Reno City Council & Redevelopment Agency Board
Tuesday, May 20, 2014
What Happened
Reno City Council and Redevelopment Agency Board adopted the fiscal year 2014-15 budget and related financial measures at a May 20 meeting with approximately 20 action items.
Key Decisions
APPROVED — Fiscal year 2014-15 city budget of $161 million — 5-1 vote — Sets spending authority and tax rates for the city for the next year.
APPROVED — Downtown Reno Assessment District rate adjustment to $1.52 million — Unanimous — Reduces property assessment rate slightly while accounting for increased district value.
APPROVED — Redevelopment Agency budgets for RDA 1 and RDA 2 — Unanimous — Allocates resources for downtown redevelopment projects.
CONTINUED — Two additional firefighter positions — Deferred — Councilman Dorch questioned whether required board approval was obtained before including positions in budget; staff said they can remove positions if directed.
Debated But Not Resolved
Fire service delivery model — Councilman Dorch proposed a two-person medical/rescue unit at closed fire stations costing $410,000-$450,000 versus hiring two additional firefighters. Fire Chief Hernandez opposed outsourcing to private ambulance company and cited a staffing crisis with 35 pink slips coming July 1. No decision made.
$1.2 million in new ongoing spending — Financial Advisory Board chair opposed adding new permanent expenses when city faces a projected deficit in FY16. Council approved budget anyway. FAB concerns go unresolved.
$850,000 annual payment to Nevada Land LLC — Councilwoman objected that the company owes approximately $600,000 in unpaid property taxes yet continues receiving general fund payments for fire station relocation debt. Council approved payment but concern remains unaddressed.
OPEB and workers compensation liability — FAB noted budget does not address long-term liabilities repeatedly raised in monthly reviews. Not resolved.
What to Watch
$161,000,000 — Fiscal year 2014-15 city budget — General fund and all city funds.
$850,000 — Annual payment to Nevada Land LLC for fire station relocation debt — General fund and Redevelopment Agency.
$7,500,000 — RTC payment — Included in final budget (funding source not specified).
$1,520,000 — Downtown Reno Assessment District allocation — Property tax assessments on downtown properties.
Firefighter positions decision — Council will determine whether to keep two additional firefighters in the budget. Fire Chief emphasizes staffing shortage; Councilman Dorch pushes for cheaper contracted medical services. Decision deferred to next meeting.
Two-person rescue unit proposal — If Fire Chief and council pursue this option, it will require contract negotiations and could redirect funds from new firefighter positions.
Nevada Land LLC property tax non-payment — Company owes $600,000+ to city, county, and school district while receiving $850,000 annually from city. Council's next steps unclear.
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