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Spokane Valley reviews tax and levy options as potential funding sources for public safety and other priorities
Summary
Council reviewed property‑tax and sales‑tax options, including a voter‑approved city public‑safety sales tax that staff estimates could raise $2.6–$2.8 million for the city; staff warned an August ballot timeline would require beginning the public process in March.
Spokane Valley City Council at an Oct. 23 budget workshop reviewed several revenue options to fund public safety and other council priorities, including councilmanic and voter‑approved property‑tax steps and a possible city public‑safety sales tax.
Why it matters: staff said the city is collecting less per capita than many peer cities and that new recurring costs for police and other services will increase pressure on the general fund. Council members discussed whether to pursue local options or continue prioritizing internal tradeoffs and economic development.
Property‑tax options discussed included taking the statutory councilmanic 1% annual levy increase (staff estimated roughly $141,000 available under current assumptions) and a larger voter‑approved levy‑lid lift, which would raise more but requires a ballot measure. Staff noted a council decision to use the 1% increase would be a relatively modest near‑term revenue source.
The meeting devoted substantial time to the option of a city‑specific public‑safety sales tax. Staff estimated a one‑tenth‑percent city sales‑tax dedicated to public safety could raise about $2.6–$2.8 million annually based on recent collections; the city would retain an estimated 85% of the levy while the county would retain 15% under state allocation rules. Staff highlighted that roughly half of the receipts would be paid by non‑resident shoppers, not just city residents.
Timing and process: the city can place a sales‑tax measure only on August or November ballots. Staff said an August ballot would require beginning public hearings and authorizing ballot language by the May 2 filing deadline and recommended starting discussion in March to meet those deadlines. The council’s internal governance manual also calls for a supermajority vote (five members) to place certain tax measures on the ballot and requires a public hearing before final action.
Council reactions were mixed: several members said they support putting a public safety sales tax to voters if staff and council agree on the scope and use of proceeds; others urged maximizing internal budget efficiencies and economic development before seeking new revenue.
Ending: Staff will return with more detailed revenue projections and a calendar so the council can decide whether to move a voter measure forward for August or November.
