2025, 04-08 Formal A MeetingCity of Spokane Valley
City Council Study Session Meeting
Formal A Setting
Tuesday, April 8, 2025
Mayor Haley called the meeting to order at 6:00 p.m. The meeting was held in person in Council Chambers,
and also remotely via Zoom meeting.
Attendance:
Councilmembers
Staff
Pam Haley, Mayor
John Hohman, City Manager
Tim Hattenburg, Deputy Mayor
Erik Lamb, Deputy City Manager
Rod Higgins, Councilmember
Gloria Mantz, City Services Administrator
Jessica Yaeger, Councilmember
Tony Beattie, Senior Deputy City Attorney
Laura Padden, Councilmember
John Bottelli, Parks & Rec Director
Ben Wick, Councilmember
Kelly Konkright, City Attorney
Jill Smith, Communications Manager
John Whitehead, HR Director
Mike Basinger, Economic Development Director
Absent:
Dave Ellis, Police Chief
Al Merkel, Councilmember
Dan Domrese, Accounting Manager
Erica Amsden, CIP Engineering Manager
Glenn Ritter, Senior Engineer
Justan Kinsel, IT Specialist
Marci Patterson, City Clerk
INVOCATION: Pastor Paul Baughman, Every Church provided the invocation.
PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance.
ROLL CALL: City Clerk Patterson called roll; all Councilmembers were present except Councilmember
Merkel. It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to excuse
Councilmember Merkel.
APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed
to approve the agenda.
SPECIAL GUESTS/PRESENTATIONS:
COUNCILMEMBER REPORTS
Mayor Haley provided instruction regarding councilmember reports and noted that the Governance Manual
Committee was working on updating the language for the reporting, but until it is updated she asked if council
would be agreeable to waiving the current rules and allowing reporting on various topics to include those in
which a councilmember represented the city at meetings, events, committees, a task force or any other
activity. It was moved by Councilmember Wick, seconded and unanimously agreed to suspend the rules to
allow for additional reports from councilmembers.
Councilmember Wick: attend the Valley Chamber Business Annual event, an MRSC meeting, VOA
crosswalk building tour, and provided a FMSIB update with info on the south barker corridor.
Councilmember Higgins: stated he had nothing to report.
Councilmember Padden: attended the Washington DC trip and gave a brief update and noted it was a very
productive trip, she attended the Vietnam Memorial event at Balfour Park, the Duane Alton memorial, and
spoke about the property sales tax.
Councilmember Yaeger: attend the Valley Chamber Business Annual event and gave a brief report on the trip
to Washington DC.
Council Meeting Minutes, Study Session: 04-08-2025 Page I of 4
Approved by Council: 04-22-2025
Deputy Mayor Hattenburg: attended the Vietnam Memorial event at Balfour, Valley Chamber Business event,
a safety awards banquet for STA, and a ribbon cutting for new nail salon in the Valley.
MAYOR'S REPORT
The mayor spoke about attending most of the same events that other councilmembers had attended and spoke
more about the safety awards program for STA.
PROCLAMATION: National Public Health Week
Mayor Haley read the proclamation and Kelly Hawkins, PIO with Health District and Lola Phillips, Deputy
Administrative Officer with the Health District accepted the proclamation and spoke about the importance of
National Public Health Week.
GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she
invited public comments. Paul Swift, Spokane Valley; Michelle Kelso, Spokane Valley; John Harding,
Spokane Valley; Joseph Ghodsee, Spokane Valley; and Mike Kelly, Spokane Valley all provided comments.
CONSENT AGENDA:
1. Consent Agenda: Consists of items considered routine which are approved as a group. Any member of
Council may ask that an item be removed from the Consent Agenda to be considered separately.
Proposed Motion: I move to approve the Consent Agenda.
a. Approval of Claim Vouchers, April 8, 2025, Request for Council Action Form: $1,657,094.59,
b. Approval of Payroll for Pay Period ending March 15, 2025: $640,533.80.
c. Approval of Council Meeting Minutes of January 21, 2025
d. Approval of Council Meeting Minutes of January 28, 2025
e. Approval of Council Meeting Minutes of February 11, 2025
f. Approval of Council Meeting Minutes of March 4, 2025
It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the Consent
Agenda.
ACTION ITEMS:
2. Motion Consideration: Flora Cross Country Complex County Sewer Easement —John Bottelli Glenn Ritter
It was moved by Deputy Mayor Hattenburg and seconded to authorize the City Manager to finalize and
execute the attached Termination and Release of Easement, and new Public Sewer and Access Easement
documents for the Flora Property. Mr. Bottelli and Mr. Ritter provided details on the need for the update to
the county sewer easement. They noted that the easiest way is to terminate the current easement and create a
new easement as detailed in the RCA. Mayor Haley invited public comment; no comments were provided.
