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Hayward approves midyear budget changes, including one-year $1 million for Saint Rose Hospital
Summary
Council adopted midyear amendments to the FY 2024–25 budget that staff said move the general fund to near balance and included a one-year $1 million appropriation to support Saint Rose Hospital; the vote was unanimous.
Hayward City Council on Feb. 25 adopted midyear amendments to the fiscal year 2024–25 budget that city staff said bring the general fund nearly into balance and preserve core services. As part of the package, the council voted unanimously to provide a one-year $1,000,000 contribution to Saint Rose Hospital as the hospital transitions under Alameda Health System, council members and presenters said.
Assistant City Manager Dustin Claussen presented the midyear report and a five-year general fund forecast, saying staff had used a mix of revenue adjustments, one-time ARPA transfers and expenditure controls to reduce the previously forecast use of reserves. "When we adopted the fiscal year 24–25 budget, we were showing use of $1,800,000 ... with these adjustments this evening, we will be getting to just a smidge over balanced, and in the black," Claussen told the council.
Claussen outlined a number of midyear adjustments: a reported increase to revenue driven in part by a transfer from ARPA funds, operating expenditure growth tied to contracts and previously committed costs, and a projected $3,400,000 savings from a fourth-quarter hiring deferral. The staff packet also identifies items such as outside inspection and plan-check fees and an unplanned ladder-truck repair among the midyear increases to expenditures.
On the hospital request, Mark Fratzke, chief operating officer for Alameda Health System, and Mark Friedman, CEO of Eden Health District, described steps taken since Alameda Health assumed operations and how public and private contributions are being coordinated. Fratzke said the hospital had opened a 29-bed subacute unit and was pursuing licensure and other program expansions. "Our new subacute unit, it's 29 beds, is opening ... We expect it to be full," Fratzke said.
Supervisor Alisa Marquez said county support and matching mechanisms amplify the city contribution. She urged continued outreach to state and other partners for additional funds and said the expected IGT match multiplies local contributions. Council members asked questions about contingency planning, the sustainability plan for Saint Rose and whether the one-year city allocation signaled a multi-year commitment; staff clarified the council action authorized one year of funding and that future annual allocations would require separate council action.
Council member Bonilla Jr. moved the midyear budget resolutions; Mayor Salinas seconded. The council voted by roll call and approved the midyear operating and capital amendments and the $1,000,000 one-year contribution to Saint Rose unanimously.
Staff said they will continue to refine the five-year forecast, pursue federal and state grants, and work with Alameda Health System and other partners on the hospital's financial sustainability.
