The mayor was hoping for FPOA to agree to $4.2 million in concessions.
Members voted to concede $5.7 million, but with a contract extension, and that's something the city did not want.
The spending plan approved by council members last night totals nearly $233 million.
But city officials say now, they've got to make some adjustments.
As city council members were adopting the budget for the coming fiscal year, Jacky Parks and the Fresno Police Officers Association were voting on how to help city hall.
"They need money now. And that's what we're offering them. $5.7 million. Now."
These were the options for FPOA...
Either accept the mayor's request for $4.2 million "unconditionally," or approve an offer to the city of $5.7 million, but with a contract extension.
Members voted for the latter, but city manager Mark Scott says that would be too costly.
"We can't just do things that push the can down the road at this point. Fresno needs to fix its problem, and that's what we're trying to do."
So how does city hall proceed from this point?
Here's what officials are looking at: internal loans, employee attrition, and possible additions in sales tax revenue.
Scott stopped short of including layoffs among those options, but says, the budget has to balance somehow.
"There may be some other options that can tide us over, but long term, we've got to fix what's in our contracts that this community just can't afford."
The main source of contention in all this is the contract extension for FPOA.
City hall says that would cost an extra $10 million a year.
But FPOA says that wouldn't kick in until 2015.
"Either way, they're kicking the can down the road aren't they? I mean, if they take the money from us, they don't have to pay it back. They've got to wait 12 more months, 12 more months meaning 2015 to 2016."
City manager Mark Scott says another way for Fresno to be fiscally sustainable is with employee contracts. He says those need to be renegotiated...
That includes tweaking items like medical plans, and pension.
The city manager says budget alternatives will be provided to council members over the next month.