Saturday, February 28, 2026
9:00 AM
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
Council Chamber/Room 2A
City Council
Agenda
1 February 28, 2026City Council Agenda
SPECIAL CITY COUNCIL MEETING
BUDGET WORK SESSION
NOTICE: The City Council will hold a hybrid meeting in the Council Chambers and virtually via Zoom
PUBLIC PARTICIPATION
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2. Live stream https://hayward.legistar.com/Calendar.aspx
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Password: Cc2/28@9am
or
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2 February 28, 2026City Council Agenda
SPECIAL CITY COUNCIL MEETING
BUDGET WORK SESSION
777 B Street, Hayward, CA 94541
City Hall, Council Chambers/Conference Room 2A
CALL TO ORDER: Mayor Salinas
Pledge of Allegiance: Council Member Zermeño
SB 707 TELECONFERENCE NOTIFICATIONS AND CONSIDERATION
ROLL CALL
PUBLIC COMMENTS
Limited to Items on the Agenda
WORK SESSION
Work Session items are non -action items. Although the Council may discuss or direct staff to follow up on these items, no formal action will be taken. Any formal action will be placed on the agenda at a subsequent meeting in the action sections of the agenda.
Budget Work Session: Review Five-Year Forecast and Status of Hayward’s Financial Situation, and Provide Direction
Regarding Recommended Approach for Fiscal Year 2026-27
Budget and Beyond (Report from City Manager Ott)
WS 26-0051.
Attachments: Attachment I Detailed Agenda
Attachment II Staff Report
Attachment III Summary of Lessons Learned
Attachment IV Draft City of Hayward Financial Policies
Attachment V Revenue Measures
Attachment VI Cost Saving and Efficiency Measures
ADJOURNMENT
NEXT MEETING, March 17, 2026, 7:00 PM
March 3, 2026 City Council Meeting - CANCELED -
3 February 28, 2026City Council Agenda
PUBLIC COMMENT RULES
Any member of the public desiring to address the Council shall limit their comments to three (3) minutes unless less or further time has been granted by the Presiding Officer or in accordance with the section under Public Hearings. The Presiding Officer has the discretion to shorten or lengthen the maximum time members may speak. Speakers will be asked for their name before speaking and are expected to honor the allotted time.
PLEASE TAKE NOTICE
That if you file a lawsuit challenging any final decision on any public hearing or legislative business item listed in this agenda, the issues in the lawsuit may be limited to the issues that were raised at the City's public hearing or presented in writing to the City Clerk at or before the public hearing.
PLEASE TAKE FURTHER NOTICE
That the City Council adopted Resolution No. 87-181 C.S., which imposes the 90-day deadline set forth in Code of Civil Procedure section 1094.6 for filing of any lawsuit challenging final action on an agenda item which is subject to Code of Civil Procedure section 1094.5. ***Materials related to an item on the agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk ’s Office, City Hall, 777 B Street, 4th Floor, Hayward, during normal business hours. An online version of this agenda and staff reports are available on the City ’s website. Written comments submitted to the Council in connection with agenda items will be posted on the City ’s website. All Council Meetings are broadcast simultaneously on the City website, Cable Channel 15 - KHRT, and YouTube. ***
Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990. Interested persons must request the accommodation at least 48 hours in advance of the meeting by contacting the City Clerk at (510) 583-4400 or [email protected].
Assistance will be provided to those requiring language assistance. To ensure that interpreters are available at the meeting, interested persons must request the accommodation at least 48 hours in advance of the meeting by contacting the City Clerk at (510) 583-4400.
4 CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: WS 26-005
DATE: February 28, 2026
TO: Mayor and City Council
FROM: City Manager
SUBJECT
Budget Work Session: Review Five-Year Forecast and Status of Hayward’s Financial Situation, and Provide Direction Regarding Recommended Approach for Fiscal Year 2026-27 Budget and Beyond
RECOMMENDATION
That the Council receive information and provide direction regarding the City of Hayward’s financial situation and a recommended approach for Fiscal Year (FY) 2026-27 and beyond.
