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Record of Proceedings

Spokane Valley City Council Winter Workshop - February 24, 2026

City Council & Commissions — Tuesday, February 24, 2026
BodySpokane Valley, Washington
SessionCity Council & Commissions
DateTuesday, February 24, 2026
StatusFILED
Video Record
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Transcript — Verbatim
0:06

Recording in progress.

0:15

Mayor Padden, it's 8 30 when you're ready to begin.

0:26

All right.

0:27

I think we can bring this meeting to order.

0:30

This is a special meeting of Tuesday, February 24th, 2026.

0:37

And it is a workshop.

0:40

So I do want to first of all welcome everyone who is here and appreciate all the work that's being done, has been done to make the presentations.

1:12

And so we don't need to, you know, we need to state what we think and and where we're at.

1:18

This is kind of what staff is looking for.

1:21

And uh, but there will be no votes on anything.

1:23

So with that, I think we can um bring it to order, and if you'll stand, we'll do the Pledge of Allegiance.

1:35

Allegiance to the flag of the United States of America.

1:42

Underground liberty.

1:54

And if the clerk will call the roll.

1:57

Certainly.

1:58

Mayor Patton?

1:59

Here.

1:59

Deputy Mayor Hattenberg.

2:01

Here.

2:01

Councilmember Kelly.

2:03

Present.

2:03

Councilmember Yeager?

2:05

Councilmember Haley?

2:06

Here.

2:07

Councilmember Wick?

2:08

Here.

2:08

And Councilmember Merkel?

2:10

Here.

2:10

Thank you.

2:13

All right.

2:15

We will begin the well, they're all non-action items.

2:18

And the first thing is an introduction by uh City Manager John Holman and Deputy Manager Eric Lamb.

2:26

Okay.

2:26

Thank you, Mayor Hay.

2:29

Padding.

2:30

Oh, after four years, I'm having a hard time keeping it straight.

2:35

I apologize.

2:36

Mayor Paddon, Councilmembers.

2:39

John Holman, City Manager.

2:43

Thank you for being here today.

2:45

This is our informal winter workshop.

2:49

Typically we try to have different topics on today's agenda that are pertinent to the development of the 2027 budget.

3:00

And so you might think it's early to start talking about these things.

3:03

It is not.

3:22

Predominantly you've asked for a review of the sheriff's contract for law enforcement.

3:29

So that's uh we'll take the majority of today's work items.

3:35

And then there's a variety of other topics on here as well.

3:39

Uh but we will begin with talking about your vision statement and your adopted council goals, because that's where we really need to start today.

3:50

So there'll be actually two sessions on that.

3:52

One to introduce the existing council goals for um for you to uh refresh your memory and then later on actually we'll conclude the day with some suggestions of modifying those and um talking about how those should actually be developed moving forward.

4:13

Um Eric, did you have anything you wanted to say before we dive in?

4:17

You've covered it.

4:18

Okay.

4:19

So we'll uh try to get through the the majority of the council items or or the discussion items this morning.

4:26

We'll break for lunch at about uh noon to about 12 45 and then come back.

4:32

Um mayor, you may want to call for a break somewhere around you know 9 30 10-ish or something like that, um, depending on how you think things are going, and we'll have a break in the afternoon as well.

4:46

All right, any questions before we dive in?

4:50

Seeing none, let's go to your packet item number two, which is the council vision and budget priorities.

5:01

So I do want to spend a few minutes talking about the vision statement.

5:05

So a couple of years ago, Councilmember Wick and Councilmember Yeager were uh new to the uh council.

Discussion Breakdown — Share of Meeting
Public Safety████████████████████████████████████████████44%
Budget Equity Analysis███████████████████19%
Economic Development██████6%
Community Engagement█████5%
City Events█████5%
Procedural████4%
Personnel Matters████4%
Public Engagement███3%
Public Records███3%
Summary of Proceedings

Spokane Valley City Council Winter Workshop - February 24, 2026

The Spokane Valley City Council held a special workshop on Tuesday, February 24, 2026, from 8:30 a.m. to approximately 4:00 p.m. The meeting was a non-action workshop focused on preparing for the 2027 budget, with in-depth discussions on the law enforcement interlocal agreement, other public safety contracts, a proposed public safety coordinator position, business license fees, city events, and the council's vision for future budget goals. No formal votes were taken.

