2021 Approved BudgetCity of Spokane Valley
2021 Annual Budget
10210 E. Sprague Avenue
Spokane Valley, WA 99206
www.SpokaneValley.org
Table of Contents
City of Spokane Valley, WA
Spokane County
January 1, 2021 through December 31, 2021
Summary of Councilmembers .................................................................................................... III
........................................................................................... 1-13
- About the 2020 Budget and Budget Development Process ... 15-29
Budget Summary ................................................................................................................. 30-42
Revenues by Fund and Type ............................................................................................... 43-50
Expenditures by Fund and Department ................................................................................ 51-54
General Fund Department Changes from 2019 to 2020 ....................................................... 55-57
#001- General Fund- Expenditures by Department by Type
City Council .................................................................................................................... 58-59
City Manager ....................................................................................................................... 60
City Attorney ....................................................................................................................... 61
Public Safety .................................................................................................................. 62-64
Deputy City Manager ........................................................................................................... 65
Finance .......................................................................................................................... 66-67
Human Resources .............................................................................................................. 68
Public Works (history) ......................................................................................................... 69
City Hall Operations and Maintenance ................................................................................ 70
Community & Public Works ............................................................................................ 71-75
Community & Economic Development (history) .............................................................. 76-77
Parks & Recreation ........................................................................................................ 78-82
General Government ...................................................................................................... 83-84
Special Revenue Funds
#101 - Street Fund ......................................................................................................... 85-86
#103 - Paths & Trails Fund .................................................................................................. 87
#104 - Hotel / Motel Tax Tourism Facilities Fund ............................................................... 88
#105 - Hotel / Motel Tax Fund ............................................................................................. 88
#106 - Solid Waste Fund ..................................................................................................... 89
#107 - PEG Fund ................................................................................................................ 90
#108 Affordable & Supportive Housing Sales Tax ............................................................ 90
#120 - CenterPlace Operating Reserve Fund ...................................................................... 91
#121 - Service Level Stabilization Reserve Fund ................................................................ 92
#122 - Winter Weather Reserve Fund ................................................................................. 92
I
City of Spokane Valley 2021 Budget
Debt Service Funds
#204- Limited Tax General Obligation (LTGO) Fund.......................................................... 93
Capital Projects Funds
#301- REET 1 Capital Projects Fund.................................................................................. 94
#302- REET 2 Capital Projects Fund.................................................................................. 95
#303- Street Capital Projects Fund................................................................................ 96-97
#309- Parks Capital ProjectsFund..................................................................................... 98
#310- Civic Facilities Capital Projects Fund........................................................................ 99
#311- Pavement Preservation Fund.................................................................................100
#312- Capital Reserve Fund.............................................................................................101
#313- City Hall Construction Fund....................................................................................102
#314– Railroad Grade Separation Projects Fund.............................................................103
Enterprise Funds
#402- Stormwater Management Fund.......................................................................104-105
#403- Aquifer Protection Area Fund.................................................................................106
Internal Service Funds
#501- Equipment Rental & Replacement Fund.......................................................... 107-108
#502- Risk Management Fund.........................................................................................108
Capital Expenditures for 2020................................................................................................. 109
FTE Count by Year – 2010through 2020................................................................................ 110
Work Force Comparison......................................................................................................... 111
Appendix A, Employee Position Classificationand Salary Schedule....................................... 112
Glossary of Budget Terms............................................................................................... 113-115
Ordinance 20-023Adopting the 2021 Budget.........................................................................116
II
City Council Members
Ben Wick, Mayor
Position #4
Rod Higgins Brandi Peetz, Deputy Mayor Tim Hattenburg
Position #1 Position #2 Position #6
Arne Woodard Pam Haley Linda Thompson
Position #3 Position #5 Position #7
Staff
Mark Calhoun, City Manager
John Hohman, Deputy City Manager
Chelsie Taylor, Finance Director
Mike Stone, Parks & Recreation Director
Cary Driskell, City Attorney
William Helbig, City Engineer
Christine Bainbridge, City Clerk
III
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City Manager’s Budget Message
2021 Annual Budget
Dear Citizens, Mayor and CityCouncil of Spokane Valley:
It is with cautious optimismthat I present the 2021 Budget for the Cityof Spokane Valley.
Noteworthy is that the 2021 Budget development process occurred in the midst of a recession
brought on by the COVID-19 global pandemic. As a consequence, we slowed down the budget
development and adoption process in order to get a better sense of the resultant impact on
revenue projections for both the 2020 and 2021 Budgets. As I write this message it is still unclear
what the depth and breadth of revenue reductions will be across the variety of City funds for which
we adopt budgets but we recognize that the most material impacts will be felt in the following
revenue areas:
Sales taxes (recorded in General Fund #001)
Building and permitting fees (recorded in General Fund #001)
Motor vehicle fuel taxes (recorded in Street O&M Fund #101)
Lodging taxes (recorded in Hotel/Motel Tax Fund #’s 104 and 105)
Real estate excise taxes (recorded in REET Fund #’s 301 and 302 and support capital projects
in a number of City funds)
This Council adopted 2021 Budget includes what we consider to be fiscally responsible revenue
adjustments based upon what we currently know. Because the City has a long history of making
prudent financial decisions dating back to our 2003 incorporation, because it has engaged in
consistently responsible budgeting and restrained spending, because we have restrained the
growth of City programs and related spending, and because we haveadhered to the key Fiscal
Policies noted in following pages, we have accumulated fund reserves that we believe will allow
the City to deliver status quo levels of servicethroughout all of 2021.
