Hayward Eyes Business License Fee Hike for First Time in 48 Years

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Hayward Mayor Mark Salínas on Tuesday night responding to suggestions the City Council has not been transparent about its plans to close a large budget deficit.

☕️MORNING BUZZ

Vol. VI, No. 1,166

—After nearly five decades without an update, Hayward is beginning to explore increasing its Business License Fee, a move city leaders acknowledge is long overdue as the city confronts mounting budget pressures.

Hayward has already hired a consultant who recently helped Oakland overhaul and raise its Business License Fee, signaling the city is moving beyond preliminary talk and into active planning.

If the city intends to take the issue to voters, public polling would need to occur within the next month or two, said City Manager Jennifer Ott, placing the discussion on a fast track.

A union representative urged the City Council on Tuesday night to pursue an increase, estimating that a modernized business license structure could generate as much as $13 million in new annual revenue, although there is some doubt about the amount being anywhere near that figure.

Hayward’s current Business License Fee structure dates back to 1978, with categories and rates that many acknowledge no longer reflect today’s economy.

The timing is no coincidence. Hayward is facing a budget deficit that is now $26.4 million, driven by rising labor costs, some ill-advised expenditures, and long-standing structural imbalances.

Hayward leaders have been looking under every seat cushion in search of new revenue. In July, the city increased its Transit Occupancy Tax (hotel tax) from 8.5 percent to 12 percent, only to further increase it to 14 percent last month.

City officials have warned that expenditures are consistently outpacing revenues, forcing tough choices for the current fiscal year budget and future budgets.

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