
• Vendor Payments
• Cash Flow
Management
• Procurement
Oversight
• Business License
Administration
The Finance Department holds the essential responsibility of providing fiscal oversight and controls for the City and its associated agencies, including the Successor Agency and the Public Financing Authority. This Department is integral to budgeting, accounting, revenue collection, and the protection of citywide assets.
To ensure prudent and effective management of the City’s fiscal resources, the Department undergoes an external audit annually.
Furthermore, it provides critical internal support to all city departments and offers reporting services designed to enhance accountability, facilitate strategic planning, and support decision-making.
The Finance Department is committed to delivering timely financial information while upholding a standard of excellence in customer service for both external and internal stakeholders. Additionally, the Department is responsible for coordinating and completing the annual audit for all City funds, as well as related audits for the Wastewater fund, federal funds, Measure B (Additional Sales Tax), and Measure N (Utility Users Tax).
734 665 819 995 971
OPERATING INDICATORS
Number of Business Licenses Issued
2016 2017 2018 2019 2020 2021
City of Hercules, Last Ten Fiscal Years
1,103
2022 2023 2024 2025
1,184 1,147 1,157 1,123
PERFORMANCE INDICATOR FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Journal Entries 361 205 189 195 245
Cash Receipt 677 607 476 490 872
Accounts Payable 282 188 149 153 128
Budget Adjustments 9 5 12 13 12
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
62 FINANCE
Objectives and Tactical Steps:
• Improve efficiency through a budget review
process.
• Continue to improve and create a more robust
Capital Improvement Plan (CIP) with special attention
to service delivery methodology, addressing deferred
maintenance and prioritizing projects.
• Explore revenue sources to meet current
and future needs.
• Present to Council future revenue-generating
options that include:
• Sales Tax (based on feasibility study)
• Other future opportunities:
• Grant Opportunities
• Lease Revenue/Certificate of Participation
(COP) bonds
FINANCE
COUNCIL STRATEGIC GOALS:
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
KEY PRIORITIES 2026-27:
The Finance Department is committed to ensuring effective financial management that fosters the City’s sustainable growth and upholds fiscal responsibility. Our areas of focus include:
• Budget Development and Management: Responsible
for preparing and overseeing the City’s annual and multi- year budgets, ensuring alignment with City Council policies and priorities.
• Financial Reporting: Prepares accurate and transparent financial reports, including the Annual Comprehensive
Financial Report (ACFR), to facilitate informed decision- making and ensure accountability.
• Financial Analysis: Conduct a comprehensive financial analysis to assess the City’s financial health, identify potential risks, and formulate strategies for enhancement. • Revenue Collection: Our team oversees the collection
of diverse revenue streams, including taxes, fees, and
grants, to ensure adequate funding for essential City
services.
• Debt Management: Manage the City’s debt portfolio,
encompassing the issuance and repayment of bonds to
maintain long-term financial stability.
• Payroll Processing: The department efficiently
processes employee payroll to ensure timely and accurate payments while adhering to all relevant regulations.
• Vendor Payments: Ensure the timely processing of
vendor payments and maintain meticulous records for all transactions.
• Cash Flow Management: Oversight of cash flow
management ensures sufficient funds are available to
meet all financial obligations while maximizing investment returns.
• Procurement Oversight: Manage the procurement of
goods and services for the City, ensuring cost-effectiveness and compliance with applicable regulations.
• Business License Administration: The department
administers business licenses and ensures a streamlined compliance and regulation process.
Through these activities, the Finance Department strives to uphold the highest standards of financial integrity and contribute to the City’s overall fiscal health.
TAKE STEPS TO ADDRESS THE CITY’S FISCAL SUSTAINABILITY
63 ADMINISTRATIVE SERVICES
INFORMATION TECHNOLOGY
The Information Technology Department is
dedicated to managing the City’s technology
infrastructure and ensuring efficient daily
operations. We leverage information and
communications technology to design, select,
and implement a range of solutions that
support the City and its various departments
in delivering services and achieving strategic
objectives, thereby fostering growth in
technology and telecommunications.
The department collaborates closely with all City departments and provides comprehensive support for network users and mobile devices.
Additionally, we maintain data centers, server networks, switches, routers, and a variety of software applications.
IT STRATEGIC GOALS
OBJECTIVES:
• Deliver timely desktop
computer support to C
ity staff.
• Maintain and support software
applications, inclu
ding those
critical to public safety services.
• Execute necessary updates
for software applic
ations as
required.
• Ensure reliable connectivity
among network rout
ers,
switches, and devices to facilitate
the availability and dependability
of services for City staff and
external customers.
• Establish and maintain servers
for new application
s.
• Implement prioritized
recommendations out
lined in
the IT Master Plan.
The City’s IT strategic goals are designed
to enhance service delivery through
modernization and innovation, foster
digital inclusion, improve customer
experience, and fortify cybersecurity
measures.
Customer Service and Engagement:
• Enhance online access to City services.
• Streamline interactions and
communication with
citizens.
• Employ technology to elevate customer
experience.
Digital Wor
kplace:
• Support a flexible and efficient digital
workforce.
• Moderni
ze internal processes and
workflows to enhance p
roductivity.
• Foster collaboration and communication
within city governmen
t.
Infrastructure and Operations:
• Maintain and upgrade the City’s
IT infrastructure
to ensure optimal
performance.
• Provide reliable and secure IT services for
all city operation
s.
• Optimize resource allocation and
budgeting for maxim
um efficiency.
Security:
• Safeguard city data and systems against
cyber threats.
• Ens
ure the resilience of City services
in the face of natural d
isasters and
emergencies.
Innovation and Technology Roadmap:
• Develop a comprehensive roadmap for
future technology
investments.
• Explore and implement emerging
technologies to enhan
ce City services.
• Stay proactive in navigating the evolving
technology landsc
ape.
Data and Analytics:
• Leverage data to inform strategic
decision-making a
nd improve city services.
• Evaluate the effectiveness of IT initiatives
and programs through r
obust data analysis.
PERFORMANCE MEASURE FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 # tickets 2,043 2,080 2,500 3,000 3,100
# of upgrades 80 10 120 150 150
# of software installation 5 15 10 10 5
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
PERFORMANCE GOALS FY 2023 FY 2024 FY 2025
Percentage of software applications supported citywide 70% 70% 80% Employee service request fulfilled with 7-10 days 90% 90% 95% 64 Finance
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $1,093,374 $1,182,214 $1,185,837 $1,305,848 Contractual Services 723,187 671,855 900,924 919,595 Other Operating Costs 276,987 215,653 296,146 296,046 Cost Allocation 242,755 219,112 225,685 230,199 Capital Outlay 56,002 5,473 - 30,000 2,392,305 $ 2,294,307 $ 2,608,592$ 2,781,688 $
Expenditures By Fund/Program
General Fund $1,355,417 $1,242,775 $1,458,595 $1,492,218 Internal Service Fund
Information Technology (IT) Operations 1,036,888 1,051,532 1,149,997 1,259,470 IT Equipment Replacement - - - 30,000 2,392,305 $ 2,294,307 $ 2,608,592$ 2,781,688 $
Expenditure Trends
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
65 POLICE
POLICE
COMMUNITY
SERVICE
We focus on being
professional and
compassionate while
committing to public safety.
Our mission is to serve our
community with honor
and create community
partnerships though positive
and transparent engagement.
We adhere strictly to our core
values of loyalty, duty, respect,
service, humility, integrity, and
perseverance ... LDRSHIP .
We maintain a caring attitude
and empathize with those we
serve. We welcome and seek
an active partnership with the
community in carrying out our
responsibilities.
We recognize that to be an
effective law enforcement
agency we must have the
support, confidence, and trust
of our community. We work
diligently to be a part of this
community and not apart
from it.
The Hercules Police Department has 26
sworn officers and 5 non-sworn full-time
positions within numerous operating units
and Divisions, including Patrol, Investigations,
Traffic, Records and Property and Evidence.
The HPD is responsible for protecting
the City’s residents, property owners, and
businesses by patrolling 10.6 square miles of
Hercules using cars, bicycles, and motorcycles.
The Department fosters a problem-solving,
community policing philosophy, and works
collaboratively with policy makers, the City
Manager’s Office, and the community to
address problems of crime and property
damage.
OPERATING INDICATORS
Calls for Service Hercules Police Department Last Ten Fiscal Years 2016 2025 2016 2025 2016 2025
2016 2017 2018 2019 2020 2021 2022 2023
0 500
1000
1500
2000
2500
Part 1 & 2
Crimes
Arrests Traffic
Violations
571
1,022
245
441 518
1,146
7,707 13,142 16,245 16,918 29,935 25,784 26,071 25,196
2024 2025
24,223 25,696
CONTACT
INFORMATION
Phone:
(510) 799 8260
Office Address:
111 Civic Drive,
Hercules CA, 94547
Office Hours:
M-TH, 8 AM-5 PM
Website:
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Hercules
Police Department
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
66 POLICE
POLICE
PUBLIC SAFETY
Keeping our community, and visitors safe while
improving the overall quality of life.
BUILDING TRUST
through open and honest engagement with the
community we serve.
CRIME PREVENTION
Utilizing technology and industry practice.
PROVIDE EFFICIENT COMMUNICATION
Consistently and accurately.
AUTHENTIC COMMUNITY EVENTS
to build and foster positive relationships with our
community which instills trust in our department.
• We will continue to provide traffic
safety, enforcement, and education
services to the community
• We will continue to coordinate
disaster preparedness
with Fire, Emergency
Medical Services and
the County and State
Office of Emergency
Services.
• Critical training for
all Department personnel will
continue to be provided including Crisis
Intervention Team (CIT), De-Escalation
Tactics, Procedural Justice, and Racial
Profiling, and Officer Wellness.
• Parolees, probationers, and
registered sex offenders living within
Hercules will continue to be strictly
monitored.
• We will continue to seek Federal,
State, and other funding to enhance
staffing and equipment.
WORKPLAN HIGHLIGHTS:1
2 3
4 6
RECRUIT, HIRE AND DEVELOP
qualified men and women to maintain quality
service for the present and future of this community
5 CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
67 Police
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 6,848,157$ 7,009,221$ 7,536,154$ 7,906,181$ Contractual Services 1,089,136 1,200,396 853,671 1,155,514 Other Operating Costs 463,304 437,731 329,188 267,014 Cost Allocation 790,179 889,904 916,411 935,239 Capital Outlay 20,227 - 100,000 - 9,211,003$ 9,537,252$ 9,735,424$ 10,263,948$
Expenditures By Fund/Program
General Fund
Administration/Inspection/Support 4,288,984$ 4,313,706$ 4,289,699$ 4,645,907$ Patrol 4,870,976 5,201,147 5,345,725$ 5,618,041
9,159,960 9,514,853 9,635,424$ 10,263,948
Asset Forfeiture 51,043 22,399 100,000$ - 9,211,003$ 9,537,252$ 9,735,424$ 10,263,948$
Expenditure Trends
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
68 COMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT
KEY PRIORITIES
2026-27:
• Begin a comprehensive
General Plan Update,
including the Land Use,
Economic Development,
Circulation, Open Space &
Conservation, and Noise
Elements
•Develop a strategy to bring
the Hercules Hub station
area into partial compliance
with the regional Transit-
Oriented Communities
Policy
•Steward the City’s Housing
Successor Agency funds
and loans
•Expand the City’s tax
base through quality
development, including the
Bayfront project and other
housing developments
•Continue attracting
desired new businesses to
Hercules by replenishing
the funds for the successful
Business Attraction Grant
program, if Council directs
•Pursue other new business
attraction and retention
initiatives as directed by the
Council
The Community Development Department provides information and advisory services to decision makers and the public regarding the growth and development of the community to ensure balanced and appropriate land use. The Community Development Department processes development applications in accordance with the City’s adopted General Plan and zoning ordinance, maintains and updates the City’s codes, General Plan and other long-range plans, and provides staff support to the City Council and Planning Commission as well as other City departments. In addition, the Community Development Department responds to public inquiries regarding zoning, land use, use permits, and development standards. The Community Development Department is also responsible for fostering the City’s economic development, including business assistance grants and incentives. Community Development includes the Planning, Building, and Code Enforcement Divisions, which ensure the safety of the citizens of Hercules through enforcement of state and local codes, standards, and regulations. The Department works diligently to ensure that all new construction meets the standard of construction required by the codes and that all existing structures are maintained in a safe condition.
782 778 756 811 815675
1,016 1,013
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
944 862
OPERATING INDICATORS
Number of Building Permits issued
City of Hercules, Last Ten Fiscal Years
PERFORMANCE INDICATOR FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 # of Administrative Use Permits 59 49 38 38 35
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
69 COMMUNITY DEVELOPMENT
• Initiate the process
of updating the City’s
General Plan to reflect
current conditions and
goals.
• Leverage $5 million
in remaining Housing
Asset Funds from the
former Redevelopment
Agency to support one or
more affordable housing
developments.
• Maintain a safe and
attractive community,
including enforcing the
City’s codes and ensuring
new development adds to
the overall quality of the
community.
• Expand the City’s
tax base through new
development, including
facilitating the start of
construction of approved
developments.
• Enhance the City’s
economic base, including
developing and managing
business attraction
programs, with an
emphasis on attracting
restaurants, cafés and
other uses that expand the
City’s tax base as well as
its vibrancy.
• Identify and pursue
grant opportunities
for the Hercules Hub,
including working with
our regional partners,
advancing the design
of the next phases and
building support for
the project among key
constituencies.
COMMUNITY DEVELOPMENT
WORKPLAN HIGHLIGHTS:
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
70 Community Development
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $378,754 $564,686 $606,924 $614,394 Contractual Services 306,904 345,417 1,799,482 303,100 Other Operating Costs (60,031) 83,319 21,924 20,600 Cost Allocation 82,777 93,693 96,504 98,433 Capital Outlay 40,596 - 150,000 - $749,000 $1,087,115 $2,674,834 $1,036,527
Expenditures By Fund/Program
General Fund $723,145 $1,021,000 $1,104,239 $1,036,527
DIF-Public Facilities - - - - Community Development Fund - - - - Development Fee - - - - DIF-Police Facilities 830 - - - DIF-Fire Facilities - - - - DIF-Park & Recreation 39,766 - 150,000 - Public Benefit Fee - - - - DIF-Traffic Facilities - - - - STMP Traffic Impact - - - - General Plan and Training Fees - - 1,300,000 - Successor Housing (14,741) 66,115 120,595 - 749,000 $1,087,115 $2,674,834 $1,036,527
Expenditure Trends
-$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Capital Outlay
Cost Allocation
Other Operating Costs
Contractual Services
Salaries & Benefits
71 The Public Works Department constructs, maintains, and operates the City’s public infrastructure including streets, sidewalks, traffic signals, bridges, streetlights, storm drain system, stormwater basins, creeks, sewer collection system, landscaping, parks, urban forest, and public buildings.
The Department is staffed with 13 employees and is organized into two Divisions overseen by the Public Works Director/City Engineer who reports to the City Manager.
The Engineering Division administers the City’s Capital Improvement Program including grant funding, reviews and inspects grading and public improvements on private development projects, reviews traffic engineering, and administers the City’s Clean Water Program. The Division also responds to public inquiries, administers the sewer lateral certification program, and issues encroachment permits, grading permits, and wide-load permits. The Engineering Division consists of 2 employees, an Associate Engineer and Public Works Inspector, in addition to the City Engineer.
The Maintenance & Operations Division maintains the City’s public parks, streets, sidewalks, infrastructure and public facilities. This division makes certain that the stormwater and wastewater discharged into San Pablo Bay is clean through the City’s Creek and Stormwater Basin Maintenance Program, Storm Drain Maintenance Program, Street Sweeping Program and Sanitary Sewer Program. The Division also abates graffiti and cleans up illegal dumping. It is staffed with a Maintenance Superintendent and 7 Maintenance Workers.
The Lighting and Landscaping Division maintains the City’s Lighting and Landscaping Assessment Districts. They maintain the City’s public parks, landscape medians, urban forest, eliminate safety hazards with the City’s Fire Break Program in open spaces and provide tree trimming in parks and streets. It is staffed with a Landscape and Lighting Program Coordinator.
A Management Analyst reporting directly to the Public Works Director/City Engineer provides administrative support to the Department on budgeting, managing grant funding, contract, processing invoices, and other related office support.
PUBLIC WORKS
PUBLIC WORKS
KEY PRIORITIES
2026-27:
• Continue to aggressively
pursue grant funding for
the City’s CIP projects
• Support funding
mechanisms for street
rehabilitation projects
• Advance the Hercules
Hub
• Effectively manage
day-to-day operations to
ensure Hercules keeps
its reputation as a well-
maintained City
• Expedite processing
of private development
projects
• Utilize Capital Reserve
funding to improve public
infrastructure
• Increase oversight of City-
wide public facilities
• Improve Day to Day
oversight of Storm and
Sewer facilities
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
72 PUBLIC WORKS
PUBLIC WORKS
The Public Works Department supports the
achievement of all Strategic Plan goals, and in
particular:
Goal D: Enhance Transportation Access and
Options
Strategy 1: Promote Alternative Forms of Transit
Goal G: Invest In and Enhance Maintenance of
Public Infrastructure and Facilities
Strategy 1: Re-evaluate and Make
Recommendations to Improve the City’s Capital
Improvement Programs, Clean Water Programs and
all Lighting and Landscaping Assessment Districts.
• Advance the Capital Improvement
Program, completing Facility, Street and Park
Improvement Projects throughout the City.
Accomplishments in 2025 include starting
construction of the Bay Trail Sinkhole Repair
Project, the Police Lobbies Project, Falcon Way
Pavement Rehabilitation, and the Refugio-
Foxboro Parks Improvement Project. Design
work is also underway for the Refugio Lake
Restoration Project and the Foxboro Pavement
Rehabilitation Project.
• Advancing development of the $1.15M
Design Contract for the Hercules Hub and
securing funding for Project Development and
Final Design with a $23 million grant application
for the Federal Railroad Administration’s
National Railroad Partnership Program.
• Facilitate the successful completion of
the Owl Ranch and Loop Emblem Projects,
including roadway improvements and utility
relocations.
• Increase focus on Maintenance &
Operations organizational development and
training, including cross training on Clean
Water Program asset management, operation
of sewer lift stations and HVAC systems in
buildings.
WORKPLAN HIGHLIGHTS:
The Public Works inventory includes:
60 miles
of city streets
1,494
street and
parking lot
features
14 traffic signals
7 miles
of bike lanes
62 miles
of sanitary sewers
PERFORMANCE INDICATOR FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Facility Projects 1 0 3 2 4
Parks and Open Space Projects 7 4 6 6 6
Streets Projects 5 5 5 5 2
Sewer Projects 7 1 2 1 1
Regional Transit Intermodal Center Phases 3 1 3 2 2
# of Sewer Lateral Permits Issued 143 145 98 100 36
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
73 Public Works
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits $2,618,517 $2,577,716 $2,919,989 $3,206,493 Contractual Services 3,275,993 3,465,582 3,705,184 3,934,237 Other Operating Costs 3,128,896 3,448,150 6,707,639 6,600,316 Cost Allocation 979,194 1,113,767 1,087,563 1,108,996 Capital Outlay 13,792,114 2,601,714 6,742,729 5,675,769 Debt Service 2,063,430 2,064,605 2,066,304 2,067,023 $25,858,144 $15,271,534 $23,229,408 $22,592,834
Expenditures By Fund/Program
General Fund $433,138 $520,809 $443,381 $549,638
Citywide L&L 83-2 1,716,784 1,607,967 1,911,389 2,021,559 Victoria By The Bay L&L 2002-1 766,388 680,858 697,707 716,161 Hercules Village L&L 2002-2 207,422 198,935 236,823 264,050 Baywood L&L 2004-1 141,066 139,192 183,059 186,002 Bayside L&L 2005-1 161,595 155,223 148,476 152,382 Arterial Roadways 308,731 350,216 376,790 408,042 Stormwater 398,039 495,319 392,606 432,237 State Gas Tax 603,463 689,791 693,901 1,194,791 Measure "C" Street Fund 444,631 575,359 612,868 883,402 BART Park & Ride 358,411 26,490 92,000 92,000 SB1 - RMRA 249,696 65,091 500,000 260,000 Solid Waste and Recycling 12,986 70,214 256,852 14,371 Grants 473,609 - - - GRANT FUND / STIP / RIP 1,101,014 22,920 190,500 150,000 City Capital Project 673,876 424,247 2,923,720 2,650,495 Hercules HUB 235,804 336,847 2,239,000 1,000,000 Water Quality Retention Basin 10,242 10,717 49,000 11,100 Sewer - Operations 5,613,269 6,004,808 9,543,472 9,845,754 Sewer - Capital 10,584,462 1,439,324 536,680 444,700 ISF - Equipment Replacement 162,900 192,987 - 132,645 ISF - Facilities Maintenance 1,184,248 1,261,742 1,201,184 1,183,505 ISF - IT Replacement 2,344 2,478 - - ISF - Facilities Replacement 14,027 - - - Regional Water Quality - - - - $25,858,145 $15,271,534 $23,229,408 $22,592,834
Expenditure Trends
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 FY 23-24
FY 24-25
FY 25-26
FY 26-27
Salaries & Benefits
Contractual Services
Other Operating Costs
Cost Allocation
Capital Outlay
Debt Service
74 The Hercules Parks and Recreation
Department plans, organizes,
and implements a wide range of
programs and activities for all ages:
from toddler classes through senior
activities and everything in between.
