Looking at Hercules Tax Rates
The city may attempt to raise tax rates on sales or utilities. Here is some information on what Hercules will make with the increases and how its tax rates compare to nearby cities.
The city has two taxes it could attempt to raise in a nearing election—the utility users tax and a transaction and use tax, which functions like a sales tax hike.
There is a six percent tax on Hercules utilities, covering water, electricity, gas and phone services. The average rate for Contra Costa cities implementing the utilities tax—not all do—is eight percent, city records show. Hercules is on par with the California utility user tax average.
Revenue from the utility users tax amounts to 17 percent of the city’s general fund income, Deputy City Manager Liz Warmerdam said at a recent city council study session. “For a utility users tax, you get a pretty big bang for your buck,” Warmerdam said.
The city will see a $400,000 bump in annual revenue per one percentage point the utility users tax is increased:
- 1% increase (7% total) = $400,000
- 2% increase (8% total) = $800,000
- 3% increase (9% total) = $1.200 million
- 4% increase (10% total) = $1.4 million
(This information comes from the City of Hercules)
City staff is also researching a transaction and use tax, or a sales tax add-on. Hercules’ current sales tax base rate is 7.25 percent, with a 0.5 percent add on for the Contra Costa Transportation Authority and a 0.5 percent add-on for the Bay area Rapid Transit District, which makes the city’s total sales tax rate 8.25 percent.
Most nearby cities have the same or lower sales tax rates than Hercules. The exceptions are El Cerrito with a 9.25 percent rate and Richmond and Richmond, with a nine percent rate.
Sales tax revenue makes up for about seven percent of the city’s general fund.
The city will take in an additional $180,000 and $220,000 per quarter of a tax rate percentage point increased:
- ¼% increase = between $180,000 and $220,000
- ½% increase = between $365,000 and $450,000
- 1% increase = between $725,000 and $890,000
(This information comes from the City of Hercules)
The Hercules City Council will hear more about proposed tax rate increases at its Tuesday, Feb. 14 meeting.
Phil Simmons
2:53 pm on Thursday, February 9, 2012
I will not support a tax increase.
My utilities taxes are high enough already. Part of the need for more tax money comes from the losses caused by HMU. The city has done nothing to rid itself of this burden. We already pay more than PG&E customers. I can't help but wonder how PG&E electric customers feel about possible having to pay more in UUT's to cover, in part, the imbalance caused by HMU.
As to a sales tax, except for a very few small items all I buy in Hercules is food. It is not taxed anyway. So, an increase in sales tax does not affect me. There is little here in town to spend money on anyway.
As to a parcel tax, Prop 13 needs to be abolished. It is highly unfair in how it is distributed. Until Prop 13 is done away with I will not support any parcel tax for any purpose.
RJ
4:19 pm on Thursday, February 9, 2012
I agree 100% with Phil. The city has not made the case and the two presentations given on Tue. should have been an embarrassment to the C.M. and council. I also will not support a tax increase or hiring another consultant that no one seems to know the cost.
Toni Leance
6:09 pm on Thursday, February 9, 2012
why would we hire a consultant @ 50k+ dollars to ask us if we support a tax? Here is the answer NO
Please take that $50,000 and give it to the teen center and the senior center they really need it and the consultant doesn't if you need a poll have the teens and seniors conduct it.
Sarah Creeley
5:53 pm on Saturday, February 11, 2012
How is there even money for something like this?
Consultants? JUST SAY NO! I agree with Selena and Toni!
Use this 50 grand for something positive! Many programs could use the help.
That's enough to pay for Sundays at the Hercules Library for a year! How
about it City Council? If this is true and you are really considering a 50 thousand dollar expenditure for a consultant, I really don't understand. Where did this $ come from, and why aren't you using it for something better than a consultant?!?
Susan D.Keeffe
6:26 pm on Thursday, February 9, 2012
How do we know we have 50k to spend on this? They ate still trying to figure out the books!
Aazoba Yuzuki
2:09 pm on Friday, February 10, 2012
my thought is same way the ex-mayor and ex-manager figured out how to scam the city
....LOL idk
David F
10:48 am on Saturday, February 11, 2012
I would consider it if it will really bring about a fix. It seems that the debt service and problems will not be significantly managed by these increases.
Phil Simmons
11:09 am on Saturday, February 11, 2012
David,
There is no way new taxes will fix the debt this city has.
The council will soon be taking up a decision to pay for a consultant to create a push poll (called a survey) to promote the need for new taxes. The push poll will include threats of losing more police and other city services. Voting for new taxes, as usual, will be based on information that will play on the fears of the public and over the loss of various services. The public will most likely take on these fears without regard for other possible solutions and new taxes will be imposed.
That's how it works.
Stand by and watch.
RJ
3:08 pm on Saturday, February 11, 2012
Phil,
You are projecting exactly how this will be presented by the council. I'm so terribly disappointed by this council based on how they started and what was promised to those that supported. We can expect the same from the local school district, fire district and a lot more in June and Nov. How do us older citizens hang on to our homes?
Susan D.Keeffe
7:32 pm on Saturday, February 11, 2012
Where is the $50k coming from? Apparently the books are still not up to date. How do they know they have it? What fund will pay for a consultant to ask us in a cleverly worded survey, I e. push poll, if we want to pay more taxes?
Sarah Creeley
7:45 am on Sunday, February 12, 2012
Even if our city has $50,000.00 to spend, I hope common sense and financial practicality will reside in City Hall. Using this large amount of money to pay an outside consultant for political advice is an affront to all of those city employees who lost their jobs, or took a paycut.
