Your Connection to the Spokane Valley City Council

Spokane Valley’s last meeting in October led off with a Public Hearing on the proposed 2021 Budget Amendment affecting 18 accounts, resulting in revenue decreases of $6,155,484 and expenditure increases of $4,646,664. The purpose of this hearing was to consider input from the public. There was no public comment.

The Public Hearing was immediately followed by consideration of a motion to advance Ordinance #21-017 amending the 2021 Budget to a second reading. The motion was unanimously approved.

State law requires that the City annually pass an ordinance that establishes the property tax levy for that year. That law limits the increase to the lesser of the increase in inflation as measured by the state or 1%, whichever is lower. The rate for this year is 3.86% meaning the City is allowed to increase its rate by 1% which it has chosen not to do.

The levy does include property taxes on new construction resulting in property tax collections of between $13,161,654 (county estimate) and $13,199,920 (city estimate). Those estimates are based on an assessed valuation of $12,971,758,193 producing a levy of approximately $1.017589 per $1,000 of assessed value in 2022. The motion to adopt Ordinance #21-016, levying the 2022 property taxes passed unanimously.

This evening, the sixth of eight reviews on the road to adoption of the City’s 2022 Budget was addressed in the form of the First Reading of Ordinance#21-018 formally adopting that Budget. That motion was approved unanimously. On November 9th, Council will conduct the third and final Public Hearing on the Budget followed by action to adopt Ordinance #21-018: the City’s 2022 Budget.

In the 2022 Budget General Fund recurring revenue is estimated to be $52,432,700, an increase of $4,207,681 or 8.73% over the 2021 amended budget of $48,225,019. Recurring expenditures are estimated to be $48,415,982, an increase of $3,443,155l or 7.66% over the amended 2021 budget’s $44,972,827. Budgeted recurring revenues currently exceed recurring expenditures by $4,016,718 or 7.66% of recurring revenues. Projected General Fund balance at the end of 2022 currently is $30,927,611 or 13% above the 50% of the recurring expenditure reserve Council has mandated.

The number of employees will increase from 96.25 to 101.25 in 2022. The City will once again forgo the automatic 1% property tax increase. A more detailed breakdown of the presentation can be found at https://spokanevalley.granicus.co/MetaViewer.php?view_id=3&event_id=519&meta_id=65565.

Spokane Valley has been a participant via interlocal agreement in the Spokane County Tourism Promotion Area (TPA) since 2004. Members of Council majority are advocating that the City give notice of termination under terms of the interlocal agreement and form the City’s own TPA. This requires action by the County Commissioners and would result in a separation date of December 31, 2022.

A survey by those members of Council of city hoteliers appears to indicate general favorability to creating a Spokane Valley TPA. There is interest in continuing funding of Visit Spokane and the Sports Commission recognizing the contributions to the hotel industry. The City, if a TPA were enacted, would require:
• An agreement with hoteliers specifying measurable outcomes as it does with other financial allocations
• Provide for use of funds to create more of an identity for the City which would result in more hotel stays
• Further discussion of City travel assets such as enhancing river whitewater features and construction of additional trails.

Resolution 21-008 gives notice to Spokane County and the City of Spokane of termination of Spokane Valley’s participation in the interlocal agreement establishing the Spokane County Tourism Promotion Area. Motion to approve Resolution 21-008 passed 7-0.
In preparation for the approaching holiday season, Council has authorized the closure of City Hall and CenterPlace at noon Wednesday, November 24th, 2021, and noon on Thursday, December 23rd. These closures will affect only normal administrative functions of the City. All preplanned events at CenterPlace will take place as scheduled.

The City since its incorporation has provided partial funding for local economic development and social service agencies. Through this process, the City is contracting for services that it might not otherwise provide. The City has set aside $244,000 in its budget for this purpose. Of that amount, $43,000 is contractually committed to 1) Greater Spokane, Inc. and 2) $19,000 to Greater Spokane Valley Chamber of Commerce, leaving $182,000 for Council to award.

