City of Hercules Sale of the Electric Utility, Measure N (June 2012)
Since the measure was approved, it will give the city permission to sell the city-owned electric company.
A 2/3rds supermajority vote was required for approval.
Steve Duran is the city manager of the City of Hercules. He wrote, "[Measure N will] allow the City to sell Hercules Municipal Utility (HMU). HMU loses money and is a drain on the City’s resources. The projected profitability that HMU was based upon never materialized due to the downturn in the economy and lack of a sound business plan. Measure N will stop the City from having to subsidize the utility, and any proceeds from the sale would be used to repay its debts and to satisfy other contractual obligations owed by the Utility."
The question on the ballot:
|MEASURE N: "Shall the City Council of the City of Hercules be authorized to sell the Hercules Municipal Utility with the net proceeds designated for repayment of the Utility's debt and other contractual obligations, and any remaining proceeds allocated to the City's general fund?"|