Fiscal Responsibility and Economic Development

By Myrna L. de Vera

During these challenging economic times, Hercules needs a leader with business experience to promote fiscal responsibility and economic development so the city will raise sufficient funds for public safety, educational, youth and senior programs.

We live in a tough era. Many of us have lost jobs, were forced to return to the workforce, had our homes foreclosed, and simplified our lifestyle. The State has raided millions of our city's redevelopment funds so that projects we've been planning for years are now on hold and we are uncertain if they will ever be built. This fiscal year, there will be a 3.7 percent reduction in compensation for all city staff members, no cost-of-living adjustments, no merit increases, and elimination of three paid holidays. The cuts are designed to save the city between $1.22 million and $1.52 million this fiscal year, but that still leaves a deficit of $2 million. The remaining difference will be made up by borrowing $750,000 from a vehicle replacement fund and dipping into the city's reserve fund for about $1.25 million. During these challenging economic times, we need to tackle the challenge head-on --- raising adequate funds for vital community services --- so we can confidently sustain and expand such services to preserve the quality of life of Herculeans.

Commonsense practices I propose to assure fiscal responsibility and a robust economic future for Hercules:

1. A Five Year Economic Plan be prepared for the City Council and the residents of Hercules. This plan will act as a roadmap for the staff and council when implementing economic and business development programs. The Five-Year Economic plan will be based on a survey made among the residents in a series of town hall style meetings asking them to prioritize economic, business development, and planned development projects as well as prioritizing the city's expenditures. The Economic plan should be updated every five years.

2. Design a two-year budget that reflects the citizens' priorities as expressed during the economic development town hall meetings. Longer budget projections, such as five-year budgets, should be prepared to help guide the council when passing ordinances and approving contracts.

3. Establish a standing Budget Advisory Commission to review all contracts over a determined amount and make recommendations on the city's proposed budgets.

4. Contracts over a determined amount should be made available to the city council to study 14 days before the deadline of approving such contracts. This way, council members will have more time to carefully study such contracts and deliberations can be made during public hearings without pressure of any last minute "need to be approved" or "time crunch" situations.

5. Adopt a policy of competitive bidding policy for professional services contracts, such as legal, architectural and IT services, over a certain amount, unless staff can support a finding that no other provider is available who can do the specialized professional work required.

6. Proposed contracts of a determined amount or more be presented to the City Council as a public hearing rather than included in the consent calendar. The staff should present reports that support the staff recommendation with enough detail to allow the council to make an informed decision.

7. Create "Business-friendly" laws and review current ordinances that affect businesses such as the business permits, sign ordinance and parking ordinance.

8. Require business plans be presented to the city council for proposed projects including temporary developments (such as recent Market Hall project) to make sure the city's funds will be invested in lucrative projects.

9. Attract quality businesses that will help fulfill the city's vision of creating a bustling destination, such as restaurants, retail shops, and high end groceries.

10. Support the formation of a Downtown Business Association to help sustain the Waterfront and Downtown as a premier shopping and dining destination.

11. Offer debt counseling and financial management seminars to help residents achieve strong personal finances.