City Government

City Budget Passed

July 11, 2017

The City Council voted June 20 to approve a General Fund budget for fiscal year 2018 that provides for $151 million in spending on police, fire, libraries, streets and other general city services for the 12-month period that began July 1.

The General Fund is the largest and most discretionary portion of an overall $287 million Operating Budget for fiscal year 2018.  The Operating Budget also encompasses enterprise agencies that operate independently on revenue they generate, such as city utilities and the Hayward Executive Airport.  It also includes special voter-approved funds for projects such as enhancements to fire stations and construction of a new main library, as well as debt service outlays, and two separately run entities, the Housing Authority and former Redevelopment Agency.

Primary sources of revenue for General Fund services are property and real estate transfer taxes, sales taxes, utility user taxes, and various business, franchise and hotel taxes.  As such, general fund revenue tends to rise when the economy is growing and shrink when it contracts.

The primary General Fund cost is employee salaries, wages and benefits.  Proposed General Fund positions for fiscal year 2018 are 658, which is 15 percent below the peak of 773 in 2003.  Overall proposed positions across all Operating Budget funds total 884, which is 11 percent less than the 2003 level of 997.

For fiscal year 2018, proposed staffing increases are limited almost entirely to the new 21st Century Library and Community Learning Center, which is expected to open in early 2018.