City Manager Georgeanne White speaks to councilmembers during the Feb. 13 City Council meeting. Her staff are projecting a city deficit of at least $20 million, based on latest projections this month. Diego Vargas | Fresnoland

What's at stake:

The Fresno City Council tried to digest a looming deficit, projected to be about $20 million. They also unanimously passed an ordinance that would fine neighboring jurisdictions for taking unhoused people to Fresno — absent evidence being made public that it’s actually a serious issue.

The City Attorney’s Office may not have the funds to keep Fresno’s Eviction Protection Program running until June. 

The program got a $1.5 million budget allocation using carryover funds from the City Attorney’s Office. However, City Attorney Andrew Janz told councilmembers Thursday that the need for more funds is dire. 

Janz said his office needs another $500,000 to keep the program operating for the rest of the fiscal year, which ends June 30. Councilmember Tyler Maxwell asked Janz why his office ran through the Eviction Protection Program’s budget so soon. 

“A big part of our caseload were those illegal evictions during COVID — those state mandates have been lifted and I think that’s why we anticipated a smaller caseload,” Maxwell said. “Can you explain what’s going on here?”

“We are as much confused as you are,” Janz said. “We thought that given the uptrend in the economy, and you know it’s the housing market — we’re not sure why the cases haven’t turned down.” 

Janz said the need is still there and his office would be supportive of the council allocating more funds for the program to keep it afloat. 

“We are literally keeping people from becoming homeless,” Janz added. 

It’s unclear if the city will be able to keep the Eviction Protection Program alive until June, but city staff was requested to come back with options by the next council meeting on Feb. 27. The success of that process will have major implications for the future of the program. 

The topic came up during the City Council’s midyear budget review. Dozens of city department heads and their subordinates joined the Fresno City Council inside council chambers Thursday, flipping through a sobering slide presentation on current budget and revenue projections.  

City officials predict at least a $20 million budget deficit, based on latest projections this month. 

City Manager Georgeanne White made note during the council meeting that the deficit projection does not account for city employee raises, so it’s very likely the $20 million figure is an undercount. 

Much of that has to do with sales tax not meeting projections. Last summer, city staff projected about $147.7 million in sales tax revenue for the 2025 budget. As of February, staff decreased that sales tax revenue projection by about $4.5 million. 

In 2024, the city pulled in about $146 million in sales tax. If by the end of the current fiscal year, the city’s sales tax revenue does not reach at least that same amount, it would be the first time in at least three years the city brought in less annual sales tax revenue than the year prior, according to the slide presentation from budget staff.

The city’s cannabis tax was also a sore subject, as current projections were about $4 million less than projections built into the city’s 2025 budget. However, the city’s projected property tax revenue is a little higher than staff initially estimated. 

Councilmember Mike Karbassi listens to staff during the Feb. 13 City Council meeting. He is a co-sponsor of the new ordinance that would fine neighboring cities for taking unhoused people to Fresno, with some exceptions. Diego Vargas | Fresnoland

City officials pass ordinance that would fine neighboring cities

Without any in-depth public dialogue, the Fresno City Council unanimously approved an ordinance that would fine cities for taking unhoused people to Fresno

However, no city official has shared with the public any evidence that is actually happening. Additionally, local law enforcement confirmed to Fresnoland that they have no evidence cities outside Fresno are taking unhoused people to within city limits and dropping them off there. 

During the Thursday meeting, Councilmember Miguel Arias asked a few brief questions about how the ordinance would be enforced. 

“This is like every other law, just like the anti-camping ordinance,” said Janz, Fresno’s city attorney. “This body passes it. It goes into effect. It’s up to (Fresno police), it’s up to city manager, at their discretion, how to enforce it.”

Janz added that his office would only deal with prosecuting individuals under the ordinance, if a citation or arrest of an individual was made first. The ordinance is one of several that the City Council has passed in recent years, expanding the power of the City Attorney’s office.

Arias also asked Council President Mike Karbassi if Fresno officials have notified any neighboring cities about the ordinance, and about penalizing public employees for taking unhoused people to Fresno. 

Karbassi said Clovis officials were already notified, but said he will work with Janz to communicate the ordinance to other jurisdictions. 

“As far as the concerns we had in Pinedale and other areas, I wasn’t aware of it being anyone in Fresno County,” Karbassi said. “My bigger concern is outside the county, but it’s a fair point. We should be communicating this new policy. We will do that.” 

Councilmember Nick Richardson listens to staff during the Feb. 13 City Council meeting. Richardson will redirect $10,000 out of his own paycheck to the PARCS department to cover the cost of subsequent swimming lessons. Diego Vargas | Fresnoland

Richardson cuts his own pay to cover kids’ swimming lessons 

Back in January, some councilmembers criticized a proposed fee increase for swim lessons provided by the city’s PARCS department. While kids between 3 and 17 get their first swimming lesson free of charge, subsequent classes cost $50.

City staff recommended doubling that cost to $100, but PARCS Director Aaron Aguirre said he’d come back with a revised proposal following pushback from councilmembers. 

On Thursday, newly-elected Councilmmeber Nick Richardson said he will redirect some of his paycheck to the PARCS department to cover the cost of subsequent swimming lessons. 

“In an effort to save people some money here, I’ve talked to the city to take $10,000 directly out of my pay, to be transferred directly to the PARCS department to pay for 100 follow-up swim classes for the slower learners like myself,” Richardson said at the council meeting Thursday. 

Fresno City Councilmembers currently make about $80,000 a year. Richardson said his experiences as a water polo coach and lifeguard — and also a slow learner in the water when he was a kid — made him sympathize with children who may need more instruction than just one swimming lesson. 

“We can step up and show the kids that the world may be 75% water, but it’s 100% conquerable if you just keep swimming,” Richardson said.

Richardson added that he is beginning to work with the Clovis Unified School District to extend the city’s swimming lessons program into northeast Fresno. 

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Omar S. Rashad is the investigative reporter and assistant editor at Fresnoland.