Vote by acclamation: in fcn)or: Unanimous. Opposed: None. Motion carried.
3. Motion Consideration: Flora Cross CountLy Complex -Guaranteed Maximum Price (GMP) Amendment #2
It was moved by Deputy Mayor Hattenburg and seconded to authorize the City Manager to finalize and
execute GMP Amendment #2 with Walker Construction and authorize fitture buy back/betterments up to a
total contract amount not to exceed $6 million. Mr. Ritter and Mr. Basinger provided details on the flora
cross-country complex and the guaranteed maximum price amendment #2. Mr. Basinger noted that we are
ahead of schedule due to the light winter, and it allowed the work to continue at the site. Mr. Basinger also
provided current details on the work that is being done at the site. Mr. Ritter spoke about the plans for
construction and the GMP for $2.9 million. The buy back/betterments included extending water lines, parking
lot, frontage cleanup, restrooms, irrigation, placing the topsoil, etc. Council spoke about the betterment items
and the Walker Construction contract. Mayor Haley called for public comments. John Harding, Spokane
Valley provided comments. Vote by acclamation: in favor: Unanimous. Opposed.• None. Motion carried.
NON -ACTION ITEMS:
4. Admin Report: Precinct Remodel Update — Erik Lamb Chief Ellis Glenn Ritter
Mr. Lamb explained the need for the updates, the improvements with the new layout and the cost for the
updates. He further detailed that staff recommend the base bid and 2 alternates noted in the RCA. Mr. Lamb
Council Meeting Minutes, Study Session: 04-08-2025 Page 2 of 4
Approved by Council: 04-22-2025
noted the new layout and how it would assist with placement of the new officers and help with the continued
growth. Mr. Lamb went over the funding for the new layouts, how the funding would work for the project,
where the funding would come from, with the funding that was previously set aside for the space planning
for a new precinct. There was a request for consensus to proceed with the project to go out to bid and start
the process. Council provided consensus for the project to proceed.
5. Admin Report: Staffing & Master Fee Schedule Update — Gloria Mantz Erica Amsden
Ms. Mantz and Ms. Amsden provided a detailed PowerPoint presentation that included information on the
right of way inspections in the engineering division, a background on the right of way inspector, the need for
an additional inspector and that it can be covered by an increase in the permit fees. There was previously an
inspector that was hired by contract in order to assist with all the permits. Ms. Mantz also reviewed the fees
that would be increased and the revenues that would offset the cost for a new permanent inspector. She noted
that there would not be an impact to the budget if the fees were increased to cover the one FTE. Council
provided consensus to update the fee schedule and hire one FTE inspector.
Ms. Amsden proceeded with the Pines Rd/BNSF Grade Separation Project and provided background on the
project, provided details on the current staff for the project and the current workload for city staff in the
engineering department. Ms. Amsden also detailed the bid package that will be going out, the cost of the
project, noted that this is the city's largest capital improvement project to date, the construction management
required for the large project, the construction management team and our consultant is HDR. Ms. Amsden
reviewed the costs for the project in comparison with the Barker Road GSP, the project and budget
implications, and recommended that the city hire two FTE's for the remainder of the project for roughly 30
months and the two FTE's would be covered by the cost of the project. Council commented on the length of
the project and the need to revisit the need for the two FTE's once the project was completed. Mr. Hohman
provided details on the need for the additional staff and to keep the WSDOT local programs good standing.
Council provided consensus to come back for approval of the two FTE's.
Ms. Mantz continued the PowerPoint to review the facilities division and provided background details, the
staffing matrix, and the recommendation to reclassify the vacant position from inspector/facilities to a
facilities manager. Council discussed the need for the change in position classification. Ms. Mantz noted that
in order to get someone with the right skillset, they needed to change the position. She needs assistance with
the clean building requirements. Council provided consensus to return with a motion consideration on the
FTE change.
6. Admin Report: Governance Manual - John Hohman
Mr. Hohman provided details on the updates for the Governance Manual that included changing the format
for the meeting, the content for the meeting in councilmember reports to include reports from other items you
are working on. Mr. Hohman continued to detail the changes, the decorum elements and clean up some of the
language and better structure. Councilmember Padden requested a definition of defamation be clearly spelled
out in the manual. Council also discussed adding language regarding cell phone use in an emergency situation.
Mr. Hohman spoke about Chapter 5 update and reducing time from 15 minutes to 5 minutes when speaking
about violations found against them. He also spoke about adding violations for council conduct standards.
The final section that was reviewed was Appendix H - the Social Media Policy regarding clarification to the
social medica accounts, public records and records retention. Council provided consensus to return with a
motion consideration on the item.
