As Economy Tanks, Reno City Council Keeps on Cutting the Budget

After months of steadily trimming its fiscal year 2008 / 2009 budget, the Reno City Council approved another $3.3 million cut at its meeting on January 28. Under this "severe" scenario, the Reno City Council, City Attorney, City Manager, and the rest of the senior management team will take voluntary 3.5% pay reductions. Other city employees are being asked to absorb a 2.1% salary reduction across the board, or agree to other concessions that would result in equal savings. With this request, the City Council is following its stated desire to institute cuts in a way that treats everyone in a fair and equitable manner. City Manager Charles McNeely said they have no where else to go for additional budget reductions. "We're down to having those discussions about people," he said.

To make this happen, employee bargaining units (unions) will have to agree. At this point, the Reno Fire Department Administrative Association and Local 39 have made the asked for concession. The remaining unions are in the process of having their members vote on the measure. The city manager's office reported having some 20 recent discussions with union representatives, with only the IAFF (representing Reno firefighters) being unresponsive so far ("stonewalling" according to Mayor Bob Cashell). If an agreement with the IAFF is not reached in two weeks, 12 firefighter positions will be cut and a fire station will be closed. If agreements with the other bargaining units don't materialize, 36 full time positions could be eliminated. Savings already booked by employees taking voluntary unpaid furloughs will be credited to the total needed to achieve the cost cuts.

Unfortunately, there is a "most severe" scenario ready to be implemented should the downward slide continue. This constitutes planning for a $13.3 million revenue shortfall. To survive at this level, all city departments would be cut another 10%, 90 fire and 79 police positions would be eliminated, numerous other employees would be let go, and non-essential services would be curtailed or discontinued. So far, we're not here, but just in case, the City Council approved these recommendations from the City Manager's office.

Source: Personal attendance at the January 28 Reno City Council meeting, City of Reno press release.

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