League of Women Voters of California Education Fund
	Contra Costa County, CA November 3, 2015 Election
	Measure C Utility Users Tax City of Hercules Majority Approval Required Pass: 1554 / 72.52% Yes votes ...... 589 / 27.48% No votes See Also: Index of all Measures

Arguments For Measure C	Arguments Against Measure C
ARGUMENT IN FAVOR OF MEASURE C Want to keep Hercules a community where you want None filed, to live and raise your family? Did you know that Hercules is currently the 19th safest city in California? It wasn't too long ago that we elected a new City Council, hired new City administrators, and established a permanent Citizens' Finance Commission to improve fiscal and government transparency, restoring our confidence and trust! To maintain our positive momentum, without raising tax rates - Vote YES on B & C! YES on B & C maintains our quality of life, financial stability, and neighborhood safety! Voting YES on B & C does not create any new taxes. It simply continues existing funding adopted by Hercules voters to maintain OUR essential services and financial stability. Voting YES on B & C maintains the local Hercules Police Department, including: Maintaining the number of police officers patrolling neighborhood streets Improving 9-1-1 response times Expanding neighborhood crime prevention programs YES on B & C attracts business to Hercules. YES on B & C prevents cuts to street maintenance. Again, voting YES on B & C does NOT raise your tax rates. By law, NO taxes can be increased without voter approval. Not a dime of the funding generated by Measures B & C can be taken by Sacramento politicians! YES on B & C includes tough Fiscal Accountability safeguards, with Independent Citizens' Oversight, mandatory annual financial audits and yearly reports to the community to monitor spending--guaranteeing funds continue to be spent responsibly and as promised. Join a unanimous Hercules Mayor and City Council, police officers, local business owners, and community leaders in voting YES on B & C to protect and maintain the essential services that make our community a safe, well-maintained place to live without raising existing tax rates. For factual information, visit www, ci.hercules.ca.us Hercules Police Officers Association, Earnest Lee Taylor, (Sergeant) President Virgilio De La Vega, Chair, Finance Commission Darrel J. Tucker, Former Mayor, 37 year resident Lori Han, Treasurer of FHSC Sylvia Villa Serrano, Executive Director Chamber	(No arguments against were submitted)

Full Text of Measure C

EXHIBIT A ORDINANCE NO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES AMENDING THE HERCULES MUNICIPAL CODE BY CONTINUING THE EXISTING HERCULES UTILITY USERS TAX WITHOUT AN INCREASE, SAID TAX TO BE CONTINUED UNTIL SUCH TIME AS THE CITY COUNCIL APPROVES FINANCE COMMISSION FINDINGS THAT THE CITY HAS MET ITS GOAL OF ACHIEVING LONG TERM FINANCIAL STABILITY WITH ADEQUATE FINANCIAL RESERVES WHEREAS, Measure A, providing for a 2% temporary increase to the existing 6% Utility Users Tax ("UUT"), was approved in 2013 by a majority of the electorate of the City of Hercules to mitigate cuts to local services caused by State takeaways and the Great Recession; and WHEREAS, the revenues raised by Measure A have helped the City stay solvent during the period since it was adopted; and WHEREAS, unless the voters approve the Measure A Continuation Measure, the temporary increase of two percent (2%) to the existing UUT rate provided by Measure A will automatically sunset five (5) years from the date that the increase was statutorily required to be collected, or on September 1, 2018, whichever occurs first, after which the utility users tax rate will revert back to six percent (6%); and WHEREAS, if this Continuation is adopted, there is no increase in the total voter-approved Utility Users Tax ("UUT") that Hercules residents currently pay; and WHEREAS, the City wishes to continue to address service priorities identified as important by the public, such as maintaining the number of police officers patrolling neighborhood streets, improving 911 response times, expanding neighborhood crime prevention programs, attracting business to Hercules, and preventing cuts to street maintenance; and WHEREAS, by law, all funds from a Measure A Continuation Measure must stay in Hercules to maintain local services and no funds can be taken by Sacramento; and WHEREAS, the Measure A Continuation Measure requires independent Citizens' Oversight by the City's Finance Commission, mandatory financial audits, and yearly reports to the community to ensure the funds are spent as