Over the last five months, the City of Hayward has been working diligently to understand the causes of and find solutions for a structural deficit in our General Fund that pays for most non-utility-related municipal services. We have looked at decisions that contributed to the deficit, identified budget and fiscal practices that needed shoring up and ways to reduce spending and bolster revenues…, What is the issue?, The City faces a multimillion-dollar deficit in its General Fund for the current 2026 Fiscal Year that began July 1, meaning expenditures are exceeding projected revenue. As of last month, the General Fund deficit for the current fiscal year was $26.4 million—with $246.3 million in projected total spending against $219.9 in total projected revenue. Essentially, the City General Fund operations…, What is the City of Hayward General Fund?, The General Fund is the City’s main operating fund and pays for most non-utility municipal services, primarily police, fire protection and emergency medical response services. Other City funds are managed separately from the General Fund and are primarily associated with the City’s Capital Improvement Program, water utilities and Hayward Executive Airport. , What is the General Fund reserve?, Fiscal policy established by the City Council calls for maintaining a 20-percent General Fund reserve as a cushion to get through economic downturns, emergencies and other temporary cost and revenue swings., What is the cause of the General Fund deficit? , The General Fund deficit in the current 2026 Fiscal Year reflects an overall structural imbalance between annual General Fund revenue and the cost of General Fund operations. The gap between the two is projected to grow year over year, if the we do nothing to address the structural deficit., How did the imbalance and deficit become such an urgent matter?, Over the past two fiscal years, General Fund spending exceeded General Fund revenues by tens of millions of dollars and effectively wiped out the entire General Fund reserve by the start of the current 2026 Fiscal Year on July 1. As a result, immediate actions are now being implemented to bring budgeted General Fund spending into line with projected General Fund revenue. While certain actions…, What drove the spending increases the last two fiscal years? , There are multiple factors that have influenced increased spending over the last two fiscal years, including rapidly increasing employee salaries and benefits based on compensation agreements approved in 2023 and 2024, new programs added during COVID, slowing revenues, and rising insurance and health care costs. Between Fiscal Year 2023 and Fiscal Year 2025, actual annual spending on salaries and…, General Fund Summary - Actuals, Actual, FY2025 Unaudited, FY2024, FY2023, FY2022, Salaries 129,439,218 106,001,538 98,315,582 93,367,419 Benefits 75,681,922 63,676,556 65,526,167 61,182,155 Salaries & Benefits Charge Out (6,541,155) (3,962,605) (5,336,075), (4,167,698) Maintenance & Utilities 1,651,932 1,775,132 1,091,858 1,209,681 Supplies & Services 13,373,763 14,975,982 12,604,727 10,653,686 Internal Service Charges 18,784,536 19,999,469 16,812,770 14,889,954…, Total Expenses, 247,704,345, 217,361,374, 205,811,063, 194,204,841, Total Revenue, 217,140,279, 216,969,339, 210,724,488, 196,625,348, Why did the City agree to new pay levels and benefits it couldn't afford? , The City Council approved new labor agreements negotiated and recommended by former executive leadership that, along with General Fund revenue projections, did not receive an adequate level of internal analysis and review., How did the purchase of the Cinemark Cinema Building impact the General Fund?, The purchase of the Cinemark Cinema Building on B Street, which took place in January 2024, was carried out through an $8.6 million loan from the General Fund, effectively reducing the General Fund reserve by an equivalent amount. So, it significantly contributed to the depletion of the General Fund reserve by the start of the current 2026 Fiscal Year on July 1., What is the City doing to close the General Fund budget deficit in the current 2026 Fiscal Year?, We are taking a balanced approach focused on increasing revenue—both from one-time and ongoing sources—and cutting spending on employee salaries and benefits, which accounted