S okay Will email to us later want study this on our own um time on l good evening um welcome to the H city council me or H city council meeting feu today is February 6 2024 call this meeting to order and I’d like to invite council member uh Goldstein to deliver
The please stand you are able allegiance to the of the United States of America to the for stand One Nation indivisible thank you uh next uh Madam city clerk if you can take the role thank you Mr mayoring and counc JC council member roach counc M president Council memb I
Here mayor I am here thank you thank you um wanted to welcome everybody uh we have a special presentation today and you’re probably asking how come we are in here and not in the chamber and the reason why we’re in here not in the chamber is because today we
Have a special Council well our council meeting today is we’re doing budget Workshop stuff and so we just need a lot of table space and um more table space than we typically have up on the day so um so please I apologize you know for um
The change so with that said um I would like to start off by uh acknowledging and welcoming um some folks today uh today we are going to be uh delivering a proclamation for Black History Month and um I wanted to uh first acknowledge uh from uh us Congressman Eric sell’s
Office uh Ron Payne is here um one moment and then um also wanted to uh also um acknowledge and welcome um she’s wearing a couple of hats today uh she’s here as the president of bapa um but also she’s also the uh honorable the director one of the
Directors of the orala sanitation and water district re dugin is here uh welcome her and then of course uh we’re always happy to have uh Delta Sigma Theta Hayward Tri City here welcome thank you for coming and um before I start with the oh we also have uh Senator uh aish hobb’s
Office here there you go um Miss Blanco right Elizabeth vodka yeah my my my apologies um but before I do before we get to this what I’d like to do is what i’ like to do is invite um Mr P from Congressman sell’s office to deliver um yes she’s a secretary she’s
Got some C some certificates yes no uh first of all on behalf of the congressman so sorry you couldn’t be here but I get the pleasure of coming and seeing all you beautiful people out here and uh recognize you for what you’re doing just to let you know the
Congressman is watching we made it a statement that Ron you need to be there no matter what so with that being said I just want to make sure I read this off right a certificate of special Congressional recognition recognizing Delta Sigma sorority Incorporated did I say that right staff not the country
Staff Tri City alumni chapter in celebration of Black History Month I sincerely appreciate your commitment and dedication to supporting and uplifting the black community in my district sign Eric schwell February 6 2024 yes certificate of special Congressional recognition recognizing in in NAC NAACP hereward South County in celebration of Black History Month I
Sincerely appreciate your commitment and dedication to supporting and uplifting the black community in the district signed Eric swell February 6 2024 and last but not least okay certificate of special Congressional recognition recognizing black women Organization for political action and celebration of Black History Month I sincerely appreciate your commitment and dedication to supporting
Uplifting the black community in my district signed Eric swell us Congressman February 6 thank you thank you uh next like to call upon uh Miss Baka from Senator Aisha W’s office hello thank you we also have a couple of certificates um to hand out today I just want to say thank you for
Having Senator wop’s office here today she recognizes all the work that your organizations do for the community so we are excited to present in honor of History Month the office of Senator Isa wahab recognizes delt Sigma Theta sorority Incorporated for your efforts in supporting and uplifting the communities of District head thank
You again in honor of Black History Month the office of Senator Aisha wahab recognizes the NAACP of Hayward South County for all your efforts in supporting and uplifting the communities and District f and in honor of Black History Month the office of Senator aishu wahab recognizes all your efforts and supporting and
Uplifting the community for the black women’s organ organized for political action excuse me it’s easy to say the okay um and I we know I want to make make sure is uh uh assembly member Liz Ortega’s office here I just want to make sure I don’t miss okay all right um next
Uh is uh the city of Hayward making sure we’re not missing anybody good um first uh we do have our Proclamation here and uh uh council member uh Andrews is holding one and I’m GNA ask council member Bonia to hold another one and um well actually I have a copy of it so
Council R I have hearing um and what I’ll do is I’ll read I’ll read the whole thing um so the city of H Proclamation whereas the importance of black history in our nation’s history was first honored with a week-long celebration starting in 1926 and expanded into a month-long celebration as black history month
During the nation’s Bicentennial in 1976 and whereas black history black history month celebrates the achievements culture and resilience of black people in America and pays tribute to the critical role of African-Americans in the united stat in United States history and whereas uh it is estimated that 47.9 million black
People live in the United States including a diversity of North America Africa Caribbean South America South American and other cultural groups which benefit from African-American social justice movements and whereas the theme for Black History Month 2024 focuses on African-Americans and the Arts in which we examine the variety history of life
In af in African-American arts and Artisans this theme is infused with uh African Caribbean and uh black americ me black American lived experiences in the fields of Visual and Performing Arts literature fashion folklore language film music architecture culinary and other forms of cultural expression the African-American influence has been Paramount African-American Arts artists
Have used art to preserve history and Community memory as well as for the empowerment as well as for empowerment artistic and cultural movements such as the new negro Black Arts black Renaissance hip hop afro futurism have been led by people of African descent and set the standard for
Popular Trends around the world and whereas the city of Hayward is committed to to centering racial equity in our processes and projects to better serve the needs of black and other marginalized communities and whereas in 2023 the city of Hayward began to began to a new tradition of raising the Pan
African flag in commemoration of black history of Black History Month in recognition of the African diaspora and struggles for Black Liberation freedom and equity and whereas the city of Hayward is recognizing Black History Month with a series of events at both branches of the Hayward Public Library throughout the month including displays
Of books and Library materials for all ages a scavenger hunt for teens and young children a special quilt art display in the second floor Art Gallery uh an artist panel discussed ing um discussion regarding the aformentioned display uh a mini quilting Workshop a family fund art program led by an
African-American children’s book author and illustrator and many more now therefore I Mark Selena’s mayor of the city of Hayward and on behalf of the Hayward city council do hereby Proclaim February 2024 as Black History Month so um since we are in a new room in a
Different room uh and I know we usually take a a picture so what I like for us all to do if we can all sort of stand uh against the wall here you know here and then the city clerk can stand here and take the picture here tall folks in the
Back us short folks in the front and then we can get a good picture all right all right wonderful and then oh yeah and we’re gonna present these to uh the uh director Rita Duncan uh the the president of gamma Theta Gamma Sigma Theta Theta Delta did I think Gamma Delta
Sigma Theta of a tri city um and uh the NAACP uh Hayward South Alama County and I I saw to D he’s right here behind me so let’s all get to the front and we’ll take one big picture and then we’ll we’ll know okay where’s oh thank
You okay all right yeah so all all stand up and uh I can have you three thank you something me to yeah um can I have the president of data Sigma Delta oh my gosh Delta Sig you know I have uh you know as you know uh I was
Not in a fraternity uh in in college but uh anyways Delta Sigma Theta Hayward Hayward Tri City uh chapter uh this April lamin hopefully I got that right Miss lamin go ahead good evening and thank you so much for this honor my name is April B and
I’m the president of the Hayward Tri City Alum chapter of Delta Sigma sadus the words Incorporated and on behalf of our members of our chapter it is an honor to accept this that black history three month Proclamation I’d like to recognize the members of our chapter
That are in the meeting today we have our secretary we have our vice president she vice president um we have our immediate past president and we have some members of our leadership our financial secretary and we have some other sours that are here and then we we’re also receiving a proclamation I
Mean you know that so Y in Fremont they were also going to be recognized us as well but we’re here so some others are there and so you know while this is not a Grammy i’ like to thank you iate that the opportunity to come before you today
And AC this so I’d like to also acknowledge and say congratulations to the NAACP payor South County and black women organized for political action also known as bapa congratulations we share this honor with you today Black History Month honors and celebrates the rich history and culture of African-American people and our
Contributions to creating spaces of acceptance progress and belonging across the world today so we are inspired to dream like Martin okay to lead like Harriet right okay y fight like Malcolm okay to think like Marcus all right to write like mayael okay to build like madam CJ Walker okay to speak like
Frederick okay been going to school all right so Delta s witha sorority Incorporated if you’ve done any study on us if you Google us today you will find that we’re fail it on January 13 1913 by 22 Collegiate women at Howard University to promote academic excellence and
Provide assistance to those in need the founders of our sorority envisioned and organization committed to sad scholarship service and social action by addressing the social issues of the time since its founding Delta Sigma data has become one of the leading service-based sororities with more than 300,000 initiated members and over 1,000
Charter chapters worldwide as a Sisterhood comprised of primarily black college educated women the sority seriously considers the issues impacting our black community and boldly confronts the challenges African-Americans and hence all Americans our chapter was chartered on March the 2nd 1990 your birthday coming up by 20 Visionary
Deltas to serve the needs of cities in the southern Alama County of the Bay Area in Northern California and since that time the chapter has built a legacy of service within our service area by promoting academic excellence and scholarship encouraging social action and political involvement and providing quality program and services to meet
Community needs and concerns we serve the Hayward Tri City Tri City being Fremont Newark Union City and Southern Alama County communities for almost 34 years social action is the vehicle through which the sority establishes a position on AEM merging of public issues determines the actions to be taken and
