Spokane Valley council advances 2025 budget amendment after public hearing; amendment adds $14 million in spending

The Spokane Valley City Council opened a public hearing on May 13 on a proposed amendment to the city’s 2025 budget and voted to advance an ordinance to a second reading that would raise citywide expenditures by roughly $14 million and revenues by about $5.4 million.

Finance Director Chelsea Walls presented the amendment to the council, saying the changes affect 14 funds and “result in total revenue increases of about 5,400,000.0 in 9 funds and expenditure increases of about 14,000,000 in 12 funds.” She told council the general fund shows about $927,000 of new revenue largely from grants and about $990,000 of additional appropriations, including a $350,000 increase for contract attorney services tied to legal costs associated with Councilmember Al Merkel.

The amendment would reallocate money across capital and operating funds. Notable items Walls highlighted included: an approximately $482,000 appropriation related to energy-efficiency and clean-building grants; a $1 million increase in both revenues and expenditures in the affordable and supportive housing sales‑tax fund tied to a CHIP grant that will be passed through to Spokane Housing Authority for the Appleway development; and a $2.5 million transfer from the hotel‑motel fund to an economic development capital project for the cross‑country course project, which the council approved by motion on Jan. 7.

In the transportation and public-safety budgets, Walls said the transportation benefit district’s transfers in are being reduced by an estimated $985,000 because vehicle‑license fee revenues were lower than originally forecast. The public‑safety line items include a $223,000 reduction in salaries and benefits for a public‑safety coordinator position and a $130,000 reduction in law‑enforcement vehicle replacements (reducing the planned replacements from 14 to 12 for 2025). The public‑safety equipment replacement fund is increased by $650,000 to purchase 10 vehicles for new officer positions the council approved earlier in the 2025 budget.

Council members asked for clarification about the capital reserve fund (Fund 312). Walls said the fund balance was estimated at about $4.4 million at year end but that most of the balance had already been allocated to potential and pending projects. Councilmember Merkel questioned the decision to fund legal costs from the reserve rather than public‑safety items; other council members said expenditures reflect ongoing liabilities and that most non‑public‑safety departments accepted cuts in 2025.

After public comment and council discussion the council moved to advance Ordinance 25‑006 to a second reading; the ordinance is scheduled to return on May 27 for a second reading and possible adoption.

Why this matters: the amendment funds several grant‑backed projects and capital transfers while shifting some spending away from planned vehicle replacements and an unfilled public‑safety staff line. Council discussion repeatedly tied the legal costs to ongoing investigations and appeals involving a council member, which several council members said justify recurring legal appropriations; other speakers urged prioritizing public safety spending.

The council will consider the ordinance’s second reading May 27, when a final vote could adopt the changes.