After finalizing and approving a $1.03 billion budget for fiscal year 2025-26, the City of Reno will be making some difficult changes.

As we'd previously reported, the city had already defunded about 20 vacant or unfulfilled job positions, in efforts to save the city around $16 million.

According to City Manager Jackie Bryant, the city is continuing to hold positions vacant, and have implemented a 5% cut to all services and supplies budgets, among other cost-saving measures.

"The City of Reno is facing serious financial challenges due to slowing revenue growth at the state and local levels and rising operating costs. Through Council leadership, we addressed a $25 million gap in the FY26 General Fund budget through vacancy holds, one-time savings, and operational efficiencies," says Bryant. "However, we now face a similar $25 million shortfall in the FY27 General Fund budget due to the same challenges we faced in building the FY26 General Fund budget. Delaying action would risk greater impacts to essential services, including public safety, later this fiscal year."

Bryant says that a reduction in the workforce is a necessary part of the solution.

A total of eight employees have been identified for potential layoffs - no public safety-related roles have been affected. The city will not identify the individuals, out of respect for their privacy.

The City Manager emphasizes that the decision isn't a reflection of individual performance, but with 78% of the city's General Fund dedicated to salaries and benefits, staff reductions are unavoidable.

Verbal notifications were given to the eight employees on Monday, July 7. The Reno City Council will consider a resolution on July 23 that would authorize the City Manager to implement the layoffs.

If that gets approved, the final day of employment for the eight affected staffers would be September 4.

In the meantime, beginning on July 7, the affected employees were offered the opportunity to take administrative leave with full pay and benefits until September 4, to give the eight people support while they look for new jobs.