Discussion Items

City Vision and Budget Priorities

  • City Manager John Hohman presented the council's existing vision statement: "A city of opportunities where people thrive and businesses prosper." The council expressed general consensus to retain this vision. Councilmembers highlighted the importance of economic development to keep taxes low, manage growth, and preserve community character. Councilmember Wick noted state mandates on residential density may require closer attention to housing development.

Law Enforcement Interlocal Agreement – Deep Dive

  • Deputy City Manager Erik Lamb, along with Chief Dave Ellis and analyst Morgan Koudelka, provided a comprehensive overview of the contract with the Spokane County Sheriff's Office. The contract covers dedicated and shared law enforcement services, costing approximately $38 million in 2026 (56% of the general fund). Key points:
    • 56% of the general fund is dedicated to law enforcement.
    • The current agreement runs through December 31, 2027, with a two-year termination notice.
    • 23 new officers have been added in the last two years, increasing staffing to 111 dedicated officers.
    • The city purchased 73 vehicles directly since 2022, with a five-year replacement cycle.
    • Average annual cost growth over 20 years is 4.5%; recent budget jumps are partly due to new officers and conservative estimates.
    • Indirect costs (countywide and sheriff's office) account for about 12% of total costs but are a concern for cost control.
    • Councilmembers expressed frustration with the county's delays in providing financial reconciliations and estimates, especially due to the county's new financial software. City staff noted challenges in getting timely, accurate data.
    • Current issues include: helicopter cost allocation, training center charges, new records management system (RMS) cost of approximately $1.7 million, real-time crime center funding, and insurance costs rising 50% in 2026.
    • Councilmember Merkel emphasized the need for better cost control and clearer contract terms to reduce administrative burden. Councilmember Yeager noted the importance of timing in contract provisions.

Status Update – Other Public Safety Contracts

  • Deputy Manager Lamb reviewed eight other public safety contracts (detention, district court, public defender, prosecutor, pretrial services, emergency management, SCRAPS, etc.). Most reconciliations are significantly behind (2021-2023). Communication and timely information from the county have been major challenges. Specific issues:
    • Public defender costs may increase due to new state caseload standards.
    • Emergency management lost Spokane's contribution ($192,000); county funded the gap for 2026 only.
    • SCRAPS has a fixed-cost agreement with a 20-year term; a new director is in place.
    • Council debated the need for more staff to manage these contracts.

Public Safety Coordinator Position

  • City Manager Hohman and Deputy Manager Lamb proposed creating a public safety coordinator (director-level) position to oversee all public safety contracts, improve financial management, and free up staff capacity. Estimated first-year cost: ~$266,000 (including vehicle). The position was not funded in 2025 or 2026.
  • Council opinions were split: Councilmember Merkel opposed, preferring to fix contract terms first; Councilmembers Kelly and Wick expressed caution; Councilmembers Yeager, Haley, and Mayor Padden were supportive, citing the growing complexity and the need for dedicated oversight.
  • No decision was reached; the item will return for further discussion.

Business License Fee Increase

  • City Services Administrator Gloria Mantz presented a proposal to increase the business license fee from $25 to $60 in 2026, $75 in 2027, and $95 in 2028. The fee would remain below $100 and the lowest in the region (Spokane charges up to $1,172). Revenue would be dedicated to public safety, including the coordinator position and consultant costs.
  • Estimated revenue: $333,000 in year one, rising to $670,000. The Chamber of Commerce was consulted and supported a phased increase under $100.
  • Councilmember Merkel opposed all tax/fee increases. Councilmembers Kelly and Wick expressed skepticism about using business fees to offset county inefficiencies. Councilmembers Haley and Yeager showed support, citing the low current fee and the need for public safety investment.
  • No vote taken; staff will continue discussions with the chamber and bring a formal proposal.

