Council to Consider Calling Special Election for Local Tax

The Hercules City Council will meet Tuesday to consider calling a special June 5 for the purpose of increasing a local tax.

In an effort to raise revenue, the council has discussed either tax from its current six percent.

If the sales tax was effectively increased, Hercules would take in between $180,000 and $220,000 annually for every quarter tax rate percentage point increased. The city will see a $400,000 jump in annual revenue for every one percentage point hike of the utility users tax, city records show.

City Manager Steve Duran has estimated that the city’s general fund has a $1.5 million structural deficit.

At a recent meeting, the council voted unanimously to in the Hercules. The declaration allows the city to pass certain tax measures with a 50 percent plus one vote versus a two-thirds majority vote, which would be required without the emergency declaration. At last month, the council voted to spend $69,250 to hire consultants, Lew Edwards Group, to help the city strategize on its tax measure plan. 

The council meets on the election topic Tuesday at 7 p.m. in the City Hall Council Chambers.