Chris Kelley
6:13 am on Sunday, February 12, 2012
I have heard that currently there is a larger than expected structural deficit for the city. So I would like to know just where that shortfall is now. Can someone in the city explain this to us? We residents need an update.
Toni Leance
7:50 am on Sunday, February 12, 2012
@ Chris we all need to know exactly where we are financially now and Mr. Duran needs to up date the council and the community with real up to date reconciled budget numbers. currently they are just now closing out Aug of last year they need to bring it up to date ASAP and report out prior to any spending and prior to asking for any new taxes.
Richard L.
11:04 am on Sunday, February 12, 2012
Ms. Leance,
I think I recalled you mentioning the ad hoc finance committeee meeting. Was there anything of significance from this? I have heard at least one member of the council wants to dissolve it, any word on that as well?
Glenn Abraham
11:21 am on Sunday, February 12, 2012
Toni knows much more than I do, but even I know enough to be very much alarmed when any member of the council advocates dissolving a body which allows informed members of the community to participate in, and be knowledgable about, government affairs and the actions of our elected leaders.
We might want to seriously consider, though, dissolution of any meeting of the council or any of its various subcommittees (some of which involve participation by Citoyen Boulanger) which is held in secret and for which the reason for secrecy is anything less than absolute necessity. Bothersome and inconvenient "interference" by the community which the council is (supposed to be) serving is not an example of absolute necessity.
Toni Leance
5:51 pm on Sunday, February 12, 2012
the finance committee was extended until the end of the year but their scope was narrowed. What I heard at the meeting was shocking the city manager has not delivered reconciled financial information to either the committee or to the council. the city is just now closing out Aug of last year yet they want more taxes and want to spend over 50K for a political consultant to help shove more taxes down our throats. They don't know what they have spent so far and haven't balanced the books yet it should concern us all.
Phil Simmons
6:03 pm on Sunday, February 12, 2012
We seem to have an out of control situation at City Hall. Consultants for this, that, and the other. it was less than 8 months ago that we paid MGR $125,000 to review the budget. We have been paying our financial consultant $10,000 per month plus overage to the tune of almost $20,000/month from what I hear. And now we are hiring a Financial Director (not an accountant - rather a Director = big job title = big pay).
No more talk of finding ways to reduce the budget just that the tax payers are about to get the problem placed squarely on our own pocket books.
Susan D.Keeffe
12:24 pm on Sunday, February 12, 2012
Glenn
As an FYI. Ad Hoc Committees are different from standing committees in that they must have sunset dates. The Bayfront Task Force, however, , is volunteer and open to all. As far as I know it can continue as long as the Council supports it. Currently there are two Ad Hoc committees with sunset dates - the Finance AD Hoc and the Legal Ad Hoc. The Council also operates a Council Finance subcommittee which is a standing committee that is open to the public. All committees are open to the public and public input is encouraged. Agendas and meeting times must be published in the City's website. Sunset dates are approaching for both AD Hoc Subcommittees and there has been talk of the Bayfront Task Force stopping but so far it's going strong.
Glenn Abraham
12:30 pm on Sunday, February 12, 2012
Sue, thanks. Given our past experience, though, with valicolivamoto, and our more recent experience of Safeway and Mastay, I would definitely advocate that these committees, and especially the Finance Committee, be made permanent, or at least kept in place until we have a council which does not prefer to conduct public business in secret meetings, meetings to which the devious M. Boulanger is invited, but the community is excluded.
Susan D.Keeffe
2:04 pm on Sunday, February 12, 2012
Glenn,
The current governance structure does not allow the 2 Ad Hoc subcommittees to become permaelnent although their sunset dates can be extended. I'm confused re your reference to Boulanger as he is not a Council representative to either of these. I am unaware of any " secret" council meetings. Even Council trainings and workshops have been noticed on the City website. I think giving the public a false impression is not helpful. It's Important not to confuse the workings of City government with Brown Act required Council meetings. the recent appointment is an example of City management with no Council participation.
Glenn Abraham
2:59 pm on Sunday, February 12, 2012
Susan, what I call "secret" meetings, the council calls "closed sessions": full-blown council meetings in which business is transacted, but the deliberations involved are kept secret from the public. My reference to M. Boulanger is to point out that the council has its priorities exactly backward: the public is not trusted to hear the ideas and information discussed in the closed sessions, but M. Boulanger, a person who has conclusively established that he is, indeed, NOT to be trusted, is indeed present at these sessions. When they close the door, Boulanger is on the inside, learning everything, and the community is on the outside, learning no more than the scraps they wish to share with us...rather like the way in which the whole complex Safeway project just suddenly appeared, already in an advanced stage of preparation, before any of us knew anything about it. This is the opposite of what happened with Walmart several years ago, where the community was heavily involved; or, the proposed Sycamore North Bridge slum, which was killed by public comment before it could go too far. The references were to closed sessions of the council, not to the ad hoc committees. As for subcommittees, M. Boulanger serves on several, and so has access to whatever information those subcommittees deal with. Those are subcommittees of the council, not ad hoc committees.
Susan D.Keeffe
3:50 pm on Sunday, February 12, 2012
Glen,
Those are committees at all. That's the full Council sitting in closed session to review staff negotiations.
Susan D.Keeffe
3:52 pm on Sunday, February 12, 2012
Correction - those are NOT rather the. "are". My apologies.