Budget Development Goals
We recognize that to ensurecontinuedfinancial stability, it is imperative that we achieve two key
goals within our General Fund:
1. Recurring annual revenuesmust be greater than or equal to recurring annual expenditures,
and
2.The ending General Fund fund balance must be sufficient enough to meet cash flow needs
which is no less than 50% of recurring expenditures and represents roughly sixmonths of
General Fund operations.
Even in light of the global pandemic and resultant recession, I am pleased to report that each of
these goals haveagain been achieved in the 2021General Fund Budget.
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Beyond recurring operating activity,and dueto our exceptionally strong financial position, we
have been afforded the opportunity to use theportion of the General Fund fund balance that
exceeds 50% of recurring expenditures for capital construction projectsthat are important to the
City Council and Community. Following this policy of transferring the fund balance in excess of
50%, since 2013, City Councils have made the decision to transfer $27.8million of excess
General Fund reserves to partially finance a variety of projects including each phase of the
Appleway Trail, Sullivan Road West Bridge Replacement, ApplewayAvenue Landscaping,
construction of a new City Hall, the future Barker/BNSF Grade Separation Project, and setting
aside moneyfor the Pines/BNSF Grade Separation Project, Barker Corridor Projectand
development of Balfour Park.
Fiscal Policies
Fiscal Health is at the Core of Providing a Good Public Service
The Fiscal Policies adopted by the City Council are important forthe long-range fiscal strength of
Spokane Valley. These policiesset a framework that the City will follow to responsibly manage
resources and if necessary, under what circumstances we will utilize reserves to sustain
operations during economic downturns.
Financial Management
The City will strive to:
1.Maintain basic service levels with minimal resourcesto achieve success.
2.Minimize personnel costsand overhead by continuing to contract for services when it makes
financial sense to do so.
3.Continue the six-year Business Plan process.
4.Leverage City funds with grant opportunities.
5.Minimize City debt with apay as you go philosophy.
o The State of Washington sets the maximum level of allowable debt for cities based on
assessed value of property. The City of SpokaneValley carries an exceptionally low debt
burden and currently utilizes only1.53% of its totaldebt capacity, andmore importantly,
only7.66% of non-voted bond capacity.
6.Strive to prioritize spending in the annual budget process and minimize the mid-year addition
of projects and appropriations.
Financial Objectives
The City’s financial objectivesare:
1.Adopt a General Fund Budget with recurring revenues equal to, or greater than recurring
expenditures.
2.Maintain a minimum General Fund Ending Fund Balance ofat least 50% of the recurring
expenditure budget. This is adequate to meet cash flow needs and is the equivalent of six
months of general fund operations.
3.If necessary, utilize a portion of theServiceLevel StabilizationReserveFund#121 ($5.5
million) to maintain ending fund balance minimum.
4.Commitmentto the strategy that the Service Level StabilizationReserveFund#121will not
be reducedbelow $3.3 million (60% of $5.5 million)without City Council approval. If Council
should deem this necessary, the City will then first replenish Fund #121 to at least $3.3 million
before any annual General Fund transfers are made to Capital Reserve Fund #312.
5.Maintain the 2021 property tax assessment the same as 2020 with the exception of new
construction. As in the previous 11-years, the City will forego the 1% annual increase to
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property tax allowable by RCW 84.52.050. We anticipate this will result in a levy of
$12,399,200 plus estimated new construction of $325,000for a total levy of $12,724,200. The
allowable potential increase will be banked for future use as provided by law. This represents
the twelfth consecutive year that we have not increased our City property tax assessment.
6.Grow our economy so the existing tax base can support basic programs.
Commitment – By committing to these policiesand the checks and balancesthey afford, the City
will ensure financial sustainability wellinto the future.
2021 Budget Highlights
CityPriorities
The City’s chief budget priorities are:
Public Safety
Pavement Preservation
Transportation and Infrastructure (including railroad grade separations and park related
projects), and
Economic Development
Ensuring that we’ve committed adequate resources to these activities accounts for much of the
effort that Council and Staff collectively dedicate to the annual development of our Business Plan
andOperating and Capital budgets.
Moderate Growth in Recurring General Fund Expenditures
Investing in essential core services identified by the Council and Community establishes the
baseline expenditureswe have included in this budget. Similar to the trend experienced in most
jurisdictions, we find that the cost of providing these services oftenincreasesat a faster rate than
the moderate growth we see in the underlying tax revenues that support these coreservices.
With that said however, City staff and Council collectively strive to meet the challenge of
continuing to provide historic levels of service and we will again meet this challenge in 2021 where
we anticipate recurring General Fund revenues will increase over those of 2020by 2.20%, while
expenditures increase by 5.14%.The 5.14% increase is computed after a 2020 Budget
amendment that includes a $615,000 reduction in Parks and Recreation expenditures which is in
recognition of the fact that the COVID-19 event has resulted in the elimination of many programs.
If the $615,000 reduction in 2020 expenditures were not included, the 2021 Budget actually
increases by 3.65%.