SUMMARY
Historically, the City Council has participated in day-long work sessions annually on strategic planning and budget. Considering the City’s current financial situation, this year the City is holding a budget work session that will be focused on balancing the upcoming FY 2026-27, as well as the longer term fiscal sustainability of the City. At this work session, staff will present lessons learned from previous years, a five-year financial forecast , the potential for a business license tax modernization measure, a recommended approach for the FY 2026-27 budget and beyond, and updated financial policies. A detailed agenda is attached.
At this budget work session, staff is seeking Council’s initial feedback on a recommended approach for the FY 2026-27 budget to close an approximately $32 million deficit and to take the initial steps to place a business license tax modernization measure on the ballot in November 2026. Based on Council’s feedback, staff will return with subsequent Council agenda items, including a budget work session on departmental budgets this spring and further discussion of service impacts. Staff is also seeking Council feedback on updated financial policies that will be included in the FY 2026-26 budget document.
ATTACHMENTS
Attachment I Detailed Agenda
Attachment II Staff Report
Attachment III Summary of Lessons Learned
CITY OF HAYWARD Printed on 2/24/2026Page 1 of 2
powered by Legistar™
5 File #:WS 26-005
Attachment IV Draft Financial Policies
Attachment V Revenue Measures
Attachment VI Cost Savings and Efficiency Measures
CITY OF HAYWARD Printed on 2/24/2026Page 2 of 2
powered by Legistar™
6 Attachment I
1 Hayward City Council | Budget Work Session
Saturday, February 28, 9:00 am to 2:30 pm
AGENDA
1. Welcome (10 mins)
● Public comment
● Agenda & meeting purpose
2. Setting the Stage (25 mins)
● Strategic priorities/Resident satisfaction survey
● Key budget lessons learned
● Questions and Comments
3. Five-Year Baseline Model (25 mins)
● Review of the baseline model and assumptions
● Approach to building back the reserve
● Questions and Comments
5. Business License Tax Analysis (30 mins)
● Questions and Comments
4. Break (10 minutes)
6. Other Revenue Options (30 mins)
● Questions and Comments
6. Cost Saving and Efficiency Measures (40 mins)
● Questions and Comments
7. Recommended Approach to FY 2026-27 Budget and Beyond (30 minutes) ● Recommended revenue and cost saving measures
● Considerations for future budgets
8. Lunch (30 mins)
9. Council Discussion and Feedback on Recommended Approach (1 hour, 10 mins) ● Questions and Comments
10. Accountability and Next Steps (30 mins)
● Review financial policies
● Summary of next steps and timeline
● Questions and Comments
7
DATE: February 28, 2026
TO: Mayor and City Council
FROM: City Manager
SUBJECT: Budget Work Session: Review Five-Year Forecast and Status of Hayward’s Financial Situation, and Provide Direction regarding Recommended Approach for Fiscal Year 2026-27 Budget and Beyond
RECOMMENDATION
That the Council receive information and provide direction regarding the City of Hayward’s financial situation and a recommended approach for Fiscal Year (FY) 2026-27 and beyond.
SUMMARY
Historically, the City Council has participated in day-long work sessions annually on strategic planning and budget. Considering the City’s current financial situation, this year the City is holding a budget work session that will be focused on balancing the upcoming FY 2026-27, as well as the longer term fiscal sustainability of the City. At this work session, staff will present lessons learned from previous years, a five-year financial forecast , the potential for a business license tax modernization measure, a recommended approach for the FY 2026-27 budget and beyond, and updated financial policies. A detailed agenda is attached (Attachment I).
At this budget work session, staff is seeking Council’s initial feedback on a recommended approach for the FY 2026-27 budget to close an approximately $32 million deficit and to take the initial steps to place a business license tax modernization measure on the ballot in November 2026. Based on Council’s feedback, staff will return with subsequent Council agenda items, including a budget work session on departmental budgets this spring and further discussion of service impacts. Staff is also seeking Council feedback on updated financial policies that will be included in the FY 2026-26 budget document.
