Flanked by department leaders, Mayor Jerry Dyer outlines his proposed budget at a Wednesday, May 14, 2025 news conference. Photo by Frank Lopez

Fresno Mayor Jerry Dyer described the steps being taken to secure the city’s financial footing while staying committed to his vision of a “One Fresno” as he presented his $2.36 billion budget for fiscal year 2026.

At city hall on Wednesday, Dyer presented the city’s financial plan and efforts to stabilize city finances, including revenue monitoring, selective hiring and resource allocations.

Dyer said he hopes Gov. Gavin Newsom will grant the deferred $200 million in funding for downtown infrastructure, but he is not anticipating it.

“There is no question that we are facing challenging fiscal times in our city and uncertainty for the future funding opportunities from the state of California or the federal government,” Dyer said.

The city is also facing potential elimination of federal grant dollars, he added.

Dyer said it’s imperative the city monitor its spending closely, constantly looking for operational efficiencies and exploring opportunities to generate revenue.

Dyer said spending is exceeding city revenues.

Dyer also noted that the absence of one time funding such as $92.8 million from the CARES Act, $170.8 million from the American Rescue Plan, and $69.3 million from the Emergency Rental Assistance Program contributed to more spending and less revenues.

The general fund operating expenditures for FY ‘25 is $484.2 million and $512.4 million for FY 2026 — a 6% increase.

The FY25 mid-year budget projected deficit for the city stands at $20.6 million.

Exempting the fire department, city departments will be required to have a 6.18% vacancy rate and 5% general reduction.

Dyer said there will not be any layoffs, and they plan to hire four new police officers, which will bring the Fresno Police Department’s total to 930 officers.

The city will begin to lease police vehicles rather than purchasing them, including a new police helicopter to replace the one that has been in service for 20 years. The first lease payment of $812,000 dollars will take place in FY26.

Dyer said the city’s fleet was reduced by 88 vehicles, which primarily occurred in the police department and the police training center, with some being put in reserve for later use.

The city will also hire 42 firefighters through the Staffing for Adequate Fire And Emergency Response fund.

Fire safety equipment will be replaced with a cost for $300,000.

He also wants to save several new and ongoing initiatives, including a $1 million residential infill program and a $1.5 million eviction protection program.

Dyer announced the city will reduce trolley service by removing the Thursday rides, except for the first Thursday of the month for ArtHop.

The city’s highest projected revenue source comes from property taxes with $202.6 million, followed by $143.8 million from sales tax, and $23.6 million from businesses licenses.

Dyer will present his proposed budget at Thursday’s Fresno City Council meeting.

“The proposed FY26 Budget is not only balanced, in my opinion, it supports what I believe to be quality service levels and will fund a number of new and ongoing initiatives,” Dyer said.