Fresno city officials say that despite a \u201cchallenging\u201d budget year, they expect to pass a record-breaking $2.55 billion budget with relatively little \u201ctension.\u201d<\/p>\n
That\u2019s in part because Mayor Jerry Dyer has planned with councilmembers individually to discuss their priorities for the fiscal year 2027 budget.<\/p>\n
\u201cI\u2019ve already met with each of the council members individually, shared with them what\u2019s in this budget,\u201d Dyer said during a media budget presentation Wednesday. \u201cThere should be no surprise to them. I also have a pretty good feel in terms of what their needs were.\u201d<\/p>\n
There\u2019s likely less tension because about half of the Fresno City Council will leave the end of the year. Three council members \u2014 Council President Nelson Esparza and Miguel Arias and Annalisa Perea \u2014 are either terming out or pursuing higher office. A fourth, Mike Karbassi, is a frontrunner for a Board of Supervisor seat and could also vacate his seat.<\/p>\n
Though Dyer expects city revenues from property, sales and room taxes, as well as business license fees, to all increase by single-digit percentage points, \u201cthey\u2019re not trending upward at the same pace as our expenditures,\u201d he said.<\/p>\n
![\"Mayor](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/05\/EPZ_CITY_BUDGET_02.jpg\" "\\"EPZ_CITY_BUDGET_02.jpg\\"")
Mayor Jerry Dyer, far left, presents the Fresno City 2027 budget to the media during a press conference Wednesday, May 13, 2026 in Fresno. ERIC PAUL ZAMORA ezamora@fresnobee.com <\/p>\n
The city had an estimated $34.5 million deficit driven by a mix of inflation, contract obligations, labor agreements, facility leases, maintenance and software agreements. This is an increase of about $11 million that Dyer previously shared in a Feb. 26 mid-year budget review<\/a>.<\/p>\n To close the gap and balance the budget, Dyer said the city asked all departments to cut expenses by 5%.<\/p>\n \u201cThis was extremely difficult. It is was the third year in a row that we conducted this exercise,\u201d he said.<\/p>\n All departments, except for fire, will also be asked to hold a staffing vacancy or attrition rate of 6.18%.<\/p>\n Despite the tight budget year, Dyer stressed that there will be no staff layoffs and that \u201cessential services were not impacted.\u201d<\/p>\n Dyer will present the proposed budget to the council on Thursday and said he expects the budget to pass during the June 23 meeting.<\/p>\n \u2018Lack of tension\u2019 in budget process?<\/p>\n Esparza, who will term out at the end of the year, said in an interview with The Bee on Wednesday morning that though he hasn\u2019t yet seen the budget, he\u2019s \u201cfairly optimistic that the process will be somewhat smooth.\u201d<\/p>\n This is a far cry from previous years, such as in 2023, when some council members held a news conference to say Dyer\u2019s budget was \u201cdead on arrival\u201d<\/a> for not including enough to address the city\u2019s crumbling infrastructure.<\/p>\n Esparza said he will be looking closely at how the administration balanced the budget, particularly related to potential service impacts across the city. He\u2019ll be looking for any potential opportunities for additional infrastructure projects.<\/p>\n He said the council never takes the mayor\u2019s budget at \u201cface value\u201d and usually makes several changes. However, he credits the smoother budget process to Dyer\u2019s collaborative approach with the council.<\/p>\n \u201cIf there\u2019s a lack of tension, it\u2019s due to basic communication and willingness to collaborate,\u201d Esparza said.<\/p>\n Both Dyer and Esparza also credited the $100 million city street paving initiative, \u201cPave Now, Pay Later,\u201d<\/a> for alleviating a lot of the districts\u2019 needs that would have previously been requested as budget motions.<\/p>\n \u201cSurprisingly, most of the council members that I met with, we met, in my budget, almost every one of their needs \u2014 and part of it has to do with the fact that we have \u2018Pave More Now\u2019 money. … We have Measure P money,\u201d Dyer said. \u201cBut there are going to be other motions that they make.\u201d<\/p>\n Esparza said he expects outgoing councilmembers like himself to wrap up and wind down their ongoing initiatives. If outgoing councilmembers have pending to-dos by the end of their term, it will be incumbent upon their successors to finish them.<\/p>\n \u201cWhen it comes to City Hall, nearly anything can change,\u201d he said. \u201cPriorities change; elections have consequences.\u201d<\/p>\n What\u2019s in the budget?<\/p>\n Dyer highlighted several initiatives in his fiscal year 2027 budget, including:<\/p>\n $1 billion to support 470 major capital improvement projects, including a 911 communication center, a fire station, the regional fire training center, as well as a $42 million to support the city\u2019s first senior center$74.8 million in road maintenance and sidewalk repair under the Pave More Now initiative, Measure C and some state funding$2.1 million for council district infrastructure projects, in addition to $2.1 million that will carry over from FY2026$500,000 to increase trash removal and pressure washing in the Tower District and downtown$553,000 to plant 1,000 new trees, an initiative spearheaded by Councilmember Tyler Maxwell$300,000 for Advance Peace from the cannabis community benefit fund$225,000 for contracts to support spay and neuter for an estimate 1,800 cats and dogs, in addition to animal center services$100,000 to support various special events and the Historical Society as part of the county\u2019s 250th anniversary celebration<\/p>\n Dyer said that between fiscal years 2026 and 2027, the city has invested more than $140 million to improve the city\u2019s roads and sidewalks.<\/p>\n \u201cMore money than we have spent in decades, and perhaps in our history, to improve our roads and sidewalks in Fresno,\u201d he said.<\/p>\n The general fund will also absorb previously grant-funded positions in the police and fire departments as well as the City Attorney\u2019s office. It will also add a second Homeless Assistance Response Team<\/a> in the police department to respond to constituent complaints.<\/p>\n The city is also preparing to raise water and sewer rates for the first time in a decade later this year, Dyer told The Bee in February.<\/a> While he didn\u2019t have a timeline for when this could appear before the council, it could sometime after the budget process. Dyer said the city will make sure the rollout is gradual, methodical and communicated to residents in advance through public meetings.<\/p>\n \u201cI think you saw in the city of Clovis, they had a substantial increase this coming year, which sent some shock waves,<\/a> I think, throughout that community,\u201d Dyer said. \u201cWe want to avoid that, if we can.\u201d<\/p>\n This story was originally published May 13, 2026 at 2:47 PM.<\/p>\n Related Stories from Fresno Bee<\/p>\n![\"Mayor](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/05\/EPZ_CITY_BUDGET_04.jpg\" "\\"EPZ_CITY_BUDGET_04.jpg\\"")
Mayor Jerry Dyer presents the Fresno City 2027 budget to the media a during a press conference Wednesday, May 13, 2026 in Fresno. ERIC PAUL ZAMORA ezamora@fresnobee.com <\/p>\n![\"Fresno](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/05\/EPZ_CITY_BUDGET_06.jpg\" "\\"EPZ_CITY_BUDGET_06.jpg\\"")
Fresno City Manager Georgeanne White, left, listens as Mayor Jerry Dyer presents the Fresno City 2027 budget to the media during a press conference at Fresno City Hall Wednesday, May 13, 2026 in Fresno. ERIC PAUL ZAMORA ezamora@fresnobee.com <\/p>\n
![\"Profile](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/Melissa_Montalvo_Headshot.jpeg\")