7. Admin Report: Group Homes Update — Kelly Konkright
Mr. Konkright provided a detailed PowerPoint presentation that included the current zoning for group homes,
the definition of group home by RCW, the legal limitations on regulation, review of some of the RCW's
pertaining to the group homes, non-discriminatory regulation allowed, proposed amendments to the Spokane
Valley Municipal Code (SVMC) 5.05 that includes needing a city issued business license, provide the city
with a copy of all active licenses required and issued by Washington State and identify the provisions of the
RCW to that establish the requirement to which the group home must adhere in order to obtain or maintain
their licensing and policy goals of SVMC 5.05 amendments. Council spoke about a few minor revisions to
the code and Mr. Konkright noted that he would review the changes and return with an updated version for
council to discuss. Council provided consensus to return with the revisions to the code.
Council Meeting Minutes, Study Session: 04-08-2025 Page 3 of 4
Approved by Council: 04-22-2025
INFORMATION ONLY (will not be reported or discussed):
GENERAL PUBLIC COMMENT OPPORTUNITY: General public comment rules apply.
After Mayor Haley explained the process, she invited public comments. Rick Freier, Spokane Valley; and
Ben Lund, Spokane Valley provided comments.
ADVANCE AGENDA
Ther were no suggested changes to the Advance Agenda.
CITY MANAGER COMMENTS
Mr. Hohman noted that the second Community Conversations is next Tuesday the 150' at 5:00p.m. at City
Hall. Mr. Hohman also spoke about bringing back the community recognition program that was originally
introduced by our previous mayor, Mr. Tom Towey. Mr. Hohman noted that the first award will be presented
in May. Mr. Hohman closed his comments by mentioning that one of our capital improvements projects will
be starting soon and that it will be updating sidewalks in various locations throughout the city.
It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn. The meeting was
adjourned at 8:00 p.m.
ATTEST:
Marci atterson, City Clerk
<� W--"
Pam Haley, May
Council Meeting Minutes, Study Session: 04-08-2025
Approved by Council: 04-22-2025
Page 4 of 4
PUBLIC COMMENT SIGN -IN SHEET
SPOKANE VALLEY CITY COUNCIL MEETING
Tuesday, April 8, 2025
6:00 p.m.
GENERAL PUBLIC COMMENT OPPORTUNITY
#1
Please sign up to speak for up to THREE minutes and the Mayor will afford the public the opportunity to
speak. The public comment opportunity is limited to a maximum of 45 minutes.
You may only speak at one of the comment opportunities, not at both public comment opportunities.
NAME TOPIC YOU WILL SPEAK
PLEASE PRINT ABOUT YOUR CITY OF RESIDENCE
/'� I / L✓ 1 '7 _ 4✓,�J��6vi/li'
Please note that once information is entered on this form, it becomes a public record subject to public disclosure.
Spokane
Valley®
,,;oO'Prop amation
City of Spokane Vaffey, Washington
National ft 6Cic xeafth Week
WHEREAS, the week of April 7 is the 30th National Public Health Week and in the past 30
years significant strides have led to many public health successes including the
following:
1. deaths due to HIV/AIDS, which peaked in 1994, have dropped
significantly with Antiretroviral therapy ensuring most people with HIV can live
normal lifespans and prevention tools like PrEP significantly reduce transmission;
2. smoking rates, which were as high as 25. 5% among U. S. adults in 1994,
have now fallen to 11. 4 %;
3. childhood mortality, which was at a rate of 13.8 deaths per 1,000 live
births in 1994, has now fallen to 5.4 deaths per 1, 000 live births due to vaccines,
better healthcare access and nutrition:
4. lead poisoning, with 4.4% of U.S. children having elevated blood lead
levels in 1994, has now fallen to less than 0.5% due to policies banning leaded
gasoline and reducing lead in paint, pipes, and water systems; and
WHEREAS, a person's health status can differ drastically by ZIP code due to differences in
the built environment, environmental quality, community context, access to
healthy food, access to education and access to health care; and
WHEREAS, public health professionals help communities prevent, prepare for, withstand and
recover from the impact of a full range of health threats, ranging from infectious
disease outbreaks to natural disaster preparedness; and
WHEREAS, efforts to adequately support public health and the prevention of disease and
injury can continue to transform a health system focused on treating illness into
a health system focused on promoting wellness.
NOW, THEREFORE, 1, Pam Haley, Mayor of the City of Spokane Valley, on behalf of the
Spokane Valley City Councilmembers, do hereby proclaim the week of April 7, 2025, as
National Public Health Week
and I encourage citizens to support the goals of National Public Health Week and the vision of
Spokane Regional Health District to help create healthy lives, safe environments, and thriving
communities in the Spokane region.
Dated this 8�h day of April 2025.
