2026-10-07 - City Council (2)

[music] >> Hello and welcome to On the Agenda, the City of Reno's podcast that brings City Hall into your commute or walk around the block. From council decisions and community projects to the

programs and people who keep Reno moving, each episode is designed to take a closer look at what's happening across the Biggest Little City and what it all means for you. I'm AJ from the City of

Reno's communications team and joining me, as always, City Manager Jackie Bryant. Hello, Reno City Manager Jackie Bryant. >> Hi, AJ. >> How are you today? >> I'm great, thank you. >> Do you Are you

enjoying the fall? >> Finally. >> I was down by Riverside earlier by the >> Yeah, it's beautiful down there. >> Gorgeous. You see fall colors. >> The colors are everywhere right now. The leaves are

falling and >> Very autumnal. >> the weather's about to turn a little chilly. It's nice. >> Today, we're talking about Jackie's all-time favorite topic, the state of the city's budget. >> This is

true. >> At the October 7th Reno City Council meeting, Council heard an agenda item on budget adjustments including uh potentially restoring uh funding for six previously frozen police officer

positions using increased consolidated tax revenue. So, what does What does this all mean? Uh What do these adjustments tell us about the city's finances? How does the city decide um when it can fund

additional positions? And what budget pressures remain? We are answering all those questions and more today. But first, Jackie has a look at a few uh highlights from the October 7th Reno City Council

meeting. >> Absolutely. Council accepted a grant for 35,670 dollars from the Department of Veterans Affairs to continue the Fit but Not Forgotten and Military to the Mountains Veterans programs at the

City of Reno. We love the grant and really appreciate it and the impact it will have for veterans in our area. Council also approved the abandonment of 1600 Newport Lane to facilitate the development

of two new single-family homes. And Council upheld the recommendation from the Historic Resources Commission to adopt a historic landmark overlay zoning district for the original Reno Arch Exposition

Arch located on Lake Street and the Arch will turn 100 on October 23rd. >> 100 and we've had a few iterations and the historic one is now historic. It's really historic. >> historic. Many thanks to

the Historic Resources Commission for the work they've done getting us here. >> Awesome. Thank you, Jackie. If you want more information on these items or to just watch old council meetings, you can

go to reno.gov/meetings. Now on to today's topic. The city adopts a budget each year, but the work doesn't stop there. As revenues, expenses, and project timelines change, finance monitors those

changes and brings adjustments to council. Here to explain what the latest adjustments mean and to get her title back as most interviewed guest on our show, it is the city's director of finance, Vicki

Van Buren, ladies and gentlemen. Applause. >> We should get you >> Thank you for having me. [laughter] >> We're going to get you a tiara or sash or something. >> Members only jacket or something.

Yeah. >> [laughter] >> And Vicki, how excited are you to have that title back? >> I'm very excited. I didn't realize I was still in the running, so it's very exciting. >> You're competing with fire.

>> Yeah. >> [laughter] >> People want to know about money and fire. What is happening with it? So speaking of, Vicki, give it to us straight. How would you describe the state of the city's budget

right now? >> Um well, you know, the city adopted its current year budget, fiscal year 27. It starts July 1, goes to June 30 at this next year. We adopt that in May and we continually monitor the

revenues and the expenditures throughout the year. It's not a once and done. We adopt it and then we come back to it. This is all day, every day. This is what we do. Um right now, consumer confidence

is at a near 12-year low, but consumer spending is up and that directly translates to sales tax revenues for us. Um despite higher oil prices and tariffs and added pressure from those areas, the

economy remains solid. >> So, when you joined us in July 2025, we discussed the budget challenges in holding positions vacant. What has changed since then? What challenges are still with us? >> You

know, we do still have some challenges. Um revenue growth slowed as we all know. That was the really big problem that we faced balancing the budget a couple years ago. You know, costs continue to

increase. When revenues growth slows, it doesn't directly impact costs cuz costs are based on inflationary factors. So, if your revenue growth slow or even decline sometimes, inflationary costs still

go up year over year. And so, that's a real problem. Slow revenue growth is challenging over time because of this. You not only lose out on the current revenue in those years where we were balancing

the budget, um but also future growth potential. And that's what I'm talking about when we talk about building the budgets as we continue forward. Has longer-term effects than just that one single

year, and it's highly dependent on economic conditions. >> So, we just want to also I'm going to go off script here for a second. We want to let people know they keep talking about a a 24 million

deficit. That's not a thing. That's not a thing that we have anymore. That is We can't have that cuz we are We have to legally have a balanced >> Well, we always adopt a balanced budget. >> Right. >>

So, we start with a roll up. And at one point, yes, we had a roll up in the one year of $24 million deficit we were projecting, and we had to figure out how to balance that. >> And that's what >> We

adopt a balanced budget, and then we move forward. We are having some of the same challenges now continuing on with that slow revenue growth because we've lost compounding growth over those years of

revenues. So, although expenditures have been controlled, that money's lost in the past. And so, we continue to bridge that gap. But we're not facing that now at this point now. >> that's in the past.