for 83 percent of total General Fund expenditures in Fiscal Year 2025, as well as reductions in services and supplies, and other cost saving measures. On the revenue side, we are identifying and working to sell surplus City…, What is the City doing to address its underlying structural imbalance in the General Fund?, , Given the scale of the current deficit and structural imbalance, it will likely take years to return the City to a state of fiscal stability and sustainability. Not only does total spending need to be brought into line with total revenue, but a 20-percent General Fund operating reserve must be restored to bring the City back into compliance with the Council-established fiscal policy. In addition…, Questions? Leave your questions or comments about the budget below. , Budget Question & Comments, Related Documents, Staff Report City Council Meeting: Nov. 18, 2025 - Budget Update and Adoption of Amendments to the City of Hayward’s FY 2025-26 Operating Budgets and Updates to Other Capital and Operating Budgets as Needed, Presentation Budget and Finance Committee Meeting: Oct. 15, 2025 - Ten Year Budget-to-Actuals Financial Data for the General Fund and Measure C., News Release: Sept. 23, 2025 - Hayward’s Mayor, Councilmembers, Executive Team agree to take pay cuts, News Release: Aug. 29, 2025 - Vacancy management and other measures in store to restore Hayward’s fiscal health
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Hayward GHG Emissions Inventory, Community GHG inventories measure the GHG emissions generated by residents and businesses operating in the community, as well as municipal operations. The process of creating a GHG inventory includes first identifying activities that are major sources of emissions and collecting summary data on those activities for a calendar year. Then, the City uses science-based GHG emissions factors to…, International Council for Local Environmental Initiatives (ICLEI), methodologies, specifically, the, United States Community Protocol for Accounting and Reporting Greenhouse Gas Emissions Version 1.2, (Community Protocol) is used for communitywide emission. The Community Protocol is an authoritative guide for best practices in calculating community-scale GHG inventories. The protocol separates a city’s GHG-generating activities into categories known as emissions sectors. Large emissions sectors for cities include the transportation sector (such as combustion emissions from cars and other…, pass-through travel activity, . Current Inventory The CAP Update includes a 2019 inventory of GHG emissions from Hayward’s communitywide activities. The inventory includes sources that are within some degree of the City of Hayward’s jurisdictional control, in accordance with established GHG accounting protocols and State guidance. In 2019, Hayward’s GHG emissions totaled 684,399 MT CO 2 e. This represents a 22 percent…, Figure 3, and, Table 2, , in 2019 GHG emissions from transportation made up the largest sector (422,717 MT CO 2 e, or 62 percent of total emissions). The second largest source was building energy use from electricity and natural gas consumption (189,116 MT CO 2 e, or 28 percent of total emissions). 54 percent of building energy emissions were attributed to the residential sector while 46 percent were attributed to the…, Figure 3: Hayward Greenhouse Gas Emissions by Sector, 2019, Figure 3: Hayward Greenhouse Gas Emissions by sector, 2019, Table 2: Hayward 2019 GHG Emissions Inventory Summary, GHG EMISSIONS SECTOR/SOURCE DCO 2 E (MT) % OF TOTAL EMISSIONS, TRANSPORTATION, Passenger On-Road Transportation 298,256 44% Commercial On-Road Transportation 111,329 16% Buses On-Road Transportation 8,277 1% BART 547 0.1% AC Transit 4,308 1% Off Road - Diesel 14,661 2% Off Road - Gasoline 4,940 1% Off Road - Natural Gas (LPG) 4,687 1%, ELECTRICITY, Residential Electricity – PG&E 1,144 0.2% Residential Electricity – Ava Community Energy 5,182 1% Commercial/Industrial Electricity – PG&E 3,032 0.4% Commercial/Industrial Electricity - Ava Community Energy 3,108 0.5%, NATURAL GAS, Residential Natural Gas 95,291 14% Commercial/Industrial Natural Gas 81,358 12%, WATER & WASTEWATER, Wastewater - Direct 1,702 0.2% Wastewater – Indirect 380 0.1% Water - Indirect 10 0.001%, SOLID WASTE, Solid Waste Generated/Disposal 46,187 7%, CO 2 e = carbon dioxide equivalent; PG&E = Pacific Gas & Electric, Hayward GHG Emissions Forecasts, GHG emissions forecasts provide an estimate of Hayward’s GHG emissions in the future. Forecasting helps to track trends and progress for Hayward and allows the City to see how much it needs to reduce communitywide emissions in order to meet its future GHG emissions reduction targets. GHG emissions forecasts for Hayward were developed using the 2019 inventory for 2025, 2030, 2035, 2040 and 2045.