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Increases at the point of budget adoption over the past 8-years have been:
Recurring
RevenuesExpenditures
2021compared to20202.20%5.14%
2020compared to20196.12%3.00%
2019compared to20185.56%1.90%
2018compared to20173.73%1.81%
2017compared to20164.38%0.87%
2016compared to20153.08%2.79%
2015compared to20142.72%3.90%
2014compared to20134.39%4.28%
Public Safety Costs
Over the years Council has consistently committed to the maintenance and at times enhancement
of public safety service levels and this is again reflected in the 2021 Budget wherepublic safety
costs including law enforcement, courts, prosecution, public defenseand jail related services
represent the City’s primary operating expenditure and total $28,101,615 which is a 4.57%
increase over the 2020 Budget. Noteworthy about the public safety budget are the following
observations:
It represents 62.3% of the 2021 General Fund recurring expenditure budget ($28,101,615 /
$45,101,466).
It is equivalent to 221% of anticipated 2021 property tax collections ($28,101,615 /
$12,724,200). In other words, if property taxes were to double they alone would not be
sufficient to cover Spokane Valley’s public safety commitment.
Staffing Levels
The Staff count remains unchanged from 2020 to 2021 with 95.25 full-time equivalent employees
(FTEs) butdoes reflect the reallocation of Staff between departments, including:
A vacant 1.0 FTE Senior Transportation Planner position allocated to the Economic
Development division has been repurposed to a 1.0 FTE Assistant Engineer position in the
Engineering Division.
A vacant 1.0 FTE Engineer position allocated 50% to the Engineering Division and 50% to
Street CapitalProjects Fund #303 has been repurposed to a 1.0 FTE Housing and Homeless
Services Coordinator position in the General Fund City Manager budget. This position will
begin coordinating the City’s approach to proactively addressing housing and homeless
issues in our community.
4
The FTE count allocated among City funds is as follows:
Difference
202020212021Between
Budget asStaffNew20212020 and
AdoptedReallocationPositionsBudget2021
General Fund #00175.780.500.0076.280.50
Street O&M Fund #1017.470.000.007.470.00
Street Capital Projects Fund #3038.10(0.50)0.007.60(0.50)
Stormwater Fund #4023.900.000.003.900.00
95.250.000.0095.250.00
The personnel costs for the 76.28FTEs charged to the General Fund represent just 21.9% of
recurring expenditures.
Taking into considerationthatwe contract for police services and are served by Fireand Water
districts as well as a Library District, for a major city we operate substantially below the normal
employee count and consequently at a significantly reduced payroll cost relative to many cities
across the country. Spokane Valley staff levels average about one employee for every 1,023
citizens(= population of 97,490perthe WA State OFM/ 95.25FTEs) while comparably sized
cities in the State of Washington have a much higher ratio of employees to citizens.
Since incorporation, the City has taken a conservative approach to adding new staff and continues
to have the lowest per capita employee count of any Washington city with a population of 50,000
or greater. By all comparisons, the City of Spokane Valley continues to be alean, productive City
government.
Pavement Preservation
Some may question paving roads that “don’t look so bad” but the truth is the best time to repave
is before a road deteriorates to the point that full reconstruction is necessary. Full reconstruction
costs substantially more than pavement preservation treatments such as crack sealing or grinding
and repavingand this is why the City has committed critical financial resources to the preservation
of our transportation infrastructure. We’re proud of our fine road system and will endeavor to
continue to maintain it in the best manner possible with available financial resources.
Beginning in 2012, the City initiated a program of expending general fund, special revenue fund
and capital project fund revenues and reserves for the purpose of financing our street preservation
efforts. In 2021, our community will again see an aggressive program of caring for roadways
including the potential of surface treatment programs that would be new to Spokane Valley.
For 2021,we project total revenues in Pavement PreservationFund #311of $4,146,400that
combined with $579,950of fund reserves will be applied against $4,726,350in projected
expenditures. Sources of revenue in 2021 are anticipated to include$1,500,000 from the Street
Wear fee that was adopted by Council in 2018, and $2,646,400in transfers from other City funds
consisting of:
$991,843from the General Fund
$827,278from REET 1 Capital Projects Fund #301
$827,279from REET 2 Capital Projects Fund #302
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While Pavement Preservation is one of our critical service and budget priorities we find that
sustaining adequate levels is a constant challenge and I address this in the portion of this budget
message titled “Challenges”.
Transportation and Infrastructure
The 2021 Budget includes $32,554,699of capital expenditures that we anticipate will be in-part
offset with $21,079,702in grant revenues which results in 64.75% of capital projects being
financed with State and Federal dollars. The projects we’ll work on in 2021 partially include:
$8.88million in Street Capital Projects Fund #303
$1.12million in Park Capital Projects Fund #309
$4.68million in Pavement Preservation Fund #311
$759,600 for the final installment to WSDOT for the acquisition of nearly 14 acres future park
property located north of Sullivan Park.
$13.80million in Railroad Grade Separation Projects Fund #314
$2.88million in Stormwater Fund #402 and Aquifer Protection Area Fund #403
$212,800 for Information Technology equipment acquisitions in the General Fund
$130,000 from Equipment Rental and Replacement Fund #502 for the replacement of existing
vehicles in the EngineeringDivision of the General Fund #001 and the Street Fund #101.
Challenges
Beyond the annual challenge of balancing the General Fund budget, the City of Spokane Valley
has a number of on-going financial challenges.
1.Declining revenues in Street O&M Fund #101 that will impact our future ability to deliver
historic service levels
This Fund depends upon a combination of gas and telephone tax receipts.