We are not talking about that anymore. >> No, please don't. >> a thing. >> [laughter] >> IT CAME UP YESTERDAY, TOO. >> Cuz it's not a thing. It's not a problem. Uh the budget item heard on October 7th

identified $600,000 in additional consolidated tax revenue to fund six previously frozen police officer positions. So, what all changed? What How did this come about? >> Yeah, so consolidated tax or C

tax, it's one of the key revenue sources supporting the general fund. It's actually the largest source in there and it's mostly sales tax. And as I mentioned earlier, consumer spending is up. And it's

been consistently up for a little while now. So, we're seeing a good look at what our economy is looking like. That's why it looks very solid right now. The report that you saw recognized $600,000 in

increased C tax revenue resulting from the strong consumer spending that we're seeing. And this isn't just one time that we're seeing. It's We're seeing a consistent pattern enough that the revenue

will support the recommendation to reinstate those mid-year police officers. >> So, Vicki, it's really interesting. Sometimes people ask me when we're talking about budget of well, the number changes.

And I have to explain that yes, while our expenses are pretty much fixed, we can cut positions, but once they're in a budget, we we really know what they're going to be like. It's those revenues that

come in that you are constantly monitoring on really a daily, weekly, and monthly basis. And so, can you talk a little bit about how C tax money actually comes to the city of Reno and what you're

looking for and how you're trending? >> Sure, absolutely. You know, C tax, basically sales tax, comes to the city on a monthly basis and it's distributed through the state. It's a statewide

calculation. We get a portion of it. Comes to us. We track it on our side based on historical what we've seen over the years and over the months because spending in a particular month doesn't trend

the same as another month. For example, February is a usually a light month because it's cold out. December's a higher month of sales tax because of holidays. And so, we track all of that and we can

see consistent patterns over time and spending. When you go through a recession, kind of all that goes out the window or we have slowdowns where people anticipate they think a recession's going to

come. >> For COVID? >> Yeah, it impacts it immediately. And what happens to us at the city, if you have an immediate impact on the economy, it impacts impacts us immediately here at the city as the

largest revenue source. >> our revenues come in through C-tax, they come in on a 2-month delay. >> Correct. >> Yes. So, we really don't have a lot of time to course correct in those situations. We

don't We have a very short runway is another way of saying that. >> Absolutely. And so, it's it's very volatile. So, it's really critical that we are staying on staying on top of everything all the

time, the economy, watching things, talking to other agencies, and controlling expenditures as well. >> I will say I'm glad to do my part to bring up the consumer spending. I've been spending so much

on I'm helping, guys. >> Go, AJ. Awesome. That's the way I feel when I go, [laughter] you know, drop a little bit in the casinos. I'm like, I knew I was going to lose it. I'm just contributing to the

tax base. >> You're helping the economy. You're an economist. So, the agenda item also included about 7.1 million in general fund budget additions. So, why does the city adjust its budget during the

year and what makes up this amount? >> And and I just want to say, like, danger Will Robinson, cuz it really wasn't 7.1 million dollars in additions, right? >> Well, it's not additions. The >> That's

an important note to the people it's not additions. >> It was 7.1 million augmenting, meaning adding to the current year budget, but most of that was prior year. About 5.8 million of that was carried

forward from last year. So, that was money that was already anticipated to be spent last year, was budgeted last year. We have funds for it. It just the contracts were not complete or those services

were not received, and so we have to roll that forward to the current year in order to pay it this year. So, it's not new money. It's money we already had, but it overlaps fiscal years. >> Oh, okay.

So, it looks like it >> but it's not. >> It could look like it, and one could look at that and go, "Oh, they have $7 million more. What's happening?" No. >> No. >> No. What Vicki budgeted was $600,000

more beginning in January because she's seeing that trend of C tax be a little higher than we forecasted. So, there's a little wiggle room there, but it's not $7 million. Most of that money was

already in an account, and it just got pushed to the next year because we have to balance every single year. >> Right. >> So, we don't get to kind of say, "Oh, wait a minute. We'll pull it forward

later." We had to pull it forward now. >> Oh, that's wow. That's great. >> [laughter] >> So interesting accounting, right? >> I just don't want to I don't want anybody to get too excited around here,

you know? >> It's not Yeah. Uh there were also substantial amounts carried forward in the street and sewer funds. If that money wasn't spent last year, does that mean it's available for other city

needs or is that also part of that $7 million number? That's not >> Most of that is just carried forward as well, if not all of it. Um you know, projects in the street and sewer funds, those are large