…, able 3, )., Appendix C, includes more details on the growth metrics, demographics, and methodologies used to develop the BAU forecast. This process allows the City to convert growth projections into GHG emissions estimates using specific GHG emissions factors, which are assumed to be the same in the future as in the 2019 GHG emissions inventory. This methodology is used for all GHG emissions sectors and sources included…, OFFROAD2021, off-road emissions database was used to project fuel use since no significant GHG emission reduction legislation is included in the model., Table 4, summarizes the BAU forecast for each forecast year., Table 3: Growth Metrics for Hayward BAU GHG Emissions Forecast, GROWTH METRIC 1 2019 1 2025 2030 2035 2040 2045 3 Population 160,197 161,781 167,425 173,069 178,713 184,358 Employment 70,739 70,326 72,073 73,821 75,568 77,315 Service Population 230,936 232,107 239,498 246,890 254,281 261,673 Housing 47,987 51,788 53,108 54,427 55,747 57,066, Note: Service Population = Population + Employment , 1 Previous inventory demographic data was obtained from MTC, including years 2005, 2010, 2015, 2017, 2018, and 2019., 2 Forecasted demographic data for Hayward is based on the Alameda CTC Zone from plan Bay Area 2040 and is consistent with the projections used for the Housing Element and traffic analysis conducted by Kittleson & Associates, Inc. Data was provided for year 2020 and 2040, therefore interim years were linearly interpolated., 3 To estimate demographic growth past 2040, the annual compound growth rate between 2020 and 2040 was applied to the demographic data to estimate demographic projections in 2045., Table 4: BAU Emissions Forecast (MT CO 2 e), GHG EMISSIONS SOURCE 2025 2030 2035 2040 2045, TRANSPORTATION, Passenger On-Road Transportation 321,882 330,084 338,285 346,486 354,687 Commercial On-Road Transportation 120,212 124,041 127,869 131,697 135,525 Buses On-Road Transportation 8,319 8,584 8,849 9,114 9,379 BART 550 568 585 603 620 AC Transit 4,330 4,468 4,605 4,743 4,881 Off Road Transportation & Equipment 26,818 29,084 31,274 33,662 28,177, ELECTRICITY, Residential Electricity 6,828 7,001 7,175 7,349 7,523 Commercial/Industrial Electricity 6,104 6,256 6,408 6,560 6,711, NATURAL GAS, Residential Natural Gas 102,840 105,460 108,080 110,701 113,321 Commercial/Industrial Natural Gas 80,883 82,893 84,903 86,912 88,922, WATER & WASTEWATER, Wastewater - Direct 1,719 1,779 1,839 1,899 1,959 Wastewater – Indirect 384 397 410 424 437 Water - Indirect 6 6 7 7 7, SOLID WASTE, Solid Waste Generated/Disposal 46,421 47,899 49,377 50,856 52,334, TOTAL, 727,297, 748,520, 769,667, 791,012, 804,484, PER CAPITA TOTAL, 4.50, 4.47, 4.45, 4.43, 4.36, Notes: Values in this table may not add up to totals due to rounding, All values are of the unit metric tons of carbon dioxide equivalent (MT CO 2 e), CO 2 e = carbon dioxide equivalent; PG&E = Pacific Gas and Electric;, Adjusted Forecast The adjusted forecast adjusts the BAU forecast to account for state-level legislation, policies, and programs (e.g., SB 100, Title 24 Energy Efficiency Standards, Advanced Clean Truck Rule) that are expected to reduce GHG emissions. As it takes into account the influence of enacted laws, the revised projection is deemed a more authentic representation of Hayward's future…, Advanced Clean Cars Program., A comprehensive car emissions control program which regulates smog, soot-causing pollutants, and GHG emissions into a single coordinated package of requirements., Innovative Clean Transit., A regulation focused on long-term goal of full transition of the heavy- duty transportation sector to zero-emission technologies It requires all public transit agencies to gradually transition to a 100 percent zero-emission bus fleet and encourages them to provide innovative first and last-mile connectivity and improved