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Spokane Valley council adopts 2026 budget amendment after 6–1 vote
Summary
The Spokane Valley City Council on May 19 suspended the rules and adopted Ordinance No. 26-007, a 2026 budget amendment that increases revenues by about $5.1 million and expenditures by about $6.9 million. The motion passed 6–1 following debate over contract payment details and a CHIP grant pass-through.
The Spokane Valley City Council adopted Ordinance No. 26-007 on May 19 after moving to suspend the rules and approve the budget amendment in a single reading.
Chelsea Walls, the city’s finance director, summarized the amendment, saying, "Our revenues are proposed to increase by about 5,100,000, and expenditures increase by about 6,900,000." The amendment includes line items for prior contract payments, a technical adjustment for the automated traffic-safety program and a $2.3 million CHIP grant pass-through that staff explained must appear in the city’s budget as both revenue and expenditure per grant requirements.
During council discussion, members pressed staff for clearer documentation of contract deliverables tied to payments. Council member Merkel cited concerns about funding contract payments for projects that have not yet broken ground, specifically a Broadway senior housing project, and said she would oppose adoption because she wanted stronger evidence that the listed payments reflected completed work or demonstrable progress. Merkel said, "I'm gonna be voting no tonight." City staff and the city manager noted prior council authorizations, reporting and audit controls attached to those contracts and emphasized grant pass-through rules that required the city’s involvement.
Deputy Mayor Hatenberg moved to suspend the rules and adopt the ordinance; the motion was seconded and carried on a recorded tally of 6 in favor and 1 opposed. The ordinance text as presented amends Ordinance 25-017 (the 2026 budget adoption) and memorializes the additional revenues and expenditures for the current fiscal year.
What happens next: The budget amendment is in effect per the adopted ordinance. Council discussion noted the budget workshop scheduled for June as a continuing venue for detailed packet materials; staff said they will continue to provide supporting RCA (recommended council action) documentation and answer follow-up questions raised at the meeting.