Agencies receiving awards and the amount of the grants are:
• Elevations Children’s Therapy Foundation...........$5,837
• Greater Spokane County Meals on Wheels.........$18,408
• HUB Sports Center....................................................$5,000
• JAKT Foundation.....................................................$12,051
• NAOMI.......................................................................$6,179
• Northwest Winterfest ...............................................$4,571
• Project ID...................................................................$12,714
• Spokane Valley Arts Council .................................$15,500
• Spokane Valley Heritage Museum........................$11,622
• Spokane Valley Partners.........................................$36,945
• Spokane Valley Summer Theatre............................$7,643
• Spokane Valley Performing Arts Center................$6,357
• Teen & Kid Closet......................................................$9,051
• Valleyfest...................................................................$17,214
• Widows Might..........................................................$12,908
Total............................................................................$182,000

Motion to approve the grants as presented was approved 7-1.

On October 15, 2019, Council agreed to participate in the Federal Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) program. Each year HUD provides CDBG entitlement funding to Spokane County in which the City participates, but the City must apply for the grants even though it is entitled to a set aside. The City intends to apply for three potential CDBG sidewalk projects:
• Park Road—Broadway Avenue to Cataldo Avenue $375,000
• Park Road—Nora Avenue to Baldwin Avenue $375,000
• 4th Avenue—Eastern Road to Catherine Johnson Apts. $375,000

A public hearing is scheduled for November 9th in Council chambers.

The City has entered an interlocal agreement with the Spokane County Library District (SCLD) for placement of a future library. Construction of the new library is slated to begin in 2022 with park improvements to be bid with the library construction. Estimated project costs are $3,875,023 funded by the City.

Council agreed to place an ordinance on a future agenda for consideration to delete chapter 19.50 of the Spokane Valley Municipal Code eliminating the Planned Residential Development (PRD) regulations and lifting the moratorium on consideration of PRD applications pursuant to Planning Commission recommendations.

City Hall is open for business. Masks must be worn in the building. Council meetings begin at 6:00pm. Public participation on action items or public comment periods can be in person or via ZOOM. Call 509-720-5000 or www.spokanevalley.org prior to 4:00 p.m. for access instructions.

Next Tuesday is election day for the City so we won’t have a meeting.

This Spokane Valley City Council meeting Study Session opened with an amended agenda to address a funding opportunity from the Economic Development Administration (EDA) using American Rescue Plan Act (ARPA Tourism) to possibly provide a grant to build the Expo Center Expansion that the City has been planning at the Fairgrounds. That project has a $10 million estimated cost, and with the $3 million grant the City intends to ask for, the project would be, with all the accumulated funding, $500,000 away from being fully funded. The motion to authorize the City Manager to apply for the ARPA grant was approved unanimously.

That action was followed by a Motion Consideration to finalize and execute an interlocal agreement with Trentwood Irrigation District #3 to provide water to Sullivan Park. The park, on the west side of Sullivan Road, north of the Spokane River is currently using an under-performing well for its water needs. When the Sullivan Bridge was constructed in 2016, the plan was for a water main to go under the bridge, but the line extended into another water district’s area, so the new water main wasn’t constructed.
In 2020, the City requested financial help through Fourth District Legislators who secured $130,000 for the project. The entire project is estimated to cost $538,000. With the $130,000 State grant, and dedicated City Funds of $152,858, the $255,142 shortfall will be met by the City to be recouped from future added users. Motion to approve the interlocal agreement was approved unanimously.

In a report from the Spokane County Regional Animal Protection Services (SCRAPS), Director Lindsey Soffes discussed trends, COVID impacts, animal licensing, veterinary services, and staffing challenges. The interlocal agreement dictates the annual participation charges paid by the City for its participation in SCRAPS. The 2021 budget is for $350,000 with the proposed 2022 budget calling for $330,000. Costs are fixed with CPI adjustments through 2033.

The contract under which the Sheriff’s Office provides law enforcement for the City of Spokane Valley specifies periodic replacement of vehicles. In the past, that has included purchasing new vehicles, used vehicles, and refurbishing current vehicles. The County, through this plan, has financed eleven vehicles per year dedicated to Spokane Valley service. However, that plan has not proven to adequately address the aging fleet.

The City Manager has proposed in his 2022 budget that $1.4 million be dedicated for purchasing twenty replacement vehicles: $360,000 for transitional costs for upfront vehicle replacement purchases and $1,040,000 for the initial fleet buys. To keep the fleet up to date, a replacement schedule would apply to all vehicles, placing them on a five-year/100,000-mile replacement cycle. The plan would replace fifteen vehicles per year. Current fleet inventory is 105 vehicles.

