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Reno projects $25 million gap for 2026 budget; managers propose one‑time fixes and staffing freezes
Summary
City finance officials told Reno City Council a $25 million shortfall surfaced during 2026 budget building. Staff proposed using one‑time funds, cutting capital and operating spending and freezing 20 vacant positions; council approved a third‑quarter augmentation.
Reno finance officials reported a narrowing but still significant budget gap for the fiscal 2026 budget, and the City Council approved a routine third‑quarter augmentation to add previously authorized grants and other technical adjustments to the current year. Finance Director Vicki Bamguren told council on April 9 that the city now estimates an $8.6 million revenue shortfall for the current year but also roughly $10 million in expenditure savings, producing a modest positive variance for fiscal 2025. For 2026, she said final property tax numbers reduced an earlier estimate and pushed the projected build gap to roughly $25 million.
The shortfall, Bamguren said, stems primarily from weaker-than-expected consolidated taxes, franchise fees and some permit revenues — trends she tied to slower consumer spending — while expenditures have been trimmed by hiring slowdowns and operating controls. She told council the manager’s office plans to recommend using about $8 million in one‑time funds, deferring some capital projects and cutting operating expenses to close most of the gap, plus freezing about 20 currently vacant positions to capture an additional $3.2 million in savings.
City Manager Jackie Bryant and several council members pressed staff on how the proposed freezes and cuts would affect constituent services and boards and commissions. Council members asked for a clearer list of the exact cuts they would be asked to approve at the next budget workshop; Bamguren said staff will return with a detailed list at the May 5 workshop. Council unanimously approved the third‑quarter augmentation, a housekeeping item that adds grants and reimbursements and aligns budgeted pass‑throughs with actual receipts.
Bamguren and the manager said the city will continue looking for one‑time offsets while seeking structural fixes for future years; they warned more adjustments could be needed if the economy weakens further. Council members urged staff to preserve essential services and senior programming where possible and to return with a prioritized list of cuts and alternatives at the next scheduled workshop. The council voted unanimously to approve the augmentation motion presented at the meeting.
