The City of Hercules is asking voters this November to support a 1% sales tax on purchases which would generate $4 million annual to the city.
Under an urgency ordinance, at its July 28, 2026, meeting, the council voted 4-1 to place a voter-approved one cent sales tax on the November ballot. If approved, it would jump from 9.25% to 10.25%.
It should be noted, if the Bay Area Transportation ½ cent sales tax passes, Hercules residents would be paying 10.75%. Voters in Hercules are also being asked by the West Contra Costa Unified School District to renew its parcel tax that will bring $10 million annual to schools.
According to Interim City Manager Patrick Tang, the City of Hercules ongoing revenues are barely adequate to sustain the levels of service which remain reduced from the staffing and service levels prior to the Great Recession, when nearly 40% of staff had to be let go.
“While we have seen some improvement in revenues overall, Hercules still receives a low share of the property taxes, and our retail tax base is not robust enough to fund anything more than basic service levels,” said Tang while noting they needed ways to generate revenue even with employee concessions still in place.
Tang also said Hercules is looking at a budget shortfall beginning in Fiscal Year 2028-29.
According to a recent survey, Tang said 60% feel the city is headed in the right direction and a community survey last month showed 68% would support a 1 cent sales tax measure.
Mayor Chris Kelley stated they do not have enough resources.
“We do not have the resources go to after economic development in the city of Hercules 100%. As a lot of you know, and I keep saying over and over again, we had to lay off 40% of our staff 15 years ago. We are on a very basic budget,” said Kelley who added she was concerned over the general fund and the deficit in 2028-29. “We really value our police force and we would like our streets to be better, our pavement index is not very high and its getting worse so there is a lot of needs for funding. As a public entity, we have very limited means to try and raise revenue. By putting a up to one cent sales tax on the ballot, is something we can do.”
She continued.
“We are a low property tax city, for every dollar that we pay in property tax, the City of Hercules only gets back 5.5%,” said Kelley noting her property tax on her home purchased 15 years ago is $4,913 a year and Hercules gets back from the county on that is $270. “Even though people here say gosh we pay so much in property tax, we don’t see it back in the city… we have very limited means for getting more revenue. So that is why I think it would be prudent now.”
Kelley encouraged the council to agree to place it on the ballot and let the voters decide.
Vice Mayor Alexander Walker-Griffin agreed with Kelley noting much of the federal funding has been difficult to access and this was really about planning for the future.
“I really see this as an investment in our future,” said Walker-Griffin.
Councilmember Dion Bailey cautioned the council to ensure the retail space remains retail and not convert areas to residential in an effort to increase sales tax revenues which helps pay for services.
The urgency ordinance to place a sales tax measure on the ballot was approved in a 4-1 vote with Councilmember Dilli Bhattaral abstaining.
Documents
- Staff Report + Watch the meeting – click here
- Survey Results: “The City of Hercules wishes to thank the more than 1,300 Hercules residents who took the time to provide input to the City over the past year on your priorities, and how we can continue to work together to maintain our small town quality of life for generations to come. Thank you so much to anyone who took the time to respond to one of our two community surveys, the “Maintaining Hercules Conversation,” or to join an organizational presentation. Here are the results of the most recent summer 2026 survey.” – Interim City Manager Patrick Tang — Click Here
Related: West Contra Costa School District Tax