In 2019, the State Legislature passed legislation requiring cities to create and adopt a Housing Action Plan (HAP) to define strategies and implementation that promote greater housing diversity and affordability for residents of all income levels. In June of this year, Council adopted Resolution 21-001, implementing the City’s HAP.

The HAP includes four main components:
1) A Housing Needs Assessment
2) A review of policies and regulations affecting housing development
3) Strategies to increase housing based on needs
4) An implementation Plan

The HAP provides clear, actionable strategies for meeting current and future housing needs. Community involvement was solicited in formulating the plan. The staff requested Council guidance on three of the proposed implementation measures identified in the HAP:
• Modifying the zoning code to encourage production of townhomes and cottages
• Modifications to the regulations for Accessory Dwelling Units (ADUs)
• Evaluating a Multiple Family Tax Exemption (MFTE) program
The identified need for 6,660 dwelling units of diverse types by 2037 would appear to be insufficient to meet the City’s needs based on recent population growth. The strategies and action are aimed at:
• Preserving affordable housing to mitigate displacement
• Increasing market rate and affordable housing supply in zones allowing multifamily and missing middle housing
• Increasing housing options and choice

The list of implementing items can be found on the City website at: www.spokanevalley.org under the Agenda tab.
On October 15, 2019, Council adopted Resolution 19-014 under which it participates in the Federal Department of Housing and Urban Development’s Community Development Block Grant (CDBG) program. Each year HUD provides CDBG entitlement funding to Spokane County from which the City participates. In June 2020, the City relinquished its 2020 and 2021 set asides from the County to apply them to assist eligible low and very low-income homeowners with assessment and connection charges on the Barker Road Homes sewer installation project.

In June 2020, the City also entered into a new agreement increasing its participation in the County’s CDBG/HOME Consortium by adding a fourth member to the Housing, Community Services and Development Advisory Committee (HCDAC), increasing its share of Consortium population and an increased voice on applications for projects serving City residents.

Staff has been working on an inventory of street signs and placement at Council’s request since April. Although the inventory isn’t yet complete, a discussion regarding authority to impose parking restrictions could be undertaken prior to its completion. Council could adopt an ordinance establishing the process and authority for establishing parking restrictions and prohibitions, clearing the way for creation of its master parking restriction list when the sign inventory is completed. Consensus was reached to request staff to draft an ordinance incorporating Council’s policy directives relating to parking restrictions and prohibitions.
City Hall is open for business. Masks must be worn in the building. Council meetings begin at 6:00pm. Public participation on action items or public comment periods can be in person or via ZOOM. Call 509-720-5000 or www.spokanevalley.org prior to 4:00 p.m. for access instructions.

This City Council meeting opened with a Public Hearing on the 2022 Budget. This is the fifth of eight discussions of the budget enroute to its adoption on November 9. Without going into last week’s detail in the City Manager’s presentation of the Preliminary Budget, know that the first reading of the ordinance adopting the 2022 Budget will occur next week, October 22nd.

On September 22nd, City Manager, Mark Calhoun informed Council of his intent to retire effective December 31, 2021. This necessitates the initiation of a search to fill this important vacancy. Council action first considered whether to hire an external firm to conduct the recruitment process. After choosing to retain an outside firm, a committee led by Councilmembers Ben Wick, Brandi Peetz, Pam Haley, City Manager Mark Calhoun, and HR Manager John Whitehead will select the best qualified firm to conduct the search.

A discussion of the salary range to be used in advertising for the position completed the consideration. Motion to approve the procedure as discussed was approved by a 5-2 vote. The dissenters, Higgins and Woodard, saw no reason to be in such a hurry to move since the current City Manager will be in that position until December 31st, and the upcoming election could significantly affect the selection process.

