■Next year’s Fresno city budget could be $10 million in the red.

■Administration, city council preparing to save money now.

■Classic artwork has new city home.

Fresno’s city budget will be OK  for the rest of the fiscal year. However, City Manager Georgeanne White had a major warning for next year.

“We are anticipating right now to finish the year in the black, but I want to make sure that we are planning to return to council at the end of March to present an updated five-year general fund projection. And with what we’re looking at today, we’re projecting to end fiscal year ’25 in the red,” White said.

White said the deficit is currently projected at $10 million. Increased expenses and costs are the main culprits. The city should have about $626,900 left over from this year’s budget. White wants to start planning now to increase the carryover.

“This is sobering,” Councilmember Mike Karbassi said.

Other Budget Figures

While 2024 sales tax revenues will be $5 million short of the projections made last year, property tax revenues are $5 million over estimates, essentially a wash for the city.

Cannabis revenues, as was the case last year, are below budget projections. This time, they are $3 million under the initial estimate.

White said the shortfall stems from the lengthy time it took stores to open. Seven are open now and several more are in the process. Mayor Jerry Dyer says illegal marijuana sales in the city are holding back revenue.

White told the city council that the remaining cannabis licenses will be awarded when litigation — lawsuits from previous applicants who did not receive a license — is resolved. She did not have a timetable.

Franchise fees are up $3.4 million over projections. Assistant City Manager Ruthie Quinto said some of that is from PG&E and their increased rates. More for PG&E means more for the city.

Councilmembers Annalisa Perea and Miguel Arias also want the city to go after companies like Airbnb for a share of rental revenues.

Other City Council Notes

Other notable items from Thursday’s city council meeting:

• A proposal to increase penalties for graffiti passed 7-0. It will come back for a second vote at a future meeting;

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• The city council approved 7-0 a $15,000 raise for City Attorney Andrew Janz;

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• On a 7-0 vote, the Clement Renzi artwork “A Day in the Park” will be displayed at Storyland in Roeding Park. The Fagbule family donated the artwork after it was the only thing remaining following a 2023 fire at the Fabule Events Center;

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• Approve a new way to form city committees and also form the Master Tax Sharing Agreement subcommittee. Both were 7-0 votes;
• Rename the yet-to-be-constructed South Tower Park, at Broadway and Elizabeth streets, to Broadway Parque. The vote was 7-0;
• Tabled, by a 7-0 vote, a discussion to crack down on warming fires.