`i k --
Pam Haley, Mayor
Mard Patterson
From: Petra Hoy <petrahoy737@gmail.com>
Sent: Thursday, April 3, 2025 7:30 PM
To: Council Meeting Public Comment
Subject: Spokane Valley passes 'not a sanctuary city' resolution meant to show allegiance to
Trump
[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or
clicking links.
I was disappointed to see this article in the Spokesman Review.
I'm grateful to Deputy Tim Hattenburg and Councilman Ben Wick for having the courage and integrity to
vote no on this unnecessary, divisive resolution. Thank you both.
I would hope our electeds would work towards a community where everyone feels welcome and safe.
Sincerely,
Petra Hoy
Mard Patterson
From: Roberta A <robertaanne1 @gmail.com>
Sent: Friday, April 4, 2025 10:26 AM
To: Council Meeting Public Comment; Rod Higgins; Jessica Yaeger; Albert Merkel; Ben Wick;
Pamela Haley; Tim Hattenburg; Laura Padden
Subject: ICE? Really?
[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or
clicking links.
Hello,
First, thanks to Mayor T Hattenburg and Councilor B Wick for voting
that Spokane Valley should be seen as a sanctuary city.
Second, I want to express my sadness, anger, and dismay that the
other Councilors voted that Spokane Valley is not a sanctuary city. It's
shameful.
As Washingtonians, we've seen how ICE agents work, and we have a
better standard than ICE agents (and some police apparently) on how
to treat fellow humans.
Average income earners know how difficult it is to balance personal
budgets. Do taxpayers want to spend Spokane Valley police
department dollars on helping ICE mistreat fellow human beings? I
don't think so.
In the 1960's, the I<BG experimented and used fear to control people.
It tool(just two months. Do Spokane Valley Washingtonians want to
stoop to using such tactics just because people in Washington DC
have given permission to do so? I hope not. The use of fear is never
helpful in the long run.
Please research. Immigrants do work most won't, and they do it better
and faster for lower wages. Ask a farmer.
Think about what you have permitted. Think about the repercussions.
Think about how you would feel if your'group' was targeted. Thank
you for listening. Please do what you must to reverse your vote.
Sincerely,
Roberta Cade
N
Mard Patterson
From: Shari Mcevoy <smcevoy2222@gmail.com>
Sent: Friday, April 4, 2025 8:19 AM
To: Council Meeting Public Comment
Subject: Your vote to exclude Spokane valley from our sanctuary state
[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or
clicking links.
Dear council members,
I oppose your unfounded vote to exclude us from our states mandate to support our working class.
I am saddened by the propaganda and not empathy for our sisters and brothers trying to gain citizenship while
working, paying taxes and getting food on our tables, contributing to science technology and innovation.
My grandparents came from Germany and Ireland fleeing poverty.
Where did your families come from?
Where they treated w respect or hostility?
Please consider all of us in our beautiful country as family.
Undocumented does not equal criminal.
We have federal programs that bring " undocumented workers" to do field work factory work, cybersecurity, tech
jobs. All at the request of business owners.
Please educate rather than promote hate.
Sincerely,
Sharon nurse practitioner
Sent from my iPhone
Mard Patterson
From: Shari Mcevoy <smcevoy2222@gmail.com>
Sent: Friday, April 4, 2025 8:28 AM
To: Council Meeting Public Comment
Subject: Sanctuary state
[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or
clicking links.
Dear council members
We want our officers ONLY to do what they are paid to do
Protect our county wide citizens
We are too thinly staffed to take on unqualified ICE work.
It was a politicized move based in propaganda not facts.
Please consider good governance as supporting your constituents not fighting us.
We don't want THIS!
https://www.spokesman.com/stories/2025/mar/l 3/ice-agents-smash%vindows-of-vehicle-drag-two-
ep opl/
Sent from my iPhone
Mard Patterson
From: Molly Ertel <mollyertel@gmail.com>
Sent: Friday, April 4, 2025 7:20 PM
To: Council Meeting Public Comment
Subject: Fwd: Thank You
[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or
clicking links.
---------- Forwarded message ---------
From: Molly Ertel <mollye>
Date: Fri, Apr 4, 2025 at 10:34 AM
Subject: Thank You
To: <bwickCa)spokanevalleywa.gov>
Dear Mr. Wick,
Thank you for your "No" vote opposing the "not a sanctuary city" of the majority of the council members.
It takes courage to go against the flow.
The consequences, intended or unintended, of the majority vote is that minority residents of our
population will feel unwelcome. They will become "the other." I don't believe that this is who we are, so
again, thank you.
Sincerely,
Molly Ertel
Mard Patterson
From: Molly Ertel <mollyertel@gmail.com>
Sent: Friday, April 4, 2025 7:20 PM
To: Council Meeting Public Comment
Subject: Fwd: Thank you
[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or
clicking links.