projects. You're talking neighborhood streets, you're talking sewer projects, infrastructure. Those aren't projects that are going to be done in 1 year, but those projects are budgeted in the year

where we have the funds. So, those funds exist in that year, but if the projects themselves aren't complete and overlap years, again, we have to carry those funds forward and pay for them as those

projects continue on and get completed. >> I every time I talk to you, I'm like, you know what? I'm going to be so much better about my budget. I don't know if I am, but I think I am. Uh so, does

having a revenue available to restore funding for some positions mean we're past budget challenges, or are there still some some pressure areas that residents should understand? >> No, I mean, we

still have some pressure areas. Like I talked about, this wasn't a one-year blip in a year where it happens. There's going to be some continuing challenges from it. Um The recommendation to restore

the funding for the six positions is supported by the revenue identified in the report, and it's part of assessing the the overall city's budget outlook. And right now, you know, the key general fund

revenues are influenced by economic activity, which is what we're looking at, and other factors outside the city's direct control. You know, finance continuously monitors actual revenues and

expenditures, and we adjust when the forecast change. And And in this case, what we're seeing supports doing that, and we're already planning and moving that forward into next year's planning for the

fiscal year 28 budget as well. >> Speaking of planning, um as the city begins preparing its next budgets, what will finance be focused on to help keep city services financially sustainable? >> Um

yeah, well, I mean, I think we work budget all year long. >> We don't stop. >> Continuously going. >> But I would I would say, you know, the real crunch for next year, which I call fiscal year which

is fiscal year 28, starting in July, next July, um will be October, November, this time frame where we're really getting those first draft look at numbers, where we think things are going to be based

on current staffing levels, and everything that we have now. Um and that'll lead to budget adoption in May, and then the budget would start July 1. And you know, we really focus on sustaining city

operations, currently what what services are being provided now, what council's goals are, and then looking at those updated revenue forecast, and anticipating what those service levels are going to

be needed in the city in the future. >> And we might also, for example, it we we have some levers if you start to see C-tax ticking down. So, for example, we might hold positions longer in order to

accrue some salary savings. We might uh pull back a little bit on our services and supplies budget. We do zero-based budgeting here, so we build a new budget every single year based on the needs of

the department. Yes. >> Oh, wow. >> We we don't just automatically assume that you're going to need what you got last year. You got to come in, make a case, and say it again. And really demonstrate

that. But, if Vicky and her team identify, and their radar is wonderful, by the way, they can sense within weeks something's up, >> No. >> then we can manage what we can for the short term on the cost

side. >> Mhm. >> So, they're constantly looking at it, constantly updating, and really watching it like a hawk so that we can make those adjustments if we need to. This time, we were able to adjust

upwards >> I love that. >> $600,000 to benefit the Reno Police Department and our community. >> That's so good. Vicky, thank you so much for being on the podcast again. And I think, yeah, you are now

in the lead, so >> Thank you. Thank you for having me. I think I need to come back again so that I can really take over. >> Yeah, let's yeah, let's give you a a feature, a weekly feature. Uh before we

go, is there anything you want people to know about? Maybe uh your portion of the website that has so many tools and financial tools people can look into or check out? >> of tools on there. We have

the city citywide checkbook that's under the finance department section. We also have the budget book. The budget book is fully interactive, so you can click into any department you want to and and

drill down into any of the graphs and charts and things to get more information. So, >> And I love this. Our IT department was great in helping us get this going along with finance. And how long has

it been live? Maybe 6 months? >> The checkbooks? Probably a year now. >> Has it been a whole year? Time flies. >> Mhm. >> Yeah. So, it's great. So, everything's fully transparent. >> It is. And I love

that you highlight things aren't one and done. >> Yeah. No, [laughter] it can't be. Uh Jackie, before we go, what can listeners look forward to at the next council meeting? >> Well, council will

potentially approve a contract for field lighting replacements at Idlewild Park and this is a project that the residents are very excited about. Council will also potentially approve a lease amendment

extending the term for the Sky Tavern [music] Ski Program out to 99 years. We want to make sure that that is available for all the kiddos to learn how to ski on for generations to come. There will

also be a few public hearings including one for the Reno's neon line district pedestrian walkways and another for the Hillside four square church master plan and zoning map amendment. And finally,

council will consider ordinance introduction for the Talus Valley special assessment district. It's going to be a big agenda next week. >> October 20th >> 23rd, not next week. Next council meeting,

yeah. >> It is next week by the time this airs. >> Yeah, that's probably right. >> [laughter] >> Uh if you want to find more on council agendas, staff reports, or meeting videos, check out

reno.gov/meetings and that's it for this episode of On the Agenda. Be sure to follow the City of Reno on social media and subscribe wherever you get your podcasts.