Times: Hercules manager details city financial crisis

— by Jeffrey Wisniewski — 4 December 2010 — Comments Off

Tom Lochner reports… “[Interim City Manager Charles] Long blamed Hercules’ financial problems on a combination of lower property values, faulty budget practices and a lack of internal controls at City Hall. The 2010-11 city and Redevelopment Agency budget did not highlight the fact that tax revenues are insufficient to make the bond payments, leaving policymakers unaware of the problem, Long said. Moreover, the 2010-11 general fund revenue estimate of $25.6 million includes about $12 million that ‘were not actual revenues,” he said. That sum consisted of a $7 million bank loan, a $2 million dip into reserves, and $3 million in cost reimbursements and repayment of advances, all booked as revenue.“