BACKGROUND
In November, Council adopted a revised budget for the current fiscal year to address a significant deficit and the depletion of the General Fund reserve. The November budget revision closed a gap of $26.4 million through several one-time and ongoing actions, including layoffs. Despite these efforts, the City continues to face a significant structural deficit for next fiscal year and beyond and the reserves remains depleted. Considering the City’s current 8
financial situation, this year the City is holding a budget work session that will be focused on balancing the upcoming FY 2026-27 and the longer term fiscal sustainability of the City.
DISCUSSION
Over the past two months, staff have focused on preparing a five-year financial forecast and recommended approach to the FY 2026-27 budget for this work session, including the potential for a business license tax modernization measure. During this work session, staff will cover the following:
1. Lessons Learned and Draft Financial Policies: Based on the experience from the last several years, staff has prepared a summary of “Lessons Learned” and draft financial policies for Council feedback (Attachments III and IV). These policies were reviewed by the Council Budget and Finance Committee on February 18, 2026.
2. Five-Year Baseline Financial Forecast: Staff has prepared a baseline five-year financial forecast for FY 2025-26 through FY 2029-30. This baseline shows the structural deficit of $32.6 million for FY 2026-27, assuming existing (no new) revenue sources and no one-time measures to balance the budget or items that have not been contractually resolved. Subsequent deficits range from $41.6 million to $46.6 million.
3. Business License Tax and Potential Ballot Measure. Blue Sky, the consultant conducting the business license tax analysis, will present the findings and staff will propose a framework for a possible ballot measure in November 2026, including draft ballot language for a planned poll of registered voters in March. Hayward’s current Business License Tax is one of the lowest in the region and many Bay Area cities have recently updated their business license tax.
4. Other Revenue Opportunities and Cost Saving and Efficiency Measures: Staff has reviewed suggestions from Council, community members, and staff, including a staff survey. A full list of revenue opportunities and cost saving and efficiency measures are attached (Attachments V and VI). Each item has been categorized as “Likely,” “In- Progress/More Research Needed,” or “Not Recommended.” Staff will present key items at the work session for feedback and discussion.
5. Recommended Approach for FY 2026-27 and Beyond: Staff will present a recommended approach for the coming fiscal year using the most likely revenue and cost saving items. This approach reduces the gap to $5.8 million, which staff proposes closing through additional reductions in departmental costs or concession bargaining.
Staff will also present an initial approach to subsequent fiscal years.
In addition to the items for discussion during the work session, staff has the following financial updates:
• The City’s audit firm will initiate work to finalize the Annual Comprehensive Financial Report (ACFR) with a goal to complete in April. As part of budget actions, staff has 9
already initiated activities to address issues that resulted in delays during the FY 2024- 25 audit so that the FY 2025-26 can be completed in a timely manner.
• Staff in all departments are performing ongoing monitoring on actuals versus budget.
This includes regular review of budget to actuals between each department head and the City Manager as well as a monthly update to the Council Budget and Finance Committee.
NEXT STEPS
Based on Council’s feedback from this work session, staff will prepare the FY 2026-27 budget and implement all other action items, including next steps related to a business license tax modernization measure. The next budget work session is tentatively scheduled for May 5 or 12 with adoption tentatively scheduled for June 2.
