"As Hayward revises its 2025-2026 budget after depleting $31 million in its general fund budget, the city is working to rein in its expenses after a 21% increase in salaries and benefits and a 14% increase in overtime that has caused city officials to return to the negotiation table with the city's labor groups. Our public safety departments account for the lion's share of overtime expenses, largely because they account for the lion's share of overall city staffing,"
"In total, the city spent $248 million in the 2025 fiscal year more than $21 million over budget for the year and leaving just $1.2 million in its reserves, according to the city. Many of the same structural issues apply to the current budget, which was approved on July 1 and would result in a $30.6 million deficit if it is not revised."
"To prevent another year in the red, city leaders established a budget war room in September. The first move was to freeze hiring in the city, while the city council and other senior staff announced they would voluntarily take pay cuts and forego cost-of-living adjustments. The city hopes that renegotiating with the city's labor groups will result in a more budget-friendly deal for the city's future."
Hayward depleted $31 million from its general fund and spent $248 million in fiscal 2025, exceeding budget by over $21 million and leaving $1.2 million in reserves. Salaries and benefits rose 21% and overtime increased 14%, with some public safety employees receiving overtime exceeding base pay, including a battalion chief who earned nearly $250,000. Public safety departments generate most overtime because they make up most city staffing. The current budget would face a $30.6 million deficit if unmodified. City leaders froze hiring, opened a budget war room, enacted voluntary pay cuts, and seek labor renegotiation.
Read at www.mercurynews.com
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