Because the gas tax is a flat amount per gallon, and because each generation of newer
vehicles get better gas mileage, we find our gas tax revenues hover somewhere between
flat or slightly declining. Calendar year 2020 revenues werematerially impacted by the
COVID-19 event and amended downward by $331,700 (16.2%) from the initial 2020
Budget projection of $2,046,700 reflecting a material change in driving habits as much of
the State population stayed home in order to physical distance from others. The 2021
Budget projection reflects a .7% increase over the 2020 Budget as initially adopted
($2,062,000 / $2,046,700) in anticipation of a return to normal (assuming a COVID-19
vaccine becomes available in early 2021 and widely distributed by yearend).
The 6% telephone utility tax generated $3,050,000 million in the first year of collectionsin
2009. Since that time however we have experienced a decline averaging5.90%per year
and at this point are projecting 2021 revenues of just $1,431,000which is just 47% of the
2009 collections.We believe the decline is primarily due to the elimination of land lines
by individual households.
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Because of the ongoing decline in telephone utility tax revenues, 2021 will be the fifth
consecutive year of budgeted recurring expenditures exceeding recurring revenues.
o We have been able to continue to deliver historic levels of service in the previous 4-
years by doing the following:
2017– a $328,000 operating deficit was resolved by drawing down fund reserves.
2018– a$415,000 operating deficit was resolved by drawing down fund reserves.
2019– a $907,000 operating deficit was resolved through a transfer from Capital
Reserve Fund #312. This is a noteworthy departure from the historic intended use
of these monies which has been for one-time capital projects.
2020– a $1,714,096 operating deficit was resolved through a combination of
transfers of $1,364,706 from Capital Reserve Fund #312 and $350,200 from the
General Fund.
2021– a $1,859,600 operating deficit was resolved through a transfer directly from
the General Fund.
Determining “how” to fully finance Street O&M Fund #101 operations beyond 2021 will
continue to be a Council conversation.
2.Balancing the cost of pavement preservation against other transportation and infrastructure
needs
Pavement preservation has historically been financed from a combination of sources
including:
o General Fund dollars,
o Street O&M Fund dollars,
o Civic Facility Replacement Fund #123 (Fund #123) reserves that were dedicated
towards this purpose until their depletion in 2016.
o Real estate excise tax (REET) revenues,
o Grantrevenues, and
o Beginningin 2018, the addition of a street wear fee that was negotiated by the City as
part of an updated solid waste collection contract that recognized the damage that
heavily laden garbage trucks do to our road system.
o Following is a table that reflects pavement preservation related revenues over the 10-
year period 2011 through 2021:
Fund
001101106123301/302310
StreetCivic Fac.Civic Fac.
GeneralStreet O&MWear FeeReplace.REET 1&2CapitalGrantsTotal
Actual
2011584,6810000500,00001,084,681
20122,045,2030000002,045,203
2013855,857282,0000616,284300,000035,9452,090,086
2014888,823282,0000616,284368,94402,042,6654,198,716
2015920,000206,6180616,284502,0980835,2243,080,224
2016943,80067,3420559,808730,57201,654,6983,956,220
2017953,20067,342001,320,958089,2082,430,708
2018962,70067,3421,000,00001,370,65801,422,4044,823,104
2019972,30001,608,02801,545,27702,398,3306,523,935
Budget
2020982,02301,513,53201,545,277010,5884,051,420
2021991,84301,500,00001,654,557004,146,400
11,100,430972,6445,621,5602,408,6609,338,341500,0008,489,06238,430,697
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The City used Civic Facility Replacement Fund #123 reserves over the 4-year period 2013
through 2016 in order to give the City time to determine how best to finance the pavement
preservation plan in 2017 and beyond.
In the years leading up to 2020 we existed in a fairly robust economy and beginning in
2017, following the depletion of Fund #123 reserves, we began applying a portion of our
strong Real Estate Excise Tax (REET) collections towards pavement preservation. During
this time frame we recognized that when the economy inevitably waned in the future, so
too would REET revenues, and a consequence of over reliance on that source of money
could in the future limit the City’s ability to provide the necessary match needed for State
and Federal grants thatare applied to other street construction and reconstruction
projects. Now, existing in the COVID-19 induced recession we find that our predictions
may be coming to pass and recognize that the need to address alternative funding is more
important than ever.
For a number of years Spokane Valley struggled to develop a pavement management
plan that clearly delineated the pavement condition index (PCI) that should be maintained
throughout our road system and define the amount of money we should dedicate annually
to achieve thatplan.
The results of one of our most recent studies was communicated to Council on April 2,
2019 and this answered the question of how pavement management resources should be
allocated between the local access, collector and arterial portion of our street network.
This study also estimated the annual cost to meetthe needs of both Street O&M Fund
#101 and Pavement Preservation Fund #311to be $10 million.
Because the City annually commits approximately $6 million to pavement management
needs this leaves us with an estimated annual shortfall of $4 million.
Even though the City’s investment in our street network has consistently fallen short of
that figure however we find that the PCI is not in a free fall and is in fact holding fairly
steady at a rating of 76 (out of 100) which is considered to be in the “Good” category.
We continue to evaluate our pavement management plan and are currently considering a
variety of pavement treatments beyond our historic use of crack sealing and grind and
overlays.
Council and Staff will continue to work collectively to determine how to finance a realistic
pavement management plan.
3.Railroad Grade SeparationProjects (overpasses and underpasses)
Bridging the Valley is a proposal to separate vehicle traffic from train traffic in the 42 mile
corridor between Spokane and Athol, ID. The separation of railroad and roadway grades in
this corridor is intended to promote future economic growth, traffic movement, traffic safety,
aquifer protection in the event of an oil spill, and train whistle noise abatement. The underlying
study outlined the need for a grade separation at four locations in Spokane Valley.
