"The rate is currently set at six percent. If it was raised to eight percent, the city would see an $800,000 annual revenue increase. With a 10 percent hike, the city would get $1 million on top of what it already receives, Warmerdam said."

She meant an increase to 10% rate, not a "10% hike", correct?

Those of us in the HMU already pay 19% more for electricity than all other residents in the City. And now they want us to pay more? I think an adjustment or waiver for HMU customers should be considered.

I would hope they wouldn't preesent a "10% hike": But even then, a 4% hike is pretty substantial. I admit, being a customer in HMU seems to place you in a financial disadvantage with how much more they have to pay, but I don't think it would be fair to excuse people from the tax based on them being HMU customers. I equate it to me being a verizon customer where I pay 15% more than a nextel customer. Then some sort of city/state tax gets increased but then I get a waiver because I pay more already. Doesn't seem fair, no?

I'm a PG&E customer, and believe me, my bills have tripled in the last few years.
This is a very difficult time for so many people, my family included. Everything is going up except for our paychecks. I'm lucky to have a secure job. I'm happy they are putting off the parcel tax. I think the city needs to solve the HMU and redevelopment issues before asking for a parcel tax, because otherwise, speaking for myself, it feels like contributing to a bottomless pit.
I think the City Council is being smart to look for revenue streams. It is my hope that Mr. Duran chose Ms. Mastay as Financial Director for Hercules because she is very good at what she does. Hopefully with everyone on board our city will right its financial wrongs.
Mayor Romero spoke about getting a higher percentage funding for something, getting what comparable cities get. He talked about it at the first meeting when he became Mayor. I am interested in knowing what has happened or is happening with that. There is a video on Patch of him talking about it.

Let's get this straight the council is set to hire yet another consultant and pay them over 50K of our tax money to convince us to pay more taxes? first of all we are in this mess because the city squandered our tax money on real estate pyramid schemes and "creative financing" and now we the tax payers need to bail them out. If the council wants tax increases let them convience the voters not some slick PR firm> Let the council come out of their closed door sessions and stand up and make their case they don't need consultants we are a small town it is easy and there are seveal good vehicles to reach the electorate including CCT and The Patch and the bully pulpet of their position. If we are cutting back on Parks and Rec, Teen centers and the Senior Center why would be squander 50K on a political consultant?
Right now my vote would be no new taxes until this council and city manger hold open, trasparent and above board open meetings with the citizens regarding the pressing issues before us. Late night appointments and closed meetings doesn't give me the confidence to turn more money over to the city.

Sarah,
That's a very important issue and I know Romero is following up on it with our state representatives. It could be a significant amount. In the meantime, imagine your electric bill as being 19% more! And now EBMUD wants a tax increase too. The fire district also wants more money end the school district is considering another parcel tax If our sales tax is higher than neighboring cities won't that hurt us?

Yes, Susan I believe it will hurt us. I also wonder if a sales tax increase won't hurt us? Wouldn't people choose to shop elsewhere?

Here we go again. The government employees screwed up the city's financial situation and the residents/taxpayers need to bail them out. When are we citizens going to learn not to put up with this crap???

The city council might want to consider that the same energies that organized to oust the previous council through the recall could re-organize to defeat any municipal tax increase. Hercules has to right it's financial house by other means--not by asking the citizenry to foot the bill. Hard to imagine many who would favor forking more money over to government (at any level) in these disgruntled times.

The Sunday Chronicle Business Report has an article by Pender thst all properties owners should read. We will no longer ibe able to deduct all our property taxes. It doesn't state what won't be allowed other than Mello Roos, , which we don't have. This will amount to a tax increase for many. Just more good news.

Plain and simple, No Consultants !! Stop wasting money. There are not that many ways for the city to collect additional revenue. If the council really needs help I am sure that a citizens group could be put together that can offer just as many ideas and review the numbers as well as a consultant on this matter. Remove 'Consultant' from your vocabulary already. Look at what they have done for us so far.

General taxes that are not means based are unfair. Sourcing government revenue from water and electricity use or on sales taxes unfairly burden those in our city who are least able to afford it. It is an irrational method of collecting taxes for general governmental purposes.
Perhaps the city can work out a system with the State Franchise Tax Board whereby state income tax collected from residents and businesses within the city would be subject to a surtax, based upon their California income tax liability. Those funds would be funneled back to the city.

@Toni is so right on. I asked each member of the council if they would support a tax increase in Hercules prior to voting for them. Each one said no. Now I say no to any tax increase and will probably say no when they ask for my vote in the future. Also, on the other issue last night, why this council seems terribly concerned the pipeline may go close to their homes, even though is would be least costly, yet supports a tax increase. Show some backbone council and put the pipeline where it cost less.

From what I understand the state is holding onto the sales taxes collected - and they are not giving it to the cities - unless I am mistaken but I am pretty sure that is what I heard. How can we run a city without revenue? From what I see and hear, even if we closed down city hall, and all services, we would still be in the red. I do not want to see more taxes, but how do you solve the problem when the state is holding us hostage?

Carol I believe you are correct. I believe cities need to stand together and fight states and the federal government from taking money. Most money should stay local.

Perhaps you will all be interested in getting a government accountability act on the November ballot?
http://www.cafwd-action.org/pages/proposed-ballot-measure

Thanks Selina.
At this point I think the council had better get whichever businesses are willing to come - Safeway and Costco? - and attempt to get back to some fiscal solvency.

WAIT a minute. You've got to be kidding me!!! Can you imagine if this were to happen in the private sector? The management of a public company near bankrupting it through mismanagement and corruption, and then having the gall to say, "Hey, stockholders, you're going to have to pay an assessment to the company."

Why not first sue the SOBs who got us into this mess? If they're responsible, then they should pay.