---------- Forwarded message ------
From: Molly Ertel <mol1yerteIP9mait.com>
Date: Fri, Apr 4, 2025 at 10:39 AM
Subject: Thank you
To:<thattenburg@spokanevalleywa.gov>
Hi Tim,
Thank you for your "No" vote the other night opposing the council majority on the sanctuary city issue.
Whether intended or unintended, minority residents in our city might be targeted as "the other," even
wrongfully deported as we have seen on a national level. I know it isn't easy to go against the flow, so
again, thank you.
Sincerely,
Molly Ertel
Mard Patterson
From: Penelope Thomas <penelopebe@gmail.com>
Sent: Monday, April 7, 2025 8:06 PM
To: Council Meeting Public Comment
Subject: Sanctuary status.
[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or
clicking links.
I'm shocked at your lack of compassion. As a result, I will no longer do business in The City of Spokane
Valley.
Very sincerely,
Penelope Thomas
Spdkane�
jUalley°
To: Mayor and City Council
10210 E Sprague Ave I Spokane Valley, WA 99206
Phone (509) 720-5000 1 Fax (509) 720-5075
www.spokanevalleywa.gov
From: Virginia Clough, Legislative Policy Coordinator
Date: April 8, 2025
Re: Gordon Thomas Honeywell — Government Relations
Legislative Report — April 6, 2025
Mayor and Council,
Please find attached the GTH Government Relations report dated April 6. Today is day 86 of the
105-day session.
This report recaps the various budget proposals and budget writers will now begin negotiating and
reconciling differences between the proposals.
Additionally, the report highlights the status of Spokane Valley budget investments, including
those listed on our state legislative agenda, and provides updates on specific bills. Today is the
cutoff for opposite chamber fiscal committee action, and as of midday Tuesday, HB 1260
(document recording fees) is scheduled to be voted on by the Senate today.
Thank upi
Virginia Clough I Legislative Policy Coordinator/Project Manager
10210 E. Sprague Avenue I Spokane Valley, WA 99206
(509) 720-5103 1 vcloughc@-spokanevalleywa.gov
GORDON THOMAS HONEYWELL
GOVERNMENT RELATIONS
City of Spokane Valley
Legislative Report
April 6, 2025
Weekly Overview
The final weeks of the legislative session are in view. The Legislature is under pressure to
submit final operating, capital, and transportation budgets to the Governor before April 27, or
risk going into overtime in a special session.
The Legislature is wrapping up its work in committee. Wednesday, April 2, was the cutoff for
policy bills from the opposite chamber, and Tuesday, April 8, is the fiscal cutoff for bills from the
opposite chamber. Beginning April 9, the House and Senate will be on the floor approving bills
that have met the cutoff deadlines.
Governor Ferguson has begun signing bills into law that have passed both the House and
Senate. The Governor has five days to sign bills into law once they have been delivered to his
desk, unless they are delivered to his desk during the final five days of the legislative session.
Budget Proposals Released
The House and Senate have each released and approved their respective proposed Operating,
Transportation, and Capital budgets for the 2025-27 biennium. Legislators are required to
adopt a budget that balances over four years, through the 27-29 biennium. Budget writers will
now.begin negotiating and reconciling differences between the proposals.
GTH-GOV
Governor Ferguson held a press event on April 1 outlining five items that need to be included in
any budget that he would be willing to sign into law: 1) The Budget Stabilization Account
(commonly referred to as the Rainy Day Fund) would need to remain intact/not be swept; 2)
Forecasted revenue projections cannot be assumed to exceed 4.5 percent annually; 3)
Investments in new programs should be minimal; 4) Budgets need to demonstrate cuts and
savings; and 5) Revenue must be stable and constitutional (i.e. not rely on a wealth tax).
Legislators have been signaling for months that there is a lack of available funding. Budget
writers have stated that the state faces a $15 billion Operating Budget deficit over the next four
years, largely driven by a nearly $11 billion increase to maintain current programs and meet
statutory requirements. Additionally, budget writers indicated that the Transportation Budget
faces a $1 billion shortfall in 2025-27 alone, and a multi -billion -dollar shortfall over the next six
years, largely driven by increases in project costs. Both the House and Senate have proposed
approximately $6.5 billion in cuts in their proposed budgets, including delaying new statutory
obligations such as the early childhood education slots, and implementing reductions proposed
by both Governor Ferguson and former Governor Inslee.