Directs the actions of its members chapters and representative bodies while striving to address our legislative priorities our region is in support of crucial issues such as healthy food access disparities reparations and reproductive Health legislative priorities include voting and Civic engagement economic Justice education environmental justice Health Equity reimagining Public Safety and
Reproductive Justice again our political awareness involvement social action we have programed that sponsor voter registration and voter education programs combating voter suppression addressing affordable health care and access to Quality Health Care and gender equality just to name a few we’ve been busy so before I go I just wanted to
Tell you a little bit about us and I wanted to let you know that we are supporting your your um movement for reparations the legacy of slavery and systemic racism continues to harm our black communities to this day and we must continue to take steps to repair that damage that has been done
Reparations are necessary step towards addressing the historic and ongoing injustices faced by black people in our country this requires all of our chapters to be visible active and engaged in this movement in the area of Education P Tri City will continue to have the black par black parent and student listening sessions in
Partnership with the aasai as the Hayward Unified School District africanamerican family conferences there’s much more that I can say to you today but I think that I’ve given you a little history lesson today and I hope that you will research us to participate in our programs and whenever we um are
In your area we will certainly show up in our red and we would look forward to working with you on other important initiatives in the future and again thank you for this honor and have a good evening uh director uh Duncan would you like to say a
Word I see why you wanted me to go first uh act to follow but um I humbly and proudly accept this Proclamation thank you okay I thought you GNA take off I’ll give it to my sister Angela I’m still very proud of thank you as I said I U me just start good
Evening uh council members elected officials and guests I am really uh proud to be accepting this Proclamation uh on behalf of the ha South count a chapter and as you know it’s um black women organized for political action and we have quite a few accomplishment one of them is our own
Sister Angela of Andrews and K Harris lvp mayor bass I could go on and on and on but the one thing that I want to um leave you with is that I’m so proud um to be living in Fairview but a member of the ha Community particularly because recently I learned
That the goal is to be um the center for excellence and education and I I applaud you for that being you know that the go the two step bigest City and whatever we and buapa can do to help you in that Journey please count us in and blessings to all of you
But I want to let you know that Angela Andrew is a member and the only reason I said that is remember our journey is really kind of around political action and she represents that for us thank you before somebody from NAACP comes up um I
Have to uh I have to say uh um you know some time ago back in 2010 it might even been 20 the winter of 2009 when I was just a lonely um candidate for city council the first group to officially endorse me was bapa God bless her
Um sorely missed but God bless L and and so thank you for remembering that yeah absolutely um and P I think uh yeah Mr Davis good evening even didn’t have any words from because we’ve been here for so long you consider everyone really family nacp has a long story history that I
Won’t go into reason why we came wasn’t simply to accept the prop because you can give them out we can accept them and that’s not what we’re here for awards and shows we’re here for is to reaffirm the Testament of our dedication to contribute to the quality of the
City we brought our youth and colge president because we know that it’s really succession that is going to build upon these proclamations not how many proclamations we get but the people we put similar to counil Andrews and roach Stein the people that we put in positions actually make
Change part of the reason why the youth and college wanted to come though is because I don’t know if you guys know whose birthday it was yesterday unsung civil rights activist who really started black lives matter before anyone ever knew no one Trayvon someone who really didn’t even
Get to see his full potential because he was struck down at 17 the same age that many of our civil rights activists began their career the John lewises I’m sure you guys are fam with those names these were people who actually made it so that the ACP and
Other groups could be here so we we stand here to remember people like sh we stand here to say that our main goal is to change it so that there are newer and we hope that we can walk hand in hand with the not just the city here not
Just the council but the entire Community along with groups such as did you say Gamma or is it Delta such as these that actually form the pillars of the community it was the fraternities that stepped into place when black panthers moved out to fill in the gaps for people who didn’t have
Families and didn’t have these structurs groups like wapa that help push candidates when other organizations moved so that we could stand here today we appreciate that the her youth in college come up here he’s our youth in college President I know he wants to say a couple words he allows me to
Speak in ACP do Branch thank the city of Hayward for the proclamation but look forward to working with you so that not only we get reparations but that black history month isn’t something that we simply celebrate in February but something that we do all year long that it’s interwoven in the
Very fabric of the city with that being said backing off of uh Todd a little um it’s really the succession plan um Freddy Davis Tod Davis Pastor Woods El Jin low all the leaders in that t r in ACP they really push and are driving hard to
Now have a succession plan because when I first came in and I didn’t grow up in any but grew up right there in Cash Valley I’ve never seen a black attorney black accounts nothing until I walked in there and I saw Todd obviously very open welcoming and just kept me in there and
I was like Miss Davis asked me what do you want to be when you get older I said a lawyer she said cool elen please explain and since then I not only got internships I not only worked for state senators now going to the district attorney’s office but they never stopped
Civil servant first education and then what do you want to do um so I am more than happy and now I am now passing this on and trying to bring in as many more young especially young women of color and black men to show them that this is
Something possible and while I continue my journey I’ll definitely keep bringing as many other young young individuals that can in Delta Sigma betaa and nacp will continue being here and bring more young thank you didn’t get as much time but I will close with saying let’s never forget that black history is American
History I know council member I had asked to make a comment Oh I thought you had I thought you had say that okay asking if the leaders of the organizations were gonna make a copy my apologies my apologies well um on behalf of the council I just again I wanted to
Say thank you and congratulations you know um you know this is multigenerational work right and um and so uh we’re able to continue this we’re able to do this because um it’s nice to see that every generation represented here uh we know that every generation will be held accountable for making sure
That we do not forget uh these kinds of cultural Traditions these kinds of cultural events that are so important that we need in order to to continue our community’s heritage and history so thank you very much and have a good evening thank you yes okay um okay moving on to our Clos session
Announcement and um we don’t um so we’re going to have two Clos sessions we had a closed session earlier um there was no action taken uh after open session we will take another closed session and then we will report that close session at the proceeding meeting is that correct Mr Perfect
Okay next like to move on to public comments and uh before start uh public comments if you would like I do want to read this com uh public statement uh the public comments section provides an opportunity to address the city council on items not listed on the agenda or informational
Staff presentation items the council welcomes comments and requests that the speakers present their remarks and a respectful the council welcomes comments and requests that speakers present their remarks in a respectful manner within the established time limits and focus on the issues which directly affect the city or are within the jurisdiction of
The city as the council is prohibited by state law from discussing items not listed on the agenda items will be taken under consideration and may be referred to staff the city council welcomes comments including criticisms about the policies procedures programs or Services of the city or of the acts or admissions
Of the city council speakers shall not use threatening profane or abusive language which disrupts disturbs or otherwise impedes the orderly conduct of the city council the city is committed to maintaining a workplace free of unlawful harassment and is mindful that the city staff regularly attend City Council meetings discriminatory
Statements or conduct that is hostile intimidating oppressive or abusive are per se disruptive to a meeting and will not be tolerated so with that said I’d like to first move to our first public commenter who is I believe online and that is Matt Jack hello um I have how much time three
Minutes okay as should be so good evening uh my name is Matan and um first of all let me say I’m honored to speak here today in presence of our distinguished guests some of whom I believe are still in the room and I think my comment is uh especially
Important in in light of a black history month that we’re celebrating today because I feel there’s a new form of bigotry uh building up in Hayward and in particular this city council and I’d like to speak on the decision the council has made a couple of weeks ago I
Believe it was January 23rd to divest from companies investing in Israel outside from the city’s investment policy this uh decision was made by blindly adopting a list of companies curated by the BDS with the alleged goal of lessening the violence uh but what happened at the city hall at
The chambers that day was really a kangaroo court against Israel uh it felt a lot like bigotry since some of these companies really have zero stake in the war Intel makes semiconductors and you still decided to divest away from them because of their investment in
Israel I would like uh to ask the city council to follow that moral compass of lessening the violence and um you know dest from Toyota Motor Company and that’s a company whose vehicles serve every major terrorist organization worldwide including Hamas and Isis and also Iran to some
Extent so uh as far as evidence goes you know on October 7th dozens of Toyota Hilux pickup trucks were used by Hamas to infiltrate Israel murder civilians kidnapped civilians uh bodies included Etc and additional Vehicles such as these were found in multiple places around Gaza in mint condition full of Munitions
Explosives ready for action so I really urge you to make a resolution to the vest I believe there’s about $1.3 million in City funds invested in Toyota Motor Company and asked Toyota to launch an investigation on how its Vehicles somehow end up in Terrorist hands and again this is less
Than 1% of the city portfolio and I believe this is the least the council can do to fight sorry to fight terrorism and to show there’s no discrimination based on national origin um I still have time so maybe I’ll wrap up with a quote from MLK’s letter uh letter to his
