Reno City Council Guarantees No Layoffs, But...

Reno's negotiations with its employee unions have generated a tentative agreement designed to avoid layoffs. In brief, employees paid out of the general fund are being offered a guarantee of no layoffs during the next fiscal year in exchange for giving up raises and forgoing one payment to the city's self-funded health insurance plans. However, there is a caveat - the guarantee is good only if budget assumptions for next year pan out. The budget plan is based on no increase in property taxes, a 17.5% decrease in consolidated taxes, and a slight increase in franchise fees. The City Council has given bargaining units a deadline of June 24 to answer if layoffs are to be avoided on July 1.

Meanwhile, City Manager Donna Dreska is sending out layoff notices just in case, as authorized by the Reno City Council on June 1. Dreska said, "We have a legal and - just as important - a moral obligation to let employees know as soon as possible if they could be laid off. Even as we send these letters today, the City remains hopeful we will be able to rescind them as soon as we reach agreement with the remaining bargaining units. I'm optimistic that we'll be able to reach an agreement and keep everyone employed."

Update: Actually receiving layoff notices seems to have broken the impasse between the City of Reno and its firefighters. Following the City Council meeting on June 10, it was announced that an agreement had been reached wherein the firefighters union would relenquish pay raises during the 2009-2010 fiscal year in order to save 19 of their members' jobs and prevent the closure of the Somersett fire station. The agreement affects approximately 70 other employees who had also received notices. "It's great news that we're able to keep everyone employed and stations open," said Reno City Manager Donna Dreska.

Sources: City of Reno press releases, Reno Gazette-Journal.

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