Hayward council hears five‑year forecast, weighs tax and spending levers to close projected deficit

Hayward City Council met in a special work session on Feb. 4 to review an updated five‑year general fund forecast and discuss options to address a projected structural budget deficit, with staff and council members exploring revenue and expenditure strategies but taking no formal votes.

City Manager Grama Alvarez told the council that while the city closed last year “in a net positive position,” staff projects a structural deficit that will require use of general fund reserves unless the council adopts changes. Assistant City Manager Regina Youngblood, serving as acting finance director, said the city closed 2024 with a surplus “of just over $900,000,” in part because auditors recommended reclassifying an $8,600,000 loan to the Hayward Economic Development Corporation as a loan receivable rather than an expense.

The nut graf: the session was a workshop, not a decision meeting; staff presented an interactive forecasting model and asked councilmembers to indicate priorities for balancing the budget ahead of mid‑year adjustments planned for February. Councilmembers split into three breakout groups to rank options; common preferences included raising the transient…