We create three seasonal guides
annually that cover a 4-month period.
At the time of this publication, we are
running Spring programs, promoting
and registering the community in our
summer programs, and planning for
Fall programs. The goal is to have
the seasonal guides in our residents’
homes 6 weeks before the start of each
season, so parents can plan in advance.
Each season the Parks and Recreation
Department features upcoming
events. Some large, some small, but
something for everyone. Programs
include Pre-school, Afterschool
(RAP), Summer Camps (Camp
Dynamite), Youth & Teen programs,
Online (virtual programs), Ed2Go (or
Lifelong Learning courses), Adult,
Senior (50+ programming), Aquatics
(swim lessons, rec swim, lap swim,
water exercise, swim teams, water
polo, and new “Scuba” lessons), as
well as Contract Classes, Sports,
Special Events, and much more.
For summer 2026, with Refugio Valley
Park being under for construction
of shade structures, picnic sites, and
parking lot, as well as the potential
dredging of the lake, Refugio Valley
Park will have limited availability. We
still plan to hold our popular Movies
in the Park – however the location
for each is to be determined. We
will continue to offer the Cultural
Festival, National Night Out, Unity
Day, Trunk or Treat, PUMPKATAAZ,
Tree Lighting, Breakfast with Santa,
etc. However, the fireworks will not
be a part of the program this summer.
The land is not available. We plan to
transition to a parade and fair in future
years for the 4th of July, so look for
this in 2027.
We will continue to offer the Spring
into Wellness (Senior Health), the
Rec EGGs-Po featuring a Hydro
Hunt (egg hunt in the pool), and
many other events. The community
has responded to all of these great
programs and continues to support
day-to-day programs like RAP, swim
lessons, and Tiny Tots.
Parks and Recreation also works with
our volunteer groups at our Senior
Center, the T.Y.C. (Teens and Youth
Council), Adopt-A-Trail/Adopt-A-Park
program, and more. These volunteers
help our department provide services
and activities in support at our
community-wide special events and
facilities and even help keep parks
clean.
But the real strength of recreation
is the opportunities we provide
to increase your personal health,
allowing you to focus on quality
of life, reduce self-destructive and
anti-social behavior, build strong
families and healthy communities,
reduce health care, social services,
and police/justice costs, and produce
significant economic generators in
the community. It’s a well-known
fact that recreation improves work
performance, increases productivity,
decreases absenteeism, decreases
staff turnover, and reduces on-the-
job accidents. We look forward to
continuing delivering high quality
programming and events for our
community in the 2026-27FY.
PARKS AND RECREATION
PARKS AND RECREATION
GOALS:
• Offer fun and exciting events to
the community (like the Trunk or
Treat and Lunar New Year).
• Keep growing programs and
improving rentals to generate
revenue for the City.
• Continue to follow the trends in
the industry, and constantly look
to create new programs.
• Concentrate on our
department’s strongest programs
and help ensure that they thrive.
• Continue to work on important
projects like CIP and grant funded
projects; i.e. Beechnut Mini Park
project (Prop 68 - Clean Water
and Parks Act).
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
75 13 Parks
9 Playground
Structures
8 Picnic Areas
8 Tennis Courts
5 Swings
5 Recreation
Centers (including
a Teen Center and
Senior Center)
4 Outdoor
Basketball Courts
3 Childcare Facilities
3 Multi-Use Fields
2 Baseball/Softball
Fields
2 Soccer Fields
2 Horseshoe Pits
2 Bocce Ball Courts
2 Gazebos
2 Pools
1 Gymnasium
1 Dog Park
1 Outdoor Fitness
Par Course
1 All Abilities Swing
and miles of trails
to walk, hike, bike,
skate, etc.
PARKS AND RECREATION
PARKS AND RECREATION
• Continue to
grow our brand.
• Provid
e
quality citywide
c
ommunity
events.
• Add new
contractors to
meet ne
eds of the
community.
• Follow the
trends and adjust
pro
grams based
on community
input.
WORKPLAN
HIGHLIGHTS:
FACILITIES
EVENTS:
• Cultural Festival
(Su 6/7/26)
• Juneteenth (Sa
6/13/26)
• Movie Nights –
Summer Series
(6/26, 7/17, and
8/4/26)
• National Night
Out (Tu 8/4/26)
• Unity Day (W
10/21/26)
• Trunk or Treat &
PUMPKATAAZ (F
10/30/26)
• Holiday Tree
Lighting (Su
12/6/26)
• Breakfast with
Santa (Sa 12/12/26)
• Lunar New Year
(Su 2/20/27)
• Spring Into Well-
ness (Tu 3/30/27)
• Rec EGGs-Po fea-
turing Hydro Hunt
(Sa 3/27/27)
• Community
Clean-up Day (Sa
5/1/27)
• Cultural Festival
(Su 6/6/27)
• And more…
PERFORMANCE INDICATOR FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 YOUTH & TEENS: # of youth programs 8 - 10 13 -
# of youth attendees 112 - 243 178 -
AQUATICS: # of aquatics programs 2 4 9 308 328
# of aquatics attendees 533 1,098 1,943 2,128 2,390 RECREATION CLASSES: # of recreation programs 4 3 16 24 397 # of recreation attendees 124 16 500 398 3,746
PRESCHOOL/GRADESCHOOL:
# of preschool/gradeschool programs
8 - 11 9 9
# of preschool/gradeschool attendees 869 - 2,510 2,482 3,755 SENIOR S: # of senior programs 14 - 14 21 25
# of senior attendees 2,778 - 5,984 15,655 21,045
# of meals served 3,399 8,212 5,124 6,662 8,858
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
ACCOMPLISHMENTS
• Received (2) playground grants for $89,000 for Foxboro Park, and $94,000 for Hanna Ranch Park.
• Completed the Foxboro Playground and Basketball Court project, and the Shade Structure and Picnic site refurbishment project at Refugio Valley Park. • Smaller projects included the replacement of the slot drains around the pools at the Hercules Swim Center, repaired the floor at Ohlone Community Center, refurbished the gym floor Community Swim Center, and the dance floor at the Senior Center.
• Delivered outstanding events in the 2025-26FY, including but not limited to the 4th of July Fireworks Celebration at the Bay Front, National Night Out, Movie Nights, Trunk or Treat & PUMPKATAAZ, the 125th Anniversary and Tree Lighting (at City Hall), Spring into Wellness, Rec EGGs-Po/Hydro Hunt, the Senior Food Program (Brown Bag program), Community Cleanup Day and many more. • Trainings: Staff attended the CPRS Conference in Long Beach, the Fall Institute in Woodland, the Summer Leader Institute Pleasant Hill, CPO Certification, AED/CPR Training, and several internal online trainings.
76 Parks & Recreation
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Salaries & Benefits 1,874,264$ 2,161,769$ 1,879,831$ 2,057,145$ Contractual Services 423,759 318,511 367,628 401,550 Other Operating Costs 95,494 162,477 101,600 104,100 Cost Allocation 306,983 275,778 351,687 291,169 2,700,500$ 2,918,535$ 2,700,746$ 2,853,964$
Expenditures By Fund/Program
General Fund
Library 147,422 - 140,466 102,000 Administration 136,980 169,761 152,900 155,800 Facility Rentals 241,164 238,814 181,283 188,902 Lupine Day Camp 203,822 274,511 145,804 170,486 Ohlone Day Camp 11,253 10,693 5,962 6,060 Ohlone Child Care 181,093 216,998 236,224 248,277 Hanna Child Care 295,476 348,285 257,142 329,529 Lupine School Child Care 316,879 274,656 251,177 256,410 Recreation Classes 108,750 109,413 100,264 112,525 Senior Citizens 36,222 87,239 79,989 36,312 Tiny Tots 236,802 309,802 322,066 338,285 Swim Center 455,309 553,012 511,831 590,945 Sport Program 120,444 111,970 117,675 115,509 Teen Program 27,856 27,232 21,266 21,731 Community Center-Concession Stand 366 362 400 500 Youth/Teen Resource Center 180,662 185,787 176,297 180,693 2,700,500$ 2,918,535$ 2,700,746$ 2,853,964$
Expenditure Trends
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY 23-24
FY 24-25
FY 25-26
FY 26-27
Salaries & Benefits
Contractual Services
Other Operating Costs
Cost Allocation
77 Non-Departmental
Department Expenditure Summary
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Expenditures By Type
Contractual Services 134,827 271,217 - - Reserve and Pension Contribution 34,027 - - - Settlement Payment 9,103 680,159 103,000 - Debt Service 1,910,843 1,906,728 1,912,869 1,724,567 Transfers 3,178,016 2,688,390 2,416,616 2,166,316 5,266,816$ 5,546,494$ 4,432,485$ 3,890,883$ Expenditures By Fund/Program
General Fund 177,957$ 951,377$ 103,000$ (200,000)$ Debt Service
CalHFA Loans 200,000 200,000 200,000 200,000 Suntrust Lease - - - - Equipment Lease 235,897 235,026 245,079 255,609 2003B PFA Lease Revenue Bonds 566,537 565,030 561,212 563,162 2009 PFA Taxable Lease Revenue Bonds 908,409 906,671 906,578 905,796 1,910,843 1,906,727 1,912,869 1,924,567 Transfers
General Fund 1,498,925 890,659 866,291 880,771 AB3229 COPS Program 156,727 176,556 186,159 251,663 Citywide L&L 83-2 265,060 279,653 287,641 303,624 Victoria By The Bay L&L 2002-1 28,016 29,529 30,373 32,060 Hercules Village L&L 2002-2 7,725 8,051 8,281 8,741 Baywood L&L 2004-1 2,781 2,841 2,922 3,084 Bayside L&L 2005-1 19,055 20,136 20,711 21,861 State Gas Tax 50,342 55,965 60,558 64,812 Solid Waste and Recycling 125,000 125,000 125,000 125,000 City Capital Projects 250,000 - - - Sewer - Capital 147,173 1,100,000 536,680 444,700 Information Technology (IT) Operations 365,516 - 292,000 30,000 ISF - Facilities Maintenance 261,696 - - - 3,178,016 2,688,390 2,416,616 2,166,316 5,266,816$ 5,546,494$ 4,432,485$ 3,890,883$ Expenditure Trends
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 FY 23-24
FY 24-25
FY 25-26
FY 26-27
Contractual Services
Reserve and Pension
Contribution
Settlement Payment
Debt Service
Transfers
78 FUND SUMMARIES
79 Fund Listing
General Fund
Fund Number Fund Name Responsible Department
100 GENERAL FUND ALL
Special Revenue Funds
Fund Number Fund Name Responsible Department
101 ASSET SEIZURE Police
201 AB 3229 COPS Program Police
220 CITYWIDE L&L DIST 83-2 Public Works
221 VICTORIA BY THE BAY L&L Public Works
222 HERCULES VILLAGE L&L DIST Public Works
223 BAYWOOD ASSESS 04-1 L&L Public Works
224 BAYSIDE ASSESS DIST L&L Public Works
225 ARTERIAL ROADWAYS Public Works
231 STORMWATER ASSESSMENT Public Works
241 DIF-GEN PUBLIC FACILITIES Community Development
242 COMMUNITY DEVELOPMENT FND Community Development
243 DEVELOPMENT FEE FUND Community Development
244 DIF-POLICE FACILITIES Community Development
246 DIF-FIRE FACILITIES Community Development
247 DIF-PARK & REC Community Development
249 PUBLIC BENEFIT FEE Community Development
261 DIF-TRAFFIC FACILITIES Community Development
262 STATE GAS TAX FUND Public Works
263 MEASURE "C" STREET FUND Public Works
264 STMP TRAFFIC IMPACT FUND Community Development
266 BART (PARK & RIDE) Public Works
267 GENERAL PLAN UPDATE FEE Community Development
268 SB1 - RMRA Public Works
291 SOLID WASTE AND RECYCLING Public Works
353 AMERICAN RESCUE PLAN ACT (ARPA) Finance
387 WATER QUALITY RET BASIN Public Works
521 REGIONAL WATER QUALITY Public Works
This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City. The General Fund includes activities for police, planning, public works, operations and maintenance, and legal and administration.
These funds are used to account for the proceeds of special revenue sources that are legally restricted to expenditure for specified purposes.
80 Fund Listing
Sewer Enterprise Funds
Fund Number Fund Name Responsible Department
420 WASTEWATER - Operations Public Works
421 WASTEWATER - Capital Projects Public Works
Internal Service Funds
Fund Number Fund Name Responsible Department
450 VEHICLE REPLACEMENT FUND Public Works
460 IT OPERATIONS City Manager
470 FACILITY MAINTENANCE FUND Public Works
480 IT EQUIPMENT REPLACEMENT City Manager
490 FACILITIES REPLACEMENT Public Works
Debt Service Funds
Fund Number Fund Name Responsible Department
672 2003B DEBT SERVICE PFA Finance
673 2009 DEBT SERVICE PFA Finance
383 SUNTRUST LEASE Finance
388 EQUIPMENT LEASE Finance
Capital Projects Funds
Fund Number Fund Name Responsible Department
295 FEDERAL GRANTS - CIP Public Works
296 STATE AND LOCAL GRANTS - CIP Public Works
300 CITY CAPITAL PROJ-SINGLE Public Works
354 HERCULES HUB Public Works
These funds are used for services provided to the public on an user charge basis, similar to the operation of a commercial enterprise.
These funds are used to account for the construction or acquisition of fixed assets, such as buildings, equipment and roads. Depending on its use, a fixed asset may instead be financed by a special revenue fund or a proprietary fund. A capital project fund exists only until completion of the project.
These funds are used to account for money that will be used to pay the interest and principal of long-term debts.
Bonds used by a government to finance major construction projects, to be paid by tax levies over a period of years, require a deby service fund to account for their repayment. The debts of special assessment and proprietary funds are serviced within those funds, rather than by a separate debt service fund.
These funds are used for operations serving other funds or departments within a government on a cost- reimbursement basis.
81 Fund Listing
Agency Funds
Fund Number Fund Name Responsible Department
382 ASSMT DIST 05-01 DEBT SVC Finance
501 TAYLOR WOODROW MAINT LMOD Finance
511 OPEB AND SOMAR Finance
Private Purpose Trust Funds
Fund Number Fund Name Responsible Department
600 SUCCESSOR AGENCY FUND Finance
A fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the Hercules Redevelopment Successor Agency. The sole purpose of this fund is to retire debt of the former redevelopment agency.
These funds are used to account for assets held in trust by the City for the benefit of individuals or other entities.
Financial Statements may further distinguish fiduciary funds as either trust or agency funds; a trust fund generally exists for a longer period of time than an agency fund. 82 GENERAL FUND
83 GENERAL FUND OVERVIEW
GENERAL FUND OVERVIEW
The General Fund is the chief operating fund of the City. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The activities being paid for through the general fund constitute the core administrative and operational tasks of the City.
MAJOR REVENUE
The City strategically relies on several key revenue sources to support its General Fund budget effectively. The accompanying graph illustrates that projected General Fund revenues for Fiscal Year 2026-27 are anticipated to increase by approximately 3% compared to the Fiscal Year 2025-26 budget. This projected revenue growth is primarily attributed to enhancements in general tax proceeds, investment income, program fees associated with the reopening of Parks and Recreation programs, and adjusted franchise fees from Republic Services. A significant portion of the General Fund revenues is derived from various taxes, including the Utility User’s Tax (UUT), Sales Tax, Property Tax, Real Property Transfer Tax (RPTT), and Transient Occupancy Tax (TOT), among other tax sources.
FY 23-24
Actual
General Fund Revenue Major
Revenue
Sources:
$20 million
$21.3 million
$15.5
million
$16.0
million
$2.4 million
$0.8 million
$2.1 million
$2 million
$0.7 million
$1.8 million
$20.9 million
$16.6
million
$2.1 million
$0.8 million
$1.4 million
$21.5 million
$16.9
million
$1.7 million
$0.8 million
$2.1 million
Misc.
Interfund
Program
Revenue
Taxes
FY 25-26
Budget
FY 26-27
Proposed
FY 24-25
Actual
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
84 GENERAL FUND OVERVIEW
Sales and Use Tax
Sales tax revenue is the principal funding
source for the City’s General Fund, which is
vital for ensuring financial stability. Recent
data from the California Department of Tax
and Fee Administration (CDTFA) suggests
that sales tax revenues for fiscal year
2026-27 are projected to remain consistent
with the budget estimates for fiscal year
2025-26. It is noteworthy that over 50% of
the City’s sales tax revenues are generated
by just three key operators, indicating that
any fluctuations in their contributions could
have a substantial impact on future funding
for programs and services.
Utility User’s Tax
The Utility User’s Tax (UUT) is an 8%
tax imposed on essential utilities that
residents and businesses utilize daily.
This tax applies to services such as
electricity, gas, water, and sewer, as well
as communication services including
telephone (which encompasses cell
phone usage and long-distance
calls) and cable television. The City
is responsible for establishing the
tax rate and determining how the
resulting revenue is allocated to address
community needs and services.
For the fiscal year 2026-27, the City
projects UUT revenues to reach
approximately $4.3 million. However,
it is important to note a concerning
trend: revenues derived from Wireless
Telecommunications are experiencing a
decline. This decrease can be attributed
to telecom companies adjusting their
service packages, resulting in a greater
portion of costs being allocated to non-
taxable data services.
On a positive note, it is anticipated
that the reduction in Wireless Telecom
revenues will be counterbalanced by an
increase in UUT revenues from other
essential utilities, such as electricity, gas,
and water. This growth is primarily driven
by recent rate adjustments for these
services, aimed at addressing escalating
infrastructure requirements and ensuring
the provision of high-quality utilities
to the community. Thus, while there
are challenges to navigate, the overall
outlook for UUT revenue within the City
remains stable.