Anti-zionist friend um so basically uh anti-zionist is inherently anti-semitic and ever will be so and um that’s I think that’s all I have to say I really want you to follow that moral compass lessening violence and uh you know make that resolution work both ways and not just against one country thank
You thank you um our next public speaker is Joe Ramos good evening mayor and city council when name was CH you hear me now yeah oliz my name is Joe Ramos I’m on the husd school board and I came here to talk about two things right now the
Gentleman before me he kind of opened it up so I’m not going to focus too much on that but the main point I wanted to talk about was a couple weeks ago you had several probably about 50 or 60 people in the audience and basically you succ
Come and you let him take control he made this person before made a good point I’ll keep it simple I suggest that you reinvest that money and that you maybe can enact a new resolution anti-semitic resolution because as he said there is a lot of bigot tree you
See some cities around here a lot of people are moving out because people are going against people are Jewish that’s so that’s the one point I won’t I won’t uh belittle it anymore but I think you made a wrong call as a matter of fact your uh city manager tried to suggest
That you would table it and continue it but for whatever reason you didn’t listen to that person and you went on with it so that’s that point got a little bit on the tooth my next point the main point how many of you have heard of woke kindergarten have you
Heard that raise your hands you haven’t heard of it you should Google it it’s the latest thing that’s happening it’s started in Hayward and the mayor says that he has wants this to be Education City but this happened before I got on a board and I’ll make a long story short I
Just found out about a little bit after Christmas and so right now hayward’s becoming the laughing stock of the country in the world if you Google this you’ll find out that the Hayward School Board knew about it and every my compatriots they voted for it I didn’t
Vote for I was like how did this get past me I found out it happened before I got there so what’s happening right now is a lot of turmoil why because somebody wanted to approve something that was not good for Hayward and and who who had did
That well it’s gonna come out this happened at glassbrook school which anybody know where G glassbrook school is well that school is is like predominately Latino and they had this program I brought some notes but I don’t see the the uh overhead basically the people who who were contracted by the by the
District they’re out andout socialists and they and they had this program that was focusing on fivey olds what does a five-year-old need to learn about socialism and so the city wasted 250,000 you’re going to be here about it soon and you heard it here first if you
Didn’t hear it before thank you very much ladies and gentlemen for your time God bless you all thank you moving on um to uh close public comments and uh next do we have um City manager’s report good evening mayor and Council can you hear me yes I apologize for not
Being there with you this evening I don’t have any comments but I just wanted to let everyone know I am uh traveling to the league of California city city managers conference in Southern California so I am online and participating this evening but apologize for the there in person you all thank
You no problem thank you and uh safe travels of course um next like to move on to our action items to our consent calendar and I believe council member Cy had asked P one item and yeah go ahead thank you mayor um I’m happy to be
Theide my suppor of it I think it’s really incredible that we are bringing in several millions of dollars uh to help uh improve our street safety I think this also demonstrates our commitment to Safe Streets especially on Mission Boulevard in light of the tragedy that we experienced a few months
Ago with Chris Pena’s unfortunate passing um I just wanted to clarify on the map I I know we’ve said to a lot of residents we’re going to take a look at the loop it’s a major issue for residents these are the funds with which we’re going to actually take a look at
The Loop um the word Foothill Boulevard covers Foothill and so I just wanted to verify with u director Mary on the line this also applies to Foothill as part of the loop right I just couldn’t tell if there’s a line there or not correct it does apply to uh Foothill as well it’s
Part of the downtown improvements okay that point clarification i’ like to move the item thank you um moved by council member CRA seconded by council member uh Zeno um but before I uh um actually before we move and second uh I’d like to open up for public comment and I don’t
See any public comment on the consent calendar like to close public comment and I believe council member C moved it council member Sero seconded it and if there are no further questions Madam city clerk if you can please speak as well thank you Mr mayor council member
Andrew hi council member J yes council member gold yes council member roach yes council member C yes council member sir mayting yes and it unanimously passes uh next item on the agenda is our work session and it is item number two WS 24-1 City’s budget review of general
Fund long range financial model and fiscal assumptions and this is going to be a report coming to us by our finance director uh Miss Gonzalez director Gonzalez and before she gets started I just want you to know that when I sit here and look at this screen it really
Makes me look smart so uh just go right ahead and kick this off um my PowerPoint sides so everyone should have um a laptop that’s set up we will have an interactive piece um towards the end of the presentation tonight um where uh Council and our mayor will have an opportunity to run
Some pre um designed uh assumptions or scenarios um for a better term um to kind of understand what some of the different policy decisions that are made and how those can impact um the general fund long range mod so uh thank you uh mayor city council uh Nicole Gonzalez
Director of Finance tonight I’m here to present uh the work session on our uh general fund long range financial model uh next slide uh so just wanted to give a a kind of a brief history of the city’s model um that is what I will be referring it to throughout the presentation because
Uh the general fund longrange financial model is a very long way of getting to our point so um when I’m referring to model that’s what what we’re referring to tonight um and so back in 2017 the city of uh Hayward engaged with management Partners who is now Baker
Tilly Baker Tilly was uh acquired um acquired management Partners on October of 2022 um but we did work with management Partners to design um a really Dynamic robust uh financial model um for us so that we could model fiscal impacts for several years Beyond 10 years um in October 2017 the council um
Had a workshop on fiscal sustainability um which offered both strategies and options uh to close the uh projected U Gap that we were seeing in in out years and some of those options included uh both Revenue generation uh strategies cost shifting expenditures and controls um and also some changes in uh service
Levels um and in 2023 we um again approach management Partners again who is now Baker Tilly working with the same developers that we worked with in 2017 um and worked with them to really refine the model take a look at our assumptions for both revenue and expenditures and to ensure that it was
In line with what we were seeing both historically currently and projections into the future and so we did some a little bit of strcture changes to it and to really refine some of those assumptions which we’ll talk about today throughout presentation and then we are here today here at our work session to
Kind of go through give an overview of what the budget model is how we use it and then have an opportunity to um interact with the model itself next slide so again what is the model and how do we use it um the model is a dynamic and interactive tool that provides staff
With the ability to forecast both r revenue and expenditure CS um and again based on historical trends that we have seen what we’re currently seeing in the market and what we predict to see in the future um we are able to run hypothetical scenarios um again like we did in
2017 there were several different type of strategies and options that we provided to council some of which uh we explored and um moveed forward with one of them was measor T which was the increase in the real property transfer tax which was approved by voger in November of 2018 um
Another uh Revenue Generation Um option that was explored and ultimately um implemented was measure NN which is the transit occupancy tax the to also known as hotel tax um we uh put that on the ballot and it was approved by Hayward voters in November of 2022 that um particular um ballot
Allowed for an increase in the tax from uh 8 and a half% up to 14% at council’s uh discretion as of right now it is currently at 8 and a half and we’ll talk a little bit about that as we go through the model next
Slide so just uh wanted to give kind of a high level overview of the general fund long range forecast next slide I just wanted to kind of remind us of where we are currently with the fiscal year 2024 adopted budget wanted to provide um a a picture um of what our
Revenue sources look like um I think uh you can see here the revenue our our top five Revenue sources are property tax sales tax utility user tax you also he us refer to sorry um and then real property transfer tax um and permits and fees and
That equates to about 82% of our our Revenue so this is our top five um on the other side of the screen we’ll see expenditures um just most uh the largest piece of our expenditure pie so to speak is Personnel that is consistent with what we see in organizations like cities
Who are Service uh based organizations that provide services to the members and so are most expensive costes related to the costs of people um and again just wanted to highlight um you know our adopted budget or projected revenues was 100 or the adopted expenditures of 205 million
So that had a projected use of our general fund reserves of about 4 point excuse me 5.1 million um and so again kind of Shifting back to the expenditures and we’ll talk again a little bit more about this as we explore the model but just kind of wanting to highlight that in our
Expenditure categories we really have kind of fixed costs and a lot of those fixed costs are related to Personnel our um obligations to pay down our debt service payments for um those type of obligations and then utilities and maintenance those are fairly um fixed costs and that represents about 80% of
The budget so of of our total um operating budget and that represents about 41.9 million next slide so we talked a lot about our general fund reserves and balancing our budget each year um and balancing our budget each year with conductive use of reserves and what did that look like and
So I wanted to provide kind of a a depiction here um to provide you with um budgets to actuals and so that green line that you see on this chart represents um our budget projected um use of reserves or Surplus in this case um over the last several year so fiscal
Year 2017 through 2023 um where we have projected a use of reserves anywhere from 2 and a half million to about 6.2 million what I wanted to really show was the actual use or surplus of um general fund reserves to really kind of demonstrate um how each year fluctuate based on our actual
Expenses and our actual Revenue generation and so you can see really the real um kind of one that pops out where we had projected to build our Reserve so to speak by about 300,000 we really ended the year with um a use of 5.2 um but want to point out that that
