DATE: November 18, 2025
TO: Mayor and City Council
FROM: Interim City Manager
SUBJECT
Title
City of Hayward Budget: Budget Update and Adoption of Amendments to the City of Hayward's FY 2025-26 Operating Budgets and Updates to Other Capital and Operating Budgets as Needed
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RECOMMENDATION
Recommendation
That the City Council provide guidance to staff on the proposed steps to address the FY 2025-26 deficit which has been updated to reflect a projected deficit of $26.5 million and adopt the attached resolution:
1. Amending the Adopted FY 2025-26 Operating Budget for the City to reflect a balanced budget, as shown in this report,
2. Authorizing the City Manager to reduce expenditure appropriations for general fund departments, and to increase appropriations and modify transfers to/from other funds, and
3. Affirming that the remaining cost-control measures outlined in this report are within the City Manager's existing administrative authority and are expected to be implemented by January 31, 2026, to eliminate the FY 2025-26 budget deficit.
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SUMMARY
On June 17, 2025, the City Council adopted the FY 2025-26 operating budget, which showed a starting fund balance of $31 million and an $8.9 million use of reserves. Since that time, staff identified a significant deficit for FY 2024-25 of approximately $30 million, resulting in the reduction of the starting fund balance for this fiscal year to approximately $1 million. In addition, staff updated the forecasted budget deficit for FY 2025-26, which staff projects to be $26.1 million, based on actuals from the last 14 months and information from the City's tax consultants.
This report summarizes the updated budget deficit for FY 2025-26 and outlines proposed steps to close the deficit. Staff is seeking Council's adoption of a resolution that amends the adopted FY 2025-26 Operating Budget to reflect the updated projections, authorizes the City Manager to take certa...
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