COUNCIL BUDGET & FINANCE COMMITTEE MEETING
Meeting Minutes of August 19, 2026
Call to Order: 5:33 p.m.
Members Present: Mayor Mark Salinas, Council Member Ray Bonilla Jr., Council Member George Syrop Members Absent: None
Staff: Jennifer Ott, Mary Thomas, DeAnna Hilbrants, Michael Barnes, Franchesca Hatfield, Nicholas Mullins Guests: None
Public Comments: None
Approval of Meeting Minutes from the Prior Meeting
Action: Minutes were moved by Council Member Syrop, seconded by Council Member Bonilla Jr., and approved without objection.
Receive a Presentation about the Fiscal Year 2025-26 Monthly Budget to Actuals Finance Director DeAnna Hilbrants presented.
Committee Questions:
The June projection showed the City’s projected deficit ending the year about $1.7 million more than budgeted; why did the final gap widen to nearly $3 million, and what drove the swing? Response: The June figure was only a 30-day estimate for the remainder of the fiscal year. Sales tax and property tax came in strong, but utility users tax (UUT) and charges-for-services revenue came in below projections. There are a lot of causes to the UUT swings. Revenues were up about $900,000 overall, which is good news, but the revenues performing well needed to cover the revenues that weren’t.
What specifically drove the roughly $2 million overage in supplies and services? Response: Departments had targeted about $2.8 million in reductions when the June projection was built, but actual encumbrances (committed vendor obligations) turned out to be closer to $9.6 million.
Going forward, will the Committee compare monthly actuals to the adopted budget rather than to a prior month's projection? At what point in time will we see that transition? Response: It will be for the whole fiscal 27 year. Starting with next month's report (covering activity through July 31 and August 31), actuals will be tracked against the adopted FY2026-27 budget, which should give departments and the Committee a clearer picture going forward.
Is the increase in overtime in June part of a seasonal pattern, and should the Committee expect it to continue into July? Response: Yes, overtime tends to run higher in warmer months. Police overtime reflected backfill for mandatory training, alignment/shift changes ahead of a July shift change, investigations, and minimum-staffing needs, with the communications center accounting for roughly a third of the department's overtime. Fire overtime reflected increased summer vacation coverage, mandatory training, and workers' compensation backfill. Despite the June increase, year-to-date overtime remains well below prior years and is trending downward.
What is driving the higher-than-expected ending balance in the Measure C fund, and how should the Committee think about the associated transfer to the General Fund? Response: The Measure C ending balance is projected to come in roughly $4.6 million higher than expected, largely tied to return of funds related to the Vista Park project.
Mayor Salinas raised a broader question about when the City might begin communicating publicly that Hayward's finances have “turned the corner,” noting recent public attention to other agencies' fiscal recoveries.
Response: Staff cautioned against messaging a full turnaround at this time, citing the sizable projected structural deficit, uncertainty around interest rates and the broader economy, and the fact that the FY2025-26 budget was balanced largely with one-time funds. Passage of the Business License Tax measure on the November ballot would meaningfully improve the structural picture. Staff and the Committee agreed the City has achieved greater financial stability and a clearer understanding of its numbers than in past years, and suggested that framing improved stability and understanding, rather than a declared turnaround is the more accurate message for now.
Action: The Committee received the presentation and provided feedback.
Discuss the Committee Meeting Schedule and Review the 2026 Committee Agenda Calendar Staff proposed shifting the Committee's regular meeting to the fourth Wednesday of the month, to allow more time between month-end close and the meeting and to avoid overlap with Council packet preparation; the change would also help manage the workload of preparing reconciliations for both Fiscal Year 2025-26 and Fiscal Year 2026-27 for a single meeting.
Staff previewed an active September agenda, expected to include updates on the City's outstanding debt and OPEB-related liabilities, the annual financial report, and continued rollout of fiscal policy items individually rather than as a single combined package.
Action: The Committee received the calendar and provided feedback.
Committee Members/Staff Announcements: None.
Adjournment: The meeting adjourned at 6:13 p.m.
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