Prepared by: Mary Thomas, Assistant City Manager
DeAnna Hilbrants, Director of Finance
Michael Barnes, Acting Deputy Director of Finance
Nicholas Mullins, Senior Management Analyst
Franchesca Hatfield, Management Analyst
Approved by:
______________________________
Jennifer Ott, City Manager
10 Summary of Lessons Learned for City of Hayward Financial Situation (February 2026)
• Adhere to Financial Best Practices
o Accurate baseline financial projections grounded in market and financial realities that are updated and shared regularly
o Appropriate use of one-time and ongoing funds
o Appropriate budgeting of over-time, salary savings, and realistic revenue estimates o Appropriate accounting of restricted funds
o Appropriate accounting of reserves, including separate reserves for liquid and non- liquid assets (i.e., cinema place)
o Strengthen internal monitoring and controls, including regular departmental budget meetings and post-budget reviews
• Improve Transparency and Accountability
o Regularly share and analyze updated projections and actuals internally and externally, including key revenue updates
o Establish and adhere to financial policies grounded in financial best practices o Hold each other and our colleagues accountable at all levels of the organization o Create a culture of collaboration, transparency and “see something, say something” • Practice Strong Leadership at All Levels
o Raise and vocalize issues and concerns with Council, staff, labor partners and community
o Attract, retain and train qualified staff
o Be prepared to make difficult or unpopular recommendations grounded in financial realities
• Financially Constrain Labor Negotiations and Contracts o Educate Council, negotiators and labor partners on current and future market and financial realities based on updated financial projections and trends o Institute an iterative process with Council and Finance Department regarding cost of contract proposals and approvals from the beginning to end of negotiations o Establish consistent salary survey and equity adjustment methodologies grounded in market realities and Hayward‘s financial situation that are equitable across bargaining groups
o Consider risk sharing measures, such as floors and caps on market driven salary and equity adjustment increases, potential increases tied
to City financial performance, and use one-time lump sum or other economic benefits instead of ongoing increases, as appropriate
Attachment III
11 Attachment IV
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 Attachment V
Revenue Measures
Key:
Likely In-Progress/More Research
Needed
Not Recommended
Idea Revenue Notes
Update to UUT
Ordinance to
capture the use of
streaming services
$750,000 - $1 million
annually in FY27, if
legal issues are
resolved and $1.5 - 2
million annually in
subsequent years
(ONGOING)
Updates to the UUT ordinance are
pending second reading. In addition, the
issue is still pending before the State
Supreme Court. If this revenue is
available, staff will initiate collections as
soon as possible
Business License
Tax Modernization
Measure
Potentially $7.5
million in additional
tax revenue annually
(ONGOING)
Staff is actively working on this and will
present an analysis to Council on
2/28/26. This will require voter approval
and cannot be relied upon for balancing
this fiscal year budget.
Use of Measure C
Funds
$10 million
(ONE-TIME)
$10 million is roughly the net revenue the
City will receive in Measure C in FY27.
Staff is recommending temporary use of
this source to transition the City to a
structurally balanced financial position.
OPEB Trust
Reimbursement
$3 million
(ONE-TIME)
Transfer from the OPEB Trust to
reimburse the general fund for OPEB
costs during FY27.
CDBG Transfer $500,000
(ONE-TIME)
Transfer from CDBG to temporarily
transition the City to a structurally
balanced financial position.
New Data Centers $904,000 in FY27;
$2M and increasing in
subsequent years.
(ONGOING)
Two new data centers are in the
development pipeline that could benefit
the City’s General Fund in future years.
Updates to User-
Fee Schedule and
Master Fee
Schedule
$1 million
(ONGOING)
Staff is actively working on updating cost
recovery fees based on updated salaries
and user fees based on market
comparisons, with a deadline of early
spring.
45 Attachment V
Updates to Cost
Allocation and
Internal Services
$500,000
(ONGOING)
All cost allocations are being reviewed to
ensure an accurate distribution across
funds and inclusion of updated salary
and benefits costs, with a deadline of
early spring.
Additional Cannabis
Revenue
$400,000 annually
(ONGOING)
Estimated additional cannabis revenue
based on a new dispensary that is
expected to open later in CY2026,
although currently subject to litigation,
which may delay opening and collection
of revenue.
Parking
Enforcement
Program
To-Be-Determined
(ONGOING)
Staff is actively exploring a program to
enforce existing time-restricted parking
restrictions in the downtown. This is likely
to be a cost neutral item covered by
citation revenue.
New Business
License
Compliance and Tax
Audit Process
$100,000 annually
(ONE-TIME &
ONGOING)
Staff is currently partnering with a new
consultant to complete audits of both
unlicensed and existing businesses.
Lease or sell
underutilized city-
owned properties
To-Be-Determined
(ONE-TIME)
The City has hired a Real Property
Manager and is actively pursuing the sale
and/or use of city-owned property as a
means for restoring reserves.