promised; and WHEREAS, the revenues raised by Measure A have helped the City stay solvent, reduce a $9 million deficit, and improve fiscal and government accountability; and WHEREAS, the City's Financial Forecast estimates that if Measure A expires, commencing in Fiscal Year 2017-18, an estimated $1M in annual budget reductions will be required to address the decline in City revenues currently received from Measure A, which in turn will require the City to make severe cuts to the services it currently provides, adversely affecting public safety services including the number of police officers, crime investigation services, and neighborhood police patrols, along with other City services, such as road maintenance, youth sports and recreation programs, city parks and playgrounds, and senior services at the Senior Center; and WHEREAS, at its June 23, 2015 meeting, the City Council adopted a budget for FY 2015-16 that recognized the need for additional revenue to maintain and preserve the level of services desired by residents of the City; and WHEREAS, at a public hearing on July 28, 2015, the Council considered placing a measure on the ballot for the November 3, 2015 General Election seeking voter approval of an extension of Measure A; and WHEREAS, after the July 28th hearing, the City Council concluded that based upon all of the information presented, in orderto maintain the revenue necessary to preserve existing service levels, the Council should ask the voters of the City to approve a continuation of the 2% UUT increase originally authorized by Measure A, the revenue from which could be used to support general municipal services; and WHEREAS, on the basis of the foregoing, the City Council, by adopting Resolution 15 , determined that it was appropriate to place a measure before the voters at the November 3, 2015 general election regarding a continuation of the 2% UUT increase originally authorized by Measure A; and WHEREAS, the 2% tax, if approved to be continued, would be imposed on all categories of utility services, including but not limited to telephone, electricity, gas, water, cable and video; and WHEREAS, if approved to be continued by a majority of the electorate, the 2% UUT increase originally authorized by Measure A would extend until such time as the Finance Commission finds, and the City Council approves by a 2/3 vote, that the City has achieved long-term financial stability with adequate financial reserves, or until January 1, 2025, pursuant to Section 8-8.318 of the Hercules Municipal Code, whichever comes first. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HERCULES as follows: 1.Purpose. This Ordinance amends the Hercules Municipal Code in order to continue a previously enacted utility users tax. "Article 4. Continuation of Increase to Utility Users Tax Rate Sec. 8-8.401 Purpose. (a) The purpose of this Article is to continue the increase of two percent (2%) to the existing six percent (6%) utility users tax rate approved by the voters at the June 4, 2013 special election, for a total utility users tax rate of eight percent (8%), which eight percent (8%) rate shall be applicable from the effective date of this Article to all categories of utility services identified in this Chapter, including but not limited to telephone, electricity, gas, water, cable and video, until such time as the Finance Commission determines that the City has met its goal of achieving long term fiscal stability with adequate reserves, and the City Council approves by a 2/3 vote to terminate the 2% increase pursuant to Section 8-8.409, after which the rate shall revert to six percent (6%), with said six percent (6%) rate to sunset on the date indicated in Section 8-8.318. (b) The continuation of the 2013 voter approved tax increase is pursuant to voter approval at the November 3, 2015, special election. Sec. 8-8.402 Use of Additional Tax Proceeds. All proceeds of the tax levied and imposed under this Article shall be paid into the general fund for use by the City of Hercules. Sec. 8-8.403 Independent Audit of Tax Collection, Exemption, Remittance, and Expenditure. The City shall annually verify that the taxes owed under this Article have been properly applied, exempted, collected, and remitted in accordance with this Article, and properly expended according to applicable municipal law. The annual verification shall be performed by a qualified independent third party and the review shall employ reasonable, cost- effective steps to assure compliance, including the use of sampling audits. The verification shall not be required of tax remitters where