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HomeMy WebLinkAbout2025, 10-14 Formal A MeetingMINUTES City of Spokane Valley City Council Regular Meeting Formal Format A Tuesday, October 14, 2025 Mayor Haley called the meeting to order at 6 p.m. The meeting was held in person by Council and staff 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 Laura Padden, Councilmember Gloria Mantz, City Services Administrator Jessica Yaeger, Councilmember Kelly Konkright, City Attorney Rod Higgins, Councilmember John Bottelli, Parks & Rec Director Al Merkel, Councilmember Chelsie Walls, Finance Director Robert Blegen, Public Works Director Jill Smith, Communications Manager Dave Ellis, Police Chief Absent: Tony Beattie, Senior Deputy City Attorney Ben Wick, Councilmember Virginia Clough, Legislative Policy Coordinator Mike Basinger, Community & Econ. Dev. Director Justan Kinsel, IT Specialist Marci Patterson, City Clerk INVOCATION: Mr. Joff Williams gave 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 Wick. It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to excuse Councibnember Wick. APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS: I W 1-1110IWR0 V.,19 to] ►F-YI GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited comments from the public. Ben Lund, Spokane Valley; Mike Dolan, Spokane Valley; Catherine Nelson, Spokane Valley; Daryl Williams, Spokane Valley; Debbie Shrock, Spokane Valley provided general 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 A,-enda. a. Approval of Claim Vouchers, October 14, 2025, Request for Council Action Form: $3,607,531.40. b. Approval of Payroll for Pay Period ending September 30, 2025: $764,328.21. c. Approval of Council Meeting Minutes of September 16, 2025 d. Approval of Council Meeting Minutes of September 30, 2025 Council Meeting Minutes: 10-14-2025 Pagel of 5 Approved by Council: 11-25-2025 It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the Consent Agenda. ACTION ITEMS: 2. Motion Consideration: Right of Way Acquisition Agent — Gloria Mantz, Robert Blegen It was moved by Deputy Mayor Hattenburg and seconded to authorize the City Manager to hire one ROW Agent, make proposed organizational changes, and amend the 2025 and 2026 Budget as necessary. Ms. Mantz provided brief details with a PowerPoint presentation that went over the ROW phases and noted that we currently do not have a staff person to go over the city's projects and that currently all of it is outsourced to various companies. She also detailed the budget impact and detailed the motion consideration. Council discussed the capacity issues and scheduling concerns for the outside companies. City Manager Hohman clarified that these are not real estate agents, these individuals have to have specialty licenses to be able to do the work and currently there are only three firms that can do the work. If we enter the contract and they lose staff while in contract, we lose time and productivity while they onboard new staff and the only option we have is to terminate the contract. The city has always looked at efficiency and productivity, and we are recommending to bring this agent in-house in order to get the projects done quicker and for less cost. Councilmember Merkel began to speak to various points in other contracts and Councilmember Higgins poised a point of order and asked that we stick with the issue in front of us. Mayor Haley agreed that we need to stay on topic. Councilmember Merkel appealed the ruling and without a second, the appeal died. Mayor Haley called for public comments. Mike Dolan, Spokane Valley; Ben Lund, Spokane Valley; John Harding, Spokane Valley; Tracy Christian, Spokane Valley provided comments. Vote by acclamation: in favor: Mayor Haley, Deputy Mayor Hattenburg, Councilmembers Padden, Yaeger and Higgins. Opposed: Councilmember Merkel. Motion carried. NON -ACTION ITEMS: 3. Admin Report: 2026 Federal Legislative Agenda — Virginia Clough, Mike Pieper Ms. Clough introduced Mr. Pieper, Senior Advisor with Cardinal Infrastructure, LLC and provided a brief background on the Federal Agenda. Mr. Pieper continued with a PowerPoint presentation that detailed the 2025 year in review with the federal projects, policy priorities, details on advancing project priorities, and the appropriations status for fiscal year 2025 and fiscal year 2026. Mr. Pieper further detailed the capital projects that included Argonne Bridge at I-90, Sullivan/Trent Interchange, South Barker Corridor, and the Barker/1-90 Interchange. Mr. Pieper also went over the 2026 policy agenda, wins for the city over the past seven years, and a draft review of the 2026 Federal Legislative Agenda. Ms. Clough went over the four projects on the agenda. Council discussed the next steps with the agenda, the funding that the Washington D.C. Have helped to secure for the city and the valued efforts of Cardinal and thanked Mr. Pieper for coming to the meeting. 4. Admin Report: City Manager Presentation of 2026 Budget — John Hohman City Manager Hohman presented a PowerPoint presentation that included details on the 2026 Budget Development Considerations, budget timeline, budget development goals, council goals, fiscal policies, financial management that includes maintaining basic service levels with minimal resources to achieve success, the leverage of city funds with grant opportunities, minimizing city debt with pay as you go philosophy, financial objectives, adopting a general fund budget with recurring revenues equal to or greater than recurring expenditures, maintaining a minimum general fund ending fund balance to meet cash flow needs, increasing the service level stabilization reserve fund #121 to approx. 