Hayward Traffic
Code / Hayward
Municipal Code
Citation Revenue
To-Be-Determined
(ONGOING)
Staff is reviewing citation amounts as
part of the annual Master Fee Schedule
adjustment.
Short-Term Rental
Ban Enforcement
and Transient
Occupancy Tax
Collection
$452,000 annually
less $25,000 for the
annual subscription
(ONGOING)
Staff is researching the use of new
software to enforce the City’s ban on
short-term rentals and obtain fine and
TOT revenue, which is likely to decrease
over time. This may adversely impact
tenants since 42% of listings are for
rooms. Depending on the level of
enforcement effort, it could require
increase in code enforcement staff time,
which is already limited.
46 Attachment V
Digital Billboards on
City Property
$100,000+ per
billboard annually.
Hayward has
potential for 2-3
billboards.
(ONGOING)
This would require an update to City
ordinance, work with a consultant, and a
partnership with outside advertising
agency. If pursued, staff estimates this
would take a year or more before revenue
is realized.
First Responder’s
Fee
$50,000 - $350,000
annually (after costs)
(ONGOING)
Staff is actively researching and will
present this idea on 2/28/26. Few non-
transport agencies like Hayward charge a
first responder fee and with varied results
Illegal Cannabis
Grow Fines
To-Be-Determined
but Extremely
Uncertain
(ONE-TIME)
HPD and the City Attorney’s Office
continue to try to collect illegal cannabis
fines. This revenue is uncertain and the
legal process can pose a significant staff
burden.
Expedited Permit
Fee
To-Be-Determined
but Minimal
(ONGOING)
This fee currently exists but will be further
examined as an economic development
tool as and as part of Master Fee update.
Unlikely to impact revenues significantly.
Grants To-Be-Determined
and Uncertain
(ONE-TIME)
Staff continues to pursue grants to offset
General Fund costs, such as the FEMA
SAFER grant, grants for the LINK program,
and grants for the Navigation Center.
Partner With
Alameda County for
Measure W Funds
To-Be-Determined
(ONE-TIME)
City Staff is exploring all opportunities to
bring Measure W tax dollars back to
Hayward residents.
Support Business
Development;
Shared Kitchen
Space/Incubator;
“Red Tape to Green
Light” Program
To-Be-Determined
(ONGOING)
The Economic Development Division
continues to explore incentives and
methods to increase business
development within Hayward. There may
be an initial outlay of funds for these
programs.
Need a Plan Around
Southland Mall to
Engineer Tourism by
Implementing
Design Guidelines
To-Be-Determined
(ONGOING)
Southland Mall was sold to a new
operator. Economic Development
continues to explore development
opportunities.
47 Attachment V
Require All
Development
Review Staff Who
Review Projects to
Charge Time Against
the Developer
To-Be-Determined
(ONGOING)
Staff is working to develop a policy to
ensure time from all staff that review
development applications is passed on
to the applicant to the extent legally
feasible.
Mello-Roos
Community
Facilities District
(CFD)
To-Be-Determined
(ONE-TIME &
ONGOING)
While not immediately applicable, this
could be viable for large-scale public
land projects. This is a land-secured
financing mechanism to fund
infrastructure and/or municipal services
that requires a 2/3 vote of property
owners.
Establish an
Enhanced
Infrastructure
Financing District
(EIFD)
To-Be-Determined
(ONE-TIME with Bond
Sales & ONGOING
with Increased
Property Tax Revenue)
This would ultimately reduce General
Fund Revenue requiring funds to be
directed toward debt service for
infrastructure.
Commercial
Vacancy Tax
To-Be-Determined.
Rate would be set
before being
presented to voters.
(ONGOING)
Based on Oakland’s experience, this
would require an update to City
ordinance and voter approval with
significant administrative burden.
Parking Lot Tax To-Be-Determined,
but Minimal
(ONGOING)
This would require voter approval and the
revenue generated would be minimal.
Similar to San Leandro, this could be
added as part of the business license tax.
