City Officials Balance Budget, Seek New Revenue

In Tuesday's council meeting, Hercules city officials approved the $12.65 million general fund budget for fiscal year 2012-13, balancing a deficit of around $1.3 million with discretionary reserves.

Financial holes in the budget were plugged with money from equipment and IT funds, fiscal neutrality funds, vehicle replacement funds, and $250,000 of , which goes into effect in October.

According to City Manager Steve Steve Duran's weekly update, $800,000 was used to "offset anticipated extraordinary costs for legal fees due to the high number of legal issues still in progress and for unemployment insurance due to layoffs over the last year." 

Duran added that Measure O, along with the use of the one-time money, has enabled the city to maintain service at the Senior Center, Teen Center and Swimming Pool, and avoid any cuts to police services.

The city is now looking for new revenue sources to put towards next year's projected deficit of $1.2 million. 

Suggestions for extra income include approving LED signage along Interstate 80, increasing the utility user tax and garbage franchise fee, selling the Sycamore North property, and taxing medical marijuana dispensaries. 

The Hercules City Council also approved the first year of a five-year capital improvement plan, comprising around $13.8 million worth of projects planned for 2012-2013. A total of $13.1 million of the budget comes from state, federal and regional grants for . 

Hercules Patch will follow up with more detailed reports on the city's newly adopted budget. Click "keep me posted" below for updates. Join us on Facebook, follow on Twitter, and sign up for news alerts straight to your inbox.