Council Adopts $249M Budget, Advances Downtown Loop Overhaul, Places Tax Measure on Ballot

Hayward's City Council tackled its fiscal future head-on Tuesday night, unanimously adopting a $249 million general fund budget balanced through labor concessions and one-time fixes, while placing a business license tax modernization measure on the November ballot that could close nearly half of a persistent $30 million structural deficit. The council also gave a green light to reshape the downtown Loop from a collision-prone one-way system into a two-way street network designed for safer, slower travel.

• $249M general fund budget adopted 7-0, balanced by 85 frozen vacancies, deferred union COLAs, and one-time OPEB transfers — but a $30M structural deficit remains

• Business license tax overhaul headed to November ballot, projected to generate ~$16M annually in the city's first rate update since 1978

• Downtown Loop conversion advances as council unanimously backs the Civic Avenue plan for two-way streets, bike lanes, and a potential pedestrian plaza

• Safe Streets Phase 1 corridor alternatives approved for A Street, B Street, and Tennyson Road

• Fire engine shutdown in District 1 draws council scrutiny as Regis Village call volumes strain overtime budgets

The basics: The FY 2026-27 operating budget covers a $249 million general fund and approximately $504 million citywide including $264 million in capital improvements. Finance Director Hilbrants and her team effectively built two budgets in six months after discovering significant discrepancies in the current fiscal year — salary and benefits were running $10 million higher than projected due to previously unbudgeted special assignment pays, vacation payouts, and CalPERS miscalculations.