Charge for
Downtown Parking
To-Be-Determined,
but Minimal
(ONGOING)
Staff is exploring enforcing time-limited
parking in the downtown. Based on
experiences from other cities, charging
for parking generates minimal revenue,
increases in staff time, and
disincentivizes customers from visiting
downtown shops.
Fossil Fuel
Tax/Carbon Tax
To-Be-Determined. .
(ONGOING)
This requires voter approval and comes
with the risk of loss of revenue as
customers and businesses shop outside
of Hayward city limits.
Land Value Tax No New Revenue
Potential
(ONGOING)
This is illegal in California.
48 Attachment V
Allow More Casinos
in Hayward
No New Revenue
Potential
(ONGOING)
In 2023, Governor Newsom signed
AB341, which instated a moratorium on
new card rooms in California until
January 1, 2043.
Increase False
Alarm Fees
To-Be-Determined,
but minimal
(ONGOING)
Hayward Police is recovering full-cost
and Hayward Fire is currently revising
their false alarm policy. Based on recent
call data, any additional revenue will be
minimal.
Tree Planting
Sponsorships
To-Be-Determined,
but minimal
(ONGOING)
The City has an active “Free Tree”
program. A sponsorship program would
at best be a a net-zero proposition with
the cost of the tree, water, and
maintenance are included.
Rental Strategies for
Heritage Plaza
To-Be-Determined,
but minimal
(ONGOING)
Rental of the rotunda was stopped due to
maintenance and cleanup costs, which
would also be a concern for Heritage
Plaza. The impact on Library Staff due to
use of library restrooms is considerable
regardless of whether portable toilets are
provided. There is an opportunity to
partner with DHIA to reduce burden on
the Maintenance Services Department.
Review Investment
Management to
Increase Interest
Income with Other
Funds, such as
California Asset
Management
Program (CAMP)
To-Be-Determined
(ONGOING)
The City reviews potential increases in
investment income quarterly and does
currently hold funds at CAMP.
Investment income has declined in the
General Fund due to the lack of cash
reserves. Other funds with cash available
do earn interest.
Charge for
Conceptual
Development
Review Applications
(Formerly Pre-
Applications)
To-Be-Determined,
but minimal
(ONGOING)
Currently this is a free service for
applicants to get early feedback on their
development projects. Being free
contributed to the City’s “Pro Housing”
designation, so a new fee would only be
charged on non-residential applications.
The additional revenue would be
minimal.
49
Attachment VI: Cost Saving and Efficiency Measures
Key:
Likely In-Progress/More Research
Needed
Not Recommended
Expense Reduction Decrease in Cost Notes
Navigation Center $1.6 Million
Annual
(ONGOING)
Reductions in program costs due to
economies of scale with Regis Village
project and ongoing grant funding,
with no impacts to anticipated
outcomes.
Remove FY 26/27 OPEB
Trust Transfer
$1.5 Million
Annual
(ONE-TIME)
Remove the annual contribution to
the City’s OPEB trust accounts from
the budget.
Rephase non-critical
capital projects. Delay or
scale back lower-priority
CIP projects to free cash
flow for operations.
To-Be-
Determined
(ONE-TIME)
All General Fund CIP projects are
being evaluated with the directive of
delaying non-essential projects. For
context, the General Fund only
supports about 2%-3% of annual CIP
budget.
Executive Concessions $250,000 Annual
(ONGOING)
Executives and unrepresented
employees do not receive COLAS.
Vacancy
Management/Maintain
FY26 VSIP/Layoffs
$8,231,453
Annual
(ONGOING)
These positions will continue to be
held vacant.
Overtime Management (ONGOING) The City is on track to stay within the OT budget for FY26, which is a 25%
reduction from the FY25.
Reduce Janitorial Services
at City Hall
$160,000
Annually
(ONGOING)
A new janitorial contract was issued
December 2025. The scope and
service was refined, resulting in an
annual savings of $160,000.
Fire Department Non-
Sworn 100% Cost Recovery
To-Be-
Determined
(ONGOING)
Costs and fees are being reviewed
and analyzed for complete cost
recovery.