Barker and Trent Road Overpass (fully funded at $24.7million),
Pines and Trent Underpass(estimated cost of $29.0million),
Sullivan Road Overpass improvements, and
Park Road Overpass
Because grade separation projects are exceptionally expensive endeavorsand largely
beyond our ability to finance solely through existing sources ofinternalrevenue, the Cityhas
pursued grant funding from both the Federal and State Governments overthe past several
years.
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Barker/Trent Grade Separation Project
We reached the point of being fully funded for this project in early 2018, the design is complete,
and we have acquired all necessary right-of-way with the exception of one parcel upon which
we’ve received notification of a Cert 3 acceptance. We anticipate that construction funds will
be obligated by late 2020with construction beginning in 2021. Revenue sources are
comprised of the following:
Barker Grade Separation Project Financing Sources
City of Spokane Valley
General Fund reserves$1,421,000
Real Estate Excise Tax (REET)2,209,000
Total from Spokane Valley$3,630,000
Federal Earmark721,000
2017 WA Legislature appropriation1,500,000
National Highway Freight Program6,000,000
TIGER 99,020,000
FMSIB (20% of total)
(assume $19.0 million)3,800,000
$24,671,000
Pines / Trent Grade Separation Project
Progress to date includes:
We anticipate the project cost will be $29.0 million and thus farwe have secured $9.7
million including $4.7 million set aside bythe City.Additionally, there exists an inactive
Freight Mobility Strategic InvestmentBoard (FMSIB) grant in the amount of $3.36 million.
It is currently unclear whether these funds will be made available to Spokane Valley in the
future.Following is a detailed list of sources secured:
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Pines Grade Separation Project
(Estimated cost of $29 million)
Financing Secured
City of Spokane Valley
2016 General Fund Property acquisition$500,000
2017 General Fund dedication1,200,000
2017 General Fund allocation of
fund balance > 50%721,000
2018 General Fund allocation of
fund balance > 50%764,000
2019 General Fund allocation of
fund balance > 50%1,500,000
Total from Spokane Valley4,685,000
2018 - SRTC for ROW (FHWA)1,890,000
2019 - CRISI 2 for Design1,246,500
2020 - SRTC (FHWA)1,905,000
$9,726,500
Inactive FMSIB Grant from 2000 that
was awarded to WSDOT$3,360,000
In late 2016 the City acquired property valued atapproximately $500,000 that was applied
to the acquisition of property that will in-part satisfy the right-of-way needs for this project.
On July 11, 2017 Council approved a Phase 1 contract with anengineering firm valued at
$124,000 with a scope of services that calledfor evaluating two potential sites, each of
which includeda roundabout and signalized intersection alternative.
Staff presented subsequent reports to Council that provided design progress updates on
October 17, 2017, December 13, 2018and June 4, 2019.
A total of five public outreach meetings were held between October 2017 and May 2019
to seek input on the design alternatives.
Input was sought from a variety of stakeholders including BNSF, the Spokane Valley
Police Department, Spokane Valley Fire Department, East Valley School District, the
Fourth District Legislative Delegationand freight industry representatives.
On June 18, 2019 Council approved a design alternative that moves the intersection to
the east of the current location with a roundabout as intersection control.
In early June 2019 the City was awarded a Consolidated Rail Infrastructure and Safety
Improvements (CRISI) grant through the Federal Rail Administration (FRA) in the amount
of $1,246,500. The related contract for the CRISI grant was completed in March 2020
and the proceeds are being applied towards the engineering design phase.
In May 2020 Council approved the contract to complete the engineering design phase of
the projectwhich we anticipate will be completed in the latter part of 2021.
In early 2020 the City was awarded an additional $1,905,000 towards right-of-way
acquisition through the Spokane Regional Transportation Council (SRTC).
In July 2020 the City began acquiring right-of-way through the acquisition of three parcels.
Future property acquisitions will be necessary during the right-of-way phase of the project
but this cannot be determined until the final phase of the design is well underway.We
anticipate right-of-way activities will continue into 2022.
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With the engineering design phase completed by the end of 2021 and right-of-way
acquisition phase completed in 2022 we anticipate the project will be “shovel ready” by
December 2022.
For the construction phase of the project the City has applied for a variety of both state
and federal grants including the TIGER,FASTLANE , INFRA,CRISIand BUILD programs.
We will continue to apply for grant programs as they become available. We are hopeful
that having a 100% design will make us more competitive as we will then have a “shovel
ready” project.
Economic Development
To the best of our ability we focus on business retention and expansion of existing businesses
and recruitment of new businesses. Examples of economic development efforts include:
Comprehensive Plan – In the latter part of 2016 the City updated its Comprehensive Plan and
included an economic development element. Contained within this element is a summary of the
local economy; an assessment of strengths and weaknesses; and policies, programs and projects
to foster economic growth. The plan also included implementation strategies to improve retail,
enhance tourism, and grow businesses in the City. Among other things, the plan also streamlined
land uses by consolidating many zones and reducing many development requirements.
Additionally the plan was also designed to provide flexibility in an effort to encourage market
driven growth.
Retail Recruitment – In 2017 the City expanded into the area of Retail Recruitment by contracting
with a firm specializing in this type of service. The services we are seeking in this effort include
a review of the retail recruitment strategy; conducting a market and retail gap analysis;
development of a recruitment plan; identification of a strategic retail prospect list; and recruitment
of retail on behalf of the City. We have again included money in the 2021 Budget to continue this
effort.