Occurred in fiscal year 2020 and that really was the impact of the onset of the pandemic where Statewide it was a shutdown and so there was a significant impact to key Revenue sources for that last three months of our fiscal year so again just wanting to kind of
Demonstrate where we have projected each year during the budget adoption process and where we end um the year with our actual revenue and our actual expenditures next slide so you probably are becoming more familiar with this general fund fiveyear forecast um we often will provide this update to council at various times
Throughout the year we absolutely provide it during the annual budget process as well as at the midyear process but we also bring this back at various times throughout the year’s Council um and I guess what I would like to highlight here is really um you know understanding our Revenue forecasts and
Our expenditure forecast we do have a base for our aded budget F schal year 2024 so again we’re working off of what was adopted um in June of 2023 um we do look to have to balance our budget each year with the use of of general fund reserves and really our
General fund reserves could be thought of as like your savings account right so you’re dipping in your savings account to make your your monthly payment so to speak um and so this um will kind of provide you with that middle line that says ending balance if we continue to
Utilize and draw down from those general fund reserves um our ending balance starts to decrease as well and as you can see in this slide by fiscal year 29 we are um projected to be in in the red by about 600,000 um and so wanting to provide
That um I know that there was also a um a request to understand um how much of amount we are above or below the uh Target 20% um Reserve policy and so this has been added to this uh to this table which um had not been presented before
So if you look at just fiscal year 2024 adopted we are about 3.3 or 3.4 million below the amount we would need to meet that 20% um so we’re about 8.2% below what we would need to be to to be in um alignment with uh the policy the 20% Reserve policy next
Slide um so I’m going to go over a little bit but the differ assumptions that are in the general fund model um focusing first on our um our Revenue assumptions next slide um so as part of the staff report um there was an attachment that provided
A little bit more detail um on those assumptions um and so just but I really wanted to kind of focus on a couple of things one again uh reiterating that this model that you are looking at tonight is based on fiscal year 24 um adopted revenues and so we are in the
Process of looking at our current um Revenue trends for this fiscal year and any analysis and updates that are required will be brought to you during the year process um but so just want to reiterate that that the model is based on the adopted um again reiterating um top
Three um uh Revenue sources and what are some of the assumptions associated with that property tax is the city’s largest um Revenue Source um we have an annual growth of about 3.7 7% um which is consistent with what we’ve seen the last four years um it is
An assumption that we are always looking to refine because we are looking at what is happening currently in the market and what do we predict will be occurring in the future um so that that assumption does move but as of right now it’s at 3.7% um and then our uh next largest is
Sales tax um and we are fairly conservative in that again because it just is really dependent on what we’re seeing in the market and so that has an annual growth of about 2.67% um however over the last four years we’ve seen about 4% increase and so again it is a conservative uh view
But it is something that we need to be sful of because we need to understand what is happening in the market how that impacts our uh key revenue for um the other is our utility user tax it has an assume growth of about 2% um you will see in the um materials
That we passed out there is a summary um and we if you will note that in P year 23 we saw a pretty significant increase in the city’s utility user tax um we are seeing uh higher Trends in that particular tax um and so we’ll continue
To monitor that just as we again collect historical trends of actual Revenue collected um but just wanted to highlight that as well and and then most of the other taxes and revenues that we have range um from 1 to 2% uh annual growths as an as an assumption next
Slide again I won’t go through every single assumption that we have for expenditures we’ll have an opportunity to look a little deeper at model there was also detail um a sheet on City’s assumptions for both revenue and expenditures um again the um expenditures are based on fiscal year
2024 Ed um which will look different when it comes back to you in March during the midyear process um this model does assume no growth in employee the number of employees so no added new positions um and we can again talk about that as we do the interactive model we
Do have a base uh Assumption of 2% salary growths our all bring groups in all our years um and then there is some assumptions that are based on Act uaral that we get from Calpers um and then we also note the contributions that employers um excuse
Me uh the employee sh cers cost sharing contribution from our employee groups so there are some employee groups that contribute additional to the employer portion so that is also built into the assumptions as well that aold we have about a 3% growth um that we see historically um and workers comp at
About 2.2 5% annual growth and uh similar growths in both the maintenance and utilities and the service and supplies and the city’s internal service um so we will be getting into the interactive model piece um that I had been referring to where we’ll be able to run some scenarios really to
Really understand the impact that some of the policy decisions could have on the model today and how it impacts into the future into the out here and so each of you have uh the model on um your laptops and I have um really great staff here to help so I have our Deputy
Finance director Christina Crosby who will be here to assist Nick Mullin who’s the management analyst um who will also be here to assist and Franchesca atfield who will also be able to assist as we walk around and we can look at running of scenarios um so if you can go to the
Next slide we have um about five um uh scenarios that are preloaded into the model uh the first is to look at what an increase on the tot would look like at 12% um which is about a million dollars annually um 14% would be about 1.5 million
Annually um there we also have a pre uh determined um scenario if you there was a 5% reduction in variable expenses and again just reminding you what what are those variable costs those are suppli and services internal service fees and transfer to other funds to support projects um and that could potentially
Impact um the model by a decrease of one 2.1 million each uh each year uh in the model um we also have the cost allocation plan which the city is currently undertaking we are working with a consultant to update that so that will be coming to council for review and
Um and consideration in the next couple of months if we do Implement that update that could add an additional $1 million uh in transfers from other funds to the general fund um and then we’ve also um built in a 1% Cola increase for all bargaining groups and what that would
Look like and that’s approximately $1 million annually and again that is just this is these are cost just general next slide so before we have an opportunity to kind of run these scenarios I wanted to give you an opportunity to ask any questions have discussion uh Council thank you thank
You so much for this presentation it’s very um informative when we look at the general fund fiveyear forecast just to make sure that like connecting all of this the the revenues you know that being projected to increase year overy year and then the expenditures that are also projecting to increase all of those
The assumptions that you walked through are built into those projections right so when we talk about you know in you know the the tax Trends and the annual growth that we’re looking at in the all of that’s calculated in this calculation that still has us essentially you
Know with no Reserves at year 2020 9 actually $600 million in the whole okay so so so the reality 600,000 sorry so so when you’re looking so when we start in like 25 or if we even start in 24 we’ll start to see like you know a $5 million Delta
Right a $3.7 million Delta that’s where we dip into our general funds to cover so when we look at the options that you provideed the different scenarios it’s like we’re going to have to use multiple of these scenarios because let’s just say if you call if you if you pull every
Lib here if you want to call it that that’s going to be $6 million and there’s some years like in 24 where we’re five million in the whole so not in the whole but using reserves right so we’re going to need to look at a combination of multiple revenue and
Expenditure scenarios in combination to be able to solve this budget Delta and this this Delta doesn’t take into account the bargaining that’s going to be happening in the next couple of months correct so we will have an opportunity you will be able to look at if you wanted to do an array of
Different potential policy decisions if you want to look at saying we want to increase the to to 12% and we want to we we think that we’re going to approve the cost allocation plan I if we want to look at what both of those Revenue generating um scenarios how does that
Impact we could you could run more than on tomorrow to really see the impact all right that just provides a lot of great context going into this modeling discussion and then the last question that I have is in the STA report it had mentioned something about
You know reviewing a 10-year model so I think there could have been some expectations from some members of the community that they would have seen this fiveyear forecast over a 10-year period yeah any comment to that yeah I think um you know this was a really complex model
And we’ve been working very diligently to make sure what we provide to to you is the most accurate and so typically what will be Pro provided in the future when we bring any different updates uh related to the budget will be this summary sheet which will have both
Historical as well as like a 10year so it’ll be much more comprehensive and so these will be included like in mid year you this will be an exhibit in midye with the annual budget process along with the five years so we’ll have both found
It and and in addition to just so I have my head around the complexity of this discussion so in addition to needing to close the budget gaps that we’re seeing here we also need to be thinking strategically about how we’re going to meet our 20% Reserve policy because we
Adopted a budget knowing that we’re now under that policy so not only do we need to sh up all the red but then we need to figure out how we get the the the the the general fund reserves back to that 20% policy right right and what this
What this says when you’re looking at it is um what is the percentage of the total expenditure and so it’s making sure that we are in line with with that expenditure um but yes that is that is part of the the strategy and the conversation that should be had is to
Look at how do we close that Gap and continue to be able to meet the policy um with the general fund Reserve got it and then I guess the the solace in this conversation is the general fund reserves the budget versus actuals because I think what that demonstrates
Is we’ve forecasted in the past to dip into general fund reserves and in reality we happen had to actually make that dip correct so that that then could say we need tighter Financial forecasting and one way we can look at it that way right we could um what we
