(The Center Square) – The Spokane Valley City Council approved its 2025 budget on Tuesday, with nearly $150 million in expenditures outpacing revenues by roughly $1.1 million.
The Valley’s elected officials gave the final OK after convening eight times since June to discuss the budget. The financial roadmap includes approximately 40% more spending than initially approved last year for the 2024 budget, with roughly a third slated for capital projects.
According to a Request for Council Action, the city anticipates over $46 million in grant revenue, which will cover over 81% of the $56.3 million appropriated toward infrastructure.
“Total appropriations across all city funds are $149.6 million,” Finance Director Chelsie Walls told the council during its Tuesday meeting.
The Valley spread its 2025 budget across 31 accounts, with the general fund being the most significant. It covers public safety, public works, parks and recreation and other departments, accounting for over $65.1 million in spending, about $1.1 million more than it brings in.
According to the RCA, the general fund expenditures include funding for 12 additional law enforcement positions, which takes the cost of public safety up almost 14%. The increase in force came after consultants told the city last year that it was short nearly 30 deputies.
While general fund spending does outpace earnings by around $1.1 million, recurring revenues exceed recurring expenses by approximately $411,000, which is less than 1%. Reserves will cover the delta, leaving the account with an ending balance of roughly $37.7 million.
Councilmember Al Merkel was the only dissenting vote against the 2025 budget because it didn’t include a more significant investment in public safety. He told The Center Square that the additional investments covered the 10 deputies the council approved funding in February.
“We’re doing it in segments,” Councilmember Laura Padden said. “There’s no point in trying to fund 30 new officers when we don’t actually have the ability to hire them.”
Walls followed, clarifying that the funding approved in February allowed time to hire and train the deputies before reaching the street and being fully funded in 2025.
City staff attributed much of the funding issues to a volatile economy, which they expect to continue next year. Fuel and telephone utility tax revenues have declined over the past few years, limiting the Valley’s ability to provide “historic levels of service,” according to the RCA.
The declining revenues are a hurdle for funding pavement preservation and other transportation projects. The council approved a six-year Transportation Improvement Program in June, totaling approximately $244.5 million through 2030, with around $146 million listed as “unfunded.”
Before the final vote, Merkel attempted to take time to address over $100,000 in city spending over the past year related to his conduct and investigations against him. Mayor Pam Haley and Councilmember Jessica Yeager felt he was derailing the meeting, interrupting him to restore order.
“I’m not sure this is the time to entertain more of his circus trap,” Yaeger said. “… Do you ever shut up? Do you? You are so embarrassing; this needs to stop.”