Planned Action Ordinance (PAO) – In the latter part of 2016 the City receiveda$114,200 grant
from the Department of Commerce that with an additional investment of $55,000 from the City,
resultedin a streamlined environmental permitting process in the northeast industrial area of our
community. This study completed the environmental permitting requirements for the northeast
industrial areawhich lead to the development of a Planned Action Ordinance (PAO) adopted by
Council March 12, 2019. The PAO savesindustrial developers a minimum of 6 weeks permitting
time while providing a predictable path to ensure that adequate infrastructure is in place to serve
the expected developments and as a result of the PAO properties can now be marketed as truly
“shovel ready”.
Northeast Industrial Area – In addition to the adoption of the Planned Action Ordinance the City
has engaged in a number of capital projects inour Northeast Industrial Areathatresulted in the
expansion and improvement of our infrastructure and have the dual benefit of improving our road
system and making the area more attractive for future economic development. These include:
In 2019we rebuilt Barker Road from Euclid Avenue to the southern limits of the Barker
Grade Separation project including the extension of sewer service by Spokane County.
In partnership with Centennial Properties, in 2020 we completed a project that began in
2019 that resulted in the construction of a new one-mile section of Garland Avenue that
stretchesfrom Flora to Barker.This new stretch of road made150additional acres of
industrial property accessible to development.
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The City began a construction project in 2020 that will be completed in 2021 what will
rebuild Barker Road from Euclid Avenue running south to the Spokane River.
The Budget for 2021
Strong but Guarded
Recognizing that fiscal health is at the core of providing good public services, one of the most
important tests of fiscal management is the ability of a municipal enterprise to maintain basic
services during an economic downturn. The creation andongoing maintenance of financial
reserves since incorporation has served the intended purpose of providing Spokane Valley the
means to sustain critical public services during turbulent economic conditions including those
experienced during the Great Recession that began in 2008and the COVID-19 induced global
recession we are currently experiencing. The 2021 Budget again reflects a prudent and guarded
continuation of service delivery capabilities.
In the budget message I wrote last year I included the following statement:
“We are cognizant of the fact that we currently exist in the longest economic expansion in
United States history and at this point, with each passing day we are closer to the next
economic downturn. Given this, we will remain vigilant in our observance of local, state
and national events and economic trends that may impact our own community and work
towards capitalizing on our strengths, minimizing our weaknesses, and being ever
watchful towards both threats and opportunities.”
As I write this messagewe exist in a global recession brought on by the COVID-19 pandemic.
While we are uncertain of the depth and breadth of the impact this event will have on City
revenues and the programs they support, we will in the future, as we have in the past, “continue
to remain vigilant in our observance of local, state and national events and economic trends that
may impact our own community and work towards capitalizing on our strengths, minimizing our
weaknesses, and being ever watchful towards both threats and opportunities.”
Balanced Budget
Means exactly what it says –recurring General Fund operating expensesand the programs they
supporthave been balancedwith known or reasonably predictable recurring revenues with no
increase in propertytax or in sales tax rates for the City. The budget is designed to maintain the
healthy,positive fund balance at year-endwhich provideforthe City’s cash flow needs without
costly borrowing. In pursuit of fiscal responsibility, special attention is given to limiting the growth
in new programs and financial commitments. This approach allows available resources to be put
toward sustaining services consistent with the City Council’s priorities for 2021 and beyond.
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Acknowledgments
I would like to acknowledge the Community,City Council and Staff for a long history of financially
responsiblespending and sensiblefiscal planning. By saving and conserving the taxpayers’
money and by adoptingand adhering toprudent long-term fiscal policies, the City will in 2021
provide levels of service on par with those we’ve provided in past years even while in the grip of
a global recession induced by the COVID-19 pandemic.
The City Council continues to set a path to ensure the long-term financial sustainability of the City.
The management staff and employees have worked together to develop the Business Plan and
2021 Budget recommendations toachieve the Council’s ongoing goal of sustainability.
I hope the Citizens of Spokane Valley are proud of theprograms andstrong financial condition of
their City. We invite your examination and questions regarding the 2021 Budget.
Respectfully,
Mark Calhoun
City Manager
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Governmental Fund Types
Proprietary Fund Types
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* Indicates voter approved sales taxes.
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30
(h/m tax-CP advertising)
(2016 LTGO debt service)
(park capital projects)
(pavement preservation)
(CenterPlace kitchen reserve)
(insurance premium)
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(office furniture for Housing Serv employee)
(full facility generator)
(carpet & workstation replacement)
(replace HVAC units at Precinct)
(replace handguns)
(radar trailer)
(Precinct access control gate)
(Precinct fire panel replacement)
(CERB Appleway Trail Study)
(Commerce Housing Action Plan)
(Ecology SMP Update)
(equipment for new Code Enf. Officer)
(carpet at CenterPlace)
(City Hall generator)
(Street Fund operations)
(replenish reserve)
(Browns Park 2019 Impr)
(CenterPlace west lawn)
(CenterPlace roof repairs)
(Browns Park 2020 Impr)
(new Code Enf. Vehicle)
Fund balance as a percent of recurring expenditures94.39%81.27%73.25%
General Fund Summary
Total revenues48,351,8001,146,90049,498,70045,451,419
Total expenditures44,980,1867,082,92152,063,10747,277,766
Excess (Deficit) of Total Revenues
Over (Under) Total Expenditures3,371,614(5,936,021)(2,564,407)(1,826,347)
Beginning unrestricted fund balance37,427,21837,427,21834,862,811
Ending unrestricted fund balance40,798,83234,862,81133,036,464
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(non-plow vehicle rental)
(plow replace.)
