An officer shot and killed Casimero Casillas inside his home after following him there for a seat belt violation.
RELATED: Family wins civil lawsuit accusing Fresno police officer of 'excessive force'
In a 2019 wrongful death trial, a jury awarded the family more than $5 million, including attorney's fees, but the city appealed the decision.
City leaders have since reached an agreement with the family and attorney Bill Schmidt in which the city will pay slightly less to settle the case.
Taxpayers will have to cover the first $3 million of the settlement.