Tend to see is that we are conservative in our revenues in particular um a lot of our revenues can be very volatile and it really is imp you know dependent on what we’re seeing in the economy right now and how does that impact um you know there’s economists that you know the
Model does have a built-in recession um and there’s you know kind of industry standard where it’s about six to seven years you start to kind of see somewhat of a downturn and so that’s also built into the model um but you know I think part of it too
Is we’re coming in lower on our expenditures and part of that has to do with the largest piece of our budget is people and so when we’re seeing High levels of vacancies we’re realizing those savings right and so the the model assumes that we are fully budgeted for
The most part there is you will see on this um longterm forecast um here that was given to you um there is there is an assumption for vacancy and it’s a 3% vacancy rate that we assume um but but that is what you were seeing historically is that potentially
Our revenues may come in a little higher than we had projected but we’re really seeing you know maybe less actual expenditures and again a lot of that has to do with whether or not we are fully staffed in every division thank you those are my questions council member angin thank you
Thank you for the presentation I wanted to know if what is the average you’re seeing on T I know we’ve discussed this in the past but around different cities what is the percentage of the same that for our rate for other communities so we we are currently at eight and a half we
Did not um increase that it was a decision by Council to kind of f on increasing that given that um you know we it was approved in 2020 and hot tellers were really still feeling the impact of the pandemic um and so um we did some recent research and we are very
Much one of the lowest still at eight and a half I want to say that we might be the second lowest um and most agencies around here are about 12 or 14% um I have even seen some that were at 16 okay and then I know that we have a
Couple of hotels that are SL it to open um I’m assuming that’s not in the model we were being more conservative about when they open correct and um I did reach out to both um Paul nen our econ our chief economic development officer as well as um Sarah Bowser who’s our
Development service director and really didn’t couldn’t pinpoint when those would uh receive occupancy the model does a theum assumption and we can look at that um and what the T if we like if you set the to at 14% And we also add the hotel what does that um how does
That impact your general fund Revenue so that we can model that as well and then what about the new retail that’s coming on Mission um which is a whole new Lifestyle Center really with that help significantly um as well as the car dealerships that are coming as well is
That all assumed already or is it just we’re being conservative and not including those as well that is in the model we meet with Avenue who’s the city sales tax consultant we work very closely with them as well as with Paul new’s team um so that we can again
Understand what we’re seeing trend-wise um in the in sales tax revenue um area and then we also incorporate when we know that a businesses coming to to Hayward um we can build in when we expect them to open um and they um have a lot of data that they can provide to
Us on what those sales tax generation would look like and we do include include those in our projections and what would you say is the biggest out of all the sales tax um where do you see the most come from from sales tax is it cars is
It trying to recall like what our top I’d have to get back to you I’m happy to to I don’t know yeah sure absolutely I’m happy to provide that detail on kind of what we’re seeing um as our kind of highest generating sales tax typee businesses thank
You and we do thank you Regina for that comment we do meet with our sales tax consultant on a quarterly basis so we’re constantly looking at like what are we looking at um in actual collections what are new businesses are there businesses that left Tor what does that impact our
Sales tax generation thank you councelor Goldstein thank you yeah this would be excellent dated they have and you said right now we we don’t really have a figure in mind for the hotel tats like on a per parcel basis or number of runes basis if we don’t have that be nice to
Get that sure we can we can work with Paul’s team to to get some of that data for you okay then I had a couple questions on the assumptions um one of the points you make about income is you say interest income of 1% return positive fund balance I know we’re
Earning more than that on our investment so what does that term mean that is um the one% it’s a it’s conservative and it’s a conversation that we were having with a consultant with our finance team as well in uh potentially increasing that as an assumption um maybe closer to
About 2% it is not um the interest rate on our portfolio that’s completely separate from this particular interest rate this is the interest rate on the the city’s Financial like cash um and the the return we see on the funds in the bank um and so when there is a
Negative um we will receive there’s no a positive return right so if there if our our general fund Reserve goes in the negative then we don’t receive that interest well I see so but as long as we have some cash on hand like a market rate account is that kind of the
Percentage that you’re talking about or like missing that point um it’s again it’s just it’s more of if we have that the funds in the fund balance in the reserve account if we don’t have it or we’re in the negative the interest rate would be negative um so if you’re a fund
Balance you carry a negative fund balance and you’re going to have a negative interest okay um I’ll move on from that then and uh other Revenue generally 2% growth annually um seem to be really good about putting everything into a a bucket here so what is other Revenue me
Um the other Revenue oh yeah so the other Revenue that we see here are things like fines and for forfeitures as well as rents leases or any concessions that we have with um M okay thank you and then my final question has to do with the hers uh employment I got a
Little confused here about uh what the uh discount rate actually means to us and how that then relates to the uh fire and police pla being at 64% and 78.3% you help me understand that a little better so the discount rate is um the higher the discount rate to the city
The the the least the lower our bill so the lower the discount rate to the city which is based on the returns that we see in the investments in C in calers the higher the contrib oop sorry higher the contributions are from the city and
So the lower your rate goes the more the city um has to contribute to plant um I can speak a little bit more to the the U did you if you would like as well yeah yeah okay so I just wanted to clarify on that so the 36% for the U actually it’s
It’s a combination of both our normal cost and our unfunded um acur liability to or the U so the portion of the UN the U is 25.5% and that’s for the missile miscellaneous plan and that equates to about um 11.6 million on everyone in the miscellaneous plan the amount that is
Impactful to the general fund is 6. um8 million I see so 36 is actually a combination of two different types of rates I got you okay all right that makes sense and then the uh what does that mean that the uh fire plan uh sorry for me to read this small
Print fire plans at 64% and the police plan at 78.3% so it was at also very similar so the um 60 for fire I had to make it bigger for myself fire plant 64 again was a combination rate of both the normal cost and the U and so the fire U um was
42.8% and that is about 7.6 million impacting to the general fund r that just I think maybe one quick thing so another way to look at it would be for every dollar that we pay in salary per fire we we pay 64 cents into helpers so
If if we’re paying $100 in in in salary we’re paying $64 in in a cper rate for those employees or 38 Point don’t want to mix it up here 78.3 or $3 36.4 that’s the city’s contribution of the employee contrib okay okay all right okay thank you uh council member
Roach thank you um so what’s the what do the assumptions do for these you know the UN you know this last year we’ bought a movie theater we get you know there was um the St Rose expenses unexpected salary raises um mudslide expenses um a new police and also
Unexpected expenses for the outgoing police chief um what what does that do to our model because you know I mean know bear with me $8 million for movie theater and he could be at least not negative you know with that $8 million of projection so what what is how does
That all fit in yeah what I would say about the 8.6 million is that on our balance sheet we’ll also show a lan receivable that it will be pay back um so it’s not necessarily a true expense in that way we will show it as loone um
And so that will be built into the model um which will come to you in uh in uh March when we bring the midyear update um obviously that amount isn’t built in part of the adopted budget and so we will bring that to you but what I will
Say particularly about that is that there is an offsetting expected Revenue because it is a l okay and so does that zero it out or is it do we project what the um payback will be over time um we I believe we’ll project it almost Asing it back to the general fund okay
And what about the other you know when we do referrals when we add you know like again the mud the mud sles like how how does the budget contemplate that so those are again all of those types of ads that occur between I would say July and you know Fe March January or
February um those are all Incorporated in the model once we bring it to a midare and then some of those are one-time expenses if they’re not and they’re ongoing we build those into the model so that we capture that it’s not a one- time but this is a recurring
Expense that we’re going to see um so that we can more accur accurately project out into the future years um if we continue to allow this as an ongoing expense how does it impact the general fund and you know the amount of money that we potentially need to
Balance the the budget you know one thing I I that I would find really helpful is when we’re making some of these bigger decisions like that like milar is having even sort of a quick um modeling to say if we do this this is where we’re going to be upside down for
How long because I I feel like um and I don’t other people this that when when we’re doing bargaining when we’re making bigger decisions like this each one feels like an island and I don’t I I don’t have a grasp yet and I know that’s partly why we’re doing this but the
Impact of when we give you know a bargaining unit a certain increase because it sounds great because we wor we’re worried about Recruitment and Retention how does you know how does each one come together because each one feels so isolated right now and and the budget only projects a 2% increase and
We’ve gone way beyond that now with everyone and so how do we build that into the model when we know it’s always going to be above 2% um how do we build that in knowing I know there’s there’s political reasons or you know there’s reasons why we make certain decisions on
Projections and also just you know just being conservative and what the reality is but how do we we do this so that we really know that if we’re going to make this decision we’re like way upside down now because the model doesn’t even contemplate 5% 10% whatever you know
These unexpected raises might be right right and you know I think it’s um something that we can continue to refine how we bring it to council um it is obviously something that we provide to council during those types of negotiations that understand impacts um the model assuming a 2% is very uh
