Spokane Valley City Council Regular Meeting – October 21, 2025

The Spokane Valley City Council held a regular meeting on Tuesday, October 21, 2025, at 6:00 p.m. at City Hall. The meeting included a recognition award, two public hearings, a motion to fund additional police officers via Proposition 1, administrative reports on the 2025 budget amendment, 2026 property tax levy, and a discussion on the Spokane Safe & Healthy Task Force. Public comments addressed cybersecurity, off-leash dog hours, budget concerns, and council behavior.

Special Guests & Presentations

• You Rock Recognition Award: Presented to Peggy Doering, Executive Director of Valley Fest, for her 36 years of community leadership. Valley Fest reported 38,000 attendees in 2025 and operates multiple programs including a parade, pancake breakfast, car show, and a Miss Spokane Valley pageant. Council members praised her mentorship and the event’s positive impact.

Public Comments & Testimony

• Ben Lund criticized Councilmember Merkel for disclosing cybersecurity details and called for professionalism. He referenced an upcoming trial for Councilmember Merkel and claimed council behavior costs were nearing $800,000.
• Carmen Marshall requested an off-leash dog time from 6 a.m. to 9 a.m. at Terrace View Park, citing a successful informal group that had met for 11 years without incidents.
• Debbie Schrock thanked the council for implementing monthly connection meetings with residents.
• Michael questioned the vehicle tab fee and asked for the cost of an investigation involving Councilmember Yeager.
• A resident asked about fund numbering and suggested the DC trip be treated as a wish-list item.
• Mike Dolan expressed frustration over delayed police hiring, accusing the council of characterizing themselves as heroes despite underfunding.
• Another resident supported the Prop 1 implementation, noting the tax will partially be paid by non-residents.

Discussion Items

1. 2026 Budget – Second Public Hearing

Finance Director Chelsie Walls presented the 2026 preliminary budget:

• Total appropriations: $148.4 million (general fund: $70.6 million; other funds: $77.8 million).
• General fund recurring revenues: $68.6 million (up 7% due to new public safety sales tax of $2.6 million).
• Property taxes: $4.3 million (no 1% increase included). Sales tax: $33.5 million (estimated 1.6% increase).
• Public safety accounts for 65% of general fund recurring expenditures; costs increased nearly 12%.
• Ending fund balance projected at $42.3 million (61.76% of recurring expenditures).
• Recurring revenues exceed recurring expenditures by $119,000; total expenditures exceed revenues by $1.5 million (planned reserve use).
• Councilmember Merkel proposed moving several line items (DC trip, contract attorneys, code enforcement abatement, economic development services) to non-recurring to free up funds for police officers. Councilmember Wick and Yeager defended these as essential investments with strong returns (e.g., DC trip yielded $25–26 million in grants). The city manager noted the fund balance cap and that the budget does not include a property tax increase. The public hearing will continue with a third hearing on December 9.

2. Proposition 1 Implementation – Police Staffing

Deputy City Manager Eric Lamb and Police Chief Dave Ellis presented a plan to use Proposition 1 (a 0.1% sales tax approved by voters) to fund:

• 10 dedicated positions (patrol, traffic, SVIU property/drug crimes, and a shared major crimes detective).
• 1 shared position (50% valley, 50% unincorporated).
• Funding an existing behavioral health deputy (previously grant-funded).
• Converting a deputy to the regional RAVEN unit.
• Vehicles and equipment. Total: 12 new public safety personnel (11 positions + 1 shared) in 2026, adding to 10 positions from 2025. This leaves 8 remaining positions from the matrix study (including 3 school resource officers).
• Councilmember Merkel argued the city could fund more officers immediately from the 62% fund balance, while others noted recruitment challenges and the need for fiscal balance. The motion passed, though Councilmember Merkel later claimed he did not vote, creating a discrepancy. The mayor had declared the motion passed unanimously by voice vote.

3. 2025 Budget Amendment

Chelsie Walls proposed the second 2025 budget amendment:

• Revenue decreases of $13.3 million; expenditure decreases of $23.4 million across 14 funds.
• Key changes: $1.4 million transfer for precinct remodel; $2.1 million transfer for City Hall settlement; $500,000 REET increase; $30.1 million decrease in railroad grade separation project due to timing shifts (Pines Road underpass moved to 2026). Council consensus to proceed to a public hearing on October 28.

4. Proposed Ordinance Adopting 2026 Property Taxes

Walls explained Washington State property tax limits (1% increase cap) and that the city’s portion is ~7.5% of total property taxes. The proposed levy is $14.3 million on $18.2 billion assessed value, yielding a rate of ~79 cents per $1,000 (unchanged from 2025). No 1% increase is included. Council gave consensus to move forward, with first reading on November 5.

5. Spokane Safe & Healthy Task Force Discussion

City Manager John Holman provided background: The task force aims to develop an action plan for regional public safety, behavioral health, and system coordination by May 1, 2026. Spokane Valley had withdrawn participation in May 2025 after the City of Spokane demanded $57 million in utility taxes. The task force has continued without Spokane Valley; conveners (chambers, Avista) have urged the city to rejoin. Council discussed concerns about Spokane’s reliability as a partner but agreed to re-engage, with Mayor Haley and Councilmember Patton on the planning team, and Deputy City Manager Lamb on the task force. No commitment to endorsing any final plan. Consensus to participate.

Key Outcomes

• Agenda approved unanimously.
• Prop 1 motion passed (voice vote; Councilmember Merkel later said he did not vote, creating a discrepancy).
• 2025 Budget Amendment – consensus to proceed to public hearing on October 28.
• 2026 Property Tax Ordinance – consensus to bring back for first reading on November 5.
• Safe & Healthy Task Force – consensus to rejoin the planning team and appoint a representative.
• Council comments: Members addressed misinformation, fiscal discipline, and regional cooperation. City Manager announced a new sculpture donation from the Wolf family for Mirabeau Point Park.