Street Fund Summary
Total revenues5,160,90605,160,9065,567,200
Total expenditures5,160,90605,160,9065,567,200
Excess (Deficit) of Total Revenues
Over (Under) Total Expenditures0000
Beginning unrestricted fund balance556,265556,265556,265
Ending unrestricted fund balance556,265556,265556,265
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34
35
36
(pavement preservation)
(Barker Grade Separation)
(pavement preservation)
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Barker Corridor
Garland Ave
Note: Work performed for pavement preservation projects out of the Street Capital Projects Fund is for items such as sidewalk upgrades
that were bid with the pavement preservation work.
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(Evergreen to Sullivan)
park land acquisition
Note: The fund balance in #310 includes $839,285.10 paid by the Library District for 2.82 acres at the Balfour Park site. If the District
does not succeed in getting a voted bond approved by October 2022 then the City may repurchase this land at the original sale
price of $839,285.10.
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(Barker Road Corridor)
(Garland Ave.)
(Appleway Trail - Evergreen-Sullivan
(Balfour Park frontage improvements
(Balfour Park improvements ph 1)
(Pines Rd Underpass)
(Barker Rd Overpass)
(Sullivan Rd Interchange)
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Stormwater Fund Summary
Total revenues1,999,82801,999,8282,040,000
Total expenditures2,563,98502,563,9852,626,007
Excess (Deficit) of Total Revenues
Over (Under) Total Expenditures(564,157)0(564,157)(586,007)
Beginning unrestricted fund balance2,180,7732,180,7731,616,616
Ending unrestricted fund balance1,616,6161,616,6161,030,609
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(plow replace.)
(CenterPlace kitchen reserve)
(Code Enforcement Vehicle)
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68
69
70
(continued on next page)
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(continued from prior page)
*
*
*
*
These positions are budgeted partially to the Engineering Division in the General Fund with the balance budgeted as a part of
*
Capital Projects Funds, the Street Fund #101, and the Stormwater Fund #402.
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(continued from prior page)
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*Several prior year goals were unable to be completed due to COVID-19.
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*Prior year goals were unable to be completed due to COVID-19. The pools never opened for 2020.
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*Several prior year goals were unable to be completed due to COVID-19.
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*Several prior year goals were unable to be completed due to COVID-19.
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(continued to next page)
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(continued from previous page)
(City Hall bond payment)
(park capital projects)
(pavement preservation)
(CenterPlace kitchen reserve)
(risk management)
(2017 final year)
(Replenish Winter Weather Reserv
(Park Capital)
(capital reserve fund)
(RR Grade Separation)
(new code enf. vehicle)
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(continued to next page)
These positions are budgeted partially to the Street Fund with the balance budgeted as a part of the General Fund,
Capital Projects Funds, and the Stormwater Fund #402.
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(continued from previous page)
(pavement preservation)
(non-plow)
(plow replace)
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87
88
89
90
91
92
93
(pavement preservation)
(Barker Grade Separation)
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(pavement preservation)
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Euclid Ave - Flora to Barker
8th & Carnahan Intersection
Barker Corridor
Garland Ave
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97
(General Fund)
(Paths & Trails)
(Capital Reserve)
(Pines to Evergreen)
(Sullivan to Corbin)
(Evergreen to Sullivan)
(Univ - Pines)
(park land acquisition)
98
99
100
Sullivan Rd W Bridge
Euclid Ave - Flora to Barker
8th & Carnahan Intersection
Barker Road Corridor
Garland Ave
Crosswalk lighting on Indiana
Appleway Trail -Pines-Evergr
Appleway Trail -Corbin
Appleway Trail -Evergreen-Su
- Balfour Park frontage improve
- Balfour Park frontage improve
Pines Grade Separation
- Barker Rd Overpass
- Sullivan Rd Interchange
101
102
103
(continued to next page)
104
(continued from previous page)
105
106
(continued to next page)
107
(continued from previous page)
(plow replace.)
(CenterPlace kitchen reserve)
(Code Enforcement Vehicle)
(networking equipment)
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0
130,000130,000
256,064256,064
500,000500,000
434,340434,340
759,600759,600
529,950529,950
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33,50033,500
41,400
284,200
242,800
Italicized Bold
(4)(3)(4)(3)(4)
(1)(2)
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FTEs for 2017 reflect the reorganization that was effective in April 2017.The original 2017 Budget had FTEs of 88.4.FTEs for 2018 reflect the budget amendment approved on May 29, 2018.One
vacant position in Economic Development was repurposed to Engineering due to workload.Vacant Engineering position that was split 50/50 between the General Fund andStreet Capital Projects
Fund was repurposed to a Housing & Homeless ServicesCoordinator in the City Manager department.
(1)(2)(3)(4)
Spokane Valley97,490942
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Note: Slight rounding differences may exist between the figures reflected on this page and
the actual payroll rates computed by the Eden Payroll System.
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CITY OF SPOKANE VALLEY, WA
Glossary of Budget Terms
Accrual Basis –A basis of accounting in Capital Improvement – Expenditures
which revenues and expenditures are related to acquisition, expansion or
recorded at the time they occur as rehabilitation of an element of the
opposed to when cash is actually received government’s physical plant; sometimes
or spent. referred to as infrastructure.
