Fremont Faces Economic Headwinds In 2025/26 Budget, Prioritizes Essential Services

FREMONT, CA — Facing slowed revenue growth and economic uncertainty, the City of Fremont has unveiled its proposed Fiscal Year 2025/26 Operating Budget, outlining tough trade-offs and resource reallocation to maintain a balanced financial plan without dipping into emergency reserves.

The budget presentation to the City Council on May 13 spotlighted multiple economic pressures—sluggish development, high interest rates, and new federal tariffs on imports—that are collectively tightening the City’s financial outlook. In response, staff are recommending cost-saving measures to stay within projected revenues while upholding Fremont’s long-standing commitment to fiscal sustainability.

“Despite the challenges ahead, we’re continuing to prioritize the core services that matter most to our community—public safety, homelessness prevention, and environmental sustainability,” the City stated.

To balance the $3.77 million shortfall, the proposal suspends general fund transfers for pavement and median upkeep, tree trimming, and park capital replacement. However, residents will still see road maintenance through alternate funding sources, including State Gas Tax funds and County Measures BB and F. The budget also includes service enhancements such as expanded wildfire prevention efforts, more resources for the Animal Shelter, and increased support for homeless residents through shelter services and encampment cleanups.

The City is taking a cautious approach, maintaining $6.7 million in its Budget Uncertainty Reserve and preserving a 16.7-percent contingency fund—enough to cover two months of operations in case of disaster or unforeseen financial shocks.

While no compensation increases are proposed this cycle, all nine of the City's labor agreements are set to expire at the end of June 2025, potentially setting the stage for future negotiations that could further impact the budget.

Residents can learn more and weigh in during several upcoming meetings:

• May 27 at 6:30 p.m. – Town Hall at the Downtown Event Center, hosted by Mayor Raj Salwan
• June 3 at 7:00 p.m. – First City Council Budget Hearing
• June 10 at 7:00 p.m. – Final Budget Hearing and Vote

More information on the budget is available on the City of Fremont's website.