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.
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.
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.
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.
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.