Hayward Budget Report Tamps Down Exuberance After $4.8M in New Revenue

HAYWARD CITY COUNCIL | Hayward is forecasting a significant bump in revenue in a mid-year budget adjustment report to be presented to the City Council this Tuesday. On the heels of increased real estate activity in Hayward, the city’s finance director expects $4.8 million in additional revenue this fiscal year. The report, however, attempts to temper enthusiasm, noting its economic resurgence may be an anomaly. In March, the City Council unilaterally imposed a five percent wage cut on nearly 300 city employees, claiming its financial future is uncertain without the wage cuts. The employees have been without a contract for nearly a year.

“The economic news indicates a slow national economic recovery, and the City of Hayward is beginning to see glimmers of economic improvement. Sales tax revenues are improving and the real estate market is once again seeing increased activity, with increases in valuations from recent past years,” said the report compiled by Hayward Finance Director Tracy Vesely and only offered for public review a day before Tuesday night’s meeting.

In addition, Vesely says the 11 percent increase in the Real Property Transfer Tax revenue “is a reflection of increased real estate sales activity and housing prices in the Hayward market.” However, the report speculates whether the additional revenue from the sale of homes in Hayward will continue. The report notes revenues from the tax have been “highly volatile” in years past. For instance, property transfer taxes dropped from a high in 2006 of $10 million to $3.8 million four years later, said the report. However, the significant drop in revenue occurred during the height of the Great Recession and also affected other communities, as well.

Mid-year adjustments to expenditures have also risen to $5.7 million, or 4.5 percent, said the finance report. The adjustments include an additional $1 million in payments owed to the city’s medical retirement employee benefits fund. Previously, Hayward had not budgeted its minimum annual payment to the fund.

Hayward expects to see over $1.1 million in cost savings from labor contracts this year, or, what it labelled “concessions.” However, the recent contract imposition occurred too late in the budget year to attain full savings, said the report. It now only expects savings of $750,000 this fiscal year. In addition, a $3.46 million deficit is projected by the finance department next fiscal year beginning in July.

Categories: budget, city employees, Finance Director, Hayward, Hayward City Council, pensions, property tax, recession, retirement benefits, SEIU, Tracy Vesely

10 replies

  1. By MW:

    If it looks like there is a possibility that the Hayward city government might possibly take in somewhat more money this year, and perhaps only as a fluke and one time thing, than it originally expected, rather than putting the money in the bank and saving it for a rainy day or future unexpected expenses, I think the city should appoint a committee of liberals to see how many hairbrained schemes they can come up with to spend as much money as possible funding every possible idiotic idea.

    And furthermore, the committee should also be directed to not merely come up with spending ideas that would be similar to taking a bonus and spending it one time items, and such as similar to Mr. John Doe taking a bonus or extra overtime money and using it to take an extra vacation or eating out a few more times, but instead the extra money should be used to fund new and extra programs that will be impossible to cancel even if in future years the extra money is no longer available.


  2. Of course they have to tamp down exuberance, they're trying to get voters to approve another new tax. Vote NO on Measure C!



  3. Shut down city hall! Without city maintenance workers, let the HVAC, Plumbing, and Electricity shut down! Lord help us if their computer/ electronics go on a blink.


  4. Oops! The sky isn't falling yet. But then again, it still could fall. Maybe it will fall after the 60 million dollar library is completed, citzens pay more taxes and City Workers take another financial blow. If Hayward is an “Education City” someone should teach real math to Vesley.


  5. This madness has got to stop. There shud be a recall on that whole council & the city manager shud be fired. Shame on them for imposing on their city workers. Vote NO on the tax increase.


  6. Their (city council) ideas are old and obsolete as they are. Public libraries all over America are moot. It’s wasted real estate in the knowledge economy. We can find practically anything we need on the internet. No one needs a library for research like we used to. Libraries traditionally have been storehouses of knowledge where Americans could improve themselves.

    Today, the libraries (especially in Hayward) are a place where drug addicts and sexual registrants can hang out during the day and watch free pornography on the tax payer's dime.

    It's the biggest boondoggle of 60 million dollars that anyone could possibly come up with. But, the politicians would rather have a shiny new edifice with their names on the front, than invest money in their front line blue collar workers. After all, by paying the city employees a living wage – that doesn't leave a legacy like a building full of sexual predators with the Council Members names on the front. Actually, come to think of it – it is kind of a fitting tribute.

    Instead of building brand new 60 million dollar monuments to the past – Why not repurpose the existing libraries so Hayward can improve itself economically? They could be job training centers, or better yet they could be sold off as real estate – and business could use those locations to bring in jobs.


  7. The Hayward teachers union got a huge raise that is even retroactive. I think we should have the school board run the city. They are the only ones that really understand the unions of Hayward. Go Unions Go!


  8. The report says that expenses are going up more than revenues, mainly because of rising employee pension and medical costs. That's a fact in California, with CALPERS rate adjustments (up, up, up) being the main driver. The math is indisputable. The city is just trying to do the right thing without going bankrupt.


  9. 10:44: LOL as if Hayward Unified is an outfit anyone should emulate? They almost went into federal receivership a couple years ago! Now they're spending money they don't have, AGAIN! What a joke.


  10. If you're serious about not wanting to be taxed more or not liking the way the city spends our money, you'll have to do more than just comment here. It's going to take some effort to stop measure C. Real change is hard.
    Check out:


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