Common in industry it’s an industry assumption um and so going beyond that um it will make the the projection look even better and I and I don’t know hard to project and I don’t know that it is realistic to try and and plug in when we haven’t those negotiations right we
Don’t know what those are going to come out of some of those negotiations and so um I don’t think it would be reasonable to put in assumptions that we don’t know um and so using a reasonable 2% assumption is something that we have historically seen we have used um
Because it’s really difficult to understand where we will land with some of the different uh groups because you know I I mean I feel it would be really nice for me anyway that if we were talking about a new expense whether it’s a referral or or a project or a tragedy
Or anything that comes our way that that maybe there’s some trigger over a million dollars something where we take a really quick harder look at at it because again like I said sometimes referral comes our away or Cinema comes away and and we make that isolated
Decision and I think having a more I we had a little more information on the cinema I’m not saying we didn’t but to sort of really understand the impact of what we’re making it’s well I understand the cinema is alone and that shows on the balance like we’re talking about a
10e repayment since that’s $8 million out of the general fund for 10 years that’s well beyond potentially all of our 10 years you know um and and what that really does you know to put the money back because seeing the red that we’re going to be in feels very dire to
Me right now so um wait I think that’s all the comments I have for now and I’ll definitely have more yeah thank you I just have to follow to what council member Roos was saying so if you take the cinema as the example on the books you would still have that loan as
An asset right so it’s not like you’re going to see that $8 million dip and then these little monthly repayments it’s actually going to balance out the whole weight to it almost zeros itself because okay that’s what I wanted to make sure memb uh SRA for this thank
You thanks for putting putting this together really big fan of this to I kind of lock myself in a room and just like play with this for a long time and figure out you know what’s going on um I want to just second the comments some of my colleagues made about wanting
A break down a revenue categor it’s just to understand you know where are we getting sales tax froms what industries um property taxes maybe some amounts based on property type just to kind of understand the the larger portfolio and um maybe that coming before budget and
Finance um or you know just the whole Council be helpful um I could use a little bit of help defining variable expenditures and cost allocation again as part of scenarios we went over it on a slide could you help understand what that sure um Can this one oh the scenarios there we
Go so the variable um expenditures so those are not essentially non Personnel related um but a little bit beyond that so um let me get some my sheet so I make sure I don’t miss one of them um but essentially the uh variable expenditures are expenditures in which decisions can
Be made by by Council um you know by leaders on on whether or not we want to potentially adjust those type of expenses in this scenario we have a proposed reduction of 5% in the variable expenditures and so those are expenditures like uh supplies and services our internal service fees um
Transfer to other funds that includes both liability insurance as well as the medical retiree we fully fund that liability um we haven’t always done that um it prior to 22 we made significant meaningful contributions in the amounts of like 1 million two million but in 2022 we began fully funding that um
Obligation um but again that was a policy decision and so that is a variable expense um and then also uh the transfer to to Capital Improvements you know that’s a choice if we uh if Council chooses not to go forward with particular cips because it requires a
General fund subsidy um that’s a policy decision that is a variable expense thank you that’s very helpful and then cost allocation plans so the cost allocation uh is a process uh essentially that looks at assigning shared costs of services and goods and services um two programs that from those
Sources right and so we have different services that we provide in special Revenue um but are supported by Central Services so services like like uh Human Resources like finance and so there is a contribution from those funds back to the general fund to pay for those types of services that are being provided
Thank you and then last question I have here this is what gave me I think the most heartburn looking at This was um uh our historical overtime is 9.5 million and then the budgeted is 3.5 million clicking you know the 9.5 one really changes the red quite a bit um and then
You know we’re talking about vacancies too it’s I’m curious in your opinion what’s the right equilibrium between vacancies and overtime you know if we filled some of those vacancies how much would that draw down our overtime are they related are they they are related so we see overtime in really kind of two
Scenarios right we see overtime related to Mutual Aid there is um typically a reimbursement for those Services it’s not a fully one a$1 reimbursement but um so that is kind of one area where we see overtime so when there’s been wildfires um you know we provide Mutual Aid and so
We do see overtime in that in that particular area the other area is really overtime as it relates to um the number of vacancies right so the higher the number of vacancies we have um the higher our over time typically is um and so there is a correlation to that um we
Budget at three and a half% was a pretty mild um salary savings vacancy about 3% we’ve seen higher vacancy rates over the last several years um but uh so there is a correlation um the one thing this model does have the toggle it’s not something that I would were going I mean
You can touch it it’s fine but it wasn’t going to be part of the exercise um because it isn’t um as clear right because if you hit 9.5 million it’s being it’s based off of if we’re assuming every position is filled in the city of Hayward we would not see that
Level of overtime if that was the case got it thank you thank you um I know you’re are conservative so that’s normal for your line of work but I’m glad that you’re not a Ultra conservative uh when we negotiated Tri College well back the person who took your money said by
The in 30 years we will be $280 million in the whole so I said well thank you for that information so what I would like to see is how can we as a city council help bring the sales tax revenue to a level higher than the property tax what
Can we do to increase C increase no ST like to get rid of the absente business owners on beam how can we help you or the economic development or how can we get that sales actually be large I believe that we can do it we’re
Right in the middle of you know the day I mean gosh people can be flocking PayWay which is I always say shop a first so any ideas or maybe this is not the time I will do my best to answer what I will say is that I think we have
A really great economic development team um they do extraordinary work to really attract businesses and really work with businesses um to not only retain the businesses that we have here but to bring in new businesses right and so just knowing that we have that staff and
That kind of dedication to the and very Innovative in their thought process and how to again maintain the businesses that we have but also attracting businesses um and so as we continue to retain those businesses and we attract new businesses and the types of businesses that we we attract will
Really kind of have a positive imp right so may so so how can we get them to operate with the absente uh owners on B Street and there’s there’s a furniture store on a street that’s been close to three years all right so how do we get
Rid of that that I think that will certainly go a long ways to increasing our sales tax so who do you have to push who do we have to push who do we have to whose arm do we have to B in our I think that’s a that’s a a bigger
Conversation um and certainly there are budget impacts but it’s not necessarily related to the budget um I don’t also don’t think there’s one sort of magic magic you know leverage pull that will solve all of those things I think making sure that we are continuing to develop
Uh in in a way that attracts people making sure that people who who come and visit the city feel welcome safe um and getting a good good variety of different businesses um one of the things which I’m no longer a part of but I can speak historically um that we we do speak
About in those qu we conversations uh which uh our economic development team is part of is looking at um where we have U businesses more businesses um in a certain area then uh would normally be supported by a population similar to the awards um and and also more importantly
Where we have what what’s called leakage where we we should have you know I’m just using as an example we should have four let’s just say toy stores we only have two see the has six you C has seven you know so it’s looking at things like
That and really working to Target those types of businesses to help get a good bouquet um and and attract you know not just people here to shop but here to want to live and and play well I’m just thinking that uh tennis Ro has two businesses and they’re always
Filled a street B Street is not so let’s copy this what what what is happening in tennis world that’s not happening and let’s take care of that all right um I I’m going to be later on proposing that we 12% I think that’s that that’s
Time for that to and thank you for a good rep very good job thank you to the yes council member roach thanks just uh two really quick ones one is you know we talked about the sales tax and you work with a consultant to come up with protection so I assume
That’s true about the property taxes because we do have a lot of condos and town houses coming online too so you’re constantly monitoring that um and then my other question is what is your caution to us you know like you know we have had discussions during the
Marketing where you you say like don’t forget you know we’re gonna be we’re gonna be that like how like how can where where do you see we can make progress in being more conservative so that we can find you know our way back into a positive Surplus or are
Great I mean I think it’s just being conscious just of how we’re spending and what we’re spending on um you know revenues why they do grow with the economy um we we don’t have a I would see a portfolio of really changing type of mixture of Revenue and so again just
Being really kind of conscientious about like what what we’re spending on um and what I would say is that like looking at the forecast is in at that spreadsheet that’s huge with like 10 20 years worth of data is that you’re not going to fix
All of those oute and a lot of those oute like we don’t know because we don’t know what the economy is going to look like in 10 years we can we can make educated assumptions right and that’s how we can come up with our model um but
Really looking at what are we looking at next year what are we looking at the year after so really kind of looking at you know the next two years how do we what type of policy decisions do we make um that can positively impact that budget and potentially close our our general
Uh use of reserves um that we’re seeing over the next two years and then continue to build out in those out years um but that’s what I would I would I would caution as just being very mindful of the of uh you know the expenses um
And and how we are spending um because like I said our revenues are fairly consistent yeah I mean you’re right because it looks like we’re upside down now for right for St um and and if that’s true what is your experience with with other cities that