Restructure Hayward Jail
Operations/Other Police
Departmental Savings
$1.7 Million
Annually
(ONGOING)
Reductions associated with pausing
hiring and downsizing jail operations.
50
Continue Hayward Police
Department Overtime
Savings – Shift Change
$2 Million Annual
(ONE-
TIME/ONGOING)
This will require negotiations and
agreements from labor partners
Continue Hayward Fire
Department Overtime
Savings – Minimum Staffing
$4 Million Annual
(ONE-TIME)
This will require negotiations and
agreements from labor partners
Furlough Hours (Non-
Sworn)
40 hours -
$960,293
80 hours - $1.92
Million
(ONE-TIME)
This will require negotiations and
agreements from labor partners.
Forgo FY2026-27 COLAs $3.48 Million if All
Labor Groups
Forgo
(ONE-TIME)
This will require negotiations and
agreements from labor partners.
Ensure Employee
Time/Wages are Properly
Charged to Enterprise
Funds When Applicable
To-Be-
Determined
(ONGOING)
Staff is actively reviewing with a target
completion of March.
Analyze/Increase
Technology Fee in the
Master Fee Schedule
To-Be-
Determined
(ONGOING)
Staff is actively reviewing for the FY
2027 fee schedule.
Analyze Current
Information Technology
Internal Service Fund
Methodology to Ensure
Proper Allocation to
Departments
$100,000 per 1%
shift to non-
general funds.
(ONGOING)
Staff is actively reviewing for the FY
2027 budget.
Pause Measure C Projects To-Be-
Determined
(ONE-TIME)
Two of the three Measure C projects
were delayed indefinitely (Jackson
and Harder Median projects) and the
Measure C contribution to the La
Vista project was reduced by 80%.
City Council and Mayor
Reduce Salaries by an
additional 5%
To-Be-
Determined, but
Minimal
(ONGOING)
Would require Council action.
51
Technology Enhancements
& Investments
Efficiency
Measure
Information Technology will continue
to explore methods to use technology
to improve efficiency. Active research
areas include: pre plan review, staff
report generation, automated note
taking and meeting minute creation,
first responder drone technology, and
Permit Center virtual queue and
dashboard.
Two Council Meetings per
Month
Efficiency
measure
Given reductions in workforce,
consider actions that reduce ongoing
staff time. Would require Council
approval.
Consolidate Committee
Meetings
Efficiency
measure
Given reductions in workforce,
consider actions that reduce ongoing
staff time. Would require Council
approval.
Adopt a Citywide
Compensation Philosophy
to Create Equity and Better
Define what “Market”
Means in Hayward
Process
Improvement
This is an active project in the Human
Resources Department.
Examine Airport
Administration for
Efficiency Increases and
Operational Reductions
No Savings to the
General Fund
Hayward Executive Airport is an
enterprise fund, and any savings are
not shared with the General Fund.
Payroll Process Review and
Analysis
Process
Improvement
This is an active project in the Finance
Department, with a priority of first
fully staffing in the Payroll Division.
Modifications to Military
Leave to Prevent
Overpayment Above State
and Federal Requirements
To-Be-
Determined
(ONGOING)
Human Resources is currently
investigating rewriting existing City
resolutions regarding military leave to
offer better clarity.
Reduce Consultants and
Outside Contractors –
Freeze Non-Essential
Consulting Contracts and
Transition Work In-House
Where Possible
To-Be-
Determined
(ONGOING)
Staff will continue prioritize
completing work in-house without the
use of outside consultants whenever
possible.
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Cut Temporary Staff To-Be-
Determined
(ONGOING)
Where possible, temporary staff have
been released.
Pause Community Events,
Sponsorships, and Grants
to Community
Organizations
To-Be-
Determined
(ONE-TIME/
ONGOING)
This work has been fully paused and
will continue to be paused in FY 2027.
Pause Spending Related to
Travel, Training, and
Memberships Unless
Required for Job, and Make
Training Online if Possible
To-Be-
Determined
(ONE-TIME/
ONGOING)
This pause has been in place since
August 2025.
