Fresno mayor presents balanced FY‑26 budget amid $50M funding gap and cuts

The mayor presented the City of Fresno’s proposed FY‑26 budget on May 15, telling the City Council the plan totals $2.36 billion and includes a $512.4 million general fund.

“This is my honor to be able to present the FY ’26 proposed budget to all of you on the council this morning,” the mayor said, opening the presentation.

City staff described a budget shaped by the end of one‑time pandemic-era federal funding and rising personnel, contractual and inflationary costs. The administration said it closed a previously projected gap that had grown during the FY‑26 build to “over $50,000,000,” driven by items including unanticipated landfill-related capital obligations, infrastructure financing shifts, software and equipment contracts and MOU salary increases.

Why it matters: the general fund proposal must cover core services while the city absorbs the end of American Rescue Plan and other one‑time dollars. Council members pressed the administration for additional data and warned cost pressures could return in FY‑27.

Key revenue and spending figures

The administration presented these principal figures: total proposed budget $2,360,000,000; general fund $512,400,000 (a reported $29.2 million increase and about 6% year‑over‑year growth). Property tax was projected at $202.6 million (roughly 40% of the general fund), sales tax at $143.8 million (about 30%), with business and room taxes at $23.6 million and $16.5 million, respectively.

The mayor noted public safety — police and fire — account for about two‑thirds (66.5%) of the general fund. The administration also said it is absorbing costs that had been temporarily covered by federal relief funds in prior years; for FY‑26 the general fund will pick up roughly $27.6 million in former rescue‑funded police and fire costs.

Balancing tools and new investments

To close the gap, the administration detailed a package of measures including targeted hiring delays (a citywide 6.18% attrition target), department‑level 5% non‑personnel reductions, delaying some equipment purchases, fleet reductions and lease decisions, and reassignment of some costs to special revenue funds. The budget book reviewed by council lists $969.3 million in enterprise and internal service funds and $873.7 million in special revenue and capital funds.

The proposed budget adds non‑general fund positions (41 overall; the administration said none are general fund‑supported), preserves current employees with no layoffs planned, and funds several programs and investments: four police officers paid from transit (FAX) funds, continued absorption of firefighters previously funded by SAFER grants, $1.5 million for a residential infill program, $300,000 for the Marjorie Mason Center domestic‑violence crisis services, and funding for tree planting and proactive tree trimming (the latter reduced from a 10‑year to a 12‑year cycle under current dollars). The proposed FY‑26 capital program includes roughly $900 million for parks, public works and capital improvement projects funded largely from special revenues.

Council questions, requests and concerns

Council members thanked staff for the early binder and the work to present a balanced budget but pressed for detailed backup documents. Councilmember Maxwell asked for a city property inventory and values; Maxwell also asked for a full breakdown of the “other revenues and charges” line. Vice President Arias requested five‑year vacancy and overtime histories for police and fire and a memo on cannabis licensing revenue status. Councilmember Esparza pressed the mayor on where residents might feel service reductions and was told holding vacancies could create potential service impacts, though the administration said it tried to avoid direct service cuts for FY‑26.

On labor, the administration said funding in the budget allows for “good faith bargaining” but may not meet all bargaining unit demands; several labor contracts remain open.

Debt and bonds

The mayor highlighted improved credit ratings and three planned bonding efforts: financing a new 911 communications center (roughly $16.9–$19.2 million), Fire Station 12 (about $19.5 million), and a possible $100 million street bond to begin addressing an estimated $1.2 billion backlog in deferred street maintenance. Debt service timing was described as structured to start after a city pension bond rolls off in June 2029.

What the council directed

Council members asked for multiple memos and workshop briefings before final adoption, including: a line‑item breakout of “other revenues,” a master list of city‑owned and leased properties (values and costs), a workshop on bonding capacity, and status memos on cannabis licensing, housing fund balances and the Advanced Peace program’s funding changes.

Ending note

The mayor and council agreed to follow up with detailed documents and monthly monitoring. No final budget vote occurred on May 15; the presentation opened the formal budget hearings and set the schedule for staff reports and follow‑up memos ahead of later readings and adoption.