Editorial: Vote no on Hercules utility tax extension with no end date

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Hercules voters are being asked to permanently extend the city’s utility users’ tax. It’s the permanent part that prompts our recommendation to reject Measure N.

The current 8% tax is levied on landline and cell phone services; cable television; and water, electricity and gas services. The tax was first established at 6% in 2004. We supported the voter-approved increase to 8% in 2013 and the 2015 extension until Jan. 1, 2025.

The city is run on a lean budget in which the utility tax today constitutes about 20% of revenues. The tax needs to be extended beyond the end of 2024. But it should not be made permanent. Local government leaders should not be afraid to periodically explain to voters why they need additional taxes and demonstrate that the money is being wisely spent.

Had the City Council merely asked for another 10-year extension, we would be recommending approval. There’s still time to fix that. We urge voters to reject Measure N and for the council to come back with another extension in 2024 that has a reasonable sunset date.