City Council’s Salary Amendments Hide Deeper Financial Crisis
HAYWARD, CA — While the Hayward City Council quietly approved a salary plan amendment in
January, describing it merely as a “technical correction,
” the reality behind this seemingly innocuous
move reveals a city government that continues to burden taxpayers while facing a looming financial
crisis.
A City in Financial Free Fall
What the Council failed to mention during their rubber-stamp approval is that Hayward is now staring
down a staggering $12.6 million budget deficit for the upcoming fiscal year. According to recent budget
documents, the city plans to drain its reserves to cover this shortfall—a short-sighted approach that
puts Hayward’s financial future at risk.
The True Cost of City Employment
When benefits are factored in, the cost of Hayward’s workforce is astronomical:
These exorbitant compensation packages come at a time when ordinary Hayward residents are
struggling with rising housing costs, inflation, and economic uncertainty.
Pension Crisis Looming
The city’s pension obligations are particularly troubling. Hayward taxpayers are footing the bill for:
• 84.61% pension contribution rate for police employees
• 67.17% for fire department employees
• 38.94% for general employees
These rates reflect not just current costs but also the city’s unfunded pension liabilities—promises made
years ago that current and future taxpayers must somehow fulfill.This unsustainable system threatens
to consume an ever-larger portion of Hayward’s budget in the coming years.
Misplaced Priorities
While claiming to address Hayward’s housing crisis through zoning amendments, the Council continues
to approve lavish compensation packages that drain resources that could otherwise fund affordable
housing initiatives or essential services.
The Council recently approved $2.55 million for consulting services for a High Injury Network Safety
Plan—money that will go to outside firms Kimley-Horn and Fehr & Peers rather than directly improving
infrastructure. This comes as basic city services face potential cuts due to the budget deficit.
Leadership Turmoil
The financial troubles coincide with what the Mercury News describes as “a major shakeup in
leadership,
” with at least one official on leave. This administrative instability raises serious questions
about who’s minding the store as Hayward’s fiscal challenges mount.
Time for Transparency and Accountability
Hayward residents deserve better than technical amendments buried in consent calendars and rosy
presentations that ignore fiscal realities.The Council must address its structural deficit honestly, reform
unsustainable compensation practices, and prioritize essential services over consultant contracts.
Until then, taxpayers will continue to shoulder the burden of a city government that spends beyond its
means while providing diminishing returns on investment.
Sources: Mercury News, City of Hayward Budget Documents, City Council meeting documents
