Sparks council raises waste-management franchise fee to 18% and adopts FY26 budget, 5-year CIP

Sparks City Council on Monday, May 12, 2025, voted 3-2 to adopt the city manager's final budget direction for fiscal year 2026, including a raise of the Waste Management franchise fee from 8% to 18% of gross receipts and formal approval of the five‑year capital improvement plan.

The increase, which council estimated would generate about $1.5 million a year, was the central element of "Option 2" presented by Jeff Cronk, the city's chief financial officer. Cronk told the council he considered the meeting a key decision point: "I am Jeff Cronk, your chief financial officer for the record. I am here today to present what I hope is decision day," he said during the presentation.

Option 2 directs the roughly $1.5 million in new ongoing revenue to three priorities: hire three police officers (about $800,000 of the new revenue), restore two firefighter positions previously listed for layoff (part of the $800,000), and increase the city's transfer to the capital improvement program by $200,000; the remaining funds were earmarked to eliminate the budget shortfall identified under a smaller package. Cronk said the larger increase would fully eliminate the tentative $500,000 shortfall carried under the smaller option.

Why it matters: the council's action changes a major recurring franchise fee that affects residential and commercial customers and funds public safety and capital projects at a time when the city is facing uncertain sales-tax (C‑tax) receipts and open labor negotiations. Cronk warned the council that C‑tax distributions appeared inconsistent while the state migrates to a new software system and that collective-bargaining settlements not yet concluded could materially change future deficits.

Council debate and context

The budget workshop series began in December and the city filed a tentative budget April 15 as required by state law; the city must file a final budget by June 1. Cronk said the council had two formal options: Option 1, which included a 5-percentage-point increase in the Waste Management fee, left a small deficit; Option 2 increased the fee by 10 percentage points more (for a total increase from 8% to 18%) and showed a balanced fiscal 2026 budget while modestly increasing CIP funding.

Council members questioned the long-term effect of using fee increases for ongoing personnel costs and emphasized continuing uncertainty: Cronk told the council that while distributions from the state were being received, "the amount of data that we've been getting has been confusing and inconsistent," making year‑to‑year comparisons difficult. He also noted that most bargaining agreements were still open and the fiscal impact of those settlements was not included in the budget figures before the council.

Opponents at the dais argued the increase would be a heavy burden on residents and small businesses already facing rising utility and service costs; supporters said the increase was one of the few revenue tools available locally, and argued the increase would stabilize core services. The final vote was 3 in favor, 2 opposed; Council Members Abbott and Anderson voted no. Council Members Bybee, Vanderwell and Rodriguez voted yes.

Votes at a glance (May 12, 2025)

- Fiscal 2026 budget direction (Option 2) including Waste Management franchise fee increase from 8% to 18% and the five-year CIP: Motion moved by Member Bybee; seconded by Member Rodriguez. Vote: 3-2 (yes: Bybee, Vanderwell, Rodriguez; no: Abbott, Anderson). Outcome: approved.

- Green waste disposal grant (AC-6112) — $29,000 Nevada Fire Chiefs Association grant, city match $0, to place eight dumpsters for wildfire fuels reduction: Motion moved by Member Rodriguez; second Member Abbott. Vote: unanimous. Outcome: approved.

- Regional road impact fee offset agreement (AC-6109) with 5 Ridges Development Company for improvements on Highland Ranch Parkway; estimated $6,726,290 in RIF waivers: Motion moved by Member Rodriguez; second Member Vanderwell. Vote: unanimous. Outcome: approved.

- Reimbursement to Reno for Sparks' share of construction contract for Aeration Tank 1A rehabilitation at the Truckee Meadows Water Reclamation Facility — total contract not to exceed $4,915,625; Sparks' share $1,542,031.56: Motion moved by Member Abbott; second Member Vanderwell. Vote: unanimous. Outcome: approved.

- Agreement AC-6108 with Carollo Engineers (engineering services during construction for Aeration Tank 1A) — not to exceed $522,017; Sparks' share $163,756.73: Motion moved by Member Vanderwell; second Member Rodriguez. Vote: unanimous. Outcome: approved.

- Collective bargaining agreement AC-6114 with Sparks Police Supervisory Protective Association (sergeants), July 1, 2025'June 30, 2027 — year‑1 cost $146,925; year‑2 $197,969: Motion moved by Member Vanderwell; second Member Rodriguez. Vote: unanimous. Outcome: approved.

- Collective bargaining agreement AC-6113 with Sparks Police Supervisory Protective Association (lieutenants), July 1, 2025'June 30, 2027 — year‑1 cost $63,887; year‑2 $94,609: Motion moved by Member Abbott; second Member Rodriguez. Vote: unanimous. Outcome: approved.

What the council approved and next steps

Council approved the manager's recommended five‑year capital improvement plan and directed staff to prepare the final budget documents for the May 27 public hearing on the tentative budget and for final adoption before the June 1 filing deadline. Cronk cautioned that fiscal 2027 would still face pressures: with the one‑time uses and the remaining structural items the city expects to start fiscal 2027 with a multi‑million dollar shortfall unless further adjustments or new revenue sources are adopted.

Ending

Council members and staff said they will continue work on fee and revenue options and on negotiations with employee groups. The council's May 27 meeting will include the required public hearing on the tentative budget and return the final budget for approval before the statutory filing date.