Overall, the House and Senate Budget Proposals differ in several ways:
- Reliance on Wealth Tax: Both the House and the Senate are considering wealth tax
proposals to address a projected budget shortfall. The House's proposal relied on the
wealth tax to generate approximately $2 billion per year, totaling around $8 billion over
four years. The Senate relied on the wealth tax to generate $4 billion annually,
amounting to approximately $16 billion over four years (Senate Bill 5797). Governor Bob
Ferguson has expressed opposition to implementing a wealth tax, indicating he would
veto any budget that relies on a wealth tax. It is likely that any final budget proposal will
include a much more limited wealth tax. Consequently, legislators are exploring
alternative revenue sources, including taxes on vaping products (House Bill 2068 and
Senate Bill 5803) and storage unit rentals, to address the budget deficit (House Bill
1907).
- Overall Investments: Generally, the Senate proposal is larger than the House. Senate
Democrats have proposed a $78.5 billion operating budget for the 2025-27 biennium,
marking a $6.5 billion increase in spending. Of that increase, approximately $1.6 billion
is dedicated to new policy investments and the remaining increase covers maintenance
level costs to continue current programs and meet existing legal obligations. In
comparison, House Democrats have proposed a $77.8 billion operating budget, which
includes about $920 million in new policy investments beyond what is needed to sustain
current services and fulfill statutory requirements. Significant discrepancies in
investments include special education, where the House spends $482 million as
opposed to the Senate's $2.2 billion.
- Budget Stabilization Account: The House budget proposal maintains the Budget
Stabilization Account, ending the first fiscal year with $1.7 billion in total reserves —
nearly all of it in the rainy -day fund —and growing to $3.2 billion by the end of the 2025-
27 biennium. In contrast, Senate Democrats propose withdrawing $1.6 billion from the
GTH-GOV 2
rainy -day fund to help balance their budget, leaving $95 million in reserves by June 30,
2026. Accessing these reserves requires a 60 percent vote in the Senate; with 30
members, Senate Democrats have the votes needed to authorize the withdrawal
without Republican support.
Collective Bargaining Agreements: The House budget fully funds all negotiated
collective bargaining agreements without imposing pay cuts or mandatory furloughs for
state employees. In contrast, the Senate proposal includes funding for these
agreements but incorporates several cost -saving measures to address the budget
shortfall. These include a one-year, 5 percent salary reduction for state employees
beginning July 1, equivalent to approximately 13 unpaid furlough days in the fiscal year.
Additionally, the Senate proposes increasing the employee share of health care
premiums.
Transfer from Operating to Transportation: The Senate proposes significant structural
revisions to the state's budget. In the 2025-27 biennium, transportation investments
are used to reduce pressure on the Operating Budget. In return, in the 2027-29
biennium, the Senate proposes redirecting 0.3 percent of state sales tax collections —
approximately $800 million annually —from the Operating Budget to the Transportation
Budget to support ongoing transportation needs. The proposal also includes a 6-cent
increase in the state gas tax, with annual adjustments for inflation, estimated to
generate $1.5 billion over six years. The House proposal includes a 9-cent gas tax
increase, also indexed to inflation, projected to raise $1.8 billion over the same period.
Public Works Assistance Account: Both the House and Senate budget place the Public
Works Assistance Account (PWAA) at risk, though in different ways. The House proposes
diverting $288 million from the PWAA to the General Fund, while temporarily backfilling
the account with bond proceeds to ensure existing project commitments are met. In
contrast, the Senate would redirect all three of the PWAA's dedicated revenue streams
to support bond -backed funding for state-owned culvert projects in the General Fund.
This approach would effectively eliminate ongoing funding for the PWAA, severely
limiting its future ability to support local infrastructure projects. These proposals reflect
differing strategies for managing fiscal pressures, with the House taking a temporary
diversion approach and the Senate proposing a more permanent restructuring of PWAA
resources.
Transportation Revenues: Both the House and Senate propose increasing the gas tax
and other fees to fund transportation (Senate Bill 5801— Summary Document and
House Bill 2043 —Summary Document). The House proposes a 9-cent gas tax increase,
while the Senate proposes a 6-cent gas tax increase; both propose indexing gas tax to
inflation. Some of the other revenue components that are in one proposal but not the
other include a highway use fee based on a car's miles per gallon, an electric vehicle fee,
a luxury vehicle tax, a large event fee, an increase in the rental car tax, and more.
Transportation budget writers are anticipated to reach an agreement on a combined list
GTH-GOV 3
of transportation revenues. The Senate proposes to invest in new transportation
projects, while the House does not. Given the direction from the Governor, it's unlikely
investments in new transportation projects will be included in a final budget.
Other Revenue Generating Measures: The Senate proposed a total of $17 billion in new
revenue, while the House proposed a total of $5.2 billion. Both the House and Senate
propose lifting the cap on property tax levy growth (Senate Bill 5798 & House Bill 2049).
