Hayward Council approves COVID-19-era budget for new fiscal year beginning July 1

HAYWARD, Calif., June 24, 2020—The Hayward City Council approved a COVID-19-era budget for the new fiscal year that cuts by 4.6 percent spending on General Fund services over the prior 12-month period.

The budget was adopted amid projected declines in key revenue sources relative to pre-pandemic levels.  It is being balanced through a combination of City employee compensation concessions and pay reductions, a hiring freeze, use of General Fund reserve funds, and other measures.

Still, by avoiding personnel layoffs, City Manager Kelly McAdoo anticipates being able to fully restore municipal services as the evolving public health emergency allows and maintain vital coronavirus responses such as its COVID-19 Testing Center as well as other recent initiatives, such as the City’s new Housing Navigation Center for people experiencing homelessness.

City Manager McAdoo credited the willingness of City workers to absorb pay reductions.  “We could not have gotten here without the contributions of our employees and their commitment to public service and the Hayward community,” she said.

The City’s General Fund pays for basic municipal services, such as police, fire-fighting, 911 response, libraries, maintenance of public spaces, and administration of general government operations and programs.

The approved Operating Budget for the 2021 Fiscal Year, which begins this July 1, calls for total General Fund spending of $169.6 million, reflecting a reduction of $8.2 million in expenses over the final revised Fiscal Year 2020 General Fund budget.

In approving the spending plan, the Council committed to revisiting authorized Fiscal Year 2021 Hayward Police Department expenditures in the next few months following a series of community discussions about community-police relations in Hayward and the department’s role and approach to maintaining public safety in the City.

Across all City operating funds, the approved budget provides for $326.7 million in spending.  Other operating funds relate to separately budgeted and managed municipal operations and facilities, such as water, storm water, waste water services, and Hayward Executive Airport, as well as to projects and services paid for through the voter-approved half-cent Measure C sales tax.

The Council also approved on Tuesday a nearly $72.5 million Capital Improvement Program (CIP) for Fiscal Year 2021.  The CIP accounts for planned infrastructure upgrades and major equipment purchases.