Hayward · issues
Civic issues
Topics getting the most attention in Hayward public meetings, ranked by how frequently they come up.
Business license tax modernization
The city is quietly moving toward a November 2026 ballot measure to modernize the business license tax, untouched for nearly 50 years. A consultant is being hired to build a fiscal model, and a community poll could happen within weeks. Estimates discussed ranged from $13-21 million (union estimate) to a prior assessment well below a $28 million figure.
FY 2026-27 Operating Budget and $30M Structural Deficit
Hayward burned through roughly $30 million in reserves and is balancing this year's budget with layoffs, cuts, and one-time fixes. The city still needs $2-4 million more in cushion, and 94% of general fund revenue goes to salaries and benefits. The February 28 retreat is where the council will tackle long-term structural solutions.
$1.5 million settlement of Costa v. City of Hayward
The council settled a lawsuit against the city for $1.5 million in closed session. Hayward's $800,000 share is already budgeted in the risk fund; insurance picks up the rest.
City Hall second-floor renovation during budget crunch
The council approved a $516,614.85 contract to build a conference room and offices at City Hall, over objections that the city recently cut jobs and services to balance its budget.
FY 2027 salary plan
The council took the first formal step to amend the city's CalPERS retirement contract covering classic members of the police and fire bargaining units — a resolution of intention and ordinance introduction. The final adoption comes later.
Russell City Redress Fund
Philanthropic Ventures Foundation was approved as fiscal sponsor for the Russell City Redress Fund, moving the redress effort forward.
FY 2026-27 Operating Budget and Structural Deficit
The city is running a 13.82% vacancy rate with 135 open positions as a deficit-reduction strategy. Union reps described burnout, a closed library Monday, and part-timers losing up to a third of their pay. Councilmembers said the smaller workforce may be the 'new normal.'
CDBG Funding and the Future of the Community Services Commission
With the community agency funding cycle canceled due to budget shortfalls, about $1.5 million in federal CDBG money is going to one-time internal projects instead of nonprofits. Commissioners told the council they felt shut out of the process, and the council directed staff to expand the commission into an advisory role with a community needs assessment.
FY27-FY36 Capital Improvement Program
Public Works launched an online dashboard letting residents track 100+ city construction projects, with council members asking for maps, renderings, and clearer status descriptions.
Master Fee Schedule update
The city updated its full schedule of fees for the coming fiscal year after a six-month, department-by-department review.
Library budget cuts reducing hours and services
Hayward libraries got their state grants this year, but the state may cut about $130,000 in ESL funding next year, a program serving roughly 300 residents. The council authorized accepting up to $350,000 annually in state and donated library funding through FY 2028-29.
Federal funding risks: ACA subsidies and homelessness grants
The city accepted $1.9 million in Prop 47 grant funds, most of it going to Bay Area Community Services for enhanced services at the Hayward Navigation Center. Andrews asked for crime-stat updates on safety around the Navigation Center and Regis Village.
Reduced Frequency of Council Meetings and Committees
The council quietly cut back how often it meets and how often certain standing committees convene — fewer chances for residents to weigh in person, but less time commitment for council members.
Affordable Housing In-Lieu Fees and Housing Trust Fund
Commissioners discussed Hayward's struggle to meet state housing targets for very low, low, and moderate income households — the city is at only 30-40% on those categories while exceeding 120% on market-rate. Staff and the developer discussed in-lieu fees, density bonus incentives, and state funding scarcity for 100% affordable projects.
Measure C fund management and future capital planning
The city is leaning on Measure C money to cover general fund gaps, but the plan is to wean off over five years so those funds can go back to streets and capital projects before Measure K-1 kicks in around 2031.
Selling city-owned properties to rebuild reserves
The city owns risky real estate — including the downtown cinema building — that costs money to maintain. Staff plan to bring sale-or-lease decisions to council by June, with proceeds going to rebuild depleted reserves.
Utility User Tax Code Cleanup
Councilmembers floated updating the flat cannabis tax, taxing video streaming under the utility users tax (staff says work is underway), and a first responder fee of roughly $400 per emergency medical call billed to insurance, as in San Jose.
Rent stabilization program cost recovery
The council formally adopted the rent stabilization and tenant protection ordinance, locking in protections for renters in Hayward.
Sales tax decline from BART car contract
Hayward's recent strong sales tax years were largely a one-time boost from the BART car contract, and about $7.7 million is coming out of the forecast. Council wants a policy so one-time windfalls go to reserves instead of funding ongoing positions.
Short-term rental enforcement as revenue
Mayor Pro Tem Syrop says Hayward bans short-term rentals but doesn't enforce it, leaving roughly 300-500 units off the housing market and an estimated $1 million a year in uncollected hotel tax and fees. He wants enforcement spun up quickly using existing contractors.
City employee layoffs and labor relations
Layoffs are going forward despite union concessions talks, and speakers accused the council of never intending to avoid them. Council members acknowledged the pain, with some pressing for unions to bring solutions to the February retreat and for transparency about what went wrong.
Transient occupancy tax increase and hotel industry concerns
A 40-year Hayward hotel owner pushed back on the recent TOT increase to 14%, saying occupancy is down 40% and a higher tax will drive away guests. Councilmember Roche noted the 2% excise tax expires at the end of 2027 and that the ballot measure already allowed up to 14%.