William Wilkins Position Paper

By William "Bill" Wilkins

The key issues facing the City of Hercules over the next four years

Revenue: Completion of a Safeway Center could bring in an estimated $500,000 in sales tax revenue annually. Combined with the recent 1/2 cent sales tax increase, the revenue from sales tax in Hercules could climb to over $2.5 million dollars per year from the present $1.5 million. The sale and commercial development of the Market Hall site will bring the City out of the red in our General Fund Budget. At the present time, the largest single revenue source in Hercules is the 6% Utility User Tax. This revenue source produces over $2 million dollars of our $11 million dollar General Fund Budget revenues. The new construction planned for Parcel C (the "Wal-Mart" parcel) the completion of Sycamore North, a new Safeway Shopping Center and sale of the Victoria Crescent parcel and Market Hall parcel will provide substantial increases to this revenue source when these projects are completed. Development Impact Fees for these new projects will be sizable. The proposed development for Parcel C alone will produce over $3.5 million dollars for the City, $230,000 dollars for the Fire District and $1.3 million dollars for the School District. Annual assessments on property taxes for Parcel C will generate about $290,000 dollars a year for the City, as well as revenue for the school district, fire district, community colleges and the county. All of this revenue is separate and in addition to the actual property taxes each year.

The AMBAC Lawsuit: AMBAC sued the RDA and the City of Hercules in March of this year and, as the result, a settlement was reached that requires the repayment of about $6.5 million dollars. As part of the settlement, the Court attached the proceeds of the sale of two properties to secure the payment. The properties have been marketed and sales agreements have been signed, but the sales will not be final until entitlements are secured. The process is long, unsure and full of controversy. I made a tough decision and voted to sell the properties, and I stand by that decision. Without these proceeds, it is possible that the City would face bankruptcy. The sale of City assets has been a point of contention in Hercules, with some people believing that bankruptcy is not a bad thing. I disagree with that and my primary focus is to keep Hercules financially solvent. If we declare bankruptcy, the next item on this list will not happen, as our funding partners have stated that they will withdraw their support.

The Intermodal Transit Center and Bay Trail: In the last calendar year, we have secured $17 million dollars in grant funds for the Intermodal Transit Project and the Bay Trail. We closed escrow on the purchase of the train station site, and Refugio Point on July 27, 2012. The project remains a major priority and my voice as Vice Chair of WCCTAC and board member of CCTA has been beneficial. There remains much to be done, with the need for additional funding and completion of the infrastructure necessary for the train station. We have five years to develop the train station and it will take every minute we have to make it a success.

Hercules Municipal Utility: In June, the City voters gave permission to Council to sell HMU. The process is underway now to market the Utility and barring unforeseen issues, we should be selling or leasing it within one year. The Utility, remains an underfunded project, and a drain on the General Fund at a rate of about $700,000 per year. I have stated over and over that HMU must be brought into financial stability or sold. Hercules citizens cannot afford to continue subsidizing it.

Sycamore North: We have entered into a sale agreement to sell Sycamore North. The buyer intends to finish the building as an upscale apartment complex with commercial space on the first floor . I intend to see this project will move forward towards completion in the next year. It is my intention to work towards making all of this happen over the next four years, but I need your vote to make it happen.