Wednesday, February 18, 2026
5:30 PM
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
Conference Room 4A & Virtual Participation
Council Budget and Finance Committee
Agenda
February 18, 2026Council Budget and Finance
Committee
Agenda
NOTICE: The Council Budget and Finance Committee will hold a hybrid meeting in Conference Room 4A and virtually via Zoom.
How to submit written Public Comment:
Send an email to [email protected] by 2:00 p.m. the day of the meeting. Please identify the Agenda Item Number in the subject line of your email. Emails will be compiled into one file, distributed to the Council Budget and Finance Committee and City staff, and published on the City's Meeting & Agenda Center under Documents Received After Published Agenda. https://hayward.legistar.com/Calendar.aspx When submitting written comments, indicate in the email if you want your comment read into the record.
Requests will be allowed provided the reading will not exceed three (3) minutes consistent with the time limit for speakers at Council Committee meetings. Email comments will become part of the record of Council Committee meetings.The Chair can limit the time for reading written comments.
When: Feb 18, 2026 05:30 PM Pacific Time
Topic: Council Budget and Finance Committee - February 2026 Please click the link below to join the webinar:
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Password: BudgeT@218
Or join by phone:
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CALL TO ORDER
SB 707 TELECONFERENCE NOTIFICATIONS AND CONSIDERATION
ROLL CALL
PUBLIC COMMENTS:
Limited Only to Items on the Agenda and Submitted Prior to the Meeting.
APPROVAL OF MINUTES
Review and Approve of the Council Budget and Finance
Committee January 21, 2026, Meeting Minutes
MIN 26-0211.
Attachments: Attachment I Minutes
February 18, 2026Council Budget and Finance
Committee
Agenda
REPORTS/ACTION ITEMS
Receive an Oral Report and Provide Comment on the Fiscal Year 2025-26 Monthly Budget Update and Five-Year Financial Forecast
RPT 26-020
2. Review and Comment on Draft City of Hayward Financial Policies
ACT 26-006
3. Attachments: Attachment I Staff Report
Attachment II Draft City of Hayward Financial Policies
FUTURE AGENDA ITEMS
COMMITTEE MEMBER/STAFF ANNOUNCEMENTS AND REFERRALS
ADJOURNMENT
Next Meeting - 5:30 p.m., Wednesday, March 18, 2026
The City of Hayward's Open Data Portal was designed to allow the public to explore, visualize, and download publicly accessible data. The Open Data Portal allows a clear view of the City's financial performance. Access to the portal may be found at https://haywardca.opengov.com/CITY
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: MIN 26-021
DATE: February 18, 2026
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
Review and Approve of the Council Budget and Finance Committee January 21, 2026, Meeting Minutes
RECOMMENDATION
That the Council Budget and Finance Committee (CBFC) reviews and approves the January 21, 2026, CBFC meeting minutes.
SUMMARY
The CBFC held a meeting on January 21, 2026, and the draft minutes are attached for the CBFC’s review and approval.
ATTACHMENTS
Attachment I 1/21/2026 CBFC Meeting Minutes
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ATT ACHMENT I
COUNCIL BUDGET & FINANCE COMMITTEE MEETING
Meeting Minutes of January 21, 2026
Call to Order: 5:32 p.m.
Members Present: Mayor Salinas, Councilmember Bonilla Jr, Councilmember Syrop
Members Absent: None
Staff: Jennifer Ott, Mary Thomas, DeAnna Hilbrants, Nicholas Mullins, Franchesca Hatfield, Crissy Mello
Guests: None
Public Comments: None
1. Review and Approve of the Council Budget and Finance Committee December 17, 2025, Meeting Minutes
Moved by Councilmember Bonilla Jr., Second by Syrop
Action: Minutes reviewed and unanimously approved.
2. Report and Discussion of Status of Fiscal Year 2025/26 Budget Activities Management Analyst Nicholas Mullins presented.
Action: The Committee received the report and had no questions.
3. Fiscal Year 2027 Budget Process Plan and Development Calendar Management Analyst Franchesca Hatfield Presented.
Mayor Salinas Questions:
A. Can we have a strategy or plan on announcing the budget process and timeline to the community and be a little bit more intentional on sending the budget out?
- We can work with the Communications team and develop a communications plan to announce the budget timelines and gain public feedback.
Councilmember Bonilla Jr. Questions:
A. Councilmember agreed visuals on the budget would be beneficial for the public and asked for a better understanding of what funds are used for under a vacant position.
- We can certainly work to give you at least a starting percent vacancy report and some ideas of what the different departments are doing.
Councilmember Syrop Questions:
A. How soon can we have visuals finalized to help us with the draft budget to assist with the budget conversations we’ll be having the next few months?
- We don’t have to wait for the draft budget. We can look at some visuals and bring samples like we did for the monthly reports.
B. Councilmember requested frequent vacancy reports to review needs of vacant positions. Understanding the context of the vacancies helps Council determine where to allocate funds to meet the needs of the residents.
C. In regard to the budget philosophy and making sure there are guidelines in place to help not fall into this position again. When would those kind of recommendations come forward to Council?
- It’s on your next agenda item. Budget policy, it’s aspirational at this point but our guiding source.
D. Is February 18th too soon to have a conversation on budget policy if we can’t implement it all now?
- We’re better served to do that now in this difficult time.
Action: The Committee received the report and staff will complete requests.
4. Review and Approve the 2026 Council Budget and Finance Committee Agenda Planning Calendar
Director of Finance DeAnna Hilbrants Presented.
