COVID-19 Cost Saving Proposals
In response to current and anticipated sharp declines in key City revenues due to the COVID-19 health emergency, Hayward City Manager Kelly McAdoo has sent proposals to bargaining units asking all City workers to agree to furloughs or forego pay increases scheduled to take effect July 1.
The proposals, along with corresponding changes in compensation for unrepresented groups of employees, would save Hayward approximately $2 million to $3 million in Fiscal Year 2021, preserving cash that is projected to be needed to help maintain a balanced budget and sustain City services in the months and years ahead.
By the close of the Fiscal Year 2020 on June 30, the revenue decline resulting from COVID-19 is projected to require use of approximately $17 million of the City’s $36 million General Fund operating reserve.
The General Fund pays for basic municipal services, such as police, fire-fighting, 911 emergency response, libraries, maintenance of public spaces and facilities, and administration of governmental operations and programs.
The General Fund reserve is similar to a savings account that provides a cash-flow cushion for meeting unanticipated needs, getting through cyclical fluctuations in expenses and revenues, and to draw on in times of emergency.
Without action to slow spending and a bounce back in sales tax and other key General Fund revenues, the City is at risk of soon exhausting the entire reserve, which would make it difficult to maintain services while meeting all of the City’s financial obligations, current projections show.
Related Documents:
General Fund Budget Projections:
City Cost Saving Proposals to Bargaining Units:
Hayward Police Officers Association:
Service Employees International Union Local 1021:
International Federation of Professional and Technical Engineers Local 21:
Hayward Association of Management Employees:
Cost Saving Agreements Reached With:
Hayward Firefighters Local 1909
FY 2020 Budgeted General Fund Revenue:
