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Wednesday, February 25, 2026 at 5:13 PM

Lilly resigns, attorneys negotiate details

Lilly resigns, attorneys negotiate details
Paul Lilly was sworn in to serve as city administrator for the city of Reno in August. Now, his attorney and legal counsel for the city of Reno are negotiating terms of the release of his contract.

Author: Photo by Jolee Skinner

Just over six months since the city of Reno swore in former Brown County Judge Paul Lilly as its city administrator and director of public safety, the Reno City Council deliberated acceptance of Lilly’s letter of resignation during a Feb. 23 city council meeting.

However, upon the advice of legal counsel, the council’s attorney and Lilly’s must now negotiate the terms of Lilly’s release following a lengthy executive session to discuss his separation. Council returned to open session and voted 5-0 in favor of having attorneys for both sides to try to reach a compromise, according to Reno council member Shelli Swift.

Lilly, who has a doctorate in forensic psychology and criminology came to the city following several years during which the city had no administrator other than the mayor. During the July 14, 2025, council meeting Mayor Pro Tem Jennifer Vogle made a motion to select Lilly for the position, with Deputy Mayor Pro Tem Ed Braun and council member Edward Payne backing her vote. Council members Shelli Swift and Kevin Vandenberg voted against the measure.

Despite his statement early on that “My job is to carry out your goals, desires and objectives. I will strive every single day to make you proud,” Lilly has been under public scrutiny since assuming the position.

Last fall, Lilly entered into the lease of a fleet of new patrol vehicles to the tune of $150,000 per fiscal year, which left some council members questioning the allocation of the funds for such a contract.

“We barely found the money to be able to pay your salary through the end of this fiscal year,” council member Kevin Vandenberg said during an August city council meeting. “Based on what I saw in the budget, I don’t know if it’s a realistic idea.”

That was only the beginning of Lilly’s examination by city officials and residents alike. Shortly after, he went under the microscope again when Mayor Hector Bas put Lilly on paid administrative leave after a series of odd behaviors without consulting the other board members. The topic arose after Lilly appeared disoriented Sept. 12. — stumbling and with slurred speech — creating speculation he may have been under the influence of an unknown substance. Lilly denied those claims and provided the council with medical documentation showing what really happened that day.

“Yes, I did stumble that day, yes, my speech was slurred but what we didn’t realize was that I had an uncontrolled ulcer that was bleeding into my stomach and in the end I had to have a blood transfusion with the volume of almost half my blood volume had to be replaced,” Lilly explained.

During that meeting, other issues arose that left attendees in an uproar, which didn’t ease tensions in the city when the following two council meetings were cancelled with no explanation.

Things didn’t stop there. Lilly then initiated and launched “Operation Safe Streets” — an initiative to increase patrols in residential neighborhoods and along corridors and highways “in direct response to citizen concerns.” That included an annexation of portions of State Highway 199 between Azle and Springtown and on Farm-to-Market Road 730 North between Azle and even across the Wise County line.

Throughout the process, citizen complaints continued to arise regarding the amount of money being spent when existing Reno roads already have serious infrastructure problems and residents were seeing constant water leaks. While roads have improved, Lilly’s public view still had some work to be done.

Most recently, there was discussion on how to appropriately use the remaining $225,000 fire service funds allocated to Parker County Emergency Services District No. 1. During the Feb. 9 council meeting, Lilly raised concerns about whether continuing to pay PCESD1 from the city’s general fund would amount to residents “double paying” for the same service since voters had already approved a separate 10-cent ESD property tax.

To that, PCESD1 Fire Chief Stephen Watson read a statement in response.

“Section 503, the terms of the agreement, which states if on the Nov. 4, 2025, uniform election date voters affirm to join the district ESD, this agreement shall automatically terminate Sept. 30, 2026. If on uniform election date, voters decline to join the district, this agreement shall renew each year at a total compensation of 10 cents per $100 of taxable value of the city, subject to approval by the parties,” Watson read. “This contract specifically contemplated what was to happen if the election passed or was affirmed by the voters to join the district, and that is what we have been following.”

The citizens of Reno must now wait to see if attorneys for the city and Lilly can bring about a resolution to a contractual dispute and end Lilly’s association with the city.

In other action, also following the executive session, the council voted unanimously to appoint former Interim Police Chief Edgar Gonzalez to fill that position for a second time.

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