The state’s Growth Management Act (GMA) allows the City to consider amendments to its Comprehensive Plan once each year. Applications must be received by October 30th to be placed on the docket for Council consideration. That docket consists of four items:
• CPA-2021-0001, 22 N. Skipworth, Lindsey Goodman, owner, changes .68 acres from Multi-Family to Corridor Mixed Use
• CPA-2021-0002, Balfour Park, City owned, changes 5.56 acres from Corridor Mixed Use to Parks, Recreation & Open Space
• CPA-2021-0003, Flora Property (City owned, newly  acquired), changes 46 acres from Industrial to Parks/ Recreation & Open Space
• CPA-2021-0004, Applied Citywide, adds policies regarding homelessness goals & strategies to homeless housing

After a public hearing on July 8th, the Planning Commission voted to forward CPA-21-0001 (6-1) and CPAs 21-0002, 0003, and 0004 (7-0) to Council for a Second Reading. Motion to approve Ordinance 21-014 encompassing all four CPAs passed unanimously.
That action was followed by a move to approve Ordinance 21-015 adopting the map changes accompanying the Comprehensive Plan amendments in Ordinance 21-014. Motion to approve Ordinance 21-014 passed unanimously.

State law requires that the City annually pass an ordinance that establishes the property tax levy for that year. That law limits the increase to the lesser of the increase in inflation as measured by the state or 1%, whichever is lower. The rate for this year is 3.86% meaning the City is allowed to increase its rate by 1% which it has chosen not to do.

The levy does include property taxes on new construction resulting in property tax collections of between $13,161,654 (county estimate) and $13,199,920 (city estimate). Those estimates are based on an assessed valuation of $12,971,758,193 producing a levy of approximately $1.017589 per $1,000 of assessed value in 2022. A motion to move Ordinance #21-016, levying the 2022 property taxes, to a Second Reading passed unanimously.

The Mayor’s appointment of Deputy Mayor Brandi Peetz to the Spokane Regional Law and Justice Council was approved unanimously.
At its September 28th meeting, Council finalized its thoughts on what it hopes to accomplish in the forthcoming state legislative session.

The 2022 agenda looks like this:
• A renewed request for state assistance for the Pines Rail Crossing
• Sensible state procurement laws
• Voicing continued commitment to defending local control
• Protecting state-shared revenues
• Requesting changes to municipal utility tax authority
• Return of sensibility to law enforcement issues
• Advocating for needed changes to the Growth Management Act regarding local flexibility

This evening Council memorialized where it intends to place emphasis such as needed changes to state law that would maintain local governance autonomy. This administrative report is in preparation for final adoption on November 16th.
By agreement, the Spokane Valley Arts Council, which has been responsible for the donation and placement of numerous art pieces around the City, meets with City Council to discuss and agree upon potential projects. This year a bronze sculpture, ‘The Owl Woman Calls Your Name’ by Nancy McLaughlin is proposed.

As a follow-up to last week’s discussion on Code Enforcement, this week Council undertook Topic #2: Camping on private property. This discussion focused on regulations which currently address the problems of homeless on private property living in tents or similar temporary structures, permanent structures (unauthorized), or recreational vehicles.

The City’s municipal code does not currently restrict camping in general nor do they even provide a definition of ‘camping.’ Staff is looking for guidance for drafting a work plan to create regulatory language. Those regulations when drafted will be addressing problems such as:
• Inadequate sanitation facilities
• Unsafe/unfit living conditions
• Too many RVs on a property
• Junk/inoperable RVs on the property
• Crime associated with trespassing/unauthorized occupancy
• Fire Hazards (warming fires and flammable accumulations)

City Hall is open for business. Masks must be worn in the building. Council meetings begin at 6:00pm. Public participation on action items or public comment periods can be in person or via ZOOM. Call 509-720-5000 or www.spokanevalley.org prior to 4:00 p.m. for access instructions.

This Council meeting opened with the Mayor’s appointment of Amanda Alcamo to the Lodging Tax Advisory Committee. Council unanimously concurred with the appointment. Ms. Alcamo is with Oxford Suites in Spokane Valley.

Karl Otterstrom, Spokane Transit Authority’s Director of Planning and Development, together with STA CEO Susan Meyer, presented a description of STA’s Sprague Line High Performance Transit (HPT) program. The Sprague HTP Line currently operates as STA Route 90 offering direct connection between Spokane and Spokane Valley city centers and connections to most other STA routes, Greyhound, and Amtrak.

