Spokane Valley City Council Meeting - November 5, 2025

The Spokane Valley City Council met on November 5, 2025 at 5:00 PM at City Hall. The meeting included action on a property tax ordinance, a divided vote on the 2026 Tourism Promotion Area (TPA) budget, and discussions on the city's legal newspaper, a lodging tax advisory committee request for an ice rink project, and allocation of excess fund balance. Public comments touched on election results and the legal newspaper decision. Councilmember Wick was excused.

Consent Calendar

• Roll call: Present – Mayor Haley, Deputy Mayor Hattenberg, Councilmembers Merkel, Higgins, Patton, Yeager. Councilmember Wick excused. Agenda approved unanimously.

Public Comments & Testimony

• First General Public Comment: An unidentified speaker praised the election results, stating that voters rejected a "misinformation campaign" and reaffirmed trust in "steady, accountable leadership." The speaker provided statistics: primary results – Ben Wick 67%, Pam Haley 55%, Laura Patton 62%; approximately 92,625 votes counted with 22,000 remaining; turnout of 24.8%. The speaker concluded by thanking residents for voting and praised the city's leadership.
• Second General Public Comment: Mike Patton, a 48-year resident, spoke against switching the city's legal newspaper from the Valley News Herald to the Spokesman Review. He argued the Herald has local ties, noted the publisher is willing to reopen a valley office, and questioned the cost difference, citing a specific ad would have been $73 more in the Review. He urged the council to hold off and analyze further.

Action Items

• Ordinance 25-016 (First Read – Property Tax Levy): Finance Director Chelsie Walls presented the ordinance, levying regular property taxes for 2026. The levy does not include the 1% increase allowed by law (city has not taken it for 17 years). It includes estimated new construction of $200,000, bringing the total levy to approximately $14.3 million, representing 21% of general fund recurring revenues. Based on an estimated assessed value of $18.2 billion, the levy rate is about $0.79 per $1,000 of assessed value – nearly unchanged from 2025. The ordinance was advanced unanimously to a second reading scheduled for November 18.
• Motion Consideration: 2026 TPA Budget Proposal: Tourism and Marketing Manager Lesli Brassfield proposed four expenditures from the 2026 TPA budget of $1,775,000: (1) up to $30,000 for geolocation and visitor spending technology; (2) up to $700,000 for Spokane Sports for sports recruitment and marketing; (3) up to $875,000 for 116 West for destination marketing; and (4) $170,000 for an opportunity fund with TPA Commission administrative authority. Councilmember Merkel expressed support for all except the Spokane Sports portion, citing lack of common sense. The council voted separately: first, the motion for all except Spokane Sports passed unanimously (all in favor). Then, a vote on the Spokane Sports portion passed 6-1 (Merkel opposed). The total motion authorizing the city manager to execute the contracts was approved.

Discussion Items

• Admin Report: Private Development Report – Building Official Jenny Nickerson summarized the 2025 construction season. Highlights included newly opened businesses: Dave & Buster's, Land Rover dealership, Scale House Market, Sierra Trading Post, Play It Again Sports, and Swire Coca-Cola distribution expansion. Projects under construction: UPS site, Mirabu Place (300 units), Orchard Vista, McKinnon Place apartments. Planned projects: Saltese Creek (320 units), Mirabu Multifamily (5-story), Pappy's Landing (31 lots), and commercial projects like Honeywell Copperfield expansion and Avista Stadium concession stand repairs. Top five completed projects by valuation: Swire Coca-Cola ($15.4M), UPS conveyor system ($14.2M), Dave & Buster's ($7.5M), Mirabu Transit Center, and Scale House Market. Nickerson also showed a 10-year aerial comparison of the City Hall neighborhood.
• Admin Report: Legal Newspaper Discussion – City Attorney Kelly Konkright and City Clerk Marci Patterson presented options for the city's official legal newspaper. The current paper is the weekly Valley News Herald (print circulation ~650, plus online through Cheney Free Press). The Spokesman Review is a daily with ~40,000 readers, offering a contracted rate of $1.57 per line (discounts on repeat insertions) and no per-publication fees beyond the first affidavit. The Valley Herald charges $0.90 per line plus a $5 affidavit fee and $5 online fee per item, and has a weekly deadline requiring submissions by Tuesday for Friday publication. The Exchange (another weekly) did not provide a legal publication option. Staff recommended switching to the Spokesman Review for faster turnaround and broader circulation. Council member Merkel questioned the timing and advocated for keeping local business. Councilmember Higgins noted the circulation issue was long-standing and that the Exchange had been added previously. The council reached consensus to move forward with a resolution naming the Spokesman Review as the legal paper of record, with a January effective date. The matter will return as an action item.
• Admin Report: LTAC Application Request – City Manager John Hohman reported that the Lodging Tax Advisory Committee (LTAC), at its October 29 meeting, expressed strong interest in speeding up the proposed ice rink facility (Anovia Foundation project). The committee wants to consider an application to cover operational losses for the rink (projected $445,000 loss in year one, decreasing to ~$80,000 by year five) and to potentially contribute up to $2 million of the $3 million needed for infrastructure improvements (road access, sewer lift station). Hohman noted that the hoteliers are enthusiastic after the success of a recent cross-country event at the new course, which generated significant room nights. A special LTAC meeting is proposed for November 20 to receive applications from Anovia for operational loss reimbursement and from the city for infrastructure match. Councilmember Merkel expressed concerns about the unknown land lease terms and the potential for unbounded costs, urging caution. Other members, including Higgins, Yeager, and Patton, supported moving forward, emphasizing that the hoteliers (who generate the tax) want this and that it aligns with the city's economic development goals. Consensus was reached to proceed with the special meeting and application process.
• Admin Report: Fund 312 Discussion – Finance Director Chelsie Walls presented the annual allocation of excess fund balance from the general fund (above the 50% reserve policy) into capital reserve Fund 312. The total available is approximately $7.9 million, originating from 2023 actuals where sales taxes exceeded budget by $2M and interest income by $3.2M. The City Manager then proposed allocations based on finance committee discussions: $1,042,000 for pavement preservation (Fund 311); $1,750,000 for local access street program (Fund 101); $672,790 for Sullivan Road Interchange local match; $500,000 for Barker I-90 interchange planning; $150,000 for Plants Ferry Park improvements (county partnership); $550,000 for Balfour Park sports courts ($300K) and audio/lighting ($250K state match); $100,000 for Summerfield Park (no allocation, only concept); $200,000 for public safety campus study; $1,100,000 as match for potential ice rink infrastructure if LTAC recommends; $150,000 for Sullivan Park parking lot rehabilitation; and $500,000 reserve for the cross-country course. Councilmember Merkel agreed with pavement, local streets, public safety campus, and Balfour Park, but remained opposed to others. Deputy Mayor Hattenberg supported the full list. The council gave consensus to proceed with the allocation as presented, noting that the $5.6 million transfer will appear in the upcoming budget amendment and the 2026 budget document.

Key Outcomes

• Ordinance 25-016 (Property Tax Levy) advanced to second reading on November 18 with unanimous support.
• 2026 TPA Budget approved: (a) $30,000 for technology services; (b) $700,000 for Spokane Sports (passed 6-1); (c) $875,000 for 116 West; (d) $170,000 opportunity fund – all contracts authorized.
• Legal Newspaper: Consensus to bring forward a resolution in January naming the Spokesman Review as the official legal newspaper.
• LTAC Ice Rink Project: Consensus to hold a special LTAC meeting on November 20 to receive applications for operational loss coverage (from Anovia) and up to $2M infrastructure funding from the city.
• Fund 312 Allocations: Consensus to adopt the proposed allocation list totaling ~$7.9 million, with the formal budget amendment to be presented December 9.