Hayward's fiscal crisis has reached Oakland levels of budget desperation
All cost-cutting measures are on the table, including the sale of city-owned properties; First signs of significant voter discontent against embattled councilmembers surfaces in San Leandro
☕️MORNING BUZZ
—Hayward is facing a series of cost-cutting measures to address a deepening budget crisis, after burning through reserves, rapidly declining revenues, overspending on new labor contracts, and a questionable purchase of a downtown movie theater.
Interim City Manager Jayanti Addleman said the city will leave most vacant staff positions unfilled, cut expenses such as training and consulting, review city-owned properties for possible sale, and more closely monitor cash flow and payroll.
She also plans to hire an independent fiscal analyst to review Hayward’s financial performance and controls.
“It’s imperative we find ways to save, bring spending back into balance with revenue and start to rebuild our reserves,” Addleman said in a statement on Friday.
She acknowledged the deficit wasn’t created overnight but is determined to stabilize the city’s finances without undermining essential services.
Addleman served as Hayward’s library director before being tapped by the council in June to replace City Manager Ana Àlvarez, who lasted just four months before parting ways with the city.
The shortfall stems from decisions approved by the City Council in recent years, including the addition of 33 new General Fund positions since 2021, new labor agreements in 2023 and 2024, and an $8.6 million loan to acquire the Cinemark movie theater downtown.
General Fund spending in the 2025 fiscal year, which ended June 30, is about $21 million over budget. Revenue is projected to fall $5 million to $12 million short of forecast. Final figures are due this month once tax revenue allocations are complete.
The turmoil comes after a period of leadership instability at City Hall. Former City Manager Kelly McAdoo resigned in 2023 after more than a decade in the post, leaving for the same position in Santa Barbara. McAdoo’s tenure was praise by the City Council and community.
—411 ON THE 510—Become an East Bay Insiders subscriber today and get FULL ACCESS to the inside scoop every weekday morning at 6 a.m. It’s what the insiders read.
🙏To all the new paid subscribers who joined the East Bay Insiders over the weekend. Thank you for your support!
—More inside:
CITY NEWS: What some Hayward officials (not the mayor) had to say about the city’s sobering budget news.
San Leandro voter group targets councilmembers in mock indictments, some urge for resignations.
New San Leandro council probe linked to earlier allegations against Councilmembers Simon, Aguilar, Jr.
FPPC complaint was filed against embattled New Haven school boardmember.
🎙️Ep. 116 - State of politics and journalism with legendary reporter Carla Marinucci