$0.4
$0.9
$0.4
$0.7 Gas
Cable
Water
Telephone
Electricity
Utility User’s Tax (UUT)
$1.9 $1.9
$1.8$1.7
$0.4
$0.8
$0.5
$0.6
$0.4
$1.0
$0.4
$0.7
$0.4
$0.8
$0.5
$0.6
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Budget
FY 26-27
Proposed
(In Millions)
$4.0 $4.2 $4.2 $4.4
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
$5.90
Million
$3.80
Million
$1.91
Million
$194,000
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Budget
FY 26-27
Proposed
Sales and Use Tax
Prop 172
1/2 Percent
(Measure B)
Bradley Burns
$5.75
Million
$5.85
Million
$5.89
Million
$3.69
Million
$3.73
Million
$3.79
Million
$1.88
Million
$1.93
Million
$1.91
Million
$188,751 $188,847 $191,000
85 GENERAL FUND OVERVIEW
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
PROPERTY TAX DOLLAR BREAKDOWN
THE CITY OF HERCULES
$ 0.01781 Wcc Hlthcare Dist
$ 0.01738 County Library
$ 0.01684 County Superintendent Of Schools
$ 0.01587 East Bay Municipal Utility District
$ 0.00736 Bart
$ 0.00214 Bay Area Air Management
$ 0.00204 Contra Costa Flood Control
$ 0.00182 Contra Costa Mosquito Abatement
$ 0.00042 County Water Agency
$ 1.0000
$ 0.3402 West Contra Costa Unified
$ 0.1609 K-12 Schools ERAF
$ 0.1595 County General
$ 0.0908 Rodeo Hercules Fire
$ 0.0542 Hercules General Fund
$ 0.0539 Contra Costa Community College
$ 0.0349 East Bay Regional Park
$ 0.0240 Community College ERAF
ATI (Annual Tax Increment) Ratios for Tax Rate Area 004-001, Excluding Redevelopment Factors & Additional Debt Service This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Prepared On 11/20/2025 By MW Data Source: Contra Costa County Assessor 2025/26 Annual Tax Increment Tables
$ 0.3402
$ 0.1609
K-12 Schools ERAF
$ 0.1595
County General
$ 0.0908
Rodeo Hercules Fire
$ 0.0542 Hercules General Fund
$ 0.0539 Contra Costa Community College
$ 0.0349 East Bay Regional Park
$ 0.0240 Community College ERAF
West Contra Costa Unified
$ 0.01781 WCC Healthcare District
$ 0.01738 County Library
$ 0.01684 County Superintendent of Schools
$ 0.01587 EBMUD
$ 0.00736 BART
$ 0.00214 Bay Area Air Management
$ 0.00204 Contra Costa Flood Control
$ 0.00182 Contra Costa Mosquito Abatement
$ 0.00042 County Water Agency
City Of Hercules Property Tax Dollar Breakdown
Property Tax
The City receives a historically low percentage
of property tax revenue compared to other
municipalities, often deemed negligible
because of its post-Proposition 13 property
tax recapture rate. It currently receives only
5% of the base 1%. While residents of Hercules
pay a high median effective property tax rate
of 1.62%, the City’s budget relies largely on
alternative revenue sources, which necessitates
the management of City services within a
relatively limited financial framework.
In the current fiscal period, the Assessor’s
office has implemented a Consumer Price
Index (CPI) factor of 2%, which reflects the
projected assessed values of properties in the
City. This adjustment is intended to ensure that
property valuations remain consistent with
prevailing economic conditions. Consequently,
the City’s allocation from the 1% property value
tax will be approximately $1.7 million for FY
2026-27.
Source: HdL Coren & Cone
86 GENERAL FUND OVERVIEW
Transient Occupancy Tax (TOT)
$29,590
$245,000
$201,833
$251,000
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Budget
FY 26-27
Proposed
Transient Occupancy Tax (TOT)
TOT, often called the “hotel tax,” is a charge levied on individuals who temporarily occupy rental properties.
Each guest who stays at these accommodations is
mandated to pay 10% of the rental amount set by the
property operator.
On October 22, 2019, the City entered into a Voluntary
Collection Agreement with Airbnb to enhance
the process of reporting, collecting, and remitting
Transient Occupancy Tax (TOT) to the City.
Furthermore, pursuant to the Development Agreement
for the Hercules Self-Storage facility, the City is entitled to receive 10% of Hercules Self-Storage Management
LLC’s rental income in place of TOT. The City began
collecting this revenue in FY 24-25, estimating an
annual revenue of approximately $200,000.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Franchise Fee
A City franchise fee is a charge imposed by local
governments on utility companies for using
public rights-of-way—like roads and sidewalks—
to provide services such as electricity and water.
This fee compensates the City for the use of
public space. The franchise fee helps cover
infrastructure maintenance costs and is crucial
for funding community projects and supporting
local finances. These fees are dictated by a
franchise agreement, which outlines the terms
of use between the utility provider and the
local government. On March 25, 2025, the City
Council reaffirmed the Solid Waste Franchise
Agreement with Republic Services, which will
increase the City’s annual revenue.
.
Gas
Cable
Garbage
Electric
FY 23-24
Actual
FY 25-26
Budget
FY 24-25
Actual
Franchise Fee $1.34 million
$825,000
$315,000
$70,000
$128,000
FY 26-27
Proposed
$1.32
million
$805,000
$329,000
$71,000
$111,000
$864,413
$408,056
$268,885
$64,586
$122,886
$910,000
$421,103
$308,900
$72,659
$107,659
87 GENERAL FUND OVERVIEW
Parks & Recreation
Program Revenues
Hercules Parks & Recreation
aims to enhance community
well-being through a variety of
programs, including summer
camps, sports leagues,
educational classes, and cultural
events. The department faced a
significant revenue decline during
the pandemic due to program
restrictions and facility closures.
Since then, it has successfully
reopened programs and fully
recovered. The proposed budget
for FY 26-27 anticipates ongoing
growth in program revenues
and a wider range of offerings,
indicating strong community
interest in recreational activities
that promote well-being and
social connections.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Fees for Services
The City sets fees that reflect the actual costs of its services. These fees are listed in the Master Fees Schedule and require periodic approval from the City Council. Fees can be adjusted throughout the fiscal year if they are linked to service delivery costs. On October 10, 2023, the City conducted a user fee study to establish fair cost recovery levels for services that mainly benefit specific individuals or groups. Based on this study, the new fee structure was adopted on October 24, 2023, aligning it with the value provided to the community.
Senior Citizens
Administration
Recreation Classes
Sport Program
Lupine School
Child Care
Ohlone
Child Care
Lupine
Day Camp
Tiny Tots
Hanna
Child Care
Facility
Rentals
Swim Center
Parks & Recreation Program Revenues
(Based on Actual Receipts)
FY 23-24
Actual
FY 24-25
Actual
FY 25-26
Budget
FY 26-27
Proposed
$1.74
million
$13,000
$27,000
$55,000
$94,000
$295,000
$196,000
$98,000
$272,000
$251,000
$177,000
$264,000
$1.65
million
$14,000
$19,600
$63,700
$96,200
$254,100
$155,300
$109,800
$279,100
$195,700
$167,600
$293,900
$1.74
million
$294,619
$195,894
$98,228
$272,456
$251,308
$177,047
$263,767
$1.65
million
$14,053
$19,523
$63,689
$96,195
$254,082
$155,323
$109,792
$279,055
$195,652
$167,604
$293,898
$12,934
$6,581
$55,085
$94,064
88 GENERAL FUND OVERVIEW
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Indirect Cost
The City of Hercules General
Fund includes expenses for all
administrative services (e.g.,
finance, human resources,
attorney services, etc.). A portion
of these services support the
enterprise funds, and other
restricted funds. The City uses a
fair and equitable indirect cost
allocation process to allocate
departmental costs from the
General Fund to all funds that
benefit from the services that
the General Fund departments
provide. The plan is completed
under generally accepted
accounting principles (GAAP) as
recognized by the Governmental
Accounting Standards Board
(GASB). The primary principles
used to develop the plan are: 1)
the allocated cost is necessary
and reasonable for the proper
performance of a department,
division, unit, and program; 2)
the allocated cost is charged to
departments, divisions, units,
and programs relative to the
benefits received; and 3) costs are
consistently treated as direct or
indirect. Those costs that cannot
reasonably be directly charged are
included in the Cost Plan.
Capital and Debt
Expenditures
The General Fund includes
Capital Improvement Projects
(CIPs) related to public buildings,
general improvements, street
improvements, drainage
improvements, and park
improvements.
The detail for each CIP that
includes additional funding in the
upcoming budget year can be
found in the Capital Improvement
Program section of this
document. Debt in the General
Fund includes the principal
payments on outstanding loans
that are the obligation of the
General Fund.
Transfers Out
Funds are transferred out of the
General Fund for debt service,
loan repayments, and capital
projects. Future budgets will
include a transfer Capital Reserve
Fund for future capital needs,
Pension Reserve Trust Fund to
assist in funding future pension
contributions and Operating
Reserve up to the reserve limit.
Non-Recurring
Expenditures
These include projects that are
related to special studies. For
example, full cost projects related
to future developments and
engineering projects, such as traffic
studies, all of which are pass-
through expenses that are funded
by developer contributions.
GENERAL FUND EXPENSES
The General Fund includes expenses for operations, debt, capital, and transfers out.
The operating costs are for departments that provide services to the Hercules community, including Police, Public Works, Community Development, Parks & Recreation, and the general administrative departments. Operating expenses include retirement, health insurance, and one- time expenditures, and other capital projects.
89 General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
Revenues
Taxes
Utility User Tax $4,011,166 $4,212,443 $4,202,000 $4,371,000 Sales Tax 5,753,278 5,852,353 5,890,000 5,909,000 Property Taxes 1,658,630 1,732,725 1,674,000 1,724,000 Franchise Fees 972,391 918,508 1,382,000 1,396,000 Business Licenses 292,733 298,849 282,000 300,000 Transfer Tax 90,359 82,236 153,000 156,000 Transient Occupancy Tax 29,590 201,833 245,000 251,000 Vehicle License Fee (VLF) and Other
Intergovernmental 2,650,830 2,708,899 2,763,000 2,818,000 Fines & Forefeitures 34,409 37,136 40,000 40,000 Program Revenues
Community Development 224,004 405,978 292,400 192,150 Parks and Recreation 1,648,866 1,741,983 1,649,000 1,742,000 Police 88,348 144,124 97,000 99,000 Public Works 32,054 50,454 31,000 49,000 Other 6,377 13,567 10,000 10,000 Investment Income 1,412,799 1,563,434 991,100 1,200,000 Tower & Property Leases 210,368 316,123 218,000 222,000 Cost allocated to other funds 667,863 791,929 785,968 801,688 Transfers In 156,727 176,556 186,159 251,663 Total, Ongoing Revenues 19,940,792 21,249,130 20,891,627 21,532,501 Expenditures
Police 9,043,290 9,309,187 9,635,424 10,263,948 Public Works 432,333 467,392 443,381 549,638 Community Development 719,579 1,003,801 1,104,239 1,036,527 Parks and Recreation 2,673,550 2,873,344 2,700,746 2,853,964 City Council 305,915 332,370 356,144 362,988 City Manager 525,815 555,456 553,611 562,720 Human Resources 465,665 544,989 599,922 617,494 Legal 223,043 206,188 255,000 260,000 City Clerk 339,370 438,872 537,496 554,834 Finance 1,342,588 1,445,387 1,458,595 1,492,218 Workers Comp/General Liability 1,480,421 2,094,798 1,757,019 1,970,399 Non-Department 260,000 284,756 260,000 62,000 Transfers Out (Debt Service
Obligations) 799,213 803,278 806,291 818,771 Total, Ongoing Expenditures 18,610,782 20,359,818 20,467,868 21,405,501 The General Fund is the City of Hercules Chief Operating Fund. This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services.
90 General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Actual Actual Budget Proposed
The General Fund is the City of Hercules Chief Operating Fund. This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services.
Net Annual Activity
Ongoing Operations 1,330,010 889,312 423,759$ 127,000$ 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)
Annual Surplus (Deficit) $443,191 $137,367 320,759$ $127,000 Note: CalHFA Loan Balance Payment (1) ($3,750,000)
(1) The remaining balance on the CalHFA loan is now due. There are sufficient reserves available to facilitate the payment Transfer to Reserve (per Council Policy)
Operating Reserve $110,798 $34,342 $80,190 $31,750
Section 115 Trust (Pension) 110,798 34,342 80,190 31,750 Capital Improvement Projetcts 221,595 68,683 160,379 63,500 $443,191 $137,367 $320,759 $127,000
Operating Reserve:
Beginning Balance $4,326,140 $4,610,007 $4,989,742 $5,217,932 Current Year Contribution 110,798 34,342 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%
91 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 6,730,648 6,803,554 7,536,154 7,906,181 Contractual Services 1,089,136 1,200,396 853,671 1,155,514 Other Operating Expenditures 433,327 415,333 329,188 267,014 Cost Allocation 790,179 889,904 916,411 935,239 9,043,290 9,309,187 9,635,424 10,263,948 Public Works
Salaries & Benefits 35,457 37,086 40,107 41,576 Contractual Services 252,702 320,169 278,500 379,470 Other Operating Expenditures 54,853 16,163 27,900 30,100 Cost Allocation 89,320 93,974 96,874 98,492 432,332 467,392 443,381 549,638 Community Development
Salaries & Benefits 375,188 547,487 606,924 614,394 Contractual Services 249,835 279,325 378,887 303,100 Other Operating Expenditures 11,779 83,296 21,924 20,600 Cost Allocation 82,777 93,693 96,504 98,433 719,579 1,003,801 1,104,239 1,036,527 Parks & Recreation
Salaries & Benefits 1,847,313 2,116,581 1,879,831 2,057,145 Contractual Services 423,759 318,511 367,628 401,550 Other Operating Expenditures 95,495 162,474 101,600 104,100 Cost Allocation 306,983 275,778 351,687 291,169 2,673,550 2,873,344 2,700,746 2,853,964 City Council
Salaries & Benefits 75,146 69,775 63,000 78,157 Contractual Services 22,923 27,053 42,400 28,400 Other Operating Expenditures 30,921 42,004 51,400 53,100 Cost Allocation 176,924 193,538 199,344 203,331 305,914 332,370 356,144 362,988 City Manager
Salaries & Benefits 295,895 315,165 331,994 342,298 Contractual Services 132,659 136,309 101,400 104,100 Other Operating Expenditures 23,321 21,247 35,000 29,400 Cost Allocation 73,941 82,735 85,217 86,922 525,816 555,456 553,611 562,720 Human Resources
Salaries & Benefits 124,899 313,961 440,636 455,100 Contractual Services 289,654 155,780 86,400 42,900 Other Operating Expenditures 8,162 26,330 22,500 68,100 Cost Allocation 42,949 48,918 50,386 51,394 465,664 544,989 599,922 617,494 92 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 223,043 206,188 255,000 260,000 223,043 206,188 255,000 260,000 City Clerk
Salaries & Benefits 214,886 254,931 271,048 283,057 Contractual Services 24,306 77,240 143,600 146,472 Other Operating Expenditures 19,212 16,606 29,800 30,396 Capital Outlay 5,000 5,000 5,400 5,508 Cost Allocation 75,966 85,095 87,648 89,401 339,370 438,872 537,496 554,834 Finance
Salaries & Benefits 663,783 686,191 713,338 810,156 Contractual Services 259,902 389,493 297,800 222,900 Other Operating Expenditures 274,339 209,259 282,200 290,600 Cost Allocation 144,566 160,444 165,257 168,562 1,342,590 1,445,387 1,458,595 1,492,218 Worker's Compensation/General Liability
Salaries & Benefits 31,760 33,660 35,619 37,665 Contractual Services 1,448,661 2,061,138 1,721,400 1,932,734 1,480,421 2,094,798 1,757,019 1,970,399 Non-Departmental
Debt Service - CalHFA 200,000 200,000 200,000 - SOMAR benefit payments 60,000 84,756 60,000 62,000 260,000 284,756 260,000 62,000 Transfers Out
Engie Equipment Lease 235,897 235,026 245,079 255,609 Debt Service - 2020 PFA Lease Revenue
Refunding Bonds
563,316 568,252 561,212 563,162 799,213 803,278 806,291 818,771 Total, Ongoing Expenditures 18,610,782 20,359,818 20,467,868 21,405,501 93 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 3,400,000 Programs 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 3,000,000 Reserve for Capital Projects Designated 1,620,086 63,500 (683,586) 1,000,000 Reserve for Reusable Bags (remaining) Designated 13,930 13,930 Reserve 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
94 GENERAL FUND OVERVIEW
FIVE-YEAR GENERAL FUND FORECAST
The Five-Year Forecast offers both a current and long-term financial assessment of revenues, expenditures, fund balances, and operating reserves. Its primary goal is to provide the City Council and the community with an economic outlook while identifying significant issues that may need to be addressed during the annual budget development process.
It’s important to note that a forecast is not a budget. Based on certain assumptions, the Five-Year Forecast serves as a tool that projects future financial conditions. If future deficits are anticipated, the forecast provides an opportunity to take corrective measures to maintain financial stability.
This analysis focuses on the City’s General Fund, which is the main operating budget for tax-supported municipal services.
Long-range financial forecasting helps the City make informed decisions that enable us to sustain the community’s core services. Best practices recommend that the City update this plan annually.
The general fund forecast suggests a potential structural deficit beginning FY 2028-29. This term indicates that, according to current projections, expenditure growth is beginning to outpace revenue growth. While the budget for FY 2026-27 appears balanced, the anticipated gap underscores that various structural factors—such as rising pension costs, labor expenses, and contractual obligations—may lead to a small deficit, estimated at less than 1% of total expenditures, if appropriate measures are not taken. However, it is noteworthy that the City has successfully built a sufficient reserve to manage these projected deficits, offering a financial safeguard for the future. It is projected that the operating reserve will decrease from 25% to 23% by the end of FY 3031-32. This anticipated decline may necessitate careful consideration of financial strategies and resource allocation moving forward.
Forecast
General Fund Five-Year Forecast
FY 2026-27
Proposed
FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32
Expenditures
Revenues
$24.3 million
$21.9
million$21.4
million
$22.4 million
$23 million
$23.7 million
$21.9 million$21.5
million
$22.4 million
$22.9 million
$23.5 million
$24.1 million
$25 million
$20 million
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
95 General Fund
Five-Year Financial Forecast
Description / Highlights
Fund 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 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 commitment and motivation, providing a clear framework for informed decision-making.. 96 General Fund
Five-Year Financial Forecast
Description / Highlights
Fund 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 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 commitment and motivation, providing a clear framework for informed decision-making..
City Clerk 339,370 438,872 537,496 554,834 567,000 581,000 595,000 610,000 626,000 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 97 SPECIAL REVENUE FUNDS
98 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.
99 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.
100
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. 101
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)
102
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. 103
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. 104
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. 105
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. 106
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 well- maintained and visually appealing environment for the community. 107
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.
108
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. 109
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. 110
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.
111
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.
112
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.
113
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. 114
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).
115
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. 116
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.
117
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. 118
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.
119
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.
120
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.
121
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. 122
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. 123
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.
124
SEWER ENTERPRISE FUND
125
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. 126
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. 127
INTERNAL SERVICE FUNDS
128
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.
129
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. 130
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.
131
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 30,000 365,516 200 292,000 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 $ 200 292,000 - 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. 132
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. 133
DEBT SERVICE FUNDS
134
Summary of Annual Debt Service Obligation from FY 2025-26 through Maturity
Total Outstanding Debt Obligation
by Debt Category in FY 2026-27 Principal Interest Total 2020 Public Financing Authority (PFA)
Lease Revenue Refunding Bonds
$4,119,526 $374,008 $4,493,534
2009 Public Financing Authority (PFA)
Taxable Lease Revenue Bonds (Bio-
Rad Project)
$7,100,000 $4,528,871 $11,628,871
California Housing Financing Authority
(CalHFA) HELP Loan
$1,211,455 $18,733 $1,230,188
California Housing Financing Authority
(CalHFA) RDLP Loan
$3,750,000 $113,572 $3,863,572
Engie Construction Loan $3,599,458 $828,580 $4,428,038 2021 Public Financing Authority (PFA)
Wastewater Revenue Bonds
$6,970,000 $1,317,449 $8,287,449
Public Owned Treatment Works
Construction Loan
$18,682,748 $2,468,971 $21,151,719
Total $45,433,187 $9,650,184 $55,083,371
Note: In FY 2026-27, a partial payment of $2.5 million will be made. Of this amount, $1.4 million will pay off the HELP loan, and the remainder will go toward the RDLP loan. The outstanding balance on the RDLP loan will be extended for five years, with annual payments of $379,000 and a final balloon payment of about $1 million due at maturity, with an interest rate of 1.5%.
FY 2026-27 DEBT DETAIL
DEBT DETAIL
$4,190,745
$4,147,520
$4,144,772
$5,444,928
$7,828,502
$3,971,661
$3,984,866
$3,988,804
$3,997,932
$4,011,654
$4,019,944
$4,032,951
$3,489,414
$3,499,774
$3,362,421
$3,370,084
$3,376,462
$2,509,461
$981,803
$5.03
Million
$7.66 Million
$3.81
Million
$3.82
Million
$3.83
Million
$3.84
Million
$3.85
Million
$3.86
Million $3.32
Million
$3.33
Million
$3.19
Million
$3.20
Million
$3.21
Million
$2.34
Million
$0.82
Million
2027 2028 2029 2030 2031
FISCAL YEAR
DEBT SERVICE OBLIGATION
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
135
DEBT LIMITS
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$3,035,240,481 $3,279,761,098 $3,505,792,898 $3,655,023,232 $3,873,427,943 $4,107,894,266 $4,278,246,435 $4,499,945,010 $4,675,468,550 $4,844,438,045 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
$758,810,120 $819,940,275 $876,448,225 $913,755,808 $968,356,986 $1,026,973,567 $1,069,561,609 $1,124,986,253 $1,168,867,138 $1,211,109,511 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
$113,821,518 $122,991,041 $131,467,234 $137,063,371 $145,253,548 $154,046,035 $160,434,241 $168,747,938 $175,330,071 $181,666,427
Assessed Valuation
Conversion
Percentage
Adjusted Assessed
Valuation
Debt Limit
Percentage
Legal Debt Margin
Total debt applicable to the limit as a percentage of debt limit 1 1 Section 43605 of the California Government Code for General Obligation Bonds.