Like is this a way to operate to be upside down like this for such a long period of time because you know like you said you caution has some expenses but I guess I’m asking like specifics like where can we where can we tackle this
And and again is this common in other s sure what I would say is so I and I let I’ll let Dustin speak to it too as the previous uh Finance director but I’ll speak to my experience um in joining in the city in 2017 so I joined like months
Before we we developed the first budget model that um is being presented today and there was lots of rad um and there was lots of um conversation about how do we close some of those significant gaps that we’re seeing um and that was really the Nexus of having those strategic uh
Conversations with options um which you kind of see here they’re not as as as large as increasing our Ro property transfer tax or we haven’t really even increased that uh transfer tax as of yet um but just again what I would say is that we have been and the council has
Been very conscientious um and as a result like on that other slide if you can go back to our fund Reserve you know we had projected you know significant uses of of reserves um but through both kind of Revenue generation realized and kind of you know steud expenses um one
More thanks um you know there were years like in 2018 where we had projected um to uh you know end the year with the use of two and a half million but we actually built the The Reserve balance by 3.3 um and so just continuing to do that
That work um and being thoughtful and meaningful about the decisions that are made and how they do impact not only like the budget we’re looking at in this year but long term what about and maybe maybe this be speak to the historical context but what about you know like how are other cities
Doing this you know like to be like years and years upside down so may we’re not alone yeah yeah you know we we operate in a similar fashion to to a lot of uh similar agencies I guess what I would say is um every agency is unique
And we Face challenges that that others do not um we also have strengths that others don’t so so a bit of a tradeoff I guess what I want to go back to a little bit um and and what Cole has has said um I’ll put in a little bit different terms
Um we don’t there is no magic leverage um we can’t just say well let’s get more Revenue increase Revenue um we’ve done a lot in the if we could trust me what done a long time ago um we’ve done a lot and the the voters of Hayward have been very supportive of the
City and they’ve approved uh a lot of tax meas measures that have helped us to uh create a a scenario that that has made um the organization much more stable um you know we’ve also um spent a lot of time working together with our bargaining groups to control costs uh
We’ve certainly had times where we tighten our belt to supplies and services um and so it it’s going to be uh a bouquet of of options that it takes for us to you know really get to a place where we’re not consistently using uh reserves um and you know we don’t
Have or at least project sorry trust me it’s been bad before um and we’ve had scenarios that were were really really difficult to look at especially in the the Great Recession and trying to come out of that um the other is um we’ve seen these projections look similar to
This many times and we don’t realize exactly where they’re at you haven’t I know this this is new for for some of the council members but when we uh bring a budget to council generally it may start when we propose it uh using a lot of reserves we will get closer and
Closer um and and you know Council will make decisions to say that would I would love to do that but we just can’t and so it’s looking at it’s it it is making tough decisions at times and you know decisions that aren’t going to necessarily feel good but we don’t have
The ability to um to fund every single thing that that we as as an organization we as a community need um and and certainly all of what council would hope to do if we if we had if we didn’t face the Perpetual challenge of limited resources and unlimited need yeah and I
And I hear that I think that’s what concerns me is you know we started off this year already doing someting in my opinion that this really serious discussion about that and so you know to sort of you know have been you know you know Gable to toting so far or what
We’ve done so far and now having to rain it in feels like a unfairness you know unbalance and so how do we move forward with that so it’s like we’re looking through the whole year the whole instead of because I feel like what we got so far which is don’t forget there’s more
Coming but I couldn’t even contemplate what that meant because I didn’t feel like we were looking at forar stuff maybe again you know each time like such a big serious thing that we’re looking we go back to some whatever that looks like some simple overall model just to
Show like where the livers are and where they aren’t so that we’re evening out what we can do for everyone all year long so thank you and one of the things that that we’ve we’ve talked about bringing U some information to council is taking a look at um some of the the
Cost of historic contracts um and what what in you know what changes have been made and what the the new values have look like to give uh to give Council a context for what’s being asked for what’s being contemplated um to to help to think okay this is crazy or this
Isn’t crazy you know to to understand what’s what’s realistic and what’s not what you know what the city can afford what it can Council um is there an option to include the potential to put some aror funds towards replenishing part of the general fund I know there’s projects that
Were’re talking about but there’s also some leftover funding if we don’t uh appropriate it that can go back is that correct correct so there are um uh spending requirements or obligation requirements with the ARA funds you have to obligate all of your um AR funds by
December of 2024 So within a few months from now um and then expend by 2026 of December and so if uh there are projects that we cannot fulfill um there is an option for Council to decide if they want to do an additional contri contribution uh to the general fund for
Projected loss Revenue that is an option that we could do as well the ARs could also be allocated to support other type of projects that me some eligible standards thank you and then you know as I’m looking at this really the 2030 marks a major Shi I think when
Emplo transition towards being pea where we see more pea emplo is that correct okay and so we know weing ISP of SL that we have to weather together is how do we get through basically 10 years of of this financial hardship so we can get back to that point
Um yeah I I I really I want to Second a lot of what council ber Ro shared I think um there are historical assumptions around previous bargaining that I wish kind of I just kind of want to get the bad news straight I feel like I’m kind of clicking around to discover
The bad news and uh I want to know how bad it could possibly be or we’re expecting it based on historical Trends we can make those appropriate adjustments it does seem like some belt tightening is necessary as like painful as it is I just want to start to
Mentally prepare myself for how much um so are we going to revisit this model said you know in March is that correct correct or the mid year so um during the midye process the model won’t be presented to what you will see is this um which is a summary um but the uh
Model will assume um obviously onetime expenses for 24 and how that impacts the projected uh general fund uh result balance um it also will look at like I said some Revenue um analysis that we’ll do um and then if there are ongoing expenses that are approved as part of
The mid year those will be incorporated as an ongoing expense understood and so the co increases you’re factoring in now do we feel like that represents what they have been historically or it be higher it really is just dependent on on the conversations um and what is
Determined um and accepted by by Council during those negotiations the model again just assumes a 2% okay um which is very much industry standard um and so it could you know go beyond that it see you know years maybe that there AR colas but there might be a larger Cola in a
Different year so it really just is depending on on the agreed upon uh contract I understand for the new contracts mean specific to Hayward that would help me with these decisions because the 2% is the industry standard I’m more interested in what’s the Hayward standard for say maybe the past
15 years of contracts right just so we have a ballpark idea and then it also helps our negotiations we can absolutely provide that I think Dustin reference that we could do some um kind of um summary of like the historical contracts and what those look like over the last
Few years so that some context moving okay great council member in I’ll be very brief um just wanted to give a recommendation for council members to watch the last economic development meeting um it will give more context on to what is needed in order to increase
Sales tax and what our realities are and what our opportunities are but reties is more important to realize that conversation uh then also wanted to just ask staff because I am hearing a lot of questions about bargaining just want to ensure that we are getting staff recommendations when we are making these
Decisions it’s not like we’re getting you know Amo vems telling you us to pick we’re getting recommendations and we’re looking at some Financial modeling in order to make those recommendations right just want correct yeah I just make sure the public hears that because some of the questions I I I
Hear sound very concerning but we do we do reference our analysis that done for future years before we make decisions on increases that’s all thank you okay thank you any more questions um so next step um we can do next step slides and then we can do the interactive or we can
Pause and we can our staff is here said um and we can walk around and kind of show you some of the Fe that you can pull and like what that looks like and how it impacts the projected general fund Reserve that do that sound good
Want do that come back to next slides or next steps we’ve also spent a lot of time talking tonight uh about this if you think that’s a little too much for this evening we can say that for for another time uh I think there’s also definitely an opportunity
For okay and I I also I I made it before the meeting but I’m happy to meet with you all individually and we can look at this model that is being presented tonight again I I recognize I’ve shared a lot of information um and so I’m happy to set those times
Up and we can run those um preset scenarios we can also look at some of the other scenarios that you might have yeah I would rather do that because this I I don’t want to I know staff has put a lot of work into this and um like this
Is overwhelming for me just trying to you know I yeah and so I think if we I know these are loaded up on computers and we can certainly Tinker with this in our offices and stuff just those laptops actually come back to us okay so if you
Want to have an opportunity to look at the model I would recommend that we set up some time yeah exactly yeah um and we then just two Qui requests uh one is like at the top it says it’s intended for Sole and exclusive use of the city
Payor could you check in to see if we’re able to F our own just as long as it’s on our city computers or our city emails and the second request is there’s been some uh you know we want historical information maybe a a row for uh what
