Reno Mayor Bob Cashell said he hoped layoffs can be avoided as he delivered the State of the City address.

Cashell said the city will work with unions and bargaining units to attempt to spare city employees from being laid off amid the recession.

The mayor's speech was followed by public questions. One person wanted to know if the police and fire departments would be spared from the budget ax. Cashell said he hoped that would be the case, but said many departments will suffer.

According to information presented at the address, under a worst case scenario, the City of Reno will have to slash $13.5 million. The city reported it already cut nearly $27 million from February 2008 to December 2008.

Next week, city leaders will meet to discuss what tough decisions are in order if tax revenues continue to decline. Options include: mandatory furloughs, freezing additional positions, program cuts and reductions in force.