For the Fiscal Year Ended June 30
Sources: City Finance Department
County Tax Assessor’s Office
CITY OF HERCULES
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Under State law, the City may not issue debt in excess of 15% of the total assessed valuation of taxable property within its boundaries.
In accordance with California Governmental Code Section 43605, only the City’s general obligation bonds are subject to that legal debt limit.
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
136
DEBT DETAIL
FY 2026-27 DEBT DETAIL
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
2020 PFA Lease Revenue Refunding Bonds
On August 1, 2020, the Hercules Public Financing Authority refinanced the proceeds of the Lease Revenue Bonds, Series 2003B, in the aggregate principal amount of $5,876,843. The interest rateof 2.21% with a final maturity due on December 1, 2023. The debt service payments are scheduled semi-annually at amounts that ranges from $106,428 to $560,249.
The City is obligated to pay only its Base Rental Payments and Additional Payments under the Lease.
The obligation of the City to pay Base Rental Payments or Additional Payments does not constitute an obligation of the city for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation.
Future debt service requirements on the 2020 Hercules Public Financing Authority Lease Revenue Refunding Bond are as follows:
Year Ending June 30 Principal Interest Total
FY 2026-27 $477,396 $85,766 $563,162
FY 2027-28 $489,075 $75,087 $564,162
FY 2028-29 $500,055 $64,157 $564,212
FY 2029 to Maturity $2,653,000 $148,998 $2,801,998
Total $4,119,526 $374,008 $4,493,534
137
DEBT DETAIL
FY 2026-27 DEBT DETAIL
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
2009 Public Financing Authority Taxable Lease Revenue Bonds (Bio-Rad Project) The Authority issued taxable lease revenue bonds, series 2009, dated July 29, 2009, totaling $10,080,000.
The purpose of the bonds was to finance the acquisition of certain commercial condominium properties, consisting of approximately 96,847 square feet located at 203-295 Linus Pauling Drive within the City from the City, funding a reserve fund for the Bonds and to paying the costs of issuance of the Bonds. The interest rates on the bonds range from 6.00% to 8.40%. The interest is payable semiannually on January 1 and July 1, commencing January 1, 2010. The bonds are subject to optional special mandatory redemption, and mandatory sinking account redemption provisions. The bonds are payable from and secured by revenues consisting primarily of the base rental payments of the property lease, Principal is due annually beginning on July 1, 2010, in amounts ranging from$165,000 to $845,000. The bonds mature on July 1, 2038.
The Bonds constitute limited obligations of the Authority payable solely from Revenues. The Authority has no taxing power. The obligation of the City to make City Advances does not constitute an obligation of the City which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation.
Future debt service requirements on the 2009 Public Financing Authority Taxable Lease Revenue bonds are as follows:
Year Ending June 30 Principal Interest Total
FY 2026-27 $325,000 $580,796 $905,796
FY 2027-28 $350,000 $552,953 $902,953
FY 2028-29 $380,000 $522,840 $902,840
FY 2029 to Maturity $6,045,000 $2,872,283 $8,917,283 Total $7,100,000 $4,528,871 $11,628,871
138
DEBT DETAIL
FY 2026-27 DEBT DETAIL
Housing Enabled by Local Partnerships (H.E.L.P.) Loan (“H.E.L.P Loan”) In April 2005 the City entered into an agreement with the California Housing Finance Agency (Agency), a public instrumentality and political subdivision of the state of California to develop a 50-unit multifamily rental project that is a component to a mixed-used development, also consisting of 26,825 square feet of ground-floor commercial space. The Agency has authorized the making of a loan in the amount of $1,600,000 known as the Housing Enabled by Local Partnerships (H.E.L.P.) to the City for the purpose of assisting in operating a local housing program. Under the terms of this original agreement the City of Hercules agreed to reimburse the Agency $1,600,000, 10 years from April 11, 2005 at a 3% simple per annum interest. Interest is to be charged only on funds disbursed. In October 2013, the City and Agency amended the agreement to extend the due date of the loan and accumulated interest until April 2027 and to reduce the interest rate to 1.5% simple interest effective October 31, 2013.
The annual debt service requirements to maturity for the California Housing Financing Authority (CalHFA) H.E.L.P. Loan are as follows:
Year Ending June 30 Principal Interest Total
FY 2026-27 – – –
FY 2027-28 $1,211,455 $18,733 $1,230,188
Total $1,211,455 $18,733 $1,230,188
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
139
DEBT DETAIL
FY 2026-27 DEBT DETAIL
Residential Development Loan Program Loan (“R.D.L.P Loan”) In February 2007, the City entered into a loan agreement with the California Housing Finance Agency (Agency) in the amount of $3,750,000 ($1,750,000 for predevelopment costs and $2,000,000 for construction costs). The funds will be used to assist with site acquisition, predevelopment, and construction costs for 23 affordable ownership units within a 52-unit condominium project, which is a component to the Sycamore Downtown Street project, a mixed-use, mixed-income development. Under the terms of the original agreement, the City agreed to repay the Agency $3,750,000, four years from February 2007 at 3% simple per annum interest. In October 2013, the City and Agency amended the agreement to extend the due date of the loan and accumulated interest until August 2026 and to reduce the interest rate to 1.5% simple interest effective October 31, 2013.
Future debt service requirements to maturity for the R.D.L.P. Loan are as follows:
Year Ending June 30 Principal Interest Total
FY 2026-2027 $3,750,000 $113,572 $3,863,572
FY 2027-2028 – – –
Total $3,750,000 $213,572 $3,963,572
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
140
DEBT DETAIL
Engie Construction Loan
On August 14, 2020, the City entered into an equipment lease purchase agreement for the implementation of the “Option A” Energy Services Contract. Interest rate is 2.71%, 30/360 basis, and payment commencing August 14, 2020, and ending on September 14, 2040.
Future annual debt service requirements to maturity for the rental payment are as follows:
Year Ending June 30 Principal Interest Total
FY 2026-27 $158,064 $97,545 $255,609
FY 2027-28 $173,379 $93,262 $266,641
FY 2028-29 $189,633 $88,563 $278,196
FY 2029 to Maturity $3,078,382 $549,210 $3,627,592
Total $3,599,458 $828,580 $4,428,038
Note: PG&E savings are re-directed to offset the loan payments. The Base Option would result in a net annual projected savings of approximately $28,000 per year for the first 20 years and a total projected savings of $2 million over the 25-year life of the project.
FY 2026-27 DEBT DETAIL
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
141
Wastewater Revenue Bonds, Series
In July, 2021, the City issued the Direct Purchase Lease in the amount of $8,450,000 and the proceeds were used to early pay off the 2010 PFA Wastewater Revenue Bonds. The bonds bear interest at 2.38%.
Interest on the bonds is payable semi-annually on February 1 and August 1 in each year, commencing February 1, 2022. Principal payments are due in annual installments ranging from $355,000 to $545,000, commencing August 1, 2022, through August 1, 2040.
In the event of default, the City shall declare the entire principal amount of the unpaid series 2021 installment payments and accrued interest thereon to be due and payable immediately in writing.
Future debt service requirements to maturity are as follows:
Year Ending June 30 Principal Interest Total
FY 2026-27 $395,000 $161,186 $556,186
FY 2027-28 $400,000 $151,725 $551,725
FY 2028-29 $410,000 $142,086 $552,086
FY 2029 to Maturity $5,765,000 $862,453 $6,627,453
Total $6,970,000 $1,317,449 $8,287,449
DEBT DETAIL
FY 2026-27 DEBT DETAIL
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
142
State Water Resources Construction Loan
In June 2016, the City entered into an installment sale agreement with the California State Water Resources Control Board in the amount of $26,500,000. The funds are for construction costs for the Pinole-Hercules Wastewater Pollution Control Plant Improvement Project. The interest rate on the loan is 1.7%. The first principal and interest payment are due August 31, 2019, and is contingent on the total drawdowns at project completion. The loan matures on August 31, 2038.
Future debt service requirements to maturity are as follows:
Year Ending June 30 Principal Interest Total
FY 2026-27 $1,193,230 $317,607 $1,510,837
FY 2027-28 $1,213,515 $297,322 $1,510,837
FY 2028-29 $1,234,145 $276,692 $1,510,837
FY 2029 to Maturity $15,041,858 $1,577,350 $16,619,208 Total $18,682,748 $2,468,971 $21,151,719
DEBT DETAIL
FY 2026-27 DEBT DETAIL
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
143
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.
144
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.
145
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. 146
CAPITAL PROJECT FUNDS
147
FISCAL YEAR 2026-27 CAPITAL PROJECTS BUDGET
& TEN-YEAR CAPITAL IMPROVEMENT PLAN (CIP)
The City of Hercules is committed to preserving and enhancing the City’s aging public infrastructure within the constraints of available resources. The maintenance of existing infrastructure is essential for fostering a resilient and thriving community. To that extent, this Capital Improvement Plan (CIP) reflects a balanced approach to capital improvements - identifying active projects that provide meaningful benefit to the City while candidly acknowledging the significant funding challenges that remain across streets, parks, facilities, and the sewer system.
This Capital Improvement project emphasizes:
● A “fix it first” philosophy, prioritizing the rehabilitation and maintenance of existing City infrastructure over the pursuit of new construction.
● Continued progress on grant-funded and locally matched transportation and infrastructure projects, with significant capital work completed on Falcon Way and underway in the Foxboro neighborhood and at Refugio Valley and Foxboro Parks, and across key portions of the sewer system. ● Transparent disclosure of the City’s unfunded infrastructure gap, which spans parks, facilities, and long-term street rehabilitation needs, and requires exploration of new revenue and financing strategies.
● Full funding of fiscal year (FY) 2026-27 CIP projects, including renovations at Refugio Valley and Beechnut Parks as well as through the Sewer Fund, demonstrating the strength of the City’s rate- supported sewer enterprise.
City Council Strategic Goals, Specific to CIP:
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Objective Tactical Steps Timeline
Develop regional partnerships Participate and collaborate with other agencies, boards and commissions, and stakeholder groups to raise awareness of the Hercules Hub and regional transit-related issues; surface partnership opportunities and support appropriate transportation revenue measures
Ongoing
Enhance lobbying efforts/
contracts
Maintain and leverage the services of a federal lobbyist as an advocate on behalf of the Hercules Hub to maximize federal funding opportunities.
Ongoing
Keep the community informed
Utilize social media and other platforms to disseminate information regularly and when new developments occur.
Ongoing
Initiate the Train Station design Secure sufficient grant funding to proceed with station design. Ongoing GOAL #1: ADVANCE PROGRESS OF THE HERCULES HUB
148
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Objective Tactical Steps Timeline
Identify and set priorities
related to major infrastructure
Review and refine policy for prioritizing capital projects as part of the annual budgeting process, informed by the Pavement Management Program, Sanitary Sewer Master Plan, Parks Master Plan, and Building Facilities Assessment.
Spring 2026
Continue progress on the
Capital Improvement Plan
Provide the City Council with regular updates on CIP progress through the mid-year CIP progress report process.
Spring 2026
Devise a plan for funding the
Parks and Recreation Facilities
Master Plan
Identify grant opportunities, sponsorships, partnerships, and available Capital Improvement funds for projects in the 5-Year Park Master Plan Action Plan.
Ongoing
Devise a plan for funding
facilities assessment and
maintenance
Maintain and refine the Facility Replacement Fund to address the growing backlog of unfunded large maintenance and infrastructure projects.
Spring 2026
GOAL #5: PLAN AND FUND MAJOR INFRASTRUCTURE
1 City of Hercules General Plan web page. https://www.herculesca.gov/government/planning/general-plan 2 City of Hercules Parks and Recreation Facilities Master Plan prepared by MIG, February 2024 https://www.herculesca.gov/government/parks-recreation/ parks-and-recreation-facilities-master-plan
3 Hercules Collection System Master Plan Update, prepared by West Yost Associates, April 24, 2020 4 City of Hercules Comprehensive Sewer Utility Rate Study prepared by Wildan Financial Services, March 17, 2025 https://www.herculesca.gov/home/showpublisheddocument/18204/638845482292270000 5 2022 PMP Update PTAP Round 23 Final Report March 2023 prepared by Pavement Engineering Inc. 6 City of Hercules Building Assessment Report for a Ten-Year Capital Improvement Project, prepared by CSG Consultants, Inc., July 12, 2024.
CAPITAL IMPROVEMENT PROGRAM OVERVIEW
Public infrastructure encompasses the City’s streets, sewers, storm drains, transportation systems, facilities, and parks. The CIP is structured on a ten-year horizon; however, the City Council allocates funds specifically for FY 2026-27. This CIP and its associated budget are presented for approval by the City Council during the annual budget adoption process.
The CIP articulates a comprehensive vision for short-term and long-term project delivery and funding.
Its primary focus is on maintaining, improving, and developing new and existing infrastructure assets to serve the needs of residents, businesses, property owners, and visitors. The program is designed to align with the City of Hercules General Plan
[1], the Parks Master Plan [2], the Hercules Collection System Master Plan Update, [3] 2025 Comprehensive Sewer Utility Rate Study [4], the 2022 Pavement Management Program (PMP) Update [5], and the Building Facilities Assessment [6]—ensuring a structured, data-driven approach to planning and scheduling capital projects over the next decade.
Projects included in the CIP are characterized as long-term investments involving the construction, replacement, or enhancement of assets such as facilities, roadways, parks, sewer systems, and drainage lines. To qualify for inclusion in the CIP, a project must have a useful life of at least five years and entail a minimum cost of $50,000.
149
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
It is important to note the distinction between capital and operating budgets. Capital projects are approved for funding in one fiscal year, but their implementation through planning, design and construction may extend over several years. Unused capital funds are ‘carried over’ and remain available in subsequent fiscal years. Conversely, operating budgets are focused on continuous maintenance and operate on a “use-it-or-lose-it” principle at fiscal year-end, with unspent funds returned to their originating funds.
The following sections summarizes the City’s fully funded Capital Improvement Program (CIP) projects for FY 2026–27, along with the City’s broader Ten-Year CIP outlook. In FY 2026–27, the CIP programs a practical, deliverable set of improvements that are aligned with available and eligible funding sources—advancing priority work in Streets, Parks, Facilities, Sewer, and the Hercules Hub, including completion of facilities repairs supported by prior-year appropriations (carryover). The remainder of the Ten-Year CIP identifies additional projects that reflect the City’s longer-range capital needs and priorities; these projects are included to guide planning, maintain grant readiness, and support transparent long-term financial forecasting, but will advance as future funding is secured through a combination of annual appropriations, grants, partnerships, and other financing actions.
STREETS CIP
The City of Hercules maintains approximately 60 centerline miles of public streets—an infrastructure asset with an estimated replacement value of nearly $197 million. The City’s 2022 Pavement Management Program (PMP) update reported a network-wide average Pavement Condition Index (PCI) of 65, placing the system in the “Fair” range. Based on PMP modeling under a budget-constrained scenario, the average PCI is projected to decline to approximately 58 by 2026, which remains “Fair” but reflects a continuing downward trend. The 2022 network condition distribution also found that roughly 72 percent of the street system was in Good to Fair condition, while the remaining segments were Poor or Failed—a distinction that is important because streets in Poor/Failed condition typically require more intensive rehabilitation rather than lower-cost preventive maintenance.
As discussed in the PMP report, the City uses the StreetSaver® pavement management program as the technical basis for selecting and prioritizing street projects in the CIP. StreetSaver maintains an inventory of roadway segments, tracks field-collected pavement condition information and applies industry-standard deterioration models and treatment decision rules to identify the right treatment at the right time (e.g., preventive maintenance, overlays, or full rehabilitation). Using this data, the City evaluates alternative funding scenarios and develops a ranked work program that emphasizes cost- effective preservation of streets before they decline into poor or failed condition, while also considering coordination with utility work, constructability, and opportunities to bundle projects for efficient delivery. Modeling based on PMP conditions projects that funding at approximately $850,000 per year (the budget-constrained scenario) will result in the average PCI continuing to decline from 58 to approximately 48 within the next five years, while deferred maintenance is projected to grow from $22.8 million to nearly $49.3 million over the same period. Stabilizing the current PCI of 58 requires an 150
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
annual investment of approximately $3.6 million and reversing the downward PCI trend and raising the PCI to 61 would require expenditure of approximately $5.9 million annually.
Consistent with this condition-based approach, the City’s near-term strategy prioritizes rehabilitation of the worst-condition neighborhoods first, coupled with targeted preservation treatments where feasible within available funding. Project No. 63074 (Falcon Way) was awarded in October 2025 to address severely distressed pavement on Falcon Way and nearby courts, with construction scheduled for completion by June 2026. Project No. 63075 (Foxboro Neighborhood) is currently in design, with Phase 1 programmed for construction in FY 2026–27 and subsequent phases planned in FY 2027–29.
Looking ahead, Project No. 63081 (Hercules by the Bay) is programmed to begin design in FY 2028– 29, with construction planned to follow in FY 2030–31. Together, these neighborhood-focused projects are intended to materially reduce the City’s Poor/Failed street inventory and improve overall pavement performance over time.
Active Projects in FY 2026-27
Foxboro Neighborhood Street Rehabilitation (Project 63075) This is the City’s largest active street project. Phase 1 construction will repair and resurface poor and failing residential streets in the Foxboro neighborhood, including Dartford Way, Oxford Street, Brighton Street, and Willow Avenue (from Highway 4 to Mariner’s Pointe and select spot repairs west thereof).
Work includes mill-and-fill resurfacing, cape seal, and crack fill treatments. Funding for this phase 20 30
40 50
60 70
2032 2031 203020292028202720262025202420232022
65 64 62
58 56
56 61
48 FAILED
POOR
FAIR
Pavement Condition Index (PCI)
CITY OF HERCULES PAVEMENT CONDITION TREND
SCENARIO 1
Improve Pavement Condition
Index (PCI) by 5 average,
$5.9 million per yearSCENARIO 3
Constrained budget,
$850,000 per year
SCENARIO 2
Maintain current
PCI average,
$3.6 million per year
StreetSaver® Scenario Comparison
A look at pavement condition trends
and projections based on 3 different
scenarios.
151
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
draws from the General Fund/Capital Reserves, SB1 RMRA, Measure J, and Gas Tax. A second phase addressing Canterbury Drive, Bedford Court, Brighton Street upper segments is planned for FY 2027- 28 following gas line repair work scheduled by PG&E, and a third phase incorporating street repairs and sewer system upgrades on Newbury Street and Willow Avenue (from Sycamore to the Hercules Transit Center) is planned on or before late 2028, bringing the total project budget to approximately $4.8 million over four fiscal years.
Annual Street Repair Project (Project 63083)
The FY 2026-27 Annual Street Repair scope includes stop control warrant analyses at five locations, Falcon Way V-ditch repair, John Muir Parkway Phase 2 improvements, and the citywide annual restriping program which will be funded from carryover allocations from FY25/26. Although a projected investment of approximately $3,600,000 per year is needed to maintain the current PCI of 58, the proposed budget for Annual Street Repair projects from FY26/27 through FY 2031-32 is significantly lower due to funding priorities for Foxboro and Hercules by the Bay neighborhood projects and other fiscal constraints. Beginning in FY 2031-32, the Annual Street Repair program expands to approximately $940,000 annual investment covering pavement rehabilitation on San Pablo Avenue and other corridors, ongoing Citywide pavement restriping, minor traffic calming, sidewalk repair, ADA improvements, traffic warrant analyses, and other pavement maintenance projects identified by staff or the community.
