City of Reno Budget Woes

To bring Reno's spending into balance with dwindling income, City Manager Charles McNeely is implementing an immediate $7.7 million cut in expenditures, as authorized by the Reno City Council at its December 3 regular meeting. These reductions include a further 2% cut in all departments, deferred funding for the street program, cut backs in part-time staff, freezes on filling vacant positions, and reductions in purchases of supplies and services. So far this year, $23.5 million has been trimmed from the $189 million general fund.

Reno's city budget troubles began with declining revenue from tourism and gambling. Money derived from the gaming tables and slots has fallen every month for over a year, including a 20 percent drop in September compared to a year ago. Throw in the dearth of dollars from developer and building fees, a nationwide economic crisis, and the result is a Reno City Council scrambling to make ends meet while trying to maintain a decent level of city services.

Another $3.3 million in savings is being sought. The Council, considering other cuts before resorting to layoffs, directed City Manager McNeely to meet with city employee unions to discuss options such as unpaid furloughs and reductions in overtime in the Police and Fire Departments. Councilwoman Jessica Sferrazza pointed out that the city spent $12 million in overtime during the 2007-2008 fiscal year. Dealing with money issues will continue at a budget workshop scheduled for Wednesday, December 10, at 10 a.m. in the Reno City Council chambers.

Sources: Personal attendance at the December 3 Reno City Council meeting, City of Reno press release, Reno Gazette-Journal.

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