Hayward council hears $32.5 million shortfall; staff recommends mix of one‑time fixes, property sales and labor talks

Hayward’s City Council spent a marathon Feb. 28 budget work session reviewing a staff plan to narrow a projected $32.5 million general‑fund shortfall for fiscal 2026–27 and asking staff to pursue a mix of revenue, one‑time funding and structural options while avoiding rash service eliminations.

The meeting opened with two public commenters urging transparency and caution. Teresa Resendez said the city faces a projected $32.5 million deficit and that even counting Measure C transfers the city would still face a multi‑million dollar shortfall; she asked the council to consider cuts or temporary salary reductions. TJ of Hayward Concerned Citizens told the council it must center local businesses in any plan and avoid unexpected burdens on taxpayers.

“I have full faith in our executive team,” the chair said in opening remarks, while emphasizing the need to preserve core services and to keep the council’s message measured. City Manager Jennifer Roth told council members the session was to introduce numbers and options, not to adopt the budget: “You’re not approving anything tonight,” she said, adding the materials are a working set of recommendations staff wants council feedback on.

Finance staff walked the council through a conservative five‑year baseline that excludes unapproved one‑time transfers and relies on consultants for the big three revenue streams—property tax, sales tax and the utility users tax. Under those assumptions, the forecast produces roughly the $32.5…