The House revenue proposal includes a 1 percent B&O tax surcharge on business
income above $250 million, increasing the rate from 1.5 percent to 2.5 percent for
roughly 400 of the state's largest businesses (House Bill 2045). The Senate's proposal
does not include a B&O increase but proposes a 5 percent payroll tax on wages above
the $176,100 Social Security threshold for employers with payrolls over $7 million
(Senate Bill 5796). This payroll tax is expected to generate $2.3 billion annually to fund
education, healthcare, and social services. The Senate also proposed repealing 20 tax
exemptions where the public policy objective was not met (Senate Bill 5794); this
proposal seems likely to advance. However, the Senate proposal to reduce the state
sales tax to 6 percent from 6.5 percent (Senate Bill 5795), is less likely to be included in
the final budget given the Governor's direction on the wealth tax.
As negotiations move forward, budget writers will face the challenge of reconciling significant
policy and fiscal differences between the House and Senate proposals while adhering to the
Governor's conditions for a final agreement. With a substantial operating deficit, rising
transportation costs, and diverging revenue strategies, the coming weeks will be critical.
Lawmakers must strike a balance between fiscal responsibility, program sustainability, and
long-term structural reform, while delivering a budget that not only meets the requirement to
balance over four years but also earns the Governor's approval.
Legislative Agenda Items
Spokane Valley Budget Investments
Capital Budget Project °
House
Senate
Spokane Valley Sport Courts
--
$415,000
Balfour Park
WWRP Local Parks - $500,000
$2 million in Land Water
Conservation
WWRP Local Parks - $500,000
$2 million in Land Water
Conservation
Partners INW Resource Center
$515,000
--
Plante's Ferry Sports Complex
--
$1,000,000
Spokane Valley Heritage
Museum
$225,000
Freedom Center
$338,000
$338,000
Inland Grange
--
$98,000
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Mission Ave Frontage
--
$1,030,000
Improvements
Newman Lake Revitalization
--
$120,000
Spokane County Stabilization
$3.050 million
$3.050 million
Center
Transportation Budget Project
House
Senate
Barker 1-90 Interchange
--
Included in "new project" list;
funding amounts and phasing
TBD
S Barker Corridor
$1.5 million in 25-27
$1.5 million in 25-27
$1.5 million in 27-29
$1.5 million in 27-29
Clarify Administrative Fee Collected on Document Recording Fees
At the City's request, House Bill 1260 was introduced by Rep. Suzanne Schmidt (R-4th LD), Rep.
Timm Ormbsy (D-3rd LD), and Rep. Natasha Hill (D-3rd LD). The bill amends the distribution and
administrative handling of document recording fee surcharge funds to enhance support for
county and city homeless housing programs. This bill is a top priority for the Cities of Spokane
Valley and Spokane as they are the only two cities known to be using this provision. The bill
limits county administrative costs to 10 percent of the funds retained after distributing the
required share to cities and clarifies how cities can receive and use their portion of the
surcharge for local homeless housing programs. It also maintains the requirement that at least
15 percent of the funds retained by counties be used for housing activities targeting extremely
low-income households, prioritizing those with incomes at or below 30 percent of the area
median income. The bill passed out of the Senate Ways & Means Committee on March 24 and
is now in Rules.
Other Policy Issues
Local Decision -Making Authority
Transit -Oriented Development: House Bill 1491, sponsored by Rep. Julia Reed (D-36th LD),
mandates higher -density residential and mixed -use development near major transit stops to
promote transit -oriented development (TOD) and address housing shortages. The bill requires
cities to adopt regulations facilitating TOD in designated "station areas," including minimum
floor area ratios and affordable housing requirements. It preempts local restrictions, limits
parking mandates, and provides exemptions from the State Environmental Policy Act for
qualifying developments. The bill had a public hearing in the Senate Ways & Means Committee
on April 4. The city signed in as "other" on the bill. Futurewise, Washington State Labor Council,
King County Metro, and Sightline Institute expressed support for the bill because it will increase
diverse development near transit stations and leverage those investments to create job
opportunities and expand access to transit. The Committee heard opposing testimony from the
Building Industry Association of Washington, which cited that the affordability mandates in the
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bill make development infeasible. The cities of Bellevue, Redmond, Lynnwood, along with
additional stakeholders, testified "other'. Their concerns included the flat rate impacts fees,
affordable housing mandate, lack of synchronicity with Growth Management Act planning, as
well as the impact on the state's environmental goals. It was highlighted that state -calibrated
affordability requirements make housing development increasingly difficult, or in some
instances, impossible, as they are not economically viable. The bill has been scheduled to be
voted on by the committee on April 7.
