The beleaguered city of Hercules is holding the only East Bay election this fall, asking voters on Nov. 3 to approve extensions of its sales and utility taxes.
No city deserves tax help more than Hercules. Its residents were victimized by a crooked, self-dealing city manager, and a city council and city attorney that turned a blind eye.
The city manager, Nelson Oliva, died before a criminal investigation was completed and before he repaid the city under the terms of a civil settlement. Meanwhile, the past council members and city attorney have been replaced.
But the financial hangover from those years of mismanagement remains and is exacerbated by the city’s unusually low share of property tax revenues.
For those reasons, voters should support Measure C, the extension of the utility tax. Normally, we would also support Measure B, the extension of the city’s sales tax. But we cannot because it has no expiration date.
Fortunately, the current sales tax does not expire until October 2016, so there is time to try again. If Measure B fails, city officials should bring it back in June 2016 with a reasonable sunset clause.
The current city sales tax add-on of 0.5 percent, first approved by voters in 2012, brings the total tax on purchases in the city to 9 percent. The add-on generates about $750,000 a year.
The city needs the extra tax revenues. There’s no excess in itss $13.7 million budget. Officials have had to make major staffing cuts. Hercules is being run on a shoestring.
But voters should not be asked to permanently increase their taxes. They should have opportunity for review in future years.
While an extra tax might be merited now, it might not in the future if city revenues improve. Also, while city officials are responsibly spending public money now, the prospect of a future vote helps ensure that will continue.
Fortunately, Measure C, the utility tax, contains a sunset date, although it’s not until 2025. The utility tax applies to bills for phone, electricity, gas, water, cable and video services. It was first approved in 2004 and set at 6 percent.
In 2013, voters added another 2 percent, but only for five years, expiring in 2018. The total 8 percent tax is expected to bring in about $800,000 this year. Measure C would extend the additional 2 percent to the same expiration date as the original tax.
We urge voters to back Measure C. Sadly, we cannot endorse Measure B.
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