Special Reno City Council Meeting - Budget Workshop
Wednesday, March 5, 2025
What Happened
The Reno City Council held a special budget workshop on March 5, 2025, examining a $24 million general fund deficit for fiscal year 2026 and debating how to close a remaining $3.7 million gap after initial cost-cutting measures.
Key Decisions
APPROVED — FY26 budget development to proceed with staff recommendations due May 5; public hearing and adoption May 21 — unanimous — Council sets timeline for closing $24 million structural deficit
APPROVED — Sales tax revenue projection of 2% growth (not historical 4% average) — consensus — Conservative approach allows flexibility to adjust in December 2026 if trends improve
APPROVED — Fund balance use of $2.8 million to help bridge gap, reducing reserves to approximately 12.5% — implicit approval — Dips below preferred 15% target but necessary given deficit size
Debated But Not Resolved
Budget gap closure — Council members disagreed on whether to cut salaries/benefits versus other measures; some emphasized public safety prioritization while others warned structural deficit requires eventual salary reductions — Staff to present specific position freeze recommendations by April 9
Police and fire staffing — Council committed to maintaining/growing public safety despite PERS rate increases (33.5% to 36.75% for regular employees; 50% to 58.75% for fire/police) and fewer officers than 2008 despite population growth — Details deferred to dedicated public safety budget section
Neighborhood Advisory Board funding — One council member opposed cutting NABs (total cost $88,000 annually including staff overtime), citing community engagement; another prioritized police officers over boards — Staff to explore technology solutions and analyze frequency alternatives
Land use appeal fee increase ($13 to $500) — Two council members opposed citing equity and access concerns for residents challenging development; one supported cost recovery — Staff to provide detailed cost analysis before May 5 recommendations
Sealing of Records fee increase ($100 to $150) — Council Member Ree hesitated, noting barrier for people seeking employment after criminal record sealing — Deferred pending further consideration
RDA fund eligibility — Multiple council members confused about what projects qualify for Redevelopment Agency funds and what restrictions apply — Staff committed to special training session next week to clarify allowable capital improvements
What to Watch
$8,000,000 — One-time funds to cover collective bargaining cost increases in current year — Prior year savings
$5,000,000 — ARPA funds to supplement general fund revenue loss — Federal American Rescue Plan Act
$3,000,000 — Departmental 5% service and supply budget cuts — General fund reduction
$3,400,000 — Annual maintenance deferrals (parks, buildings, fire apparatus) — Capital budget reduction
$4,000,000 — Fleet replacement funding reduction — Capital/operating budget
$1,000,000 — Workers compensation annual increase — General fund
April 9 meeting — Staff returns with detailed analysis of specific positions recommended for freeze and how remaining $3.7 million gap plus FLSA overtime costs will be closed; this determines actual service cuts
May 5 full workshop — City Manager presents final budget recommendations and capital projects; Council makes decisions on property tax rate, appeal fees, and other revenue measures before May 21 adoption
Sewer rate discussion March 26 — Separate agenda item will present sewer rate study with decision points; impacts utility costs independently of general fund crisis
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