Reduce Contribution to
Worker’s Compensation
Fund to FY 2026 Level
$3.7 Million
Annually
(ONE-TIME)
Underfunding this fund could
increase the risk of unbudgeted costs
from claims.
Additional 1-2% Reduction
in General Fund
Departmental Costs
$2.5 - $5 Million
Annual
(ONGOING)
Another across the board
departmental cut would include
layoffs and significant service
impacts to City services.
Using the Purchase of
Service Credit or “Golden
Handshakes” to Reduce
Staff Levels
To-Be-
Determined
(ONGOING)
Staff is working with CalPERS to attain
an actuarial report. This is likely to
have a greater cost than savings and
could further impact service levels.
Stop Allowing Take Home
Cars for so Many People
No Savings For non-sworn departments, take
home vehicles are limits to on-call
employees. Sworn departments are
actively reviewing take home cars and
have already made initial changes to
reduce impact.
Pursue Liability Damages in
CIP Contracts
(ONE-TIME) Work is ongoing regarding this
suggestion, but it is an extremely
complicated and nuanced issue.
Pause Contribution to Fleet
and Technology Services
Fund
(ONE-TIME) These are core operational costs that
are needed to run the infrastructure of
the City (public safety, finance,
revenue, etc.). Staff will work closely
to ensure the budget is aligned to the
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need and those departments are
evaluating costs closely.
Software Changes – Switch
to Adobe from Docusign
No Savings Annual cost of Docusign is much less
than Adobe.
Eliminate Hayward
Navigation Center
$2.185 Million
Annually
(
ONGOING)
Complete elimination of the Center
would result in 25-30 additional
unhoused on City streets every day. It
would also prevent the City from
receiving already approved grants.
Eliminate LINK program
(part of HEART)
$700,000
Annually
(ONGOING)
The LINK program is the primary
referral tool that HPD and other
departments use for individuals with
mental health challenges, and gives
Hayward an entry into County
services.
Eliminate the Hayward Jail
Program
$3 Million
Annually
(ONGOING)
This would increase other Police
Department costs and would have
major impacts on service delivery.
Expand Adopt-a-Block /
Address Nuisance
Properties by Utilizing the
Clean and Green
Commission
To-Be-
Determined, but
Minimal
(ONGOING)
Members of the C&G Commission do
not regularly attend subcommittee
meetings and volunteer outreach
opportunities, adding additional
responsibilities to this group may not
be productive.
Transition non-sworn
employees to a 4-Day/32
Hour Work Week
$7.35 Million
(ONGOING)
This would require labor agreement
and would impact service delivery to
the community by reducing staff
hours by 10%. The corresponding
reduction in pay could result in
employees leaving the organization.
Transition to 4/10 Work
Week and close City Hall on
Fridays
Minimal Savings
on Facilities
Costs
(ONGOING)
This would require labor agreement
and would impact service delivery to
the community with minimal savings
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Require Staff to Take Time
Off During Business
Closures
To-Be-
Determined
(ONGOING)
This would require labor agreement
since it is not in line with the current
practice and understanding of
business closures.
Explore Merging the Library
with Alameda County
To-Be-
Determined
More research is needed to determine
feasibility and possible cost savings.
Bilingual Pay Inequities –
Some Staff are Burdened
with Requests While Others
Are Not, Yet All Receive the
Benefit
To-Be-
Determined, but
Minimal
(ONGOING)
Due to lack of staff capacity, staff
does not recommend pursuing at this
time. Any changes to the bilingual pay
program would require labor
agreement and the cost savings
would be minor.
Eliminate SWAT Program To-Be-
Determined
(ONGOING)
For public safety reasons, this is not
recommended due to significant
emergency and crisis training benefits
beyond just use by the SWAT program
and minimal to no savings, depending
on use of the County program.
Business License Software
– Put Revenue Division on
Energov
No Savings While there may be process benefits
from this change, Revenue’s current
business license software is much
cheaper than Energov and no savings
would be realized.
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