Dyer: Keeping $2.55B Fresno Budget Balanced Took ‘Creativity’

Despite a third straight year of cuts, Fresno Mayor Jerry Dyer on Wednesday presented his record-setting “balanced” $2.55 billion budget, adding a new police unit, $1 billion in new construction projects, and $140 million in road repairs.

“The budget this year, although challenging, was built with a lot of creativity and thoughtfulness. It avoids any employee layoffs,” Dyer said.

Dyer said this all comes in the face of a $34.5 million deficit driven by higher wages, lease costs, and overall inflation.

Because of that inflation, Dyer said the city will likely need to increase its water and sewer rates, though they will not be as “substantial” as the Clovis water rate hikes set to climb 60% over the next three years.

“We want to avoid that if we can,” Dyer said.

Dyer will formally present his budget to Fresno City Council on Thursday. He said he has already begun meeting with individual councilmembers. Department presentations will begin June 8 and he expects a vote to occur June 23.

Deficit Grew to $34.5 Million

In February, Dyer had expected the city’s deficit to be about $23.2 million. Labor contracts, facility leases, and overall inflation outpaced what Dyer called “strong” revenue growth.

“Unfortunately they’re not trending upward at the pace expenditures are being made,” Dyer said.

Property tax revenue is forecast to grow nearly 6%, sales tax 2.8%, business licenses 3.76%, and room tax revenue just over 6%.

By May, deficit projections increased by $11.2 million as technology and vehicle costs grew, grants didn’t come in, and the city absorbed program costs such as the city attorney’s wage theft program.

Homeless Response Unit Added

The expiration of federal safety grants means the city had to put 66 firefighter’s salaries into the general fund at a cost of about $11 million a year.

Dyer said the city has 375 firefighters, a 70-position increase from when he entered office.

Additionally, the expiration of similar federal police grants means the city’s general fund will absorb three positions, costing about $395,000.

The city also will create a new homeless response unit, comprised of one sergeant and five officers, bringing the total number of police officers to 935.

“That’s 97 officers added during my administration,” Dyer said.

City to Spend $140 Million on Road Repair

Continuing the theme of construction that he cited in his May 6 State of the City address, Dyer said the city has about 470 capital projects underway to the tune of more than $1 billion. Among the high-profile projects:

• $19 million 911 call center opening in November (already allocated)
• $20 million to help fund a new senior center at Blackstone and Holland avenues borrowed from future Community Development Block Grant money
• $14 million for a new fire station to open in July (already allocated)
• $21 million for the regional fire training center (already allocated)

On parks, Dyer said the 4-acre Dolores Huerta park at Milburn and Dakota avenues will be finished this upcoming fiscal year, as will the 10-acre Les Kimber Park in southwest Fresno.

The first phase of the 49-acre Southeast Fresno Sports Complex at California and Church avenues will begin this year, too.

He projects $49.1 million in Measure P sales tax dollars this coming budget year. Meanwhile, the city has about $67.8 million in unspent parks money from this year.

The city also has $74.8 million available for road maintenance and sidewalk repair from a bond approved by the city council in 2025. That funding will be combined with another $65.9 million by the end of 2026.

“That is more than $140 million being made available to improve our roads and sidewalks in the city of Fresno,” Dyer said. “More money than we have spent in decades and perhaps in our history.”

Other Notable Fresno Budget Adds

Notable programs being funded include:

• $1.5 million Eviction Protection Program funded through the local housing trust fund
• $1 million for residential infill programs. That includes $865,000 in unspent money from FY 2026
• $300,000 to Advance Peace funded through the city’s cannabis Community Benefit Fund (projected to bring in $3.3 million)
• $100,000 for special events including celebrations for the 250th Anniversary of the U.S.’s founding

Watch: Full Press Conference

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