14% of the general fund or Million, maintaining the 2026 property tax assessment at a level to support ongoing city operations, and growing our economy so our existing tax bases can support our basic programs. He also spoke about our commitment to policies that include long term financial sustainability, low debt, and a credit rating of Aal through Moody's rating. He continued his presentation with budget highlights that included the 2025 tax distribution, revenue comparisons, 2026 total revenue budget broken down in charts to review, noted that we continue to remain fiscally sound, detailed potential revenue change assumptions, staffing levels, carryover budget cuts that include 4 unfunded positions, outside agency awards, local access street program, parks capital projects, reduced winter operations, general fund recurring expenditures of $68.5M with an Council Meeting Minutes: 10-14-2025 Page 2 of 5 Approved by Council: 11-25-2025 increase of 7.74% with a majority of it in public safety and the ending fund balance. He furthered detailed the public safety data that included historical investments in public safety, 20% dedicated police officer staffing since 2024, $1.124 Mill in precinct renovations, $4.7Million in new police vehicle purchases, $818,000 in license plate readers and park cameras, noted that from 2021 to 2026 police costs and budget have increased $16Million annually, and a graph showing 2021-2026 police costs vs general fund revenues. There was information on the capital projects budget, a detailed overview of the 2026 budget, the major transportation projects that include Pines Grade Separation Project, Sullivan/Trent Interchange, Barker/I-90 Interchange, South Barker Corridor, and the Argonne/I90 Bridge. Opportunities for the city include Economic Development programs, current initiatives that drive growth, partnerships with area businesses, Auto Row Initiative, Efficient government, grants, and being able to leverage city funds with state and federal funds. Our challenges include economic challenges, increased costs for services, state regulations, high national interest rates, and increased costs for public safety each year. The public safety considerations include increased law enforcement, increase in prosecutor costs and services, the district courts, detention facilities, public safety campus needs, fracturing regional cooperation, state legislature policies impacting public safety, the business environment, land use regulations, local decision making, construction costs, higher cost of living, and that state and federal policy differs. Mr. Hohman provided details on a slide entitled Council Behavior and stated that behavior creates a risk for the city, increased costs due to the negative behavior, noted that a change in behavior equals a cost savings to our budget. He continued on with the street funding and noted it is underfunded for the proper preservation of our local access streets, one-time influx from Fund 312 for 2026, city has struggled to develop a fully funded comprehensive pavement management program, deferring pavement preservation will be more expensive in the future as the streets deteriorate over time, we must remain focused on this program, $1 investment now saves an estimated $8 in future repair costs. He further commented on the housing and homelessness program and noted that changes in the federal funding will affect current programs, and the city is dependent on City of Spokane and Spokane County for dispersing regional and federal funds. He closed his presentation with parting thoughts on budget basics, planned balanced general fund budget, 2026 will be the 17th year of deferring the 1 % state allowed property tax increase, continued public safety costs, thanked those that supported the Public Safety Ballot Measure, and stated that we continue to maintain excellent financial condition with strong reserves and responsibility managed operations and expenditures while implementing major community initiatives to better the quality of life and growth of Spokane Valley. Mayor Haley called for a recess at 7.•38pin for 12 minutes and that the meeting would resume at 7: 50pm. 5. Admin Report: Prop 1 Implementation — Erik Lamb, Chief Ellis Mr. Lamb provided details regarding the implementation of Prop 1, the public safety ballot measure. He thanked the public for passing the measure and noted that it takes effect Jan 1, 2026. He stated that now is the time to start conversations about how we want to move forward with hiring the officers. Sales tax will fund 10 officers over the next two years but the Chief is able to hire all ten in the next year (2026). Based on the collaborative discussions with Chief Ellis and staff, the Public Safety Committee came to agreement to recommend that Council authorize the following new positions and to fully fund the previously authorized dedicated behavioral health deputy: Patrol Deputy — three additional patrol deputies, for 56 total patrol deputies proposed (resulting in 12 per platoon), Traffic Detective — one additional detective, for two total (for traffic investigations), Behavioral Health Deputy — Fully funding the position currently in the contract to cover the loss in grant funding that occurred in July 2025; adding one new dedicated deputy, with two total dedicated Behavioral Health Deputies (these work with behavioral health professionals in co -deploy teams), School Resource Officer — one additional school resource officer, for five total with one at each of the four high schools along with one shared floater; note that schools pay a portion of SRO costs, Spokane Valley Investigative Unit — four additional detectives, for 16 total