DATE: June 17, 2026
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
Debrief of the Adopted FY 2026-27 Operating Budget City Council (Oral Presentation)
RECOMMENDATION
That the Council Budget and Finance Committee (CBFC) ask questions and provide feedback regarding the Adopted FY 2026-27 Operating Budget and Next Steps.
SUMMARY
On May 12, 2026, the City Council held a work session to review the FY 2026-27 Operating Budget (CITY OF HAYWARD - File #: WS 26-013 <https://hayward.legistar.com/LegislationDetail.aspx?ID=8012135&GUID=AE0F6AF0-6D20-4AEC-92A0-8B211262DF44&Options=&Search=>) <https://hayward.legistar.com/LegislationDetail.aspx?ID=8012135&GUID=AE0F6AF0-6D20-4AEC-92A0-8B211262DF44&Options=&Search=%3E>.
The Fiscal Year 2026-27 Operating and Capital Improvement Program Budget was adopted on June 2, 2026 (<https://hayward.legistar.com/LegislationDetail.aspx?ID=8045109&GUID=144EEA3F-39A6-435C-828E-87A45BA50BF7&Options=&Search=>)
Based on feedback received from the Council at the work session and review by City departments, the Finance Department made updates to the Proposed Operating Budget including:
1. Correction of data entry error in Development Services Department and Finance Department increasing General Fund Budget by Clean up organizational charts, employee allocations between funds, and reflection of vacancies
2. Other Administrative Clean Up such as aligning tables to match summaries, movement of revenue / expenses within departments, review and correct any non-financial / non-material items in the budget document.
The Final Adopted Budget Book can be found at: https://www.hayward-ca.gov/your-government/documents/budget-documents
As part of the June 2, 2026 presentation regarding budget adoption, staff presented the following next steps to Council:
1. Structural Opportunities
a. Business License Tax Modernization Measure - Council adopted resolutions placing a measure on the November, 2026 ballot
b. Utility Users Tax on Streaming - letters sent to streaming providers in late May / early June
c. Data Centers - Staff is monitoring potential new revenues from data centers including property tax, sales tax, and utility users tax
d. Other Revenue Opportunities - Staff will continue to evaluate other revenue opportunities and report to CBFC or Council as appropriate
e. Structural Cost Savings - Still is continuing to evaluate ongoing structural cost savings.
2. Ongoing Reporting
a. Staff will present a Budget Year End Report for Fiscal Year 2025-26 after the year end close. This will likely take place in September or October.
b. Staff will present a Financial Update for Fiscal Year 2026-27 around December, 2026
c. Staff will continue reporting Monthly Budget to Actuals to CBFC. Reports for FY 2026-27 will begin in August.
d. Staff will report on cash and fund balances for all funds. A high level presentation is anticipated in August or September with updates as the FY 2024-25 and FY 2025-26 annual audits are completed.
3. Staff will prepare a longer term plan for use of Measure C funds
4. Staff will update Budget and Finance Policies for presentation.
Staff is seeking feedback on these next steps and will incorporate into the Agenda Schedule for CBFC.
ATTACHMENTS
None Oral Report