Spokane Valley holds second public hearing on 2026 budget; council and public probe reserves, revenues and line items

Spokane Valley held its second public hearing on the proposed 2026 city budget Tuesday night as Finance Director Chelsea Walls presented updated revenue and expenditure estimates and answered council questions about line-item decisions and reserve levels.

Walls said the city is budgeting across 31 funds with total appropriations of about $148.4 million and estimated capital expenditures of about $47.9 million, partially offset by roughly $46.1 million in capital grants. She described the general fund recurring revenue forecast as roughly $68.6 million and recurring expenditures of about $68.5 million, producing a narrow recurring surplus in the draft. Walls told the council the general fund reserve balance is projected at about $42.3 million, which she said represented about 61.8% of recurring expenditures under the current estimates.

The figures and some line items prompted detailed questioning from council members and members of the public. Council Member Merkel asked why certain items now recorded as…