DATE: February 28, 2026
TO: Mayor and City Council
FROM: City Manager
SUBJECT
Title
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
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RECOMMENDATION
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.
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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
Attachment IV Draft Financial Policies
Attachment V Revenue Measures
Attachment VI Cost Savings and Efficiency Measures