Public Right-of-Way Bioretention Project (Project 63082) This project designs and constructs a new bioretention facility on the south side of John Muir Parkway between Tsushima Street and Bayfront Loop. The project satisfies a Regional Water Quality Control Board Clean Water Program C.3.j requirement to design and fund bioretention for 1.58 acres of public right-of-way on or before June 30, 2027. This project is entirely funded from General Fund/Capital Reserves. Implementation of this project may be impacted by ongoing deliberations regarding the City’s possible inclusion in the proposed Regional Alternative Compliance (RAC) Joint Powers Authority. If the City joins the RAC, project funding can be re-purposed to fund ongoing RAC payments.
Sycamore Avenue Bike/Pedestrian East-West Connector Project This east-west active transportation connector along Sycamore Avenue will provide a safe bike and pedestrian route linking the western and eastern portions of the city. MTC TDA3 grant funds support preliminary planning and design work in FY 2026-27, and HSIP grant funding supports design and construction phases in FY 2028-30, with remaining construction costs ($1.23 million) currently unfunded and pending additional grant awards.
Future Projects in FY 2027-2031
Hercules by the Bay Neighborhood Street Rehabilitation (Project 63081) The next highest priority street rehabilitation project after the Foxboro project is the Hercules by the Bay neighborhood Street Rehabilitation Project. This residential area requires a combination of 152
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
reconstruction, heavy rehabilitation, and preventative maintenance treatments across multiple streets— including Buckley Court, Dunham Court, Hercules Ave, Skelly Way, Williams Way, Woodfield Way, and others. These projects are estimated to cost approximately $2.3M, and are proposed to begin in FY 2029-30, depending on funding availability.
John Muir Parkway Traffic Calming Improvements (Project 63084) The John Muir Parkway Traffic Calming Improvements Project provides for the design and installation of approved traffic calming measures along John Muir Parkway between Alfred Nobel Drive and the Transit Loop, addressing neighborhood safety needs resulting from land use changes since the parkway’s original commercial oriented design. In FY 2025 26, the City allocated $258,000 in General Fund/Capital Reserve funding to complete the project design and implement recommended improvements. In January 2026, the project was formally advertised for construction. However, the apparent low bid exceeded the Engineer’s Estimate, prompting the City to defer award. The City is now pursuing value engineering and project redesign to reduce construction costs while also seeking supplemental grant funding to fully deliver the improvements. With these adjustments underway, the project is proposed to be rebid in FY 2027, with construction anticipated in FY 2028.
Gateway Monument Sign Project
At the October 14, 2025, City Council meeting, following a presentation on city signage options and Council discussion regarding preferred monument types and locations, the Council directed staff to proceed with development of a medium scale monument sign to serve as a formal city entryway to be installed at either the intersection of San Pablo Avenue and John Muir Parkway or at San Pablo Avenue median island near the Market Drive/San Pablo Avenue intersection,. This Gateway Entryway Project includes a total projected cost of $250,000, of which approximately $90,000 in General Fund capital reserves is currently available, leaving the remaining balance unfunded and subject to future budget allocations or grant opportunities. Design is programmed for FY 2026–27, and construction planned for FY 2030–32, enabling the City to finalize conceptual design, develop construction documents, and secure the additional funding needed to deliver the project.
Additional Candidate Projects
Rodeo–Hercules Pedestrian Connections
The General Plan Circulation Element identifies the need for continuous pedestrian and bicycle connections between Hercules and Rodeo, Although the City has completed sidewalk and bike lane improvements on Willow Avenue between John Muir Parkway and the I 80 Park and Ride Lot, further work is needed to close remaining multimodal gaps and strengthen regional access. Future phases may include sidewalk infill, expanded multi use pathways, wayfinding, and barrier free accessibility enhancements. These improvements will advance long term connectivity between the two communities and support active transportation consistent with Policy 1.C.1 of the Circulation Element; design and construction for this project will begin as soon as viable funding sources are identified. 153
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Traffic Calming Projects
Several priority traffic calming locations originally identified through the 2006 Traffic Calming Workshop process remain outstanding. These locations continue to experience pedestrian safety concerns, school circulation conflicts, or vehicle speed issues, and warrant future funding consideration in subsequent CIP cycles:
• Refugio Valley Road – Middle School Area, Hannah Ranch Elementary Enhanced Crosswalk • Turquoise Drive – Ohlone Center Area, Turquoise Dr. at Albertsons/Rite Aid driveway– Pedestrian Refuge
• Lupine Road & Sequoia Road – Lupine Hills Elementary
Streets CIP – 10-Year Funding Summary
Funding Source FY 2026-27 Budget 10-Year Total
General Fund / Capital Reserves $346,000 $3,747,447
SB1 Road Maintenance & Repair Account $260,000 $2,900,000 Gas Tax (Fund 262) $455,000 $4,550,000
Measure J (Fund 263) $225,000 $2,364,966
MTC TDA3 Grant $150,000 $150,000
Sewer Fund (coordination) — $1,000,000
HSIP Grant — $330,000
Unfunded — $1,795,665
TOTAL FY 2026-27 Streets CIP $1,436,000 $16,838,078
The Ten-Year Streets CIP totals approximately $16.8 million. Unfunded needs of $1.8 million are primarily associated with the John Muir Parkway Traffic Calming Project, the Sycamore Avenue Bike/ Pedestrian Connector and the Gateway Monument Sign project, all of which are dependent on future grant awards or General Fund availability.
PARKS CIP – FY 2026-27
The Parks CIP is guided by the City of Hercules Parks and Recreation Facilities Master Plan, prepared by MIG, Inc. in February 2024. The City’s park system serves residents across diverse neighborhoods and age groups, and the long-term investment plan reflects a broad range of improvements—from ecological restoration to playground upgrades, community gathering spaces, and ADA compliance.
FY 2026-27 focuses on two projects with active funding, while the broader ten-year plan carries a significant unfunded balance requiring future revenue solutions. 154
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Active Projects in FY 2026-27
Refugio Lake Restoration Project (Project 63079)
This is the most significant Park Master Plan project in FY 2026-27. The scope includes lake dredging and maintenance, with the wood bridge deck replacement and repainting incorporated into the work to take advantage of the creek diversion. The approximately $1.9 Million project budget is fully funded from General Fund/Capital Reserves. Mitigation monitoring and maintenance activities continue in FY 2027-28 and FY 2028-29 at a combined cost of approximately $100,000. This restoration is critical for the long-term ecological health and public enjoyment of Refugio Valley Regional Park’s centerpiece feature.
Beechnut Park Improvements (Project 63063)
FY 2026-27 closes out the remaining carryover balance for Beechnut Park improvements, which include installation of a shade feature near the tricycle loop, replacement of existing swings with all- ages swings, and tree removal and pruning to improve site visibility and safety. Prior-year funding was secured through East Bay Regional Park District Watershed-Wide (WW) Grant funds, Proposition 68 Grant funds, Parks Impact Fee, and General Fund contributions. Possible future improvements at Beechnut Park, including a youth play area expansion, entry signage upgrades, conversion of the asphalt parking lot, and a pump track, are shown for consideration in FY 32-33.
Refugio Valley Park Capital Improvements (Project 63089) A $55,000 General Fund carryover is carried into FY 2026-27 for this project, with no new appropriation in this fiscal year. Major phased improvements begin in FY 2027-28 and include restroom replacement (design and construction), tennis court rehabilitation, central lawn regrading and drainage improvements, destination playground renovation and expansion, and the design of a new flexible event space. These improvements are currently unfunded beyond the initial carryover and represent the single largest parks unfunded item at $6.4 million over the ten-year plan.
Parks CIP – 10-Year Funding Summary
Funding Source FY 2026-27 Budget 10-Year Total
General Fund / Capital Reserves $1,885,995 $2,581,136
East Bay Regional Park District (WW
Grant)
— $40,095
Proposition 68 — $156,610
Parks Impact Fee Fund — $150,000
Land & Water Conservation Fund
(LWCF)
— Pending
Unfunded — $32,595,000
155
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
TOTAL Parks CIP $1,895,995 $35,522,841
The ten-year Parks CIP totals approximately $35.5 million, of which an estimated $32.6 million (96%) remains unfunded. Major unfunded parks projects include Ohlone Park ($9.1 million), Hanna Ranch Park ($6.5 million), Refugio Valley Park ($6.4 million), Woodfield Park ($5.0 million), and Shoreline, Bayside, Duck Pond, and Foxboro Parks. Addressing this gap will require a sustained and creative approach to grant pursuit, partnership development, and potential bond financing.
FACILITIES CIP
The Facilities CIP is based on the City of Hercules Building Assessment Report for a Ten-Year Capital Improvement Project, prepared by CSG Consultants on February 22, 2024, which evaluated the condition of all City-owned buildings and identified priority maintenance and capital needs across a ten- year horizon. The FY 2026-27 Facilities CIP is funded entirely through General Fund/Capital Reserves carryover balances from prior-year appropriations. No new FY 2026-27 appropriations are proposed; rather, existing carryover funds support active work at several facilities this fiscal year.
Facilities projects in the CIP are prioritized using a clear four-tier ranking system developed from the Draft Building Assessment and the City’s operating needs, ensuring limited resources are directed first to the most critical risks and obligations. Rank A (Health and Safety) designated projects address immediate life-safety, code, security, or operational risks that could impact public access, staff safety, or continuity of services. Rank B (ADA / Aging Facility) designated projects focus on regulatory compliance and replacement of aging architectural and building systems—particularly accessibility improvements and time-sensitive renewals needed to prevent accelerated deterioration. Rank C (Discretionary) designated projects include preventive maintenance or functional enhancements that improve longevity and usability but are not immediately critical to operations. Rank D (Special/ Dedicated Revenue) projects are projects primarily supported by dedicated or special revenue sources and are advanced consistent with funding eligibility, timing, and available appropriations.
Active Facilities Projects
City Hall (Project 63065)
The CIP includes removal of the temporary modular trailer at the Civic Center/City Hall campus in FY 2026–27 through FY 2027–28 as part of a broader effort to restore the site to a permanent, compliant, and functional civic facility layout. The City’s facilities assessment notes that site circulation and accessibility around City Hall—including areas serving the Police wing—requires ADA redesign, and that temporary storage/container facilities are currently placed on dirt and need to be relocated onto a solid pad with a proper walkway and an ADA-compliant path of travel, along with improved access to IT/ communications functions in the parking area. Removing the modular trailer allows the City to eliminate temporary structures that complicate access and operations, reclaim and organize civic campus space, and implement permanent site improvements that better support long-term service delivery at City Hall. 156
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Community Swim Center (Project 63067)
Electrical improvements funded in FY 2026-27 include replacement of emergency and exit lighting with new exit signs and landing lights, mechanical room electrical upgrades, GFI system testing, and replacement of the uninterruptible power supply (UPS) for communications. These are critical life safety and system reliability improvements at one of the City’s most heavily used recreation facilities.
Additional improvements to the Swim Center’s safety and electrical systems, pool deck lighting and site utilities, and ADA access and core pool/mechanical components are planned for FY 1, FY 2, and FY 3. In FY 1, work focuses on emergency/safety upgrades and targeted electrical repairs (including disconnects/circuit protection and backup power). In FY 2, the program advances pool deck lighting improvements and civil work for leak detection/surge pit lining. In FY 3, the City plans a larger set of ADA upgrades (curb cuts, restriping/signage) along with pool and building system renewals such as deck repairs and water line/tile replacements, GFCI testing, painting, and key pool equipment replacements.
Senior Center (Project 63066)
LED lighting replacement throughout the Senior Center is the active FY 2026-27 scope item. This energy-efficiency improvement reduces operating costs while improving interior light quality for patrons and staff. Additional improvements to ADA access, cabinetry, lobby safety, plumbing, and fire alarm systems are planned in FY 2027-28 and FY 2028-29. An internal fund transfer of approximately $2,100 from Project 63065 City Hall Project is required to fund FY26/27 Senior Center Project.
Library (Project PW0004)
Replacement of 50 T5 ballasts with 100 LED T5 lights is the active FY 2026-27 scope item. Future years include significant HVAC system replacements across multiple rooftop units, preaction fire protection system installation, and building control system upgrades—reflecting the building’s aging mechanical and electrical infrastructure.
Foxboro Community Center (Project 63073)
FY 2026-27 scope includes replacement of the 53-gallon storage water heater and replacement of exit sign and landing lighting. These are essential system reliability improvements for this neighborhood community center. An internal fund transfer of approximately $18K from Project 63065 City Hall Project is required to fund FY26/27 Foxboro Community Center Projects.
Ohlone Community Center (Project 63072)
Active FY 2026-27 improvements include installation of a fire extinguisher cabinet, replacement of the gas water heater, replacement of exit and parking lot lighting, and replacement of solar panel inverters.
Future years include interior bathroom renovation, perimeter fence replacement, exterior bathroom renovation, and LED lighting throughout.
157
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Leila’s by the Bay (Project 63080)
Repair of the ceiling HVAC system is the active FY 2026-27 scope item for this waterfront facility. A full roof replacement is planned for FY 2035-36.
Teen Center (Project 63068), Hanna Ranch Childcare (Project 63069), Lupine Kidz Center (Project 63070), Public Works Maintenance Yard (Project 63071) Each of these facilities carries a prior-year General Fund/Capital Reserves appropriation into FY 2026-
27. No new scoped work is budgeted at these locations in the current year; the carryover balances reflect funds previously appropriated that are in various stages of project closeout or encumbrance. Substantive improvement scopes at these facilities are planned in FY 2027-28 and beyond, as detailed in the individual project sheets.
Facilities CIP – 10-Year Funding Summary
Funding Source FY 2026-27 Budget 10-Year Total
General Fund / Capital Reserves $715,676 $715,676
Unfunded — $7,600,600
TOTAL Facilities CIP $715,679 $8,316,273
The ten-year Facilities CIP totals approximately $8.3 million. The General Fund/Capital Reserves carryover of $715,679 is fully committed to active projects across eleven City facilities in FY 2026-27.
All future-year improvements totaling $7.6 million remain unfunded. The largest unfunded facility needs include City Hall ($2.6 million for ADA improvements, roof rehabilitation, exterior painting, parking lot rehabilitation, and emergency generator replacement), the Community Swim Center ($1.4 million), the Library ($1.0 million), and the Public Works Maintenance Yard ($627,500).
SEWER CIP
The Sewer CIP is guided by the Hercules Collection System Master Plan Update (West Yost Associates, April 2020) and the Comprehensive Sewer Utility Rate Study (Wildan Financial Services, May 2025) and is funded entirely through the Sewer Enterprise Fund (Fund 421)—a dedicated, rate- supported revenue source. Unlike other CIP categories, the ten-year Sewer CIP currently carries no unfunded balance, reflecting the stability of the City’s sewer rate structure and the fiscal discipline of the enterprise fund model. The FY 2026–27 Sewer CIP is programmed to be consistent with the reinvestment strategy and revenue assumptions in the 2025 Rate Study, supporting ongoing rehabilitation, reliability improvements, and long-term asset management.
Based on the recommendations of the Collection System Master Plan Update, the ten-year Sewer CIP includes three larger projects—Lower Sycamore Relief Sewer, Sycamore Avenue Upper Trunk Main, and Promenade Lift Station Improvements that are carried in the program for long-range planning and funding readiness: these projects may ultimately be unnecessary pending further collection system 158
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
modeling and operational evaluation, and/or may be funded through alternative sources as opportunities are secured. Collectively, these three projects represent $9.55M of the $15.9M ten-year Sewer CIP -- excluding these items, the remaining $6.35M program costs reflect the core rehabilitation and renewal projects that are within the funding level anticipated by the 2025 Rate Study.
Active Sewer Projects in FY 2026-27
Willow-Newbury Sewer Rehabilitation (Project 63086)
This project addresses the repair and replacement of approximately 1,700 linear feet of sewer pipe under State Route 4 and along Willow Avenue and in Newbury Street, using 8″ to 14” diameter sewer pipe.
FY 2026-27 funding covers the design phase ($269,700), with construction following in FY 2027-28 ($1,206,100) and FY 2028-29 ($1,080,000). The total project budget is $2.76 million from the Sewer Fund. These aging mains represent a significant reliability and overflow risk, and their rehabilitation is a high priority consistent with the Sanitary Sewer Collection System Master Plan.
Sewer Condition Assessment Program
This annual program funds sewer cleaning, CCTV inspection and condition assessment of the sewer collection system including lift stations to identify deteriorating pipes, root intrusion, structural defects, and capacity constraints. Results directly inform future CIP project prioritization. The program is funded at $175,000 in both FY 2026-27 and FY 2027-28, tapering to $100,000 annually through FY 2035-36, for a ten-year total of $1.15 million.
Upcoming Major Sewer Projects (FY 2028-29 and Beyond)
Several major sewer infrastructure investments are planned in the mid-to-late years of the ten-year CIP.
The Annual Sewer System Improvements Program ($2.5 million over FY 2027-36, including manhole rim repairs and miscellaneous collection system improvements) round out the long-term program.
The Promenade Lift Station Improvements ($6.3 million, FY 2028-31) represent the single largest capital investment in the sewer program, based on a construction estimate from a competitive bid process performed in 2014. This project is being advanced in coordination with broader planning for the Hercules Hub area; the City is actively exploring grant funding opportunities to support this work and reduce the burden on ratepayer-funded capital resources.
The Lower Sycamore Avenue Relief Sewer ($1.95 million, FY 2030-32) and Sycamore Avenue Upper Trunk Main ($1.3 million, FY 2033-2035). Consistent with prior master planning recommendations, the CIP includes allowances for the Lower Sycamore Overflow and Upper Sycamore Trunk Main replacement; however, these capacity-related projects have been deferred and will be revisited as additional technical work is completed. Preliminary findings from the City’s hydraulic model evaluation indicate the existing facilities can accommodate anticipated buildout flows, suggesting these improvements may be reduced in scope or may not be required, pending further analysis and confirmation of operational performance.
159
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
Sewer CIP – 10-Year Funding Summary
Funding Source FY 2026-27 Budget 10-Year Total
Sewer Fund 421 $ 444,700 $ 15,161,079
Prior Year Carryover (Sewer Fund) $ 351,680 —
Unfunded — —
TOTAL Sewer CIP (10-Year) $ 796,380 $ 15,605,779
HERCULES HUB
The Hercules Hub is a multi phased, long range regional transportation project that will deliver a fully integrated transit center, including future passenger rail service, expanded bus operations, bicycle and pedestrian connections, roadway improvements, and supporting utilities and access infrastructure.
Advancing the Hub requires continued progress on environmental compliance, final design, right of way coordination, and utility relocation work.
To date, the City has secured substantial outside funding— including State Transit and Intercity Rail Capital Program (TIRC dollars, West Contra Costa Transportation Advisory Committee’s Subregional Transportation Mitigation Program (WCCTAC STMP) funds, and a federal Garamendi earmark. In 160
early February 2026, the City submitted a $21.7 million grant application for Federal Support Program (FSP) National Railroad Partnership Program (NRPP) contributions, supplemented by a 20 percent local match including up to $3 million General Fund/Capital Reserves.
Major construction is planned to be funded primarily through large State and Federal programs such as Consolidated Rail Infrastructure and Safety Improvements (CRISI) Federal Railroad Administration grant, FRA Corridor ID grant, and future CCTA transportation funding measures. Completion of the Hub will require an estimated $107.7 million, with $104.7 million anticipated from future competitive grants, to construct the remaining rail station and multimodal access improvements.
The project will ultimately provide Hercules with a regional rail connection and a modern, walkable, transit oriented mobility hub that links the community to the greater Bay Area.
