Fernley council passes 2025–26 budget after city manager offers conditional resignation amid allegations

The Fernley City Council voted unanimously to approve the city’s fiscal year 2025–26 budget on May 20, after a legal recess during which outside counsel prepared a separation agreement and City Manager Ben Marshant offered to resign conditionally.

Councilman Ryan Hannon moved to adopt the budget as presented and the motion passed 5–0. Council members carried out the vote after the council recessed so attorneys could finalize an agreement with Marshant; council leaders said the budget must be submitted by the Nevada Revised Statutes June 1 deadline.

The vote followed more than two hours of council debate and public comment focused on one contested line item: funding for the city manager position. Councilman Albert Torres explained his motion to withhold funding as an effort to protect staff, citing a pattern of alleged short tenures and "insubordination" and describing confidential employee complaints that he said required investigation. "I made the mayor aware of several instances where staff had been directly told to not put an item onto the agenda so that council could not hear certain items," Torres said during his remarks.

Marshant denied the allegations and said he had not been provided with specific complaints to address. He defended his record in economic development and city operations and told the council he would "tender my resignation on condition that this city council approves this budget including the position of city manager" so the city could move forward. Marshant also said he would honor a six‑month severance per his contract if a separation occurred.

Several council members urged procedural caution. Mayor Neil McIntyre defended use of his veto power in earlier proceedings and said he weighed available evaluations before acting, while Councilman Hannon and others urged councilors to pair criticism with documented, actionable feedback rather than broad character attacks. "Leaders lift people up," Hannon said, calling for constructive criticism and noting areas where he said Marshant had improved operations.

Public comment was sharply divided. Some residents and business owners urged the council to pass the budget immediately and address personnel issues separately; others recounted prior news accounts and other concerns about Marshant’s past roles. Deputy City Manager Lydia Altech spoke in support of Marshant’s work on business outreach and local economic initiatives.

Council members agreed to reconvene after outside counsel prepared a separation agreement; a motion to continue the meeting past 9 p.m. passed unanimously and, once the agreement was ready, councilors voted to approve the budget with the understanding the separation agreement would be signed.

The council then opened a general public forum, noted the next meeting date in early June and adjourned. The council’s action submitted the city’s budget to the state on time and resolved the immediate procedural impasse; the underlying personnel allegations were left to be addressed through the separation agreement and any subsequent personnel procedures or investigations.