mobility for transit riders., Title 24 Building Energy Efficiency Standards, . Building standards that regulate new residential and commercial development in California by requiring increased efficiency related to space heating and cooling, lighting, and water heating. C, alifornia Renewable Portfolio Standard (RPS)., Requires investor-owned utilities, publicly owned utilities, electric service providers, and community choice aggregators to increase procurement from renewable energy resources. Adopted in 2018, SB 100 requires electricity providers to increase procurement from eligible renewable energy resources to 60 percent by 2030 and 100 percent by 2045. SB 1020 builds upon SB 100 by advancing the State…, See Appendix A, for more information on these and a suite of other programs and policies that are intended to reduce emissions, including SB 1383 and AB 341, that are not included in the adjusted forecast because they are emphasized in the measures., Table 5: Adjusted Forecast (MT CO 2 e), GHG EMISSIONS SOURCE 2025 2030 2035 2040 2045, TRANSPORTATION, Passenger On-Road Transportation 281,963 264,018 256,013 254,427 256,924 Commercial On-Road Transportation 103,620 94,404 83,586 77,090 74,698 Buses On-Road Transportation 7,703 6,398 4,975 3,964 2,922 BART 550 568 585 603 620 AC Transit 4,010 3,324 2,581 2,056 1,519 Off Road Transportation & Equipment 26,818 29,084 31,275 33,662 28,177, ELECTRICITY, Residential Electricity 4,771 3,586 2,401 1,210 0 Commercial/Industrial Electricity 4,670 3,548 2,370 1,190 0, NATURAL GAS, Residential Natural Gas 102,311 104,748 107,185 109,622 112,059 Commercial/Industrial Natural Gas 80,883 82,893 84,903 86,912 88,922, WATER & WASTEWATER, Wastewater - Direct 1,719 1,779 1,839 1,899 1,959 Wastewater – Indirect 297 232 160 83 0 Water - Indirect 5 4 3 1 0, SOLID WASTE, Solid Waste Generated/Disposal 46,421 47,899 49,377 50,856 52,334, TOTAL, 665,743, 642,486, 627,251, 623,574, 620,134, PER CAPITA TOTAL, 4.12, 3.84, 3.62, 3.49, 3.36, Notes: Values in this table may not add up to totals due to rounding, All values are of the unit metric tons of carbon dioxide equivalent (MT CO 2 e), CO 2 e = carbon dioxide equivalent; PG&E = Pacific Gas and Electric;, Comparing Forecast Scenarios The BAU forecast for Hayward projects an increase in GHG emissions above the 2019 GHG emissions inventory from all GHG emissions sources through 2045 based on projected job and population growth. Hayward’s BAU GHG emissions are projected to increase to 4.36 MT CO 2 e per person or 804,484 MT CO 2 e in 2045, see, Table 4, . The adjusted forecast projects that state legislation will result in GHG emissions reduction from the BAU forecast in both the residential and commercial/industrial sectors., Title 24, is expected to reduce GHG emissions due to reduced electricity and natural gas consumption in new residential and non-residential construction., SB 100, and the, California RPS, are expected to reduce GHG emissions associated with electricity generation in both the residential and the commercial/industrial sector. State transportation regulations, including, Advanced Clean Trucks, ,, Advanced Clean Cars, , and, Advanced Clean Fleet, , are expected to significantly reduce transportation GHG emissions. Hayward’s adjusted GHG emissions are projected to 3.36 MT CO 2 e per person or 620,134 MT CO 2 e in 2045, see Table 5. Refer to, Appendix C, for a more detailed discussion related to methodology modeling, and supportive evidence for Hayward’s GHG forecasts., International and State Context and Timeline/ Emissions Targets, International Context Local climate action is guided by science and policy targets at the international level. Bodies such as the, United Nations Intergovernmental Panel on Climate Change (IPCC), conduct scientific evaluations and formulate policy recommendations. International treaties such as the, Paris Agreement (2016), are legally binding treaties that cover nearly every nation on earth. The goal of carbon neutrality by 2045 is consistent with IPCC findings and research-based targets for avoiding the most serious climate change impacts. The central aim of the Paris Agreement is to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels. The IPCC has found that to achieve this and reduce…, California Air Resources Board (CARB), , reducing State emissions