Funding Source FY 2026-27 Budget 10-Year Total
General Fund / Capital Reserve (Design) $418,5000 $418,500 General Fund (Construction) — $2,581,500
FSP/NRPP — $16,518,000
Grant WCCTAC STMP Funding — $6,400,000
Grant TIRCP $1,000,000 $2,400,000
Grant Garamendi Earmark $850,000 $850,000
Affordable Housing and Sustainable
Communities (AHSC) *
— $15,000,000
Corridor ID * — $87,688,409
Future CCTA Measure * $5,700,000
Transformative Climate Communities (TCC) * $30,000,000
TOTAL FY 2026-27 Hercules Hub CIP $2,268,500 $167,556,409 * potential grant funding source
CAPITAL PROJECTS BUDGET & TEN-YEAR CIP
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
161
CITY OF HERCULES
TEN-YEAR CAPITAL IMPROVEMENT PROJECT (CIP) PROGRAM SPENDING PLAN FY 2026-2036 Project Funding Source: Prior Year
Carryover
FY 2026-27
Proposed
FY 2027-28
Projection
FY 2028-29
Projection
FY 2029-30
Projection
FY 2030-31
Projection
FY 2031-32
Projection
FY 2032-33
Projection
FY 2033-34
Projection
FY 2034-35
Projection
FY 2035-36
Projection Total Budget
General Fund/Capital Reserves 335,256$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 335,256$ Asset Seizure Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ 440,700$ 445,000$ 793,700$ 67,000$ 105,000$ -$ -$ 157, 800$ 595, 000$ 2, 604,200$ General Fund/Capital Reserves 30,200$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,200$ Unfunded -$ -$ 172,200$ 370,300$ 660,700$ 22,100$ -$ 196,000$ -$ -$ -$ 1, 421,300$ General Fund/Capital Reserves 38,649$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 38,649$ Unfunded -$ -$ 123,400$ 21,000$ 28,000$ 22,400$ -$ -$ -$ -$ 51, 800$ 246, 600$ General Fund/Capital Reserves 91,577$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 91,577$ Unfunded -$ -$ -$ 286,300$ 324,500$ 283,600$ -$ 119,000$ -$ -$ -$ 1, 013,400$ General Fund/Capital Reserves 10,200$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 10,200$ Unfunded -$ -$ -$ 35,000$ -$ -$ 54,100$ -$ 14,000$ -$ -$ 103,100$ General Fund/Capital Reserves 82,684$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 82,684$ Unfunded -$ -$ -$ 80,700$ 121,200$ 65,100$ 41,700$ -$ 3,500$ -$ -$ 312,200$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ 5,300$ 43,800$ 35,400$ -$ -$ 18,200$ -$ -$ -$ 102,700$ General Fund/Capital Reserves 16,660$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 16,660$ Unfunded -$ -$ -$ 27,300$ 490,000$ -$ -$ -$ -$ -$ -$ 517,300$ General Fund/Capital Reserves 30,612$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,612$ Unfunded -$ -$ 49,500$ -$ 130,200$ -$ 30,100$ 56,000$ 3,500$ -$ -$ 269,300$ General Fund/Capital Reserves 41,187$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 41,187$ Unfunded -$ -$ 120,100$ 103,600$ 64,400$ -$ -$ -$ 29,400$ -$ -$ 317,500$ General Fund/Capital Reserves 8,650$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 8,650$ Unfunded -$ -$ 49,100$ 201,300$ 258,700$ 116,200$ -$ -$ -$ -$ 2, 200$ 627, 500$ General Fund/Capital Reserves 30,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,000$ Unfunded -$ -$ -$ -$ 65,500$ -$ -$ -$ -$ -$ -$ 65,500$ Total, Facilities 715,676$ -$ 960,300$ 1,614,300$ 2,972,300$ 576,400$ 230,900$ 389,200$ 50, 400$ 157,800$ 649,000$ 8, 316,276$ General Fund/Capital Reserves 55,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 55,000$ Community Development Tax Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ 355,000$ 1,485,000$ 1,503,000$ 1,300,000$ 150,000$ 1,600, 000$ -$ -$ -$ 6, 393,000$ General Fund/Capital Reserves 23,546$ 1,870,700$ 50,000$ 50,000$ -$ -$ -$ -$ -$ -$ -$ 1,994, 246$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 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$ General Fund/Capital Reserves 98,000$ 15,295$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 113,295$ Unfunded -$ -$ -$ -$ -$ -$ -$ 700,000$ -$ -$ -$ 700,000$ Beechnut Park
Public Works
Maintenance Yard
Leila's By The Bay
Roof
Senior Center
Library
Foxboro Community
Center
Ohlone Community
Center
Ohlone Childcare
Center
City Hall
Community Swin
Center
Lupine Kidz Center
Refugio Valley Park
Capital Improvements
Refugio Lake
Restoration Project
Teen Center
Hanna Ranch
Childcare Center
162
CITY OF HERCULES
TEN-YEAR CAPITAL IMPROVEMENT PROJECT (CIP) PROGRAM SPENDING PLAN FY 2026-2036 Project Funding Source: Prior Year
Carryover
FY 2026-27
Proposed
FY 2027-28
Projection
FY 2028-29
Projection
FY 2029-30
Projection
FY 2030-31
Projection
FY 2031-32
Projection
FY 2032-33
Projection
FY 2033-34
Projection
FY 2034-35
Projection
FY 2035-36
Projection Total Budget
General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ 680,000$ -$ 780,000$ General Fund/Capital Reserves 418,595$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 418,595$ Unfunded -$ -$ -$ -$ -$ -$ 74,000$ -$ -$ -$ -$ 74,000$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ LWCF -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ 3,780,000$ 2,730,000$ -$ 6,510,000$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ 100,000$ -$ -$ -$ 1,500,000$ 1,500,000$ 3,000, 000$ 3,000,000$ -$ 9, 100,000$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,183,000$ -$ 1,183,000$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ 215,000$ 375,000$ 738,000$ 1,500,000$ 2,217,000$ -$ -$ -$ 5,045, 000$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ 150,000$ 200,000$ 150,000$ -$ -$ -$ 500,000$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ 749,000$ 931,000$ -$ -$ -$ -$ 1,680,000$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ 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$
Sewer Fund - 421 200,000$ 269,700$ 1,206,100$ 1,080,000$ -$ -$ -$ -$ -$ -$ -$ 2,755,800$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 151,680$ -$ -$ -$ -$ 151,700$ 1,650,000$ -$ -$ -$ -$ 1,953,380$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ -$ -$ -$ -$ -$ -$ -$ 50,000$ 1,241,800$ -$ 1,291,800$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ -$ -$ 450,463.00$ 2,928,008$ 2,928,008$ -$ -$ -$ -$ -$ 6,306,479$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ 175,000$ 175,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100, 000$ 100, 000$ 100, 000$ 1, 150,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ -$ 100,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300, 000$ 300, 000$ 300, 000$ 2, 500,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 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$ Duck Pond Park
Foxboro Park
Sycamore Ave. Upper
Trunk Main
Condition Assesment
Projects
Annual Sewer System
Improvements
Lower Sycamore Ave.
SS Overflow Pipeline
Willow-Newbury
Sewer Rehabilitation
Frog Pad Park
Ohlone Park
Bayside Park
Woodfield Park
Hercules Point -
Nuisance Abatement
Shoreline Park
Promenade Lift station
Hanna Ranch Park
163
CITY OF HERCULES
TEN-YEAR CAPITAL IMPROVEMENT PROJECT (CIP) PROGRAM SPENDING PLAN FY 2026-2036 Project Funding Source: Prior Year
Carryover
FY 2026-27
Proposed
FY 2027-28
Projection
FY 2028-29
Projection
FY 2029-30
Projection
FY 2030-31
Projection
FY 2031-32
Projection
FY 2032-33
Projection
FY 2033-34
Projection
FY 2034-35
Projection
FY 2035-36
Projection Total Budget
General Fund/Capital Reserves 689,103$ 96,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 785,103$ SB1 RMRA 200,000$ 260,000$ 260,000$ 260,000$ -$ -$ -$ -$ -$ -$ -$ 980,000$ Measure J Fund - 263 1,466$ 225,000$ 225,000$ 200,000$ -$ -$ -$ -$ -$ -$ -$ 651,466$ Gas Tax -$ 455,000$ 455,000$ 455,000$ -$ -$ -$ -$ -$ -$ -$ 1,365, 000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ -$ -$ 1,000,000$ -$ -$ -$ -$ -$ -$ -$ 1,000,000$ General Fund/Capital Reserves 150,000$ -$ -$ -$ 626,000$ 626,500$ -$ -$ -$ -$ -$ 1,402,500$ SB1 RMRA -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Measure J Fund - 263 -$ -$ -$ -$ 225,000$ 225,000$ -$ -$ -$ -$ -$ 450,000$ Gas Tax -$ -$ -$ -$ 200,000$ 200,000$ -$ -$ -$ -$ -$ 400,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Green Infrastructure
Project - Public ROW General Fund/Capital Reserves 150,000$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 400,000$ General Fund/Capital Reserves -$ -$ 50,000$ 168,335$ -$ -$ -$ -$ -$ -$ -$ 218,335$ CCTA 28B -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ 331,665$ 74,000$ -$ -$ -$ -$ -$ -$ 405,665$ General Fund/Capital Reserves 211,509$ -$ 640,000$ -$ -$ -$ -$ -$ -$ -$ -$ 851,509$ SB1 RMRA 100,000$ -$ -$ -$ 260,000$ 260,000$ 260,000$ 260,000$ 260,000$ 260,000$ 260, 000$ 1, 920,000$ Measure J Fund - 263 138,500$ -$ -$ -$ -$ -$ 225,000$ 225,000$ 225,000$ 225,000$ 225,000$ 1,263,500$ Gas Tax -$ -$ -$ -$ 255,000$ 255,000$ 455,000$ 455,000$ 455,000$ 455,000$ 455, 000$ 2, 785,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ MTC TDA3 -$ 150,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 150,000$ HSIP -$ -$ -$ 165,000$ 165,000$ -$ -$ -$ -$ -$ -$ 330,000$ Unfunded -$ -$ -$ -$ 1,230,000$ -$ -$ -$ -$ -$ -$ 1,230,000$ General Fund/Capital Reserves 90,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 90,000$ Unfunded -$ -$ -$ -$ -$ 80,000$ 80,000$ -$ -$ -$ -$ 160,000$ 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$ 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 850,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 850,000$ General Fund/Capital Reserves -$ 418,500$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 418,500$ 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$ General Fund/Capital Reserves -$ -$ -$ -$ -$ 2,581,500$ -$ -$ -$ -$ -$ 2,581,500$ Unfunded -$ -$ -$ -$ -$ - -$ -$ -$ -$ -$ -$ Hercules HUB
Gateway Monument
Sign Project
Sycamore Ave
Bike/Ped Connector
Project
John Muir Parkway
Traffic Calming
Improvements
Annual Street Repair
Project
Foxboro
Hercules By The Bay
164
CITY OF HERCULES
TEN-YEAR CAPITAL IMPROVEMENT PROJECT (CIP) PROGRAM SPENDING PLAN FY 2026-2036 Project Funding Source: Prior Year
Carryover
FY 2026-27
Proposed
FY 2027-28
Projection
FY 2028-29
Projection
FY 2029-30
Projection
FY 2030-31
Projection
FY 2031-32
Projection
FY 2032-33
Projection
FY 2033-34
Projection
FY 2034-35
Projection
FY 2035-36
Projection Total Budget
General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ 1,500,000$ -$ -$ -$ -$ -$ -$ 1,500,000$ Total, The HUB 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$ Funding sources:
General Fund/Capital Reserves 2,601,428$ 2,650,495$ 740,000$ 218,335$ 626,000$ 3,208,000$ - $ - $ - $ - $ - $ $ 10,044,258 Asset Seizure Fund - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - Community Development Tax Fund - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - 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 LWCF - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - 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 CCTA 28B - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - 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$ Chelsea Wetlands
165
Project Project # Funding Source: 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 Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 335,256$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 335,256$ Unfunded - $ - $ 440,700$ 445,000$ 793,700$ 67,000$ 105,000$ - $ - $ 157,800$ 595,000$ 2,604,200$ General Fund/Capital Reserves $ 30,200 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 30,200$ Unfunded $ - $ - $ 172,200 $ 370,300 $ 660,700 $ 22,100 $ - $ 196,000 $ - $ - $ - 1,421,300$ General Fund/Capital Reserves $ 38,649 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 38,649$ Unfunded $ - $ - $ 123,400 $ 21,000 $ 28,000 $ 22,400 $ - $ - $ - $ - $ 51,800 246,600$ General Fund/Capital Reserves $ 91,577 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 91,577$ Unfunded $ - $ - $ - $ 286,300 $ 324,500 $ 283,600 $ - $ 119,000 $ - $ - $ - 1,013,400$ General Fund/Capital Reserves $ 10,200 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 10,200$ Unfunded $ - $ - $ - $ 35,000 $ - $ - $ 54,100 $ - $ 14,000 $ - $ - 103,100$ General Fund/Capital Reserves $ 82,684 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 82,684$ Unfunded $ - $ - $ - $ 80,700 $ 121,200 $ 65,100 $ 41,700 $ - $ 3,500 $ - $ - 312,200$ General Fund/Capital Reserves $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - - $ Unfunded $ - $ - $ 5,300 $ 43,800 $ 35,400 $ - $ - $ 18,200 $ - $ - $ - 102,700$ General Fund/Capital Reserves $ 16,660 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 16,660 Unfunded $ - $ - $ - $ 27,300 $ 490,000 $ - $ - $ - $ - $ - $ - 517,300$ General Fund/Capital Reserves $ 30,612 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 30,612$ Unfunded $ - $ - $ 49,500 $ - $ 130,200 $ - $ 30,100 $ 56,000 $ 3,500 $ - $ - 269,300$ General Fund/Capital Reserves $ 41,187 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 41,187$ Unfunded $ - $ - $ 120,100 $ 103,600 $ 64,400 $ - $ - $ - $ 29,400 $ - $ - 317,500$ General Fund/Capital Reserves $ 8,650 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 8,650$ Unfunded $ - $ - $ 49,100 $ 201,300 $ 258,700 $ 116,200 $ - $ - $ - $ - $ 2,200 627,500$ General Fund/Capital Reserves $ 30,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 30,000$ Unfunded $ - $ - $ - $ - $ 65,500 $ - $ - $ - $ - $ - $ - 65,500$ Total 715,676$ - $ 960,300$ 1,614,300$ 2,972,300$ 576,400$ 230,900$ 389,200$ 50,400$ 157,800$ 649,000$ 8,316,276$ Funding source:
General Fund/Capital Reserves 715,676$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 715,676 Unfunded - $ - $ 960,300$ 1,614,300$ 2,972,300$ 576,400$ 230,900$ 389,200$ 50,400$ 157,800$ 649,000$ $ 7,600,600 Total 715,676$ - $ 960,300$ 1,614,300$ 2,972,300$ 576,400$ 230,900$ 389,200$ 50,400$ 157,800$ 649,000$ $ 8,316,276 * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
10 Year Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
City Hall
Senior Center
63065
63066
All costs include 40% markup for Design, Project Mgmt, Const. Mgmt and Contingencies.
Community Swin Center
Leila's By The Bay Roof
Ohlone Community Center
Foxboro Community Center
Hanna Ranch Childcare Center
Public Works Maintenance Yard
63070
63068
63069
63071
63080
Library
Ohlone Childcare Center
Teen Center
Lupine Kidz Center
PW0004
63067
63073
63072
166
Asset Type:
Project Number: 63065
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 335,256$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 335,256$ Unfunded -$ -$ 440,700$ 445,000$ 793,700$ 67,000$ 105,000$ -$ -$ 157,800$ 595,000$ 2,604, 200$ Total 335,256$ -$ 440,700$ 445,000$ 793,700$ 67,000$ 105,000$ -$ -$ 157,800$ 595,000$ 2,939, 456$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
City Hall
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 167
Project Number: 63067
Project Name:
Description:
\
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 30,200$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,200$ Unfunded -$ -$ 172,200$ 370,300$ 660,700$ 22,100$ -$ 196,000$ -$ -$ -$ 1,421, 300$ Total 30,200$ -$ 172,200$ 370,300$ 660,700$ 22,100$ -$ 196,000$ -$ -$ -$ 1,451, 500$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Community swim center
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations. 168
Project Number: 63066
Project Name:
Description:
v
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 38,649 - - - - - - - - - - 38,649 Unfunded - - 123,400 21,000 28,000 22,400 - - - - 51, 800 246,600 Total 38,649 - 123,400 21,000 28,000 22,400 - - - - 51, 800 285, 249 * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Senior Center
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 169
Project Number: PW0004
Project Name:
Description:
v
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 91,577$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 91,577$ Unfunded -$ -$ 286,300$ 324,500$ 283,600$ -$ 119,000$ -$ -$ -$ 1, 013,400$ Total 91,577$ -$ -$ 286,300$ 324,500$ 283,600$ -$ 119,000$ -$ -$ -$ 1,104, 977$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Library
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 170
Project Number: 63073
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 10,200$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 10,200$ Unfunded -$ 35,000$ 54,100$ 14,000$ 103,100$ Total 10,200$ -$ -$ 35,000$ -$ -$ 54,100$ -$ 14,000$ -$ -$ 113,300$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Foxboro Community Center
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 171
Project Number: 63072
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 82,684$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 82,684$ Unfunded -$ -$ -$ 80,700$ 121,200$ 65,100$ 41,700$ -$ 3,500$ -$ -$ 312, 200$ Total 82,684$ -$ -$ 80,700$ 121,200$ 65,100$ 41,700$ -$ 3,500$ -$ -$ 394, 884$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Ohlone Community Center
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 172
Project Number: -
Project Name:
Description:
v
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ 5,300$ 43,800$ 35,400$ 18,200$ 102,700$ Total -$ -$ 5,300$ 43,800$ 35,400$ -$ -$ 18,200$ -$ -$ -$ 102,700$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Ohlone Childcare Center
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 173
Project Number: 63070
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 16,660$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 16,660$ Unfunded 27,300$ 490,000$ 517,300$
Total 16,660$ -$ -$ 27,300$ 490,000$ -$ -$ -$ -$ -$ -$ 533,960$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Lupine Childcare Center
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 174
Project Number: 63068
Project Name:
Description:
v
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 30,612$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,612$ Unfunded 49,500$ 130,200$ 30,100$ 56,000$ 3,500$ 269,300$ Total 30,612$ -$ 49,500$ -$ 130,200$ -$ 30,100$ 56,000$ 3,500$ -$ -$ 299,912$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Teen Center
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 175
Project Number: 63069
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 41,187$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 41,187$ Unfunded 120,100$ 103,600$ 64,400$ -$ 29,400$ -$ 317,500$ Total 41,187$ -$ 120,100$ 103,600$ 64,400$ -$ -$ -$ 29,400$ -$ -$ 358,687$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Hanna Ranch Childcare Center
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 176
Project Number: 63071
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 8,650$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 8,650$ Unfunded 49,100$ 201,300$ 258,700$ 116,200$ 2,200$ 627,500$ Total 8,650$ -$ 49,100$ 201,300$ 258,700$ 116,200$ -$ -$ -$ -$ 2, 200$ 636, 150$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2026-27 through 2035-36
Public Works Maintenace Yard
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 177
Project Number: 63080
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 30,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,000$ Unfunded -$ -$ -$ -$ 65,500$ -$ -$ -$ -$ -$ -$ 65,500$ Total 30,000$ -$ -$ -$ 65,500$ -$ -$ -$ -$ -$ -$ 95,500$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Facilities
Fiscal Years 2025-26 through 2034-35
Leila's By The Bay
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
A - Health and Safety: Improvements required to address immediate health, safety, or operational risks.
B – ADA / Aged Architectural Systems: Projects necessary for ADA compliance or replacement of aging architectural components C – Discretionary: Preventive maintenance or enhancementss that improve longevity or functionality, but are not critical to current operations.
D – Special/Dedicated Revenue – Projects primarily supported through dedicated funding or special revenue funds. 178
Prior 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 Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 55,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 55,000$ Unfunded - $ - $ 355,000$ 1,485,000$ 1,503,000$ 1,300,000$ 150,000$ 1,600,000$ - $ - $ - $ 6,393,000$ General Fund/Capital Reserves 23,546$ 1,870,700$ 50,000$ 50,000$ - $ - $ - $ - $ - $ - $ - $ 1,994,246$ 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$ General Fund/Capital Reserves 98,000$ 15,295$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 113,295$ Unfunded - $ - $ - $ - $ - $ - $ - $ 700,000$ - $ - $ - $ 700,000$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ 100,000$ 680,000$ - $ 780,000$ General Fund/Capital Reserves 418,595$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 418,595$ Unfunded - $ - $ - $ - $ - $ - $ 74,000$ - $ - $ - $ - $ 74,000$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ 3,780,000$ 2,730,000$ - $ 6,510,000$ Unfunded - $ - $ 100,000$ - $ - $ - $ 1,500,000$ 1,500,000$ 3,000,000$ 3,000,000$ - $ 9,100,000$ Unfunded - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,183,000$ - $ 1,183,000$ Unfunded - $ - $ - $ 215,000$ 375,000$ 738,000$ 1,500,000$ 2,217,000$ - $ - $ - $ 5,045,000$ Unfunded - $ - $ - $ - $ - $ 150,000$ 200,000$ 150,000$ - $ - $ - $ 500,000$ Unfunded - $ - $ - $ - $ - $ 749,000$ 931,000$ - $ - $ - $ - $ 1,680,000$ Unfunded - $ - $ - $ - $ - $ 630,000$ - $ - $ - $ - $ - $ 630,000$ Total 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$ Funding source:
Eastbay Regional Park District
WW Grant Funds 40,095$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 40,095 Prop. 68 156,610$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 156,610
General Fund/Capital Reserves 595,141$ 1,885,995$ 50,000$ 50,000$ - $ - $ - $ - $ - $ - $ - $ $ 2,581,136 Parks Impact Fee Fund 150,000$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ 150,000 Community Development Tax Fund - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - LWCF - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - Unfunded - $ - $ 455,000$ 1,700,000$ 1,878,000$ 3,567,000$ 4,355,000$ 6,167,000$ 6,880,000$ 7,593,000$ - $ $ 32,595,000 Total 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 * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
All costs include 40% markup for Design, Project Mgmt, Const. Mgmt and Contingencies.