Amount of ARP dollars we can add up to just maybe some some of the comments tonight if it’s possible oh sorry if it’s possible to we incorporate some of the feedback into this model so that when we do these one-on ones it’s based on some of the information we’ve been seeking to help
Abely perfect okay so also be good if we could you know I get that there’s some these models that we can play with but basically this is kind of a really rich model to work with but essentially the output is going to be something like this this is just all
The details behind my spreadsheet so what I think would be helpful if it’s not asking too much and you can say no but maybe if you guys ran a couple likely scenarios right out of all these six options or whatever like what do you think is the best considering everything
Council member Andrew said and you heard tonight with the demographics and the constraints and this that and the other to come back and say well here’s what the model looks like if we take these three actions and that would be our first recommendation from sta you know
Something like that just to help guide us a little bit more so that would be be very useful just to also frame our discussions around this in the future and thank you so much for all you are the experts thank we could actually do like a fiveyear look and we can build in
What those scenarios like if if you pulled this lever this is the change so you can have it kind of in a in a in a sheet yeah and I think as long as we see the trend changing then the 10 years probably isn’t going to be as concerning
I think why it’s so concerning for me is because we’re just running into the the red right but if if we see that trend line then I think that will give us a lot more Comfort too but thank you for this great analysis and for answering all of
These questions we’re just so blessed to have the us our finance director so thank you I have a really great team and they’re all here thank you for staying tonight I’m [Laughter] sorry um and before I go to public comment what I did want to what I did want to say is
Um what I give want to say is you know what was I going to say um what I did want to say is you know we don’t know what’s going to happen in November regarding the national political statement and um you know part of what
You know part part of what we did not expect and it really impacted us a great deal was you know the pandemic right and I think leading up to to the pandemic I think we have done historically I think we’ve done some really interesting things up here where we were able to
Weather the pandemic at least financially um and I guess you know maybe this is sort of a call to all of us you know um in the event that we have a repeat of 2020 um I would I would suggest that all of us up here start thinking about
Reserve because Reserve is what got us through the pandemic um but also you know just being mindful of of that um you know I you know and I know you know there’s there’s the trt and there’s some of these other things but I think you know um we just
Need to be cautious of what what lever we do pull um and especially as you know because I I can only you know imagine Economic Development calls the ears right now are probably burning because you know every time we talk about pulling one lever lever to increase something a tax or something Paul’s
Gonna go oh my God no what am I gonna tell you know the hotel the motel so um so anyways I just I guess what I’m trying to say here is as we look ahead um you know particularly as this National political scene um I hope that
We’d be mindful of really making sure our Reserve we hit that 20% Target we have hit that 20% Target uh that has been a policy that we put in place we’ve honored it and um you know and that’s taken us that’s weathered us through some serious storms that’s the first
Thing the second thing I want to just close out and comment on saying is that you know part of our fiscal solvency over the years and I I know this is shocking to a lot of folks and I know Julie is or council member roach is over there you’re having a h heart
Um but um is better no I know um but I guess what I you know what I also want to add and I and I would be remissed if we did not say this is that we are in the the the good shape that we are in
Today um and we have gotten to a good shape even historically over the last several years ever since I’ve been up here and I know coun Reno since he’s been up here is that we have been relatively in a good place financially um because of our labor groups uh our labor groups have
Always stepped up and uh have made tough decisions and have you know um forone raises have contributed more to Health Care have contributed more to pensions have helped us and enabled us to get to pay in our Arc I mean there’s things that we’ve been doing over the years
That we were able to do we’ve been able to do um because of our labor groups and so I just you know um you know we have these conversations every year we go through this process every year and so I just you know I just wanted to say um
You know it goes without saying and I know Dustin I mean 2017 you know those were some tough years um but nonetheless we’ve been able to get to where we’re at because of concessions and I’m not saying that we’re going to ask for those same concessions in the future I’m not
That’s not I’m just saying that you know uh we’re here and we’ve been able to weather a lot of storms because of the contributions uh that have been made over the years and so anyway part of that c is because of our great budget and finance department um okay with that said any
Any more from I mean I have a I have that next slide everyone has a copy of it it’s just seem essentially highlighting dates that uh coming up so in March of 2024 U the midyear uh review will be presented to council with the upd updated model excuse me updated
Model um and then in March or April um we are trying to uh bring an economist here to provide a presentation to council to speak to both what we’re seeing in at the state level um a local level even maybe even specifically to hate word um and so uh it’s pending
Availability but that’s a presentation that we’re hoping to bring to council to kind of provide some information to you on what we’re seeing in the economy and then in May of 2024 we will have our famous Saturday budget work session our marathon work session for the
2025 is that when we’ll like you know decide if we want to increase the when do we make the decisions for that we could bring that as a separate item um I I would say not to have that conversation that day I would say we have that conversation chamber mayor can
I just jump in I would also say we should definitely do some Outreach to the Chamber of Commerce and others before that we bring a recommendation to Council on that increase so I think if the council’s interested in exploring that that this year then um we can do
Some Outreach before we come to the council with the budget recommendations yeah yeah and and and what I was going to Bri to say is I think that’s a discussion we have on the day is the day of yeah oh just a follow the comment um I know that our Investment
Portfolio brings in about a million is it in dividends annually now with the size of it and I I just wondering are you thinking of any creative ways maybe to help soften this at least for this period of 10 years you you know using some of the dividends or for our
Investment so for our investment pops we have two separate portfolios we have one um that U came to recently um we have never withdrawn from that and cash from that it is just a uh investment um and so the any returns we receive we reinvest I understand that we do I guess
Just in terms of getting creative to help soften what we’re about to experience is like that something that’s completely off the table or is that an option that we have available to us it is a policy decision that Council can make yeah um historically it’s not
Something that has um has been ever done or supported or directed by Council um obviously it’s more a benefit to the city that when we do receive those returns that we are then again reinvesting so that we can continue to build in on our portfolio understood um
So okay just want to understand what lever we have available to us thank you okay and a small point of clarification uh the city doesn’t invest in stocks so dividends not not necessarily part of the the conversation a lot of what we uh invest in our uh either corporate notes or or
Bonds or tra yeah so we’re getting interest payments based on thank you for the clarification I meant the interest payments I just wanted to add you know thank you to Nicole and her team for all that they’ve done and Dustin um pinch hitting as the former Finance director I
Think what you want in a financial team is someone that’s going to be very conservative but I think I just wanted to point out you know what Nicole said these are policy decisions and part of the reason why we wanted to expose you to this model is so that you have better
Information about how you want to inform those policy decisions and creativity um tighter modeling all of those things are being taken into consideration this great thank you and uh yes my apologies would you like to open public comments oh that’s right so um you know that that is part process uh
Like to open up for public comment is there anybody online that would like to make a public comment I see one hand I can’t read the name but su’s IP Susie’s iPad hi um just listening to this a lot of you seem like um you’re caught in the headlights
Here and I really feel like the decision you guys just made the emotional reactionary decision you made on the divesting was just fly by the seat of your pants you you didn’t even know you were in this financial situation and now we have council member cyop wanting to rob Peter to pay
Paul I’m shocked I’m just really shocked to be hearing all of this and I think you guys owe it to your taxpayers citizens and residents of the city of Hayward to really uh take some time and put some thought into your decisions and don’t just make them don’t just make them emotionally
And reactionary thank you thank you and then I don’t see any more public comment online and I don’t see any public comment here in the room so I to close public comment return to the de and I don’t see any other further questions uh Miss Gonzalez thank you
Very much for all your work please thank your team I appreciate it and um and good all right so uh we will uh conclude this item move on to um uh Council reports and announcements um I have one announcement uh I wanted to start uh promoting this
Early uh on February 29th at 6: pm at Cal State East Bay in the theater um for the first time uh Cal State East Bay president Kathy sandine Dr sandine uh will be hosting the state of the city address uh and so um we’ll be in the CSU
East Bay Cal State East Bay theater um and uh the good news is uh um I mean besides the state of the city parking for that moment for those two hours is going to be free now I would just go to get free parking at Cal stadies Bay for two hours
That is some premium parking for 2 hours but anyways uh February 29th 6: p.m. at count stadies Bay in the theater coun C thank you I just um this past Saturday the library staff put on a wonderful L New Year celebration so I just wanted to acknowledge them um for
Folks that haven’t gone to the library it’s beautiful inside and there are hundreds of folks in attendance wonderful performances so I just wanted to give you know special commendations to director Adelman um assistant director Lindsay and wheny for organizing that event and bringing the community out and helping uh celebrate
Lunar New Year in our home thank you okay um and there are no council referrals so ladies and gentlemen uh uh what did I say council member Andrews I said I said 8:30 but I said 9 o’ I said 9 o’ so yes and uh we are going to close uh
Oh nine o’clock meet the J and we’re going to now move to our second close session and then we can proceed thank youve home thank you
source
