Fresno council adopts balanced FY26 budget, approves $100M paving plan with $25M for other district infrastructure

The Fresno City Council on Tuesday adopted a balanced fiscal year 2026 budget and approved a resolution authorizing the use of future indebtedness to reimburse certain capital costs for the city’s “pay more now, pay later” program.

The council voted to approve the budget package identified as items A through F after a reconciliation of prior budget motions. Earlier in the special meeting the council passed a resolution stating the city’s official intent to use proceeds of future indebtedness to reimburse capital expenditures related to the paving program; that resolution passed on a 7–0 vote.

The vote on the budget follows months of hearings and 82 separate budget motions submitted by council members during the process. Mayor Dyer told the council the administration and departments had closed an initial projected $50 million shortfall and that the final package balanced the books. “And with that, I am pleased to share with all of you that the budget is back in balance, and the, total city budget now stands, overall budget is $2,363,134,100 with general fund being at 512,000,000, $879,400,” Mayor Dyer said.

Why it matters: the council reconciled dozens of member motions and used a mix of funding sources to close the gap, including general fund, special revenues, grants, enterprise funds and the new 30‑year financing program tied to the paving initiative. The council’s action both funds immediate projects and creates a financing path for $100 million of neighborhood infrastructure work over the next two years.

Key votes and motions - “Pay More Now, Pay Later” resolution (special meeting): moved by Vice President Arias and seconded by Councilmember Maxwell; outcome: passed 7–0. The resolution states the city’s official intent to use proceeds of future indebtedness to reimburse capital expenditures tied to the paving program. - FY26 budget items A–F (annual appropriations and related budget documents, including exhibit B reconciliation): moved by Council President Carvassi; seconded (recorded); outcome: approved. Councilmember Esparza recorded a yes vote on the overall package but asked to register a no vote on part D of the budget as a formal objection.

Budget and program details provided at the meeting - Total motions: 82 motions were filed during the budget process, totaling about $55,000,000. Of those, 47 motions were fully or partially funded totaling $14,800,000. - Funding breakdown presented by the administration for the 47 motions: $4,895,000 from the general fund; $95,000 from district infrastructure/operational funds; $9,700,000 from grants and special revenues; $181,000 from enterprise funds. - The council placed $5,000,000 of additional motions into the Pay More Now, Pay Later program; the program itself was described as a $100,000,000, 30‑year financing plan with the first bond payment expected around June 2029. The program was described as approximately $75,000,000 dedicated to paving and $25,000,000 set aside for other district infrastructure (sidewalks, median islands, signal lights and similar projects) that meet a roughly 30‑year useful life requirement. - The administration reported the overall city budget of $2,363,134,100 and a general fund of approximately $512,879,400. The administration said it did not tap the city’s reserve for this budget, and estimated the reserve would be about $48,000,000 at the end of FY26 (~9–9.5%).

Items and programs highlighted in debate and department remarks - Housing and tenant protections: public commenters urged larger allocations for tenant legal assistance and mobile home preservation. Rosa de Leon of Power of California Action, who identified herself as a District 6 resident, said, “I’m also a D 6 resident, and I’m here, again, to ask you to prioritize housing in this budget.” Giovanna Morales of Leadership Council urged the council to allocate the full $2,500,000 for the eviction protection program (EPP), saying the group “do continue to urge the city council to allocate the full 2,500,000.0 to the EPP.” The mayor’s presentation noted $1,500,000 for the eviction protection program would be funded from the local housing trust fund. - Neighborhood and safety investments: councilmembers emphasized district-level projects that were retained in the final package — examples cited include funding for Quigley Park phase 1, a left turn phasing signal at Clinton and Venice, sidewalk work near Armstrong Church to protect schoolchildren, and several concrete repair and median projects. Councilmembers also highlighted investments in parks (Lehi Kimber, Stallion Park, Barstone Veterans neighborhood park), a black wellness and prosperity center allocation of $250,000, and $1,000,000 identified for Storyland. - Public safety and infrastructure: the mayor’s remarks listed additions funded by non‑general funds, including four police officers for the FACTS unit (enterprise funded), support for a 9‑1‑1 center and a fire training center, a payment for a police helicopter, and funding for fire safety equipment. The administration also noted $900,000,000 of capital projects across roughly 440 projects in the adopted budget and recurring investments in tree trimming and new plantings (a stated goal of 1,000 net new trees per year and $2.8 million annually in tree trimming).

Discussion vs. formal direction - Discussion: Council members and the administration described which of the motions were fully funded, partially funded, put into the Pay More Now program for later financing, left for mid‑year consideration, or not advanced. Multiple council members praised the administration for producing reconciling documents (exhibit B) and for department responsiveness during the hearings. - Direction/assignment: the administration offered to provide detail to each council office showing how specific motions were funded. The council also directed use of the flexible $25 million portion of the paving program to allow districts to select eligible infrastructure projects. - Formal action: adoption of the annual appropriations resolution and the related budget items A–F approved the FY26 budget as presented; the special‑meeting resolution on the pay‑now/pay‑later financing tool was approved as a formal expression of intent to use future indebtedness for eligible capital costs.

What remains - The administration said 12 labor contracts remain open and will be subject to negotiation in the coming months; the budget includes a negotiated set‑aside for labor obligations but the administration did not disclose the negotiation reserve amount publicly. - Three motions not funded at adoption were identified for potential mid‑year consideration if funding becomes available.

Ending note: the council concluded the public budget hearing portion by adopting the reconciled budget and approving the financing intent resolution for the neighborhood paving and infrastructure program. The meeting moved to closed session for anticipated litigation and labor negotiations; the city later reported the closed session concluded with no announcements.