UPDATE: 3:54 p.m.
RENO, Nev. (MyNews4.com & KRNV) -- A day-long hearing is just wrapping up in Washoe District Court. The Reno Fire Fighters Association is trying to block the lay-offs of 32 fire fighters due to the loss of a federal grant.
Fire fighters and City officials gave their sides on arguments that centered on the budget, the city's financial status, and the fire union contract.
The hearing began at 9 a.m. Tuesday with Union VP Seth Williams taking the stand. He testified he believed the City was violating the union contract and City Charter by going forward with the layoffs. It was his opinion the City had an obligation to fund public safety before funding other projects.
Other firefighters testified they believe the City's financial situation is better today than even a year ago; and is now choosing to fund other -- what they call -- discretionary projects.
Later in the day, City Manager Andrew Clinger and Finance Director Robert Chisel took the stand. Both explained while the City's financial picture has improved, Reno still faces significant fiscal challenges.
In May, the City sent 32 fire fighters lay off notices after the City lost a significant federal grant. Initially, the City stood to lose 50 fire fighters; but after the loss of the grant, the City found the funds to pay for 17 positions.
At this hour, the lawyers are arguing whether the court or an arbitrator has the authority to provide preliminary injunction relief to block the layoffs.
News 4 will continue coverage on this story throughout the evening.