This week’s Spokane Valley City Council meeting began with an invocation, the pledge of allegiance, and approval of the following agenda.
General Public Comments
Each week, community members have an opportunity to address Councilmembers for up to three minutes during the General Public Comment period, either at the beginning or end of each meeting, both in person or online.
ACTION ITEMS
#1 – Consent Agenda
A motion to approve the consent agenda, which included vouchers for paying City expenses, payroll, and minutes from the September 1, 2026, Council meeting, passed unanimously.
#2 – Public Hearing: 2026 Budget Amendment
This item was previously discussed by Council at the October 20, 2026, meeting. Staff reviewed the data that had changed since the last discussion. The proposed amendment will affect 16 funds resulting in $6,837,701 of total revenue increases and $5,564,654 of expenditure increases. The public was invited to provide input on the proposed budget amendment.
#3 – First Reading: Ordinance 26-010 2026 Budget Amendment
A motion was made to separate the first reading of Ordinance #26-010 amending the 2026 budget into two items in order to consider the $90,000 increase in contract attorney services for Councilmember Merkel’s appeal separate from the other budget amendments identified in Ordinance #26-010. The motion passed with 5 votes in favor and 2 votes against.
A motion was made to recuse Councilmember Merkel from participating in Council discussions considering the $90,000 increase in contract attorney services for his appeal due to his inherent conflict of interest. Motion passed with 6 votes in favor and 1 vote against.
A motion was made to advance the $90,000 increase in contract attorney services for 2026 identified in Ordinance #26-010 to a second reading. Motion passed with 6 votes in favor and 0 vote against (Councilmember Merkel was not allowed to vote due to a conflict of interest).
With the exception of the $90,000 increase for contract attorney services which the Council just advanced to a second reading, a motion to advance Ordinance #26-010 amending the 2026 budget to a second reading passed with 6 votes in favor and 1 vote against.
#4 – First Reading: Ordinance 26-011 Adopting the 2027 Budget
To date, the Council has received presentations and discussed the 2027 draft budget on five occasions, including two public hearings. Staff reported on the changes to the draft budget since the last discussion on October 13, 2026. No action has been taken on the draft 2027 budget so far. The third and final public hearing on the proposed 2027 budget will be held at the November 17, 2026, Council meeting; the Council will be asked to adopt the budget on November 17, 2026.
The draft 2027 budget currently includes appropriations of $162,999,434, which includes $51,395,369 in capital expenditures, comprised in part of:
• Street Capital Projects: $16,045,525
• Capital Projects for Parks: $6,480,000
• Pavement Preservation: $9,301,250
• Railroad Grade Separation: $12,791,094
• Stormwater Management and Aquifer Projection: $4,600,000
The City anticipates $29,453,384 in grant revenues, which will partially offset the $51,395,369 of capital costs. Thus, 57.31% of capital expenditures will be paid with State and Federal funds. The funded full-time positions will increase by two to 121.25.
A motion to advance proposed Ordinance 26-011 adopting the 2027 budget to a second reading with 6 votes in favor and 1 vote against.
#5 – Holiday City Hall Closures
The regularly scheduled Christmas Day Holiday is on Friday this year. The proposed closures listed will not affect law enforcement operations or snow plowing; only normal administrative functions of the City are affected. All pre-planned events at CenterPlace will take place as scheduled.
A motion to authorize the closure of City Hall and CenterPlace at 12:00 p.m. Wednesday, November 25, 2026; the entire day of Thursday, December 24, 2026, and 12:00 p.m. on Thursday, December 31, 2026, passed unanimously.
NON-ACTION ITEMS
#6 – Tourism Promotion Area (TPA) 2027 Budget and Work Plan
At the October 20, 2026, meeting, the Council received the TPA Summary Report for July 2025 through June 2026. This report included revenues, expenditures, and marketing initiatives. Last week the TPA Hotel Commission reviewed the proposed 2027 TPA Budget and Work Plan document; they unanimously recommended that the plan be forwarded to the City Council for approval.
The Council reached consensus for staff to bring forth a motion to approve the TPA Budget and Workplan for Council consideration at a future meeting.
#7 – Housing Incentive – Multi-Family Tax Exemption (MFTE)
Spokane Valley is currently in process of updating its Comprehensive Plan to be in compliance with new affordable housing targets mandated by the Washington State Growth Management Act (GMA). Under state law, local jurisdictions must demonstrate “adequate provisions” to accommodate housing for all economic segments of the population.
Spokane Valley is meeting these strict state requirements by focusing on market-driven, voluntary, and incentive-based programs rather than imposing mandatory regulations on development. To achieve these targets, staff has identified the MFTE program as a primary tool to encourage private-sector participation. By offering a targeted property tax exemption on residential improvements, the City can effectively incentivize developers to construct the necessary income- and rent-restricted housing units required by the state.
Staff provided a high-level overview of how the MFTE incentive operates within Washington State. Staff outlined the upcoming legislative timeline and detailed the specific procedural steps required to successfully adopt a compliant MFTE ordinance in tandem with our final Comprehensive Plan periodic update.
INFORMATION ONLY (No presentations or discussion)
Monthly Reports
• City of Spokane Valley: Community Development September 2026 Report
• Spokane Valley Police Department: August 2026 Report, September 2026 Report
• Spokane Valley Fire Department: September 2026 Report
About Spokane Valley City Council
City Council meetings occur most Tuesdays at 6 p.m. at Spokane Valley City Hall, 10210 E Sprague Avenue, Spokane Valley and online via Zoom. Meeting agendas and minutes are available at Spokane ValleyWA.gov.Agendas.
Stay Connected
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