to carbon neutral by 2045 would be consistent with the IPCC analysis, as indicated in the, AR6 Synthesis Report: Climate Change 2023, , of the global emissions trajectory needed to, achieve these goals, . The Paris Agreement sets a worldwide objective of improving adaptive capacity and mandates each participating entity to identify their country's contributions to the collective climate effort. Regular emissions reporting and updates on implementation progress are also required. Similar endeavors are reflected in Hayward's work to increase resilience, achieve carbon neutrality, regularly…, AB 32, ,, SB 32, , and, AB 1279, . Together these regulations set Statewide GHG reduction targets for 2020, 2030, and 2045 and chart a path towards a carbon neutral California, as explained below. See, Appendix A, for a full list of relevant state-level legislation., Assembly Bill 32:, This legislation codified the Statewide goal of reducing GHG emissions to 1990 levels by 2020 and required CARB to prepare a Scoping Plan that outlines the main strategies the State will employ to meet the 2020 target., Senate Bill 32:, This successor legislation to AB 32 requires a Statewide reduction in GHG emissions of 40 percent below 1990 levels by 2030. A new Scoping Plan was adopted in 2017., Assembly Bill 1279:, This legislation codified the Statewide carbon neutrality goal into a legally binding requirement for California to achieve carbon neutrality no later than 2045 and ensure 85 percent GHG emissions reduction under that goal. AB 1279 builds upon, Executive Order (EO) B-55-18, that originally established California’s 2045 goal of carbon neutrality. The latest Scoping Plan was adopted in 2022., Hayward Context & Timeline/Emissions Targets, Hayward GHG Emissions Targets The, 2022 California Climate Change Scoping Plan, recommends that local agencies establish community-wide GHG reduction goals for local climate action plans that will help California achieve its 2030 target and longer-term goal. The Scoping Plan notes that it is appropriate to derive evidence-based targets or goals from local emissions sectors and population projections if this process is consistent with the framework used to develop the…, S, tatewide objectives. State climate legislation compares emissions reduction targets to a 1990 baseline. However, Hayward does not have a 1990 GHG inventory, and the targets developed by the City are instead compared to their 2005 baseline. In the 2006 AB 32 Scoping Plan, CARB indicates that the 1990 GHG emission levels were 15 percent below “baseline years established between 2005-2008. Hayward’s…, Table 6: Per Capita GHG Reduction Target Pathway (MT CO 2 e/person), GHG EMISSIONS PATHWAY 2019 2025 2030 2035 2040 2045 BAU Forecast 4.27 4.50 4.47 4.45 4.43 4.36 Adjusted Forecast 4.27 4.12 3.84 3.62 3.49 3.36 Hayward Emissions Targets 4.27 3.64 3.12 2.08 1.04 0.00 Emissions “Gap” – Per Capita 0.00 0.5 0.7 1.5 2.5 3.4 Emissions “Gap” – Mass Emissions 0 76,568 120,709 267,673 437,922 620,134, Figure 4: Baseline Emissions per Capita Comapred to Forcast Scenarios & Target Pathway to Carbon Neutrality., colorful chart showing Baseline Emissions per Capita Compared to Forecast Scenarios and Target Pathway to Carbon Neutrality, Hayward Emissions Gap Analysis The difference between Hayward’s climate action targets and the adjusted forecast for emissions can be thought of as an “emissions reduction gap,” or the amount of emissions reduction that the City and wider Hayward community must achieve. Meeting the GHG Emissions Targets While state regulations and programs will contribute some emissions reductions, Hayward must…, Table 7: Targets Versus GHG Reductions, TARGET/FORECAST 2030 GHG Emissions (MT CO 2 e/person) 2045 GHG Emissions (MT CO 2 e/person) Adjusted Forecast 3.84 3.36 Hayward Climate Action Targets 3.12 0.00 GHG Reductions from Full Implementation of CAP Measures 0.73 2.36 GHG Emissions after Measure Reductions (Adjusted Forecast – GHG Emissions Reductions) 3.11 1.01 Target Anticipated to be Met? Yes Substantial progress demonstrated, Figure 5: Emissions Reduction Gap Between Forecasted Emissions & State Targets, colorful line chart showing Emissions Reduction Gap Between Forecasted Emissions and State Targets, Next: Equity & Outreach ⇒
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