DATE: January 6, 2026
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
Work Session to Receive a Budget Update and Provide Feedback on the Proposed Format and Content of the City Council Budget Retreat in February 2026
RECOMMENDATION
That the Council
1. Receive an update on the status of the adopted Fiscal Year (FY) 2025-26 General Fund Operating Budget; and
2. Provide feedback on the proposed format and content of the upcoming City Council Budget Retreat planned for February 2026.
SUMMARY
On November 18, 2025, staff updated the forecasted budget deficit for the FY 2025-26 General Fund budget, which is projected to be $26.4 million, based on actuals from the last 14 months and information from the City of Hayward’s revenue consultants. Staff recommended a two-phase approach: (1) take immediate actions to eliminate the anticipated deficit for the FY 25-26 General Fund budget by the end of January 2026 using a combination of ongoing and one-time expenditure and revenue measures; and (2) initiate planning, analysis and discussions to address the projected structural deficit and need for reserves for subsequent fiscal years, including a City Council Budget Retreat in February 2026. This evening’s work session agenda item is to provide the latest update on the actions taken to balance the FY 2025-26 budget and to solicit City Council feedback on the proposed format and content of the upcoming Budget Retreat.
ATTACHMENTS
Attachment I Staff Report