detectives, Shared Sex Crimes Detective — one additional detective (split approximately half time between Spokane Valley and Spokane County); note that under the Law Enforcement Agreement shared positions may be implemented after notice by the Sheriff's Office and this position has already started in 2025. In addition, the Chief recommended, and the Public Safety Committee agreed, to convert a deputy in the SVIU to the regional RAVEN unit. This results in 10 new dedicated positions, one new shared position, and covering costs for one existing behavioral health Council Meeting Minutes: 10-14-2025 Page 3 of 5 Approved by Council: 11-25-2025 deputy position due to grant funding going away. Total estimated costs for all positions, including offsetting revenue from the school districts for the school resource officer, are approximately $2,240,000 in annual recurring expenses. Council discussed the number of calls, the shared position, the jail services, the hiring process and additional details from the original Matrix study. Council provided consensus to bring authorization of the additional 10 dedicated positions, one shared position, and fully funding existing behavioral health deputy, all as described above, to motion at a future meeting. INFORMATION ONLY (will not be reported or discussed) GENERAL PUBLIC COMMENT OPPORTUNITY: After Mayor Haley explained the process, she invited comments from the public. Al Shrock, Spokane Valley; Kendra Rojas, Spokane Valley; John Harding, Spokane Valley provided comments. COUNCILMEMBER REPORTS Councilmember Merkel: Thanked City Manager Hohman for working on the community issue regarding a new location of a cannabis dispensary in Spokane Valley. Councilmember Higgins:had nothing to add. Councilmember Padden: attended Greenacres Park ribbon cutting for the soccer mini pitch and took a tour of the new SREC building. Councilmember Yaeger: attended an Opioid Abatement meeting and a Spokane Valley Firefighters meeting. Deputy Mayor Hattenburg: attended the HCDAC meeting and spoke about the HUD funding and the personnel chosen to sit on the HCDAC board. MAYOR'S REPORT Mayor Haley stated that she also attended the Greenacres ribbon cutting for the mini pitch and it was a great turnout with all the children in attendance. ADVANCE AGENDA Councilmember Merkel asked staff to look into a presentation on weed prevention and control plan. He wants to know what areas are covered/not covered and how do we handle those areas. There was no consensus to move that request forward. Councilmember Yaeger spoke about President Trump's Executive Order and asked about looking into the order regarding the homeless. City Manager Hohman noted that there are a lot of federal changes that we don't have guidance on yet and will report back at a later time. Councilmember Merkel asked about the city cyber security readiness and where we stand on it and that we may need a presentation or if we need to look into a consultant for that. Mr. Hohman stated that we recently completed a cybersecurity audit and noted that you wouldn't want a presentation on our current security risks. There was no consensus to move that request forward. Councilmember Yaeger asked about how we can be involved in foreign countries owning our land. Mr. Hohman noted that it is more of a federal government responsibility and he can talk to Mike Pieper about it. CITY MANAGER COMMENTS City Manager Hohman spoke about Councilmember Yaeger's information on SREC and noted that there is a lot of information that we are trying to get up to speed, and we are gathering information at this time and will bring it forward at a future meeting. There is potential that it could have a cost impact to the city in the future. Mr. Hohman also addressed Councilmember Merkel's comments on the potential relocation of a cannabis retail shop and noted that staff reviewed city code and stated that any new cannabis retail locations are not allowed as council capped the retail locations at three and there is not any new locations allowed. He also addressed the constituents' comments about scheduling meetings with councilmembers and provided details on scheduling the meetings. Mr. Hohman also noted that the city received good news; we received the Eastern Washington Asphalt Paving Award for 2025 for the pavement project from 16" Ave to Adams Rd from the WA Asphalt Pavement Association. There is one project from Eastern Washington that receives the award and there are quite a few requirements for eligibility for the award. Mr. Hohman thanked Shamrock Council Meeting Minutes: 10-14-2025 Page 4 of 5 Approved by Council: 11-25-2025 paving for the fantastic work that they did on the project. Mr. Hohman closed with a reminder that the Pines/ BNSF Grade Separation Groundbreaking is on Thursday at 11:00 a.m. and noted that the bridges are being constructed and are underway. EXECUTIVE SESSION It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn at 8: 41p. m. ATTEST: mix P��Aa),�J Marci atterson, City Clerk Q Q" ��J Pam Haley, Mayo Council Meeting Minutes: 10-14-2025 Approved by Council: 11-25-2025 Page 5 of 5 PUBLIC COMMENT SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, October 14, 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. �� PLEASE PRINT TOPIC YOU WILL SPEAK I YOUR CITY OF RESIDENCE ABOUT Please note that once information is entered on this form, it becomes a public record subject to public disclosure. 2026 Spokane Federal �ValleyM Legislative Agenda Spokane Valley The City supports USDOT project priorities that focus on safety, economic growth and modernizing the transportation system. Investing in transportation infrastructure Capital Pro j ectS strