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Spokane Valley staff warns 2026 budget will be tighter as revenues lag rising public-safety and operating costs
Summary
City staff told council at a March 4 winter workshop that sales-tax dependence, recent police-contract increases and rising insurance and detention costs leave Spokane Valley with a structural gap to address in preparation for the 2026 budget.
City staff told the Spokane Valley City Council during a March 4 winter workshop that the city faces a tighter 2026 budget caused by slower sales-tax growth, the cost of recent public-safety contracts and rising operating expenses.
City Manager John Holman said staff will bring options to the June budget workshop but emphasized uncertainty early in the planning process. “These are all just ideas. Today's intent is to discuss those. It needs to be a dialogue with you all,” Holman said.
Finance staff reviewed the city’s recent fiscal picture: recurring expenditures increased about 6 percent for 2025 while recurring revenues rose roughly 3.8…
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