News - March 23, 2025 - by Ray Hagar

Local governments in the Truckee Meadows are facing serious budget shortfalls and it's "time to have a conversation" about increasing taxes, Washoe County Commission Chair Alexis Hill said on Nevada Newsmakers recently.

"With our expenses outpacing our revenues, we're in some trouble," Hill told host Sam Shad.

"Realistically, we're just not keeping up with inflationary numbers with the growth that we're experiencing," she added.

Washoe County is projected to have a $27-million deficit for fiscal year 2026, according to a recent budget report given to commissioners.

The City of Reno projects a $24-million shortfall for fiscal 2026.

Sparks Mayor Ed Lawson said in his State of the City address recently that the "Rail City" was facing a $12-million deficit for the coming fiscal year.

"What local governments need to do is look at any taxing authority that they may have," Hill said. "The county commission has opportunities, very few. But the Legislature has given us opportunities and given us some taxing authority."

Retirement deals for past employees and competitive pay for current employees can be pricey, she said.

"We are all experiencing our revenues not meeting our expenses because  the PERS (Public Employees Retirement System) that we need to pay out for our employees, and then, having to pay our employees the appropriate amount of money to live in Northern Nevada, which is, as we've discussed, quite expensive," she said.

Two taxes Hill mentioned for hikes are the vehicle-registration tax and sales tax.

  "So it would be a penny (1 cent) per $100 value (of the vehicle) that they estimated it would be about a $21 million-revenue source for the county," she said about the vehicle registration tax.

  "Additionally, there's sales tax," Hill continued. "There may be an opportunity for the county to enact a small sales-tax increase."

  Nevada has one of the highest sales-tax rates in the nation and Washoe County has the second-highest sales-tax rate in the state.

  Nevada has a base state sales-tax rate of 6.85 percent. However, Clark County's overall sales-tax rate is 8.375 percent and Washoe's is 8.265 percent.

  "I'm not excited about enacting additional taxes for our communities, but I also think we need to be realistic and pay for what we need to pay for," Hill said.

  She stressed that Washoe County's government has been a good guardian of taxpayers' money and that she does not want to lay off county employees.

  Lawson said Sparks would consider layoffs while Reno's plans reportedly remain unclear.

  "At Washoe County, we've been incredibly conservative," Hill said. "And we have been great stewards of the taxpayer money, but we don't want to lay people off. We want to continue to provide services.

  "So I think that we have to use the tools in our toolbox," Hill added about potential taxes. "And the Legislature has given us those two tools and just figuring out how we can enact those taxes and also be accountable to the community is huge."

  Hill did not rule out looking at property taxes, she said, to help make them more equitable and also provide more revenue for the county. Of course, Hill noted, Washoe County would need the Legislature's authority to tinker with property taxes.

  After looking at tax increases that are under its authority, Washoe County should "go back to the Legislature (in 2027) and see if there's other ways that we can lighten the burden (of Washoe's revenue deficit)," Hill said.

  "Because to me, we all know where the wealth in America is. It's in property," Hill said. "It's having a realistic conversation about property tax. And if we did that, perhaps we could reduce all these other taxes that to me are not fair."

  No vote of confidence for county manager

  In light of recent controversies, Hill was asked if she had full faith in County Manager Eric Brown.

  She did not answer in the affirmative.

  "I think that we are continuing to work through some of these issues, these management issues that we've been seeing," she said. "So, we're trying to see the next steps and what that looks like."

  Hill was asked about a recent RGJ investigation showing that Behzad Zamanian, Washoe County's information technology chief, works at county offices less than five days a month.

  Zamanian, who earns $240,000 annually, has a primary residence in Southern California, although Brown said he also rents a home in Sparks.

  Brown defended Zamanian's remote working, telling the RGJ he is very good at his job.

  "I was quoted in the newspaper (RGJ) saying it's concerning, and it is," Hill said about Zamanian working remotely. "I want to see people who make large amounts of money stay here in the county, spend their money in the county."

  For much of his employment until recently, taxpayers have also paid for Zamanian's travel expenses, according to the RGJ.

  The county is investigating the arrangement, Hill said.

  "Commissioner (Clara) Andriola, at our last meeting, asked for an investigation to see what this employee's contract says and whether it's being fulfilled -- and also other employees at Washoe County and, whether they're working out-of-state and what that policy looks like."

  Commissioners didn't have enough information on Zamanian's residency when he was hired, Hill said.

  "When that employee was appointed by the board, there was no information on the staff report that the employee worked remotely," Hill said. "We changed that and we said we want to see that any appointments coming to the board have that information.

  "But we also have to look to our county manager, and it's his job to manage the day-to-day at the county," Hill said.

  "We are a strong-manager form of government," Hill said. "And so, it's a fun balance of figuring out how to put the right policy in place, but also understand that the county commission doesn't manage the county every day."