State Housing Oversight: Senate Bill 5148, sponsored by Sen. Jessica Bateman (D-22),
establishes a framework for state oversight of local housing plans under the Growth
Management Act. The Department of Commerce is tasked with reviewing housing elements
and development regulations submitted by cities and counties to ensure compliance with
statutory requirements. While previous versions of the bill would have made Department
review and approval voluntary, the final version approved by the Senate requires each
jurisdiction to have its housing element and development regulation approved by Commerce
within three years of adoption. The bill had a public hearing in the House Appropriations
Committee on April 5. Futurewise testified in support of the bill, stating that giving the
Department of Commerce (Commerce) more oversight will provide a congruent level of
planning review and ensure housing element requirements will be enforced consistently. The
Association of Washington Cities testified before the Committee in opposition, as it assumes
that cities won't follow the law and there is little evidence to support that presumption. AWC
believes this legislation will lead to additional costs and delays. The City of Bellingham testified
"other," stating that submitting all plans to Commerce adds months of supplemental processing
and review time that contradicts efforts of other legislation to streamline these processes. The
bill has been scheduled to be voted out of committee on April 7.
Miscellaneous
Paid Family Leave and Small Business Support: House Bill 1213, sponsored by Rep. Liz Berry (D-
36), expands worker protections under the PFML program while introducing new support
mechanisms for small businesses. Employers with fewer than 50 employees would become
eligible for grants to offset costs associated with employee leave, including $3,000 for
temporary worker hiring or wage -related expenses and reimbursement for health care benefit
costs up to four months. The bill reduces the minimum claim duration for PFML benefits from
eight to four consecutive hours and requires employers to provide written notice of employee
rights after seven consecutive leave days. It also strengthens employment restoration rights,
mandates health benefit maintenance during PFML leave, and imposes compliance
requirements for employers with voluntary plans. The bill had a public hearing in the Senate
Ways & Means Committee on April 5. The city signed in opposed to the bill. MomsRising and
Teamsters 117 testified in support of the bill because it provides job protections for workers
when they take paid family medical leave, making this an equity fix for the lowest income
workers. The bill also creates a streamlined process for small businesses to receive grants. The
Association of Washington Business, Building Industry Association of Washington, Washington
Retail Association, and other's testified in opposition to the bill because it undermines the
intent of the original legislation, increases costs, and threatens the viability of the program. The
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Association of Washington Cities testified "other," stating that in its current form, the bill is too
challenging for small businesses and needs to be made more flexible for them or include
exemptions. The bill is scheduled to be voted on by the committee on April 8.
Permitting: Senate Bill 5611, sponsored by Sen. Jesse Salomon (D-32nd LID), adds more
restrictions to the permit timeline session law of 2023 — Senate Bill 5290. The bill expands the
definition of "commercially zoned property" for the purposes of binding site plans to include
areas permitting multifamily residential uses, provides that a city can extend project permit
deadlines for any reasonable and certain period of time if it is agreed upon in writing, and
states that a city cannot deny project permits for certain residential housing units. The bill
passed out of the House Local Government Committee on April 1. The permit processing
timeline changes are not new concepts, and the Association of Washington Cities continues to
oppose those changes. However, please let GTH-GOV know if the changes to the binding site
plan definition will have a negative impact on your city.
Public Safety & Behavioral Health
Public Safety Funding: House Bill 2015, sponsored by Rep. Debra Entenman (D-47th LD), and
developed by the Members of Color Caucus, establishes mechanisms to enhance funding for
local law enforcement recruitment, retention, training, and public safety initiatives. The bill
creates a supplemental criminal justice account in the state treasury, with funds distributed
quarterly to qualified cities and counties that meet specific requirements, including compliance
with state training mandates, vacancy disclosures, and adherence to model policies. The bill
was voted out of the Senate Law & Justice Committee on April 1 with an amendment that
makes several changes such as preventing grant funds from being used for lateral hires,
clarifying that the sales tax can be imposed if a jurisdiction is eligible for the grant (as opposed
to a grant recipient), and more. Click here to view all the changes.
The bill had a public hearing in the Senate Ways & Means Committee on April 5. The
Association of Washington Cities, Pierce County, King County, and several other stakeholders
testified in support of the bill because it is a comprehensive approach to public safety and
provides a revenue stream to support those resources, which many local jurisdictions are
struggling to fund. The City of Kent, Washington Association of Criminal Defense Lawyers, and
the Washington Defender Association testified "other," stating that, if the current language is
merged with the sales tax authority seen in Senate Bill 5775, this can be a useful tool for cities.
It was also noted that more balanced funding for all elements of the justice system is needed
for this bill to function effectively. The City signed in "other" because language was recently
added from HB 1399 that the city opposed. Following the hearing, AWC was successful in
getting that language removed. There was no testimony in opposition. The bill is scheduled to
be voted on by the committee on April 8.
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