Appropriation – A legal authorization Capital Outlay –Fixed assets that have
granted by the City Council to make general value of $5,000 or more and have
expenditures and to incur obligations for a useful economic lifetime of more than
a specific purpose.one year.
Assessed Valuation –The valuation set Capital Project –Major construction,
upon real estate and certain personal acquisition, or renovation activities
property by the County Assessor as a which add value to government’s
basis for levying property taxes. physical assets or significantly increase
their useful life, also called capital
Authorized Positions –Employee improvements.
positions, which are authorized in the
adopted budget, to be filled during the Capital Projects Fund –A fund created
year.to account for all resources and
expenditures used for the acquisition of
Bond –A long-term promise to repay a fixed assets except those financed by
specified amount (the face amount of the enterprise funds.
bond) on a particular date (the maturity
date). The most common types of bonds Contingency – A budgetary reserve set
are general obligation revenue bonds. aside for emergencies or unforeseen
Bonds are primarily used to finance expenditures not otherwise budgeted.
capital projects.
Contractual Services –Services
Budget – A plan of financial activity forrendered to a government by private
a specified period of time (fiscal year or firms, individuals, or other governmental
biennium) indicating all planned agencies.
revenues and expenses for the budget
period. Debt Service –Payment of interest and
principal on borrowed money according
Budget Message –The opening section to a predetermined payment schedule.
of the budget that provides the City
Council and the public with a general Department –The basic unit of service
summary of the most important aspects of responsibility, encompassing a broad
the budget, changes from the current and mandate of related service
previous years, and the views and responsibilities.
recommendations of the Mayor.
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Division – Can be a subunit of a
department which encompasses a GASB – The Governmental Accounting
substantial portion of the duties assigned Standards Board, established in 1985, is
to a department (e.g. Building Division in the current standard-setting board for
the Planning and Community governmental GAAP.
Development Department).
General Fund –The principal operating
Encumbrance – The commitment of fund of the City used for general
appropriated funds to purchase an item or governmental operations. Taxes and fees
service. To encumber funds means to set that generally have no restriction on their
aside or commit funds for a specified use support it.
future expenditure.
General Obligation (G.O.) Bonds –
Expense – Charges incurred (whether This type of bond is backed by the full
paid immediately or unpaid) for faith, credit and taxing power of the
operations, maintenance, interest or other government issuing it.
charges.
Indirect Cost –A cost necessary for the
Face Value –The amount of principal functioning of the organization as a
that must be paid at maturity for a bond whole, but which cannot be identified
issue.with a specific product, function or
activity.
Fiscal Year – A twelve-month period
designated as the operating year for Infrastructure – The physical assets of a
accounting and budgeting purposes in an government (e.g. streets, water, sewer,
organization. public buildings, and parks).
Full-time Equivalent Position (FTE)– Interfund Transfers –The movement of
A full-time or part-time position monies between funds of the same
converted to the decimal equivalent of a governmental entity.
full-time position based on 2,080 hours
per year. For example, a part-time personLevy – To impose taxes for the support of
working 20 hours per week would be the governmental activities.
equivalent of 0.5 of a full-time position.
Long-term Debt –Debt with a maturity
Fund – A fiscal entity with revenuesand of more than one year after the date of
expenses that are segregated for the issuance.
purpose of carrying out a specific purpose
or activity.Mission Statement –A broad statement
of the intended accomplishment or basic
GAAP – Generally Accepted Accounting purpose of a program.
Principles. Uniform minimum standards
for financial accounting and recording, Modified Accrual Accounting –A basis
encompassing the conventions, rules, and of accounting in which expenditures are
procedures that define accepted accrued but revenues are accounted for
accounting principles. when they become measurable and
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available. Since this type of accounting Taxes – Compulsory charges levied by a
basis is a conservative financial government for the purposeof financing
approach, it is recommended as the services performed for the common
standard for most governmental funds. benefit. This term does not include
specific charges made against particular
Operating Budget –The portion of the persons or property for current or
budget that pertains to daily operations permanent benefits such as special
that provide basic governmental services.assessments. Neither does the term
include charges for services rendered
Ordinance –A formal legislative only to those who pay, for example,
enactment by the City Council. If it is not sewer service charges.
in conflict with any higher form of law,
such as a statute or constitutional Unreserved Fund Balance –The portion
provision, it has the full force and effect of a fund’s balance that is not restricted
of law within the boundaries of the for a specific purpose and is available for
municipality to which it applies.general appropriation.
Program – The smallest organization User Charges –The payment of a fee for
that delivers a specific set of services. A direct receipt of a public service by the
program may be an entiredepartment; or party who benefits from the service.
if a department encompasses
significantly diverse responsibilities or Vision Statement –A short statement
large work forces, a single department that conveys the big picture of the
may be divided into two or more organization. It is general in scope, not
programs. restricting. It answers the question
“Why?”
Reserve – An account used to either set
aside budgeted revenues that are not
required for expenditure in the current
budget year or to earmark revenues for a
specific future purpose.
Resolution – A special or temporary
order of a legislative body—an order of a
legislative body requiring less legal
formality than an ordinance or statute.
Resources – Total amounts available for
appropriation including estimated
revenues, fund transfers, and beginning
balances.
Revenue – Sources of income financing
the operations of government.
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