Fresno Mayor Jerry Dyer unveiled his $2.36 billion budget on Wednesday to the media, revealing how he plans to balance a $50 million deficit.

“We will live within our means here in the city of Fresno, but we will also build a better future at the same time,” Dyer said.

The city will hold departments to a 6.18% vacancy rate, and 5% general reduction. However, Dyer said there will be no layoffs. In fact, the city plans to hire four new police officers, paid for with funds from the FAX (bus) department. That will bring the department to 930 total, an all-time high.

Spending is outpacing revenues, Dyer said several times during his presentation to the media at City Hall. Part of the reason: the end of one-time federal and state grants, including $170 million from the American Rescue Plan Act and $92 million from the CARES Act.

The general fund will absorb those losses, Dyer said. That includes 66 firefighters paid for by SAFER grants, totaling more than $2 million.

Dyer said Fresno residents will not see any cuts to publicly-facing services, but that could change in future budgets.

“We did what we could to tighten our belt as a city to come up with operational efficiencies so that we could minimize the impact on the people of Fresno,” Dyer said.

Other cuts and money saving plans include leasing instead of purchasing vehicles. The city will take 88 older police vehicles out of service. Instead of buying a new police helicopter, the city will lease one, with the first payment of $812,000. It will replace a helicopter that has been in service for 20 years.

The city will also reduce trolley service, cutting Thursday rides, except for Art Hop nights. That will save $292,000 Dyer said.

The Good News

The good news, Dyer said, is that property taxes — which provides $202 million in revenue — are up by 6%. While sales tax is up 2.69% to $143 million, that is not enough to keep pace with spending.

Dyer said in previous statements that the city was initially $20 million in the red during the mid-year budget report. Factors such as inflation, contractual obligations and personnel costs widened the gap.

The city’s credit rating is at its all-time highest levels, Dyer said.

“This means we are able to borrow money at a much lower interest rate, which is why it is a perfect time to build and to invest in long-term capital projects,” Dyer said.

New projects expected include a 911 communication center ($19.2 million), and a new fire station ($16.9 million).

Dyer also said he will push for a $100 million bond for paving neighborhood roads, a goal he unveiled at last week’s State of the City luncheon.

“The more we pave today, the cheaper it becomes, Dyer said.

By city charter, Dyer must present a balanced budget. He will formally present his plan to the city council on Thursday.

The council will meet for a series of budget hearings, starting June 2. A vote is expected by June 17. The charter states a budget must pass by June 30.

Last year, the city operated on a $2.0 billion budget. Dyer’s proposed budget raises that number by 18%. The general fund, which provides most of the city’s operational expenditures, is $512 million — a 4% increase from last year.

Protecting Programs

Dyer highlighted programs that he wants to save.

“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.

The programs include a residential infill program ($1 million), domestic violence programs with the Marjaree Mason Center ($300,000), and the Eviction Protection Program ($1.5 million).

Dyer plans to plant 1,000 trees, add shade structures at bus stops, and continue with graffiti and litter abatement.

The council can add programs to the budget and must reconcile cuts to keep the budget balanced. That is why Dyer specifically kept the Eviction Protection Program in the budget.

Dyer said he met with all seven councilmembers. He does not envision the council adding more projects.

How City Attorney’s Office Is Reacting

Fresno City Attorney Andrew Janz reports directly to the council, and not the mayor.

“I will follow (the city council’s) lead in terms of what my budget looks like,” Janz told GV Wire on Monday. “I know that we’ve been asked to take on many more responsibilities than this office has ever had in the past. And I think a lot of it having to do with the fact that other agencies and municipalities haven’t stepped up.”

Dyer said state grant money that helps fund the wage theft unit should keep the program afloat.

“We’re working with the City Attorney’s Office on that to make sure that those positions aren’t impacting the general fund, that they are being billed accordingly to the state of California,” Dyer said.

Janz held a City Hall ceremony Wednesday morning to swear in two new attorneys. They will help with the new wage theft unit, Janz said.