the cost of the verification may exceed the tax revenues to be reviewed. Sec. 8-8.404 Oversight by Finance Commission. The Finance Commission, created pursuant to Title 2, Chapter 2, Article 6, or a subcommittee of the Commission established for this purpose, shall meet at least monthly and review all revenues and expenditures under this Chapter in order to ensure that the funds are spent in accordance with the voter approved measure adopting this Chapter as well as any voter approved or Council approved priorities adopted to implement the provisions of this Chapter. Sec. 8-8.405 [Blank] (Ord. 481 ß 2 (part), 2014: Ord. 475 ß 1 (part), 2013) Sec. 8-8.406 Duties. (a) The Commission is charged with the following responsibilities: (1) reviewing all appropriations of revenues received by the City from the sales and use taxes imposed pursuant to the provisions of this Chapter to determine whether such funds are to be used as provided for in this Chapter and the voter approved measure that adopted this Chapter; (2) reviewing the audit prepared by an independent auditor retained by the City to perform the City's Comprehensive Annual Financial Report to determine whether such funds have been spent as provided for in this Chapter and the voter approved measure; (3) prepare and issue the Commission's own annual report setting forth their findings in regard to the foregoing; and (4) determining when the City has met its goal of achieving long term financial stability with adequate financial reserves, and issuing a report to Council detailing such findings, pursuant to Sec. 8-8.409. (b) In order to preserve the integrity and independence of the oversight process, Commission members will not play a formal role in contracting, project management, construction, or any other aspect of the funding. In addition, the Commission is not charged with decision-making on spending priorities, construction schedules, project details, funding source decisions (e.g., leveraged funds, developer fees, etc.), financing plans, tax rate assumptions, or selection of consultants, design, and construction firms. (Ord. 481 ß 2 (part), 2014: Ord. 475 ß 1 (part), 2013) Sec. 8-8.407 Effective Date. This Article relates to the continuation of a temporary increase of two percent (2%) to the City's existing utility users tax rate, and is a valid and binding City tax upon passage and approval by a majority of the electorate of the City of Hercules. This Article shall be considered adopted upon the date that the vote is declared by the legislative body, shall go into effect ten (10) days after that date. Sec. 8-8.408 Amendments. The City Council of the City of Hercules may make amendments to this Chapter without approval of the voters of the City if the amendments do not affect the rate of tax imposed. The City Council may amend the rate of tax imposed herein (increase or decrease) or extend the term of the tax, only upon two-thirds (2/3) vote of the Council and with approval of the voters of the City under applicable codes. Sec. 8-8.409 Procedure for Termination of 2% Increase. This Article providing for an increase of two percent (2%) to the existing utility users tax rate shall remain in effect until January 1, 2025 pursuant to Section 8-8.318, or until such time as the Finance Commission, created pursuant to Title 2, Chapter 2, Article 6, determines that the City has met its goal of achieving long term financial stability with adequate financial reserves. Upon finding by a 2/3 vote of the City Council that the Finance Commission has adequately determined that the City has achieved long term financial stability with adequate financial reserves, the City Council shall enact legislation to reduce the UUT rate to 6%, effective no later than one year from date of passage. Notwithstanding this Section, the Council retains the independent authority to repeal the utility users tax pursuant to Sec. 8-8.317 of this Chapter." 2. Effective Date. This Ordinance relates to the continuation of a previously enacted temporary increase of two percent (2%) to the City's existing utility users tax rate, and is a valid and binding ordinance of the City upon passage and approval by the electorate of the City of Hercules. This Ordinance shall be considered as adopted upon the date that the vote is declared by the legislative body, and shall go into effect ten (10) days after that date. PASSED, APPROVED, AND ADOPTED by the Hercules City Council on , 2015, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Sherry McCoy, Mayor ATTEST: Margaret S. Roberts, MMC Administrative Services Director/City Clerk