Spokane Valley City Council Regular Meeting – October 6, 2026

The Spokane Valley City Council held a regular meeting on Tuesday, October 6, 2026, at 6:00 p.m. at City Hall. The meeting included a proclamation for Cybersecurity Awareness Month, a first reading of the 2027 property tax ordinance, and a detailed presentation of the proposed 2027 budget by City Manager John Hohman. Public comments addressed city leadership, council conduct, and free speech concerns. The council advanced the property tax ordinance to a second reading after a motion to table it pending the budget presentation was approved.

Proclamation & Presentations

• Cybersecurity Awareness Month: Mayor Laura Paddon proclaimed October 2026 as Cybersecurity Awareness Month. IT Manager Chad accepted the proclamation and encouraged residents to follow cybersecurity best practices, including recognizing phishing, using strong passwords, enabling multi-factor authentication, and updating software.

Public Comments & Testimony

• Ben Lund, a 34-year resident, praised city staff and leadership for low taxes and economic growth, but accused Councilmember Merkel of campaigning from the dais during the last two meetings, including using campaign material in the Valley Fest parade. He called for additional sanctions if campaigning continues.
• Jonathan Plum defended Councilmember Merkel’s right to dissent, citing the Supreme Court case Bond v. Floyd and Ninth Circuit precedent. He argued that the council’s repeated accusations of campaigning against Merkel may violate his First Amendment rights and urged the city attorney to publicly clarify the legal standard being applied.

Discussion Items

Action Item: Ordinance 26-009 – Property Tax Levy for 2027

• Finance Director Chelsie Walls presented the first reading of the ordinance, proposing a 2027 property tax levy of approximately $14.6 million, which includes an estimated $250,000 from new construction but foregoes the 1% state-allowed increase. The levy represents 20.29% of general fund recurring revenues and corresponds to a rate of about $0.79 per $1,000 of assessed value.
• Councilmember Merkel moved to postpone the item for one week to explore a 10% reduction in property taxes (approximately $1.4 million cut). City Manager Hohman advised waiting to hear the budget presentation first, noting that such a cut could have “a devastating impact.”
• The council voted to table the item until after the budget presentation (voice vote with some opposition). After the budget presentation, the original motion to advance the ordinance to a second reading passed (voice vote with some opposition). The second reading is scheduled for October 20, 2026.

Non-Action Item: City Manager Presentation of the 2027 Budget

• City Manager John Hohman presented the first full draft of the 2027 budget, emphasizing that the city maintained a 50% general fund ending fund balance and a service level stabilization fund of 14% (target $8 million). The budget assumes recurring revenues of $71.7 million (sales tax 62%, property tax 20%, other 18%) and recurring expenditures of $71.7 million, leaving only about $160,000 in surplus.
• Public Safety: The law enforcement contract remains the largest uncertainty. The 2027 budget estimates $39.588 million for the sheriff’s contract, but the county’s most recent estimate is $40.4 million, creating a potential $800,000 shortfall. Hohman noted that public safety comprises 65% of the general fund budget. The city has added 21 police officers over the past two years, and a Public Safety Director (Scott Ebner) will start in November.
• Capital Projects: The 2027 capital budget totals $52 million, with 57% funded by grants. Key projects include the Pines Grade Separation (progressing), Sullivan & Trent Interchange (facing an $8.5 million funding gap), and a new Ice Arena (opening September 2027).
• Economic Development: Hohman defended economic development investments, citing past successes (Northeast Industrial Expansion, Kaiser Aluminum, Solstice) and current initiatives (The Course at Spokane Valley, retail recruitment, the Auto Row initiative). He warned that cutting economic development would undermine the city’s ability to keep taxes low.
• Council Debate:
  • Councilmember Merkel argued for a 10% property tax cut, questioning the value of economic development programs and requesting a cost-benefit analysis for The Course.
  • Councilmember Yeager offered to forgo her own council salary and benefits to help offset cuts, and noted that the economic development department’s $1.3 million annual budget generates significant returns (e.g., estimated $94 million in annual economic impact from The Course and Ice Arena).
  • Councilmembers Wick, Kelly, and Deputy Mayor argued against reducing dedicated police staffing and supported active management of the sheriff’s contract rather than switching to a fixed-price model that could lower officer numbers.
  • The city manager noted that the city has not increased property taxes for 18 of the last 24 years, saving residents $11 million total. A 10% cut would save the average homeowner only $34–$35 per year.

Key Outcomes

• Ordinance 26-009 (Property Tax Levy): Advanced to a second reading on October 20, 2026; a 10% reduction proposal remains under discussion.
• 2027 Budget: The council will continue budget discussions at subsequent meetings. No final vote was taken.
• Sheriff’s Contract: The council expressed consensus to maintain dedicated officer staffing and to pursue more frequent financial check-ins with the county rather than moving to a fixed-price contract that could reduce staffing.
• Public Safety Director: Scott Ebner will begin work remotely in October and is expected in Spokane Valley by November.
• Emergency Management Workshop: An all-day workshop on emergency management is tentatively scheduled for November 3, 2026 (Election Day), with the evening council meeting canceled.