The goals of HPT are to enhance the existing Route 90 to HPT levels which are to provide frequent service with speeds competitive with private automobiles and improved passenger amenities commensurate with high ridership. STA is also looking at future electrification of its vehicles. Its public outreach includes improving its website: www.spokanetransit.com/SpragueLine with corridor maps and proposed stop changes together with letters to affected property owners, neighborhoods, and business groups. The STA Board plans action of the Corridor Development Plan in December.

Spokane Valley is a participant via interlocal agreement in the Spokane County Tourism Promotion Area (TPA) since 2004. Members of Council are advocating that the City give notice of termination under terms of the interlocal agreement and form its own TPA. This requires action by the County Commissioners and would generate a separation date of December 31, 2022.

A survey of hoteliers in the City indicates general favorability to creation of a Spokane Valley TPA. There was interest in continuing funding of Visit Spokane and the Sports Commission recognizing the contributions to the hotel industry. The City, if a TPA were enacted, would require:
1. An agreement with hoteliers specifying measurable outcomes as it does with other financial allocations
2. Provide for use of funds to create more of an identity for the City which would result in more hotel stays
3. Further discussion of City travel assets such as enhancing river whitewater features and construction of additional trails.
The City adopted a code relating to nuisance properties in 2003 to address accumulations of trash, junk vehicles, broken machinery or equipment, zoning/building code violations, traffic obstructions, and animal keeping. In 2017, it hired a full-time Code Enforcement Officer and a part-time attorney to address 330 cases that year. A second officer was hired in 2020 when the case load increased to 647. The attorney was upgraded to full-time.
Nuisances ranging from misdemeanor to chronic criminal infractions are an ongoing problem in Spokane Valley. Current code does not provide the range of remedies necessary to effectively address the problems. With this backdrop in mind, appropriate tools are needed to allow the City to enforce the policy choices Council makes on what constitutes a nuisance and amending City Code to identify conduct or private property use that constitutes a prohibited nuisance.
Changes suggested by staff this evening are:
• Vehicle parking and storage (on both public and private properties)
• Camping on private property
• Loud noise
• Compliance process and options; including voluntary compliance agreements and abatement
• Receivership program
• International Property Maintenance Code overview including sections already adopted by Council and those to be considered such as overgrown vegetation
Staff will return with a draft covering Council’s specific concerns on the above issues particularly focusing on vehicles parked on private property and in the public right-of-way.
In step four on the road to adoption of the 2022 budget, City Manager, Mark Calhoun presented his preliminary budget with the steps and considerations used in the development.

- Council Goals
• Recurring revenues must be greater than recurring expenses
• Ending reserves must be at least 50% of recurring expenses

 - Fiscal Policies
• Maintain basic service levels with minimal resources
• Minimize personnel and overhead costs by contracting

- Budget Highlights
• General Fund Revenues=$53,432,700. General Fund Expenses=$48,415,982. Difference: +$4,016,718

- Challenges
• Declining revenues in Street Maintenance Fund
• Balancing pavement preservation costs against other transportation and infrastructure needs
• Raising capital for needed rail crossing projects  
• Continuing COVID uncertainties identifying how to use federal funding awards most effectively

The City continues to be in excellent financial condition with strong reserves and responsibly managed operations.
On September 22nd, City Manager, Mark Calhoun informed Council of his intent to retire effective December 31, 2021. This necessitates the initiation of a search to fill that very important vacancy. Three alternatives were presented.

1. Retain an external firm to lead the recruitment
2. Authorize staff to lead an in-house recruitment
3. Schedule an executive session to assess the qualifications of a candidate for possible direct appointment without a recruitment process
Staff was instructed to explore a fourth option, possibly retaining an external firm while conducting an in-house search.

This recruitment procedure is tentative because of the intervening election on November 2nd which could render any immediate hiring decision moot. In addition, two Council members were absent which introduced other questions into the process at this meeting. Councilmember Higgins suggested delaying further consideration until the full Council is present. But the majority ignored his request.

City Hall is open for business. Masks must be worn in the building. Council meetings begin at 6:00pm. Public participation on action items or public comment periods can be in person or via ZOOM. Call 509-720-5000 or www.spokanevalley.org prior to 4:00 p.m. for access instructions.

View Past Spokane Valley City Council Highlights