City finance director outlines $1B budget, warns of long‑term pressure and cites franchise‑fee increase to help close gap

Vicky Van Beurren, director of finance for the City of Reno, gave a detailed briefing on the city’s budget outlook and the work underway to balance next year’s general fund. She said the city’s consolidated (sales) tax, property tax and franchise fees form roughly 70% of general‑fund revenue and that slower sales‑tax growth has removed tens of millions in compounding revenue over a multi‑year period. "When you lose those revenues in one year, you don't regrow them. You've lost that," she told the board, explaining the compounding effect of several years of below‑average growth.

Van Beurren said the city’s total budget for the current fiscal year is roughly $1 billion and the general fund is about $354 million. To close a projected gap during early budget work, council approved increasing the waste‑management franchise fee from 8% to 14%, a change the director estimated would add about $5 million in ongoing revenue and materially improve the multi‑year forecast. She also described zero‑based budgeting exercises and vacancy‑savings assumptions the city is using to find additional savings.

Van Beurren warned that even with those changes the city faces long‑term structural pressures and that council must weigh expense reductions, revenue choices or both. She noted the budget calendar: tentative documents are due to the state April 15, an updated overview to council is scheduled May 6 and the public hearing and adoption is May 20.

Board members asked clarifying questions about how sales‑tax and room‑tax flows are shared statewide, the impacts of COVID stimulus years on recent revenue baselines, and how franchise‑fees compare to neighboring jurisdictions; Van Beurren said Sparks raised its rate previously and bringing Reno’s rate in‑line addresses a real revenue opportunity.