Project Project
No.
Funding Source:
Fiscal Years 2026-27 through 2035-36
City of Hercules
10 Year Capital Improvement Plan - Parks
Frog Pad Park
Shoreline Park
63089
-
63079
63063
63088
Beechnut Park
Refugio Valley Park Capital
Improvements
Refugio Lake Restoration Project
Foxboro Park
Hanna Ranch Park
-
-
-
-
Duck Pond Park
-
Hercules Point - Nuisance
Abatement -
Ohlone Park
Bayside Park
Woodfield Park
179
Project Number: 63089
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 55,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 55,000$ Unfunded -$ -$ 355,000$ 1,485,000$ 1,503,000$ 1,300,000$ 150,000$ 1,600,000$ -$ -$ -$ 6,393,000$ Total 55,000$ -$ 355,000$ 1,485,000$ 1,503,000$ 1,300,000$ 150,000$ 1,600,000$ -$ -$ -$ 6,448,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Refugio Valley Park Capital Improvements
This phased program replaces/rehabilitates restrooms, renews tennis courts and access features, and addresses deferred maintenance (painting, stairs/steps, railings) to reduce liability and extend asset life. Lawn drainage regrading, a flexible event space, and playground renovation improve year-round usability, support programming, and increase park activation. Identified in the 5 Year Action Plan in the parks Master Plan. For detailed jusification, please refer to the master plan. 180
Project Number: 63079
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 23,546$ 1,870,700$ 50,000$ 50,000$ -$ -$ -$ -$ -$ -$ -$ 1,994,246$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 23,546$ 1,870,700$ 50,000$ 50,000$ -$ -$ -$ -$ -$ -$ -$ 1,994,246$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Refugio Lake Restoration Project
Project is necessary to remove accumulated sediment to restore lake to original volume and reduce nuisance algae. Work conducte d in accordance with federal and state regulations. Required mitigation work removing invasive plants and replacing with native vegetation will occur around lake. Similar discretionary mitigation work upstream of the pedestrian bridge near inlet may occur in following year. 181
Project Number: 63063
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection 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$ General Fund/Capital Reserves 98,000$ 15,295$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 113,295$ Unfunded -$ -$ -$ -$ -$ -$ 700,000$ -$ -$ -$ 700,000$ Total 444,705$ 15,295$ -$ -$ -$ -$ -$ 700,000$ -$ -$ -$ 1,160,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Beechnut Park
Beechnut Park has seen minimal reinvestment for many years and needs modern, safe neighborhood amenities. This project will improve park entry and visibility, convert the underutilized paved lot into an active youth play area, and add shade and all-ages play features to increase comfort and daily use. A small community library ki osk and pump track/bike skills elements will broaden recreation options for children and teens and activate the site year-round.
182
Project Number:
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ 680,000$ -$ 780,000$ Total -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ 680,000$ -$ 780,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Duck Pond Park
Duck Pond Park is a heavily used neighborhood park, and these improvements expand recreation options while addressing comfort and durability needs. A fenced dog park with agility features provides a safe, controlled space for pets and reduces conflicts with other park users. Converting underutilized horseshoe courts to newer soc ial recreation features and adding shade/trees at the bocce area improves usability, heat 183
Project Number: 63088
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 418,595$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 418,595$ Unfunded -$ -$ -$ -$ -$ -$ 74,000$ -$ -$ -$ -$ 74,000$ Total 418,595$ -$ -$ -$ -$ -$ 74,000$ -$ -$ -$ -$ 492,595$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Foxboro Park
These projects resurface worn courts, address uneven/rough play surfaces and non- standard hoop setbacks, refresh landscaping/seat wall planting areas, and add perimeter fencing to improve safety and park 184
Project Number: -
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ LWCF -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ 3,780,000$ 2,730,000$ -$ 6,510,000$ Total -$ -$ -$ -$ -$ -$ -$ -$ 3,780,000$ 2,730,000$ -$ 6,510,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Hanna Ranch Park
To support the City’s implementation goals that include the installation of drought-tolerant low-maintenance strategies to achieve carbon sequestration, acquisition of an all-accessible playground, public restrooms renovation that brings the facility in compliance with state/local ADA building code requirements. 185
Project Number: -
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ 100,000$ -$ -$ -$ 1,500,000$ 1,500,000$ 3,000,000$ 3,000,000$ -$ 9,100,000$ Total -$ -$ 100,000$ -$ -$ -$ 1,500,000$ 1,500,000$ 3,000,000$ 3,000,000$ -$ 9,100,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Ohlone Park
A park-wide re-visioning will reorganize circulation and amenities (play areas, open lawn, passive recreation, etc.) to improve usability, safety, and ADA access while delivering a more cohesive, flexible park program. Funding a comprehensive per-acre reconfiguration avoids piecemeal fixes and maximizes long-term return on investment. 186
Project Number: -
Project Name:
Description:
v
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,183,000$ -$ 1,183,000$ Total -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,183,000$ -$ 1,183,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Bayside Park
Planned improvements modernize play opportunities, add shade and picnic amenities, and address deferred maintenance while keepin g the park’s small-park character. Consolidating the tot lot improves safety and accessibility, restroom repairs extend asset life, and the neighborhood library feature adds a low -cost, high-visibility community benefit. 187
Project Number: -
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ 215,000$ 375,000$ 738,000$ 1,500,000$ 2,217,000$ -$ -$ -$ 5,045,000$ Total -$ -$ -$ 215,000$ 375,000$ 738,000$ 1,500,000$ 2,217,000$ -$ -$ -$ 5,045,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Woodfield Park
Restores and modernizes priority assets, basketball/tennis courts, and restroom replacement —then delivers supporting improvement s (fencing, field/dugouts, picnic area, parking, visibility/landscape fixes) to increase usability and reduce long-term repair costs. 188
Project Number: -
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ 749,000$ 931,000$ -$ -$ -$ -$ 1,680,000$ Total -$ -$ -$ -$ -$ 749,000$ 931,000$ -$ -$ -$ -$ 1,680,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Shoreline Park
The proposed targeted upgrades (walkway/planter corrections, improved access paths, seating/picnic enhancements, signage, fountain and restroom refresh, and a small play node) will improve ADA access, safety, and overall park activation. These improvements protect the City’s investment in a key Bay Trail gateway and enhance user experience for all ages with efficient, phased implementation. 189
Project Number: -
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ 630,000$ -$ -$ -$ -$ -$ 630,000$ Total -$ -$ -$ -$ -$ 630,000$ -$ -$ -$ -$ -$ 630,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Frog Pad Park
Frog Pad Park is a neighborhood park with high daily use. The proposed improvements focus on replacing aging playground equipment and safety surfacing, repairing and refinishing the gazebo shade structure, and renovating planting beds with pollinator-friendly species to improve safety, comfort, and park appearance. 190
Project Number: -
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ 150,000$ 200,000$ 150,000$ -$ -$ -$ 500,000$ Total -$ -$ -$ -$ -$ 150,000$ 200,000$ 150,000$ -$ -$ -$ 500,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Hercules Point Nuisance Abatement
Reduce City liability and shoreline risk by controlling access and abating hazards at Hercules Point. Phased nuisance abateme nt and DTSC coordination are needed to mitigate hazards now and define next -step cleanup 191
Project Project # Funding Source: Prior* 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 Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 200,000$ 269,700$ 1,206,100$ 1,080,000$ -$ -$ -$ -$ -$ -$ -$ 2,75 5,800$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 151,680$ -$ -$ -$ -$ 151,700$ 1,650,000$ -$ -$ -$ -$ 1,953,380$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ -$ -$ -$ -$ -$ -$ -$ 50,000$ 1,241,800$ -$ 1,291,800$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ -$ -$ 450,463$ 2,928,008$ 2,928,008$ -$ -$ -$ -$ -$ 6,306,479$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ 175,000$ 175,000$ 100,000$ 100,000$ 100,000$ 100, 000$ 100,000$ 100,000$ 100, 000$ 100,000$ 1,150, 000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer Fund - 421 -$ -$ 100,000$ 300,000$ 300,000$ 300,000$ 300, 000$ 300, 000$ 300,000$ 300,000$ 300, 000$ 2,50 0,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 351,680.00$ 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$ Funding Source:
Sewer Fund - 421 351,680$ 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$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 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$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
10 Year Capital Improvement Plan - Sewer
Willow-Newbury Sewer Rehabilitation
Lower Sycamore Ave.
SS Overflow Pipeline
Fiscal Years 2026-27 through 2035-36
Annual Sewer System Improvements
Sycamore Ave. Upper Trunk Main
Condition Assesment Projects
63086
63087
Promenade Lift Station
192
Project Number: 63086
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 421 200,000$ 269,700$ 1,206,100$ 1,080,000$ -$ -$ -$ -$ -$ -$ -$ 2,755,800$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 200,000$ 269,700$ 1,206,100$ 1,080,000$ -$ -$ -$ -$ -$ -$ -$ 2,755,800$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
Fiscal Years 2025-26 through 2034-35
Capital Improvement Plan - Sewer
Repair/ Replace Sewer Lines under SR-4 and on Willow Ave and Newbury Street City of Hercules
Evaluate and rehabilitate the Willow–Newbury sewer corridor (approx. 8-inch to 14-inch gravity mains) including the Newbury Ave segment connecting to Willow Ave beneath SR-4. Anticipated construction may include localized repairs, CIPP/lining where feasible, correction of lateral connection defects at legacy tee connections, and rehabilitation of deteriorated manholes (Newbury MH 3017–3282) impacted by high- velocity/corrosive discharge conditions.
Project improves structural integrity, minimizes I/I, and supports coordinated delivery with roadway improvements to reduce overall restoration costs.
193
Project Number: 63087
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 421 151,680$ -$ -$ -$ -$ 151,700$ 1,650,000$ -$ -$ -$ -$ 1,953,380$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 151,680$ -$ -$ -$ -$ 151,700$ 1,650,000$ -$ -$ -$ -$ 1,953,380$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
Fiscal Years 2025-26 through 2034-35
Capital Improvement Plan - Sewer
Lower Sycamore Relief Sewer
City of Hercules
Targeted improvements in the Lower Sycamore sewer conveyance corridor to address capacity, condition, or reliability constraints. Scope may include installing 500 ft. overflow pipe in the vicinity of Main street and Apollo Ct, trunk main rehabilitation/replacement, manhole upgrades, and associated hydraulic improvements based on field verification and planning documents.
Project reduces surcharge/overflow risk and improves conveyance performance under wet-weather conditions. 194
Project Number:
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 421 -$ -$ -$ -$ -$ -$ -$ -$ 50,000$ 1,241,800$ -$ 1,291,800$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ -$ -$ -$ -$ 50,000$ 1,241,800$ -$ 1,291,800$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Sewer
Fiscal Years 2025-26 through 2034-35
Sycamore Ave. Upper Trunk Main
Targeted improvements in the Sycamore Ave. Upper Trunk Main sewer conveyance corridor to address capacity, reliability, and wet-weather performance. Scope may include upsizing/rehabilitation of trunk main segments, manhole and appurtenance upgrades, and wet-weather flow/depth monitoring upstream of the Upper Trunk Main overflow siphon/gravity configuration near South Front Street to confirm hydraulic performance and inform final improvement sizing.
Project reduces surcharge/overflow risk and improves conveyance performance under wet-weather conditions. 195
Project Number:
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 421 -$ -$ -$ 450,463$ 2,928,008$ 2,928,008$ -$ -$ -$ -$ -$ 6,306,479$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ 450,463$ 2,928,008$ 2,928,008$ -$ -$ -$ -$ -$ 6,306,479$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Sewer
Fiscal Years 2025-26 through 2034-35
Promenade Lift Station Improvements
Upgrade/rehabilitate the Promenade Lift Station to improve reliability, capacity, and long- term performance.
Work may include pump and motor replacements, wet well improvements, electrical and controls upgrades, emergency power provisions, and site/civil modifications.
Significantly reduces the risk of pump failures and sanitary sewer overflows (SSOs) and lowers reactive O&M costs
196
Project Number:
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 421 -$ 175,000$ 175,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 1,150,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 175,000$ 175,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 1,150,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Sewer
Fiscal Years 2025-26 through 2034-35
Condition Assesment Projects
This project funds ongoing condition assessment of the City’s wastewater collection system to support proactive capital planning and risk-based rehabilitation. Activities include CCTV inspections, smoke testing, flow monitoring, lift station studies, and physical inspections to evaluate asset condition and system performance. Data collected through this program is used to identify deficiencies, prioritize repairs, and refine future CIP projects. The program supports regulatory compliance, reduces emergency failures, and improves long-term system reliability.
Program funding is distributed evenly across the 10-year CIP to provide steady annual condition assessment and rehabilitation capacity and to support predictable contracting and staffing. 197
Project Number:
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 421 -$ -$ 100,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 2,500,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 100,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 2,500,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
Fiscal Years 2025-26 through 2034-35
Capital Improvement Plan - Sewer
Annual Sewer System Improvements Program (includes manhole Rim repairs) City of Hercules
Ongoing annual program to fund priority sewer system repairs and minor capital improvements, including manhole rim/frame repairs, localized main repairs, and small rehabilitation projects.
Helps prevent SSOs, reduces reactive O&M, and extends asset life through proactive renewal. 198
Project Name Project # Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves $ 689,103 $ 96,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - 785,103$ SB1 RMRA $ 200,000 $ 260,000 $ 260,000 $ 260,000 $ - $ - $ - $ - $ - $ - $ - 980,000$ Measure J Fund - 263 $ 1,466 $ 225,000 $ 225,000 $ 200,000 $ - $ - $ - $ - $ - $ - $ - 651,466$ Gas Tax $ - $ 455,000 $ 455,000 $ 455,000 $ - $ - $ - $ - $ - $ - $ - 1,365,000$ Unfunded $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ Sewer $ - $ - $ - $ 1,000,000 $ - $ - $ - $ - $ - $ - $ - 1,000,000$ General Fund/Capital Reserves $ 150,000 $ - $ - $ - $ 626,000 $ 626,500 $ - $ - $ - $ - $ - 1,402,500$ SB1 RMRA $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ Measure J Fund - 263 $ - $ - $ - $ - $ 225,000 $ 225,000 $ - $ - $ - $ - $ - 450,000$ Gas Tax $ - $ - $ - $ - $ 200,000 $ 200,000 $ - $ - $ - $ - $ - 400,000$ Unfunded $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ Green Infrastructure
Project - Public ROW
Bioretention
63082 General Fund/Capital Reserves $ 150,000 $ 250,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - 400,000$ General Fund/Capital Reserves $ 211,509 $ - $ 640,000 $ - $ - $ - $ - $ - $ - $ - $ - 851,509$ SB1 RMRA $ 100,000 $ - $ - $ - $ 260,000 $ 260,000 $ 260,000 $ 260,000 $ 260,000 $ 260,000 $ 260,000 1,920,000$ Measure J Fund - 263 $ 138,500 $ - $ - $ - $ - $ - $ 225,000 $ 225,000 $ 225,000 $ 225,000 $ 225,000 1,263,500$ Gas Tax $ - $ - $ - $ - $ 255,000 $ 255,000 $ 455,000 $ 455,000 $ 455,000 $ 455,000 $ 455,000 2,785,000$ Unfunded $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ General Fund/Capital Reserves $ 218,335 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 218,335$ CCTA 28B $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ Unfunded $ - $ - $ 50,000 $ 355,665 $ - $ - $ - $ - $ - $ - $ - 405,665$ General Fund/Capital Reserves $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ MTC TDA3 $ - $ 150,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - 150,000$ HSIP $ - $ - $ - $ 165,000 $ 165,000 $ - $ - $ - $ - $ - $ - 330,000$ Unfunded $ - $ - $ - $ - $ 1,230,000 $ - $ - $ - $ - $ - $ - 1,230,000$ General Fund/Capital Reserves $ 90,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 90,000$ Unfunded $ - $ - $ - $ - $ - $ 80,000 $ 80,000 $ - $ - $ - $ - 160,000$ Total 1,948,913$ 1,436,000$ 1,630,000$ 2,435,665$ 2,961,000$ 1,566,500$ 940,000$ 940,000$ 940,000$ 940,000$ 940,000$ 16,838,078$ Funding Sources:
General Fund/Capital Reserves 1,508,947$ 346,000$ 640,000$ -$ 626,000$ 626,500$ -$ -$ -$ -$ -$ 3, 747,447$ 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$ Sewer -$ -$ -$ 1,000,000$ -$ -$ -$ -$ -$ -$ -$ 1,000,000$ MTC TDA3 -$ 150,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 150,000$ HSIP -$ -$ -$ 165,000$ 165,000$ -$ -$ -$ -$ -$ -$ 330,000$ Unfunded -$ -$ 50,000$ 355,665$ 1,230,000$ 80,000$ 80,000$ -$ -$ -$ -$ 1,795,665$ Total 1,948,913$ 1,436,000$ 1,630,000$ 2,435,665$ 2,961,000$ 1,646,500$ 1,020,000$ 940,000$ 940,000$ 940,000$ 940,000$ 16,838,078$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
Gateway Monument Sign
Project
Sycamore Ave
Bike/Ped Connector Project
City of Hercules
10 Year Capital Improvement Plan - Streets
Hercules By The Bay 63081
Annual Street
Repair Project 63083
Foxboro 63075
John Muir Parkway Traffic
Calming Improvements 63084
Fiscal Years 2026-27 through 2035-36
199
Project Number: 63075
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 689,103$ 96,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 785,103$ SB1 RMRA 200,000$ 260,000$ 260,000$ 260,000$ -$ -$ -$ -$ -$ -$ -$ 980,000$ Measure J Fund - 263 1,466$ 225,000$ 225,000$ 200,000$ -$ -$ -$ -$ -$ -$ -$ 651,466$ Gas Tax -$ 455,000$ 455,000$ 455,000$ -$ -$ -$ -$ -$ -$ -$ 1,365,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sewer -$ -$ -$ 1,000,000$ -$ -$ -$ -$ -$ -$ -$ 1,000,000$ Total 890,569$ 1,036,000$ 940,000$ 1,915,000$ -$ -$ -$ -$ -$ -$ -$ 4,781, 569$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Streets
Fiscal Years 2026-27 through 2035-36
Foxboro
The Foxboro neighborhood is one of two neighborhoods in Hercules with failing streets. Streets unhampered by utility projectsand new development will be addressed in FY26-27, with the 200
Project Number: 63081
Project Name:
Description:
v
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 150,000$ -$ -$ -$ 626,000$ 626,500$ -$ -$ -$ -$ -$ 1,402,500$ ARPA -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ SB1 RMRA -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Measure J Fund - 263 -$ -$ -$ -$ 225,000$ 225,000$ -$ -$ -$ -$ -$ 450,000$ Gas Tax -$ -$ -$ -$ 200,000$ 200,000$ -$ -$ -$ -$ -$ 400,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 150,000$ -$ -$ -$ 1,051,000$ 1,051,500$ -$ -$ -$ -$ -$ 2,252,500$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Streets
Fiscal Years 2026-27 through 2035-36
Hercules By The Bay
After Foxboro neighborhood is rehabilitated, per 2022 PMP Report, the Hercules By The Bay neighborhood is the only neighborhood in Hercules with failing streets. 201
Project Number: 63082
Project Name:
Description:
v
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 150,000$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 400,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 150,000$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 400,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Streets
Fiscal Years 2026-27 through 2035-36
Public Right-of-Way Bioretention
Provision C.3.j.i of the Municipal Regional Stormwater Permit (MRP) requires the City to design and fully fund Green Infrastructure facilities to treat runoff from 1.58 acres of public Right-of-Way on or before June 30, 2027.
