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Hayward council unanimously adopts balanced FY 2026–27 budget with $249M general fund, flags $30M structural gap
Summary
After months of adjustments, the council adopted a balanced FY 2026–27 operating budget and CIP that uses one‑time funds and transfers to close gaps but leaves an estimated $30 million structural deficit; finance staff and labor partners were thanked for concessions and cooperation that enabled the adoption.
The Hayward City Council on June 2 adopted a balanced FY 2026–27 operating budget and capital improvement program after hearing a detailed presentation from Finance Director Hillbrandt and extended council discussion about revenues, vacancies and cost controls.
Hillbrandt told the council the proposed general fund for 2026–27 is roughly $249 million and that staff balanced the budget using a mixture of one‑time actions — including transfers, use of OPEB and other fund balances — and departmental adjustments. She said there remains a structural deficit of about $30 million and that long‑term solutions will require new revenue or further cost reductions. "We've also used funds out of our OPEB trust, our workers compensation fund balance and some eligible grant funds," Hillbrandt said, while warning that the planning grant funding for specific projects does not cover future environmental or construction phases.
Council discussion focused on revenue assumptions (sales and property tax, cannabis and streaming revenues), overtime controls and vacancy management. Council members and staff agreed to continue monthly reporting of budget actuals to the Council Budget & Finance Committee and to schedule further public updates later in the fiscal year. Several council members credited union partners and staff for concessions that helped close the gap: Mayor Salinas and others publicly thanked finance staff and labor groups for negotiating modified COLAs and other measures that reduced near‑term costs.
During the hearing, residents called in to ask the council to preserve Measure C commitments (library, public safety building, street repairs) and to avoid treating Measure C funds as disposable one‑time revenue. City staff responded that Measure C obligations remain a priority and that one‑time fund uses were chosen to stabilize finances while council explores sustainable revenue measures.
After deliberation the council voted unanimously to adopt the operating budgets and appropriations, authorizing staff‑level flexibilities for year‑end accounting (GASB 31) and limited contract authority as described in the staff resolutions.
What happens next: staff will continue monthly budget reporting, pursue possible revenue measures and report back with updates on outstanding risks such as CalPERS liabilities and uncertain revenue streams.
