Hercules, a picturesque city in western Contra Costa County, California, may not be as well-known as some of its neighboring San Francisco Bay Area communities. Still, it boasts a unique and commendable feature that sets it apart from the El Cerrito —its commitment to fiscal responsibility and good governance. In this blog post, we’ll delve into the story of Hercules and its remarkable approach to managing its finances and public policies.
A City with a Difference
Located along the coast of San Pablo Bay, Hercules is positioned just 7 miles north of El Cerrito, making it part of the bustling San Francisco Bay Area. With a population of 26,016 as of the 2020 census, it is comparable in size to neighboring El Cerrito. However, once you scratch beneath the surface, you’ll find that Hercules stands out in several ways.
- Staffing Efficiency
One of the most notable distinctions between Hercules and El Cerrito is their staffing levels. Hercules operates with a city staff less than half the size El Cerrito’s. This lean approach allows Hercules to work more efficiently and significantly reduces its payroll and CalPERS pension costs.
- Commitment to Fiscal Responsibility
Hercules understands that the decisions made today can have far-reaching implications for the future. To ensure responsible financial management, the city holds hearings for public comment on the budget, actively listens to its residents, and updates its economic forecasts as needed. These forecasts are crucial in guiding the city’s financial decisions and ensuring transparency.
Forecasting Policies
One of Hercules’ standout practices is its commitment to robust forecasting policies. Here are some critical elements of these policies:
- Frequent Updates: The city maintains a five-to-ten-year Financial Forecast, updated biannually to account for unexpected economic changes or other circumstances.
- Realistic Assumptions: Financial forecasts acknowledge economic cycles, differentiate between one-time and base economic growth revenues, and clearly identify the assumptions and associated risks.
- Accuracy Targets: Revenue and expenditure estimates aim for a target variance of +/- 2 percent for revenues and +/- 1 percent for expenditures.
- Site-Specific Development: On-going revenue increases from site-specific development are incorporated with realistic timing estimates.
- Governance Matters
Perhaps the most significant difference between Hercules and El Cerrito is their approach to governance. The California State Auditor’s ranking is telling—El Cerrito received a modest score of 47.29 out of 100, while Hercules secured a much higher 73.29. This substantial gap is a testament to the power of governance, accountability, and transparency.
Another noteworthy distinction lies in the presence of a well-equipped library and a thriving senior center, both managed by City Management. It’s clear that Hercules not only exhibits superior management but also excels in catering to the needs of its community compared to El Cerrito. Perhaps Karen Pinkos could benefit from establishing a rapport with their City Manager to seek valuable insights and guidance.
A leaner El Cerrito
Let’s be crystal clear. EECRG isn’t calling for layoffs of union personnel. EECRG is challenging the City to determine the right size and shape for efficient service delivery and reduce staffing levels as needed through attrition, a reduction of top-heavy management and the introduction of introduction of rigorous performance standards for management.
Conclusion
Hercules, California, may not be the most prominent city in Contra Costa County, but it shines as a model of fiscal responsibility and good governance. By maintaining a lean staffing structure, committing to transparent financial forecasting policies, and embracing governance, Hercules has set itself on a path to a more stable and prosperous future. It’s a remarkable example of how intelligent decision-making and responsible governance can lead to success despite challenges.
El Cerrito could do the same but pretends all is well. The City of El Cerrito must establish a clear and transparent financial process, including the public and figure out a way to operate effectively in a leaner environment.
Here is how you can help:
– Share this post with other residents.
– Attend the monthly Financial Advisory Board meetings in person.
– Post on Next Door
– Voice your concerns.
– Council meetings are remote and in-person, but public comment is now limited to in-person attendees. If you want to contact City Council Members or the City Managers, all their emails are below:
– Karen Pinkos-City Manager kpinkos@ci.el-cerrito.ca.us
– Councilperson Gabe Quinto gquinto@ci.el-cerrito.ca.us
– Councilperson Carolyn Wysinger cywysinger@ci.el-cerrito.ca.us
– Councilperson Tessa Rudnick trudnick@ci.el-cerrito.ca.us
– Mayor Lisa Motoyama lmotoyama@ci.el-cerrito.ca.us
– Councilperson Paul Fadelli pfadelli@ci.el-cerrito.ca.us
PS – If you have ideas for a quick fix or hope for another gift from above, you are dreaming.
If you want to discuss shifting blame or justifying mismanagement, please start a separate NextDoor thread.
El Cerrito Committee for Responsible Government (ECCRG) 
From the Chron.
May 10, 2012. State Controller John Chiang rips into the city of Hercules after completing two audits, saying “During my time in office, this could be the worst set of city accounting records I have seen. The City’s books were so poorly managed, that I must question their use of every single federal and state dollar granted to the City. Along with missing dozens of records, the city, which is teetering on bankruptcy, was unable to explain what it did with $2 million in state and federal funds. City staff often ignored or cancelled meetings with the auditors, and by the end of the review, the city no longer had a senior accountant.
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Precisely Sir. That was eleven years ago. The State ripped into Hercules, and they cleaned house and got their act together. Alternatively, El Cerrito ripped into the State, was in denial about their problems and has done nothing to significantly improve their finances.
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Residents of El Cerrito face significant challenges due to the lack of essential community facilities like a senior center and an adequate library. Furthermore, the cost of managing city affairs is notably high. This situation is compounded by a concerning lack of trust in city leadership, as highlighted in recent surveys. It’s important that any discussion about El Cerrito’s issues goes beyond referencing outdated articles and instead focuses on a candid and current evaluation of the city’s needs and the steps required to address them.
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It’s probably significant that Hercules came very close to bankruptcy about a decade ago, much closer than El Cerrito did. Many of the fiscally responsible policies and practices were probably put in place after in the spirit of “never again.” I guess El Cerrito was not sufficiently scared by its fiscal crisis and feels like there’s no need for it to reform.
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Thank you. That just shows you can get out of hole if you stop digging.
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