202
Project Number: 63084
Project Name:
Description:
v
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 218,335$ -$ -$ -$ -$ -$ -$ -$ -$ 218,335$ CCTA 28B -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ 50,000$ 355,665$ -$ -$ -$ -$ -$ -$ 405,665$ Total 218,335$ -$ 50,000$ 355,665$ -$ -$ -$ -$ -$ -$ -$ 624,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Streets
Fiscal Years 2026-27 through 2035-36
John Muir Parkway Traffic Calming Improvements
John Muir Pkwy was design to meet the needs of planned commercial use of adjacent parcel. With the change of use, it necessit ates the modifying of John Muir Pkwy to better fulfill neighborhood needs. 203
Project Number: 63083
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ 395,000$ 395,000$ 135,000$ 135,000$ 135,000$ 135,000$ 135,000$ 135,000$ 135,000$ 1,735,000$ SB1 RMRA -$ -$ -$ 260,000$ 260,000$ 260,000$ 260,000$ 260,000$ 260,000$ 260, 000$ 1, 820,000$ Measure J Fund - 263 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Gas Tax -$ 455,000$ 455,000$ 455,000$ 455,000$ 455,000$ 455,000$ 455,000$ 455, 000$ 455, 000$ 4, 095,000$ Solid Waste Franchise Fees -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 850,000$ 850,000$ 850,000$ 850,000$ 850,000$ 850,000$ 850, 000$ 850, 000$ 850, 000$ 5, 915,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Streets
Fiscal Years 2026-27 through 2035-36
Annual Street Repair Project
Recommendations from PMP report, sidewalk inventory, verified citizen complaints, and emergency repairs. This scenario is the proposed CIP (limited budget-constrained maintenance) scenario.
204
Project Number: 63083
Project Name:
Description:
Justification:
Funding Source: 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 Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 138,500$ -$ 640,000$ -$ -$ -$ -$ -$ -$ -$ -$ 778,500$ SB1 RMRA 211,509$ -$ -$ -$ 260,000$ 260,000$ 260,000$ 260,000$ 260,000$ 260,000$ 260, 000$ 2, 031,509$ Measure J Fund - 263 100,000$ -$ -$ -$ -$ -$ 225,000$ 225,000$ 225,000$ 225,000$ 225,000$ 1,225,000$ Gas Tax -$ -$ -$ -$ 255,000$ 255,000$ 455,000$ 455,000$ 455,000$ 455,000$ 455, 000$ 2, 785,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 450,009$ -$ 640,000$ -$ 515,000$ 515,000$ 940,000$ 940,000$ 940,000$ 940,000$ 940, 000$ 6, 041,509$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Streets
Fiscal Years 2026-27 through 2035-36
Annual Street Repair Project
Recommendations from PMP report, sidewalk inventory, verified citizen complaints, and emergency repairs. This scenario is the proposed CIP (limited budget-constrained maintenance) scenario described above.
205
Project Number: XXXXX
Project Name: Sycamore Ave. Bike/Pedestrian East-West Connector Project Description:
Justification:
Funding Source: 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 Budget Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Transportation Impact Fee Fund -$ -$ -$ 240,000$ -$ -$ -$ -$ -$ -$ -$ 240,000$ MTC TDA3 -$ 150,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 150,000$ HSIP -$ -$ -$ 165,000$ 165,000$ -$ -$ -$ -$ -$ -$ 330,000$ Unfunded -$ -$ -$ 1,230,000$ -$ -$ -$ -$ -$ -$ 1,230,000$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 150,000$ -$ 405,000$ 1,395,000$ -$ -$ -$ -$ -$ -$ 1,950,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Streets
Fiscal Years 2026-27 through 2035-36
The Project will address safety concerns along Sycamore Avenue under I-80 and the BNSF railroad overcrossing where poor infrastructure, low visibility and past accidents have posed risks for pedestrians and cyclists.
206
Project Number: XXXXX
Project Name: City Monument Signage - San Pablo Ave Median near Market Drive Description:
Justification:
Funding Source: 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 Budget Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 90,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 90,000$ Unfunded -$ -$ -$ -$ -$ 80,000$ 80,000$ -$ -$ -$ -$ 160,000$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 90,000$ -$ -$ -$ -$ 80,000$ 80,000$ -$ -$ -$ -$ 250,000$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
City of Hercules
Capital Improvement Plan - Streets
Fiscal Years 2026-27 through 2035-36
New Entry way Monument Sign will enhance City identity and visual appeal, serve as welcoming landmark, reinforce branding andcivic pride, and support economic development. 207
Project Number: 63056, 63001D
Project Name:
Description:
Justification:
Phase: Funding Source: 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 Budget Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Grant Measure J TLC -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 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$ General Fund -$ 418,500$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 418,500$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 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$ General Fund -$ -$ -$ -$ -$ 2,581,500$ -$ -$ -$ -$ -$ 2,581,500$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 2,268,500$ 5,988,544$ 4,279,644$ 3,920,344$ 42,118,030$ 38,658,087$ 38,658,087$ 31,665,173$ -$ -$ 167,556,409$ * Note: Prior Year Carryover is based on the remaining balances as of February 2026 and is subject to change. The actual remaining balances as of June 30, 2026, will be carried over to the following fiscal year.
Construction
City of Hercules
Capital Improvement Plan
Fiscal Years 2026-27 through 2035-36
Hercules - The Hub
Design
Environmental mitigation work from previous construction phases is on-going. A funding plan has been created to complete the final design, utility relocations, and construction of the remainder of the Hub. The budget in coming years is dependent upon recieving grants. The City set aside $3M in the General Fund/Capital Reserves as the City's local contribution. Most recently, the City was successful in securing $2.4M of State TIRCP funds towards final design.
Moving forward, a total of $107.7M is needed to complete the infrastructure for a train stop, of which it is proposed $104.7M be funded with grants.
208
Federal Grants - CIP
Fund Summary - Fund 295
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
Federal Grants 472,098 $ - $ - - Interest Income - - - - Miscellaneous Revenues - - - - 472,098 - - -
Transfers In - - - - 472,098 - - -
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) - - - - Debt Service - - - - - - - -
Transfer Out 473,609 - - - 473,609 - - -
Changes in restricted reserves
Net Annual Activity (1,511)$ - - - Ending Available Fund Balance - $ - $ - $ This fund accounts for funds expended for Projects funded by federal grants utilized in acquiring or constructing capital assets for the City.
209
State and Local Grants - CIP
Fund Summary - Fund 296
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
State/Local Grants 1,095,913 $ 50,836 $ 190,500 150,000 Interest Income - - - - Miscellaneous Revenues - - - - 1,095,913 50,836 190,500 150,000 Transfers In - - - - 1,095,913 50,836 190,500 150,000 Expenditures
Salary and Benefits - - - - Contractual Services 35,948 - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) 1,065,066 22,920 190,500 150,000 Debt Service - - - - 1,101,014 22,920 190,500 150,000 Transfer Out - - - - 1,101,014 22,920 190,500 150,000 Changes in restricted reserves
Net Annual Activity (5,101)$ 27,916 - - Ending Available Fund Balance - $ - $ - $ This fund accounts for funds expended for Projects funded by state and local grants utilized in acquiring or constructing capital assets for the City.
210
City - Capital Projects
Fund Summary - Fund 300
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 - - - - - - - -
General Fund Capital Reserves 639,712 2,576,325 2,923,720 2,650,495 639,712 2,576,325 2,923,720 2,650,495
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) 673,876 424,247 2,923,720 2,650,495 Debt Service - - - - 673,876 424,247 2,923,720 2,650,495
Transfer Out 250,000 - - - 923,876 424,247 2,923,720 2,650,495
Changes in restricted reserves
Net Annual Activity (284,164)$ 2,152,078 - - Ending Available Fund Balance - $ - $ - $ This fund accounts for funds expended for major capital improvement projects associated with City-owned facilities including police, parks, community centers, and city buildings. This fund is funded primarily by General Fund.
211
HERCULES HUB
Fund Summary - Fund 354
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
Grant 99,209$ 213,351$ 2,239,000 1,000,000 Interest Income - - - - Miscellaneous Revenues - - - - 99,209 213,351 2,239,000 1,000,000
Transfers In - - - - 99,209 213,351 2,239,000 1,000,000
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Improvement Projects (CIP) 235,804 336,847 2,239,000 1,000,000 Debt Service - - - - 235,804 336,847 2,239,000 1,000,000
Transfer Out - General Fund (Loss of Revenue) - - - - 235,804 336,847 2,239,000 1,000,000 Changes in restricted reserves
Net Annual Activity (136,595)$ (123,496)$ - - Ending Available Fund Balance - $ - $ - $ This fund accounts for funds expended for the Hercules Hub (The Hub) Projects. The project is funded by multiple funding sources, including but not limited to, Federal, State, and Local grants. The Hercules Hub (The Hub) will create a regional, state-of-the-art housing and transportation community on the waterfront overlooking the San Pablo Bay. The Hub will connect thousands of housing units with a new train stop along the Capitol Corridor, bicycle and pedestrian pathways, bus routes, carpool options, and ferry service. 212
AGENCY FUNDS
213
Assessment District 05-01 Debt Service
Fund Summary - Fund 382
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
Assessment 228,616$ 230,867 $ 229,356 233,360 Interest Income 17,664 16,207 - - Miscellaneous Revenues - - - - 246,280 247,074 229,356 233,360 Transfers In - - - - 246,280 247,074 229,356 233,360 Expenditures
Salary and Benefits - - - - Contractual Services 6,885 6,885 7,100 7,300 Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service 220,638 218,124 222,256 226,060 227,523 225,009 229,356 233,360 Transfer Out - - - - 227,523 225,009 229,356 233,360 Changes in restricted reserves
Net Annual Activity 18,757$ 22,065 - - Ending Available Fund Balance - $ - $ - $ This fund collects revenues from property tax special assessments and finances bonded debt related to Reassessment District 2005-1 (John Muir Parkway). The District Bonds are not general obligations of the City. 214
Taylor Woodrow Maintenance LMOD
Fund Summary - Fund 501
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 78,504 $ 78,504 $ Revenues
Charges for Services - $ - $ - - Interest Income 3,691 4,152 - - Miscellaneous Revenues - - - - 3,691 4,152 - -
Transfers In - - - - 3,691 4,152 - -
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 3,691 $ 4,152 - - Ending Available Fund Balance 78,504 $ 78,504 $ 78,504 $ An agreement with Taylor Woodrow Homes, Inc. (project known as the "Hercules Village Project") was established with the former Redevelopment Agency to assist with the development. 15% of the residential units in the projects are provided to Low to Moderate Income. This fund is to be use for the benefit of the qualified buyers or affordable unit owners.
215
Other Post-Employment Benefits (OPEB) and SOMAR
Fund Summary - Fund 511
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 3,091,977 $ 3,120,177 $ Revenues
Charges for Services - $ - $ - - Interest Income 237,664 250,538 84,000 121,000 Miscellaneous Revenues - - - - 237,664 250,538 84,000 121,000 Transfers In 60,000 84,756 60,000 62,000 297,664 335,294 144,000 183,000 Expenditures
Salary and Benefits 88,335 91,344 95,200 98,200 Contractual Services 17,219 17,433 20,600 21,200 Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - 105,554 108,777 115,800 119,400 Transfer Out - - - - 105,554 108,777 115,800 119,400 Changes in restricted reserves
Net Annual Activity 192,110 $ 226,517 28,200 63,600 Ending Available Fund Balance 3,091,977 $ 3,120,177 $ 3,183,777 $ (Restricted for OPEB)
This fund is to account for the optional monetary allowance for both safety and non-safety employees with an annual three percent adjustment on January 1st of each year to employees who retire as regulated by PERS and must have the minimum sick leave accrued as outlined in the Memorandum of Understanding (MOU), and OPEB Trust.
216
SUCCESSOR AGENCY
217
Successor Agency
Fund Summary - Fund 600
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
Tax Increment (RPTTF) 6,910,188 9,957,728 9,758,380 10,066,491 Interest Income 136,569 143,581 - - Miscellaneous Revenues - - - - 7,046,757 10,101,309 9,758,380 10,066,491
Transfers In - - - - 7,046,757 10,101,309 9,758,380 10,066,491
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses 4,732,088 2,770,784 1,821,590 2,130,000 Cost Allocation - - - - Capital Outlay - - - - Debt Service 3,451,361 3,440,744 7,936,790 7,936,491 8,183,449 6,211,528 9,758,380 10,066,491
Transfer Out - - - - 8,183,449 6,211,528 9,758,380 10,066,491
Changes in restricted reserves
Net Annual Activity (1,136,692)$ 3,889,781 - - Ending Available Fund Balance - $ - $ - $ The Hercules' Successor Agency was established as a separate legal entity on January 10, 2012, under the City Council adopted Resolution 12-005. All non-housing funds and assets where then turned over to the successor agency who is charged with the responsibility of paying off the former Redevelopment Agency's existing debts, disposing of the former Redevelopment Agency's properties and assets to help pay off debts and return revenues to the local government entities that receive property taxes, and winding up the affairs of the former Redevelopment Agency.
218
GLOSSARY OF BUDGET TERMS
GLOSSARY OF BUDGET TERMS
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
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GLOSSARY OF BUDGET TERMS
GLOSSARY OF BUDGET TERMS
Adopted Budget: The adopted budget is the
annual City budget approved by the City Council
on or before June 30.
Allocated Costs: Interfund transactions
that constitute reimbursements to a fund for
expenditures or expenses initially made from it but
that properly apply to another fund.
Appropriation: An appropriation is the legal
authorization granted by the City Council to make
expenditures and incur obligations for a specific
purpose within a specific time frame.
Assessed Valuation: A dollar placed on real estate
or other property by the County as a basis for
levying property taxes.
Beginning Fund Balance: Fund balance available
in a fund from the end of the prior year for use in
the following year.
Bond: A City may raise capital by issuing a
written promise to pay a specified sum of money,
called the face value or principal amount, at a
specified date or dated in the future, together with
periodic interest at a specified rate.
Budget: A plan of financial and program operation
listing an estimate of proposed appropriations or
expenses and the proposed means of financing
them, for a particular time period. The budget
is proposed or preliminary until it has been
adopted by the City Council. Hercules’ budget
encompasses one fiscal year.
Capital Budget: Annual appropriations for capital
improvement projects such as street improvements
and building construction. Capital projects are
supported by a five-year expenditure plan, which
details funding sources and expenditure amounts.
They often are multi-year projects, which require
funding beyond the one-year budget period.
Capital Projects Fund: A fund created to account
for all resources to be used for the constructions
or acquisition of designated fixed assets by a
governmental until except those financed by a
proprietary or fiduciary funds.
Debt Service: Payment of the principal and
interest on an obligation resulting from the
issuance of bonds, notes or leasing arrangements.
Department: An organizational until comprised
of divisions or programs. It is the basic until of
service responsibility that may include a broad
mandate or related activities. It is possible for a
department to have only one division.
Division: A subsection (or activity) within a
department, which furthers the objectives of the
City Council by providing specific services or
programs.
Enterprise Fund: A type of fund established for
total costs of those governmental facilities and
services, which are operated in a manner similar
to private enterprises. These programs are entirely
or predominantly self-supporting. The city of
Hercules maintains a Sewer Enterprise Fund.
Expenditures: Monies spent, including current
operating expenses, debt service and capital
outlays.
Fiduciary Funds: These funds account for assets
held by the City in a trustee capacity. The budget
does not appropriate fiduciary funds.
Fiscal Year (FY): The City’s year for accounting
and budgeting purposes, that begins on July 1 and
ends June 30.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
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GLOSSARY OF BUDGET TERMS
Full-Time Equivalent (FTE): The amount of
time a regular full time or part-time position has
been budgeted for in terms of the amount of time
an employee works in a year.
Fund: An independent fiscal and accounting
entity used to record all financial transactions
related to the specific purpose for which the fund
was created. These are four types for funds:
General, Special Revenue, Enterprise, and
Fiduciary.
Fund Balance: The amount of financial resources
available for use. Generally, this represents the
excess of assets over the sum of liabilities and
restricted reserves. For enterprise funds, it is the
excess of current assets over current liabilities.
Gann Appropriations Limit: Article XIIIB of
the State constitution was amended by Proposition
4 (Gann initiative) in 1979. Article XIIIB limits
growth in the spending of tax proceeds to tax
proceeds appropriated in the “base year” of the
1978-79 times the product of the allowable annual
percentage change in a cost-of-living factor and
the allowable annual percentage change in a
population change factor. The cost-of-living factor
is the larger of the annual percentage change in
the State per capita personal income or the annual
percentage change in the local non-residential
assessed valuation due to new construction. The
population change factor is the larger of the annual
percentage change of the jurisdiction’s population
or the annual percentage population change of the
country in which the jurisdiction is located.
General Fund: The primary fund used to account
for all revenues and expenditures of the City not
legally restricted as to use. The fund is used to
offset the cost of the City’s general operations.
Examples of departments financed by the General
Fund include the Police, Public Works and
Administrative Departments.
Grant: Contributions, gifts of cash or other assets
from another governmental entity to be used
or expended for a specific purpose, activity or
facility.
Guaranteed Investment Contract (GIC):
A contract that guarantees repayment of
principal and a fixed or floating interest rate for
predetermined period of time.
Infrastructure: Facilities on which the
continuance and growth of a community depend,
such as streets and roads, sewers, public buildings,
parks, etc.
Interfund Transfer In/Out: Monies transferred
from one fund to another. Such money is
transferred to finance the operations of another
fund or to reimburse the fund for certain
expenditures.
Internal Service Funds: These funds provide
services to City departments and recover
their costs through user charges. The Vehicle
Replacement Fund is an Internal Service Fund
managing the replacement and maintenance of the
City fleet.
Method of Accounting: The City’s General Fund
budget is developed using modified accrual basis
of accounting, with revenues being recorded when
measureable and available, and expenditures
recorded when the liability is incurred. Enterprise
funds and Internal Service Funds are budgeted
on a generally accepted accounting principles
(GAAP) basis, which for Proprietary Funds is on a
full accrual accounting basis.
Operating Budget: Annual appropriation funds
for on-going program cost, including salaries and
benefits, services and supplies, debt service and
capital outlay.
CITY OF HERCULES FY 2026-27 ANNUAL BUDGET
221
GLOSSARY OF BUDGET TERMS
Operating Capital Outlay: A budget
appropriation category which budgets all
equipment having a unit cost of more than $2,500
and an estimated useful life of over one year.
These are considered an operating expense and
are differentiated from capital expenditures by the
amount of money they cost. Any expenditure over
$2,500 with an estimated useful life over one year
is capitalized.
Operating Transfer: Amounts transferred
between funds; not considered a revenue or
expense. For example, legal authorized transfers
from a fund receiving revenue to the fund through
which the resources are to be expected.
Ordinance: A formal legislative enacted by the
City Council. It has the full force and the effect
of law within the City boundaries unless it is
in conflict with any higher form of law such
as a State statute or constitutional provision.
An ordinance has higher legal standing than a
resolution.
Program: A program is an activity or division
within a department, which furthers the objectives
of the City Council by providing services or a
product.
Reserve: Represents the portion of fund balance
set aside for financing future capital improvements
or the outlay of capital projects in any given year,
and addressing one-time emergency needs.
Resolution: A special order of the City Council,
which has lower legal standing than an ordinance.
Revenues: Monies received or anticipated by
a local government from both tax and non-tax
sources during the fiscal year.
Salaries and Benefits: A budget category which
generally accounts for full-time and parttime
employees, overtime expenses and all employee
benefits, such as medical, dental and retirement.
Services and Supplies: Expenditures for supplies,
materials and services which ordinarily are
consumed within a fiscal year and which are not
included in inventories.
Special Revenue Funds: These funds account
for the proceeds derived from specific revenue
sources that are legally restricted to expenditures
for specified purposes.
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RESOLUTIONS
223