Sparks budget workshop lays out layoffs, vacancy freezes and council direction to increase franchise fee

City Manager Dion Malvin and Chief Financial Officer Jeff Kronk presented a draft fiscal‑year 2026 budget at a Sparks City Council workshop on April 7 that relies on a mix of payroll reductions, vacancy savings and service‑and‑supply cuts to reduce an initially projected deficit.

Kronk said staff began with an $18.2 million preliminary shortfall in December and, after a series of proposed reductions and assumptions—$12.2 million from payroll reductions (vacancy freezes, a voluntary separation program and layoffs), a $1.6 million vacancy assumption, $4.5 million in reduced services and supplies and other measures—had reduced the gap to an estimated $400,000 deficit for FY26. He warned, however, that the city remains exposed to several major risks including the state’s consolidated tax (CTAC) distributions, continuing increases in pension and benefit costs, and the results of multiple collective‑bargaining negotiations not yet settled.

The staff plan presented concrete department‑level reductions. Assistant City Manager Lisonbee McCormick summarized proposed cuts among smaller central departments: three frozen positions in the city attorney’s office, three layoffs and two frozen positions in finance, a layoff and a frozen position in human resources, and three frozen positions in IT (a roughly $351,000 reduction). Community Services Director Michael Drinkwater and parks staff showed program cuts and frozen positions in Parks & Recreation that would reduce program capacity and managerial oversight.

Police Chief Chris Crawford said his department would not be proposing layoffs but would permanently freeze 15 officer positions and several civilian posts; he warned the staffing losses equate to removing two officers from each patrol shift and would increase response times and use of online reporting for lower‑priority calls. Chief Crawford also said he would defer several vehicle replacements and a planned training facility. Chief Walt White presented proposed fire department reductions that include freezing two firefighter vacancies, two prevention positions and one logistics/administrative position, for total proposed fire reductions of about $2.82 million and a roughly 9.7% cut to the department budget; he warned of increased risk of engine “brownouts,” longer response times and diminished inspection capacity.

Public comment included Sparks Fire Captain Nick Corona urging council to retain five probationary firefighters and describing risks to Station 6 operations if the recruits are not retained; Liz Corona asked the council to preserve funding for police and fire. The council heard that staff sought to balance cuts across departments and that some positions could be reallocated or reclassified, but that a number of layoffs would be needed in the presented plan.

On possible revenue options, staff described a proposed waste‑management franchise fee increase. Kronk said a 5‑percentage‑point increase in the current 8% franchise fee would generate about $1.5 million annually; he estimated each percentage point of franchise fee produces about $300,000 per year. Staff also discussed, and council asked staff to prepare options for, a first‑responder/EMS response fee and higher fire prevention fees (a nexus study was under way and could support roughly $500,000 annually if adopted). Councilmember discussion focused on the tradeoff between modest fee increases and service reductions; council members expressed concern for low‑income and senior residents but said they wanted to avoid large layoffs in public safety.

At the end of the workshop, council voted unanimously on a staff motion to change budgeting assumptions: revise the payroll‑cost target in policy from 78% to 75%, adopt an annual fee‑increase approach for city fees, increase the waste‑management franchise fee assumption from the staff‑recommended 5% up to a 10% scenario for staff modeling, and adopt a $250,000 annual contribution to the road improvement fund as a new policy. Council did not finalize a final budget at the workshop; staff will return with a proposed final budget for adoption in May and a budget ordinance in late May/early June.