Washoe County Commission Continues Negotiations With Employee
Association To Consider Salary Cost Reductions

Reno, Nevada. February 3, 2009. Washoe County's Board of County
Commissioners met today in closed session to consider the County's
largest employee association's offer to reduce hours and wages of their
members by 2.5% to help meet the challenge of a worsening economy.

The Washoe County Employee Association (WECA), which represents
approximately 1,800 of the county's 3,000 employees, voted to support a
2.5% reduction in hours and wages for its members through December 2009
with nearly 80% of the votes cast in favor. In addition to the wage
reduction, the vote also included approval to continue no cost-of-living
adjustment for the coming fiscal year, a concession the employee
association had made for the current fiscal year in recognition of the
current budget situation. County officials estimate such a measure
would save approximately $2 million in salary costs through December
2009 for this represented group only. Management employees will take
the same pay cuts as the WCEA.

After meeting in closed session to consider the WCEA's offer and to
work out various details, the County Commission reconvened in public
session to express its gratitude to the WCEA leadership and members, and
directed the item be continued to February 10th allowing county staff
time to continue negotiations with the WCEA to finalize concessions.

At the request of the Legislature's Assembly Government Affairs
Committee, County Manager Katy Simon presented information about the
County's budget situation to that committee this morning. Specifically,
she stated that Washoe County has reduced its expenditures by a total of
$64 million over the past three years in response to ever-increasing
economic downturns, that 80% of the county's largest employee
association voted to take a voluntary wage reduction, that almost 10% of
the workforce is vacant, and that the potential budget shortfall for the
2009/10 fiscal year is projected to be anywhere from $31.5 million to
$47.1 million, depending upon how deeply the economy declines. Sales
tax and property tax revenues comprise about 87% of Washoe County's
total revenues. Sales tax revenues have seen unprecedented decreases in
28 of the last 29 months, and property tax revenues are beginning to be
impacted due to home foreclosures and property devaluations.

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