This week’s Spokane Valley City Council meeting began with an invocation, the pledge of allegiance, and approval of the following agenda. Councilmember Haley was excused from the meeting.
PROCLAMATION
Mayor Padden presented a proclamation for Cybersecurity Awareness Month to Chad Knodel, Spokane Valley IT Manager who shared a few security tips.
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 – Proposed Ordinance 26-009 Levying 2027 Regular Property Taxes
The Council received an administrative report on this topic at the Sept. 22, 2026 meeting. The Council has discussed this 2027 property tax levy multiple times during the 2027 budget development process. State law requires the passage of an ordinance establishing a property tax levy. The proposed 2027 property tax levy does not include the 1% increase allowed by State law. The levy will include property taxes on new construction.
The following is an example of the distribution of property taxes in the city’s largest property tax district (TCA 144):
• 37% Central Valley School District
• 24% Spokane Valley Fire District No. 01
• 21% State schools
• 8% City of Spokane Valley
• 7% Spokane County
• 3% Spokane County Library District
A motion to reverse the meeting agenda items failed with 2 votes in favor and 4 votes against. A motion to advance Ordinance 26-009 to a second reading passed with 5 votes in favor and 1 vote against.
NON-ACTION ITEMS
#2 – City Manager Presentation of the Preliminary 2027 Budget
This is the fourth of eight scheduled discussions by the Council. City Manager John Hohman reviewed the budget development goals, Council’s budget priorities, and the City’s financial management policies and objectives.
He shared highlights of the draft budget, which included:
• A summary of estimated 2027 General Fund revenues and expenditures.
• 2027 estimates for property tax and sales tax revenues. The City has not taken the state-allowed increase in property taxes since 2009, which has saved taxpayers approximately $11 million in property taxes from 2011 through 2026.
• Challenges in determining Law Enforcement contract costs with Spokane County have delayed 2027 budget development. The Law Enforcement contract budget is projected at $39,588,166. There has been ongoing discussions with the Sheriff and Spokane County about modifying the agreement to assign services and cost management in 2027 and beyond.
• The City remains fiscally sound with General Fund recurring expenditures of $71,728,161 and General Fund recurring revenues of $71,887,600.
City Manager Hohman spoke about the city’s Public Safety investments and reported that Public Safety costs represent 65% of General Fund expenditures. He summarized the city’s major transportation projects, economic development initiatives, and explained how leveraging grant programs positively impacts the budget.
Current budgetary challenges include the volatility of sales tax revenues, high national interest rates limiting new housing and business growth, state regulations on climate impacting the cost of new construction, and increased costs for the majority of services the City provides, but particularly Public Safety.
Spokane Valley has a planned balanced General Fund budget and remains in excellent financial condition. There are two more public hearings scheduled to obtain community input on the 2027 budget (Oct. 13 and Nov. 17, 2026), and the City Council will be asked to approve the 2027 Budget at the Nov. 17, 2026, meeting.
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
Spokane Valley City Hall is open Monday through Friday from 8 a.m. to 5 p.m. Information is available online at SpokaneValleyWA.gov. Sign up to receive email updates about the topics that matter to you most at SpokaneValleyWA.gov/SignUp or follow the city on social media.