Councilmember Bonilla Jr. Questions:
A. When will the audit get done?
- We’re typically done by December 31st for our award. That’s the ideal timeline and always going to be our goal. We just have a really big focus on budget.
- Requested to continue monthly updates on budget going into 2027. - Requested a lesson’s learned document for the February 28 meeting.
Action: The Committee received the report and staff will complete requests.
Committee Members/Staff Announcements: None.
Adjournment: The meeting was adjourned at 6:21 p.m.
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 26-020
DATE: February 18, 2026
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
Receive an Oral Report and Provide Comment on the Fiscal Year 2025-26 Monthly Budget Update and Five-Year Financial Forecast
RECOMMENDATION
That the Council Budget and Finance Committee (CBFC) receives an oral report and provides comments on the monthly budget versus actuals for the General Fund for the period ending January 31, 2026 and a five-year financial forecast.
SUMMARY
The City has taken a number of measures to balance the Fiscal Year (FY) 2025-26 Operating Budget in the General Fund. At the CBFC meeting, staff will provide a budget versus actual report of revenue and expenses for the General Fund for the period ending January 31, 2026 including a highlight of monthly salary and benefits costs and overtime by department (police, fire, and other departments), as well as a five-year financial forecast.
ATTACHMENTS
None Oral Report
CITY OF HAYWARD Printed on 2/14/2026Page 1 of 1
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: ACT 26-006
DATE: February 18, 2026
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
Review and Comment on Draft City of Hayward Financial Policies
RECOMMENDATION
That the Council Budget & Finance Committee (CBFC) reviews and comments on draft City of Hayward Financial Policies.
SUMMARY
Adopting financial policies is a crucial accountability measure that helps ensure that the City adheres to a framework for responsible financial management. The adoption of financial policies is especially important right now given the current fiscal challenges being faced by the City. City staff prepared draft financial policies (Attachment II) based on financial best practices and examples from other jurisdictions for CBFC’s review and comment.
ATTACHMENTS
Attachment I Staff Report
Attachment II Draft City of Hayward Financial Policies
CITY OF HAYWARD Printed on 2/14/2026Page 1 of 1
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DATE: February 18, 2026
TO: Council Budget & Finance Committee Members
FROM: Director of Finance
SUBJECT: Review and Comment on Draft City of Hayward Financial Policies
RECOMMENDATION
That the Council Budget & Finance Committee (CBFC) reviews and comments on draft City of Hayward Financial Policies.
SUMMARY
Adopting financial policies is a crucial accountability measure that helps ensure that the City adheres to a framework for responsible financial management. The adoption of financial policies is especially important right now given the current fiscal challenges being faced by the City. City staff prepared draft financial policies (Attachment II) based on financial best practices and examples from other jurisdictions for CBFC’s review and comment.
BACKGROUND
The annual budget is one of the most important policy documents that the City produces as it determines how City financial resources will be allocated among City services and functions, such as public safety, library, infrastructure, development, and administration. Adopting financial policies is a crucial accountability measure that helps ensure that the City adheres to a framework for responsible financial management. Financial policies are intended to enable the City to align public resources with community goals, ensure fiscal transparency, and guide decision-making about public services and infrastructure.
The adoption of financial policies is especially important right now given the current fiscal challenges being faced by the City. As stated in previous staff reports, the City ended last fiscal year with a significant deficit of approximately $30 million, resulting in the reduction of the starting fund balance for FY 2025-26 to approximately $1 million, and since then, took numerous actions to address the forecasted budget deficit of $26.4 million for FY 2025-26, which is now balanced.
City staff prepared draft financial policies (Attachment II) based on financial best practices and examples from other jurisdictions for CBFC’s review and comment.
DISCUSSION
These proposed financial policies incorporate a budget process, a long-term planning process, and revenue and expenditure policies to inform the budget. These policies address more than the budget itself including:
Roles and functions of City Council, City Manager, and City Departments including authority of the City Manager associated with budget actions Fund Structure
Fund Balance and Reserve Policies
Interfund Loans
Internal Service and Enterprise Funds
Capital Facilities and Improvements
References to Debt and Investment Policies
Grant Management
Financial Items in the City Charter and Municipal Code
While it may take some time to achieve full adherence to each of the specific policies, by adopting a consolidated set of financial policies, there will be a single document that guides the development and administration of future operating budgets and long-term financial plans and helps improve transparency. The following summarizes the overall intent of the attached draft financial policies, including to:
Include clear policies so that the City can attain and maintain financial sustainability and accountability;
Identify and follow best practices in budgeting, reserves, and grants; and Include mechanisms for ensuring compliance so that a culture of fiscal prudence is established citywide.
Key highlights of specific financial policies include:
The City’s budget will be structurally balanced;
The budgeting process will incorporate a five-year forecast; One-time revenues will be used only for one-time purposes; Revenues will be conservatively budgeted using analytical techniques; Budget for capital projects will incorporate capital and operating costs; Reserves will be established with clear targets;
Other funds will be reviewed regularly; and
These fiscal policies will be reviewed regularly.
Staff recommends CBFC reviews and comments on the attached draft financial policies.
NEXT STEPS
City staff will incorporate comments and feedback from CBFC into a subsequent draft and provide an updated version for further review and comment to the full City Council at the upcoming February 28, 2026 Budget Retreat.
Prepared by: DeAnna Hilbrants, Finance Director
Recommended by: DeAnna Hilbrants, Finance Director
Approved by:
______________________________
Jennifer Ott, City Manager
Attachment II