City Events

  • Gloria Mantz reviewed three major city-supported events: Celebration of Lights, Cops and Kids Car Show, and the Farmers Market.
    • Celebration of Lights: 1,100 attendees in 2025; requires 66 hours setup/teardown; no dedicated budget; relies on sponsorships. Proposed recurring cost of $6,500 and one-time equipment purchases.
    • Cops and Kids Car Show: 1,700 attendees in 2025; estimated cost $20,000 including staff time; ongoing partnership with Spokane Riverside Cruisers.
    • Farmers Market: Operated by JAKT but unlikely to continue; city lacks capacity to run it without additional staff. Market may be too late to revive for 2026.
    • Valley Fest: Requested the city take over all aspects (estimated operating budget $225,000). Councilmembers strongly opposed taking on this event; preferred third-party or chamber involvement.
    • Council supported continuing Celebration of Lights and Cops and Kids, but not Valley Fest. They directed staff to build budgets for the two events and seek partners for the farmers market.

Council Vision for 2027-2028 Budget Goals

  • City Manager Hohman proposed shifting from specific priorities to broader budget themes: Safe and Accountable Community, Connected and Maintained Network, Strong and Diverse Economy, Exceptional Quality of Life, and Strategic and Fiscally Responsible Government. Council will refine wording at a future meeting.

Key Outcomes

  • The vision statement will remain unchanged for now.
  • Council directed staff to build budgets for Celebration of Lights and Cops and Kids Car Show, but not to take over Valley Fest.
  • Staff will explore alternatives for the Farmers Market, likely seeking a third-party operator for 2027.
  • The business license fee proposal and public safety coordinator position will be brought back for formal consideration after further discussion.
  • Council will continue to work on law enforcement contract renewal issues, with a presentation from the sheriff and county commissioner scheduled for March 17, 2026.
  • No formal votes were taken, but direction was given on several items.

Meeting Transcript

Recording in progress. Mayor Padden, it's 8 30 when you're ready to begin. All right. I think we can bring this meeting to order. This is a special meeting of Tuesday, February 24th, 2026. And it is a workshop. So I do want to first of all welcome everyone who is here and appreciate all the work that's being done, has been done to make the presentations. And so we don't need to, you know, we need to state what we think and and where we're at. This is kind of what staff is looking for. And uh, but there will be no votes on anything. So with that, I think we can um bring it to order, and if you'll stand, we'll do the Pledge of Allegiance. Allegiance to the flag of the United States of America. Underground liberty. And if the clerk will call the roll. Certainly. Mayor Patton? Here. Deputy Mayor Hattenberg. Here. Councilmember Kelly. Present. Councilmember Yeager? Councilmember Haley? Here. Councilmember Wick? Here. And Councilmember Merkel? Here. Thank you. All right. We will begin the well, they're all non-action items. And the first thing is an introduction by uh City Manager John Holman and Deputy Manager Eric Lamb. Okay. Thank you, Mayor Hay. Padding. Oh, after four years, I'm having a hard time keeping it straight. I apologize. Mayor Paddon, Councilmembers. John Holman, City Manager. Thank you for being here today. This is our informal winter workshop. Typically we try to have different topics on today's agenda that are pertinent to the development of the 2027 budget. And so you might think it's early to start talking about these things. It is not. Predominantly you've asked for a review of the sheriff's contract for law enforcement. So that's uh we'll take the majority of today's work items. And then there's a variety of other topics on here as well. Uh but we will begin with talking about your vision statement and your adopted council goals, because that's where we really need to start today. So there'll be actually two sessions on that. One to introduce the existing council goals for um for you to uh refresh your memory and then later on actually we'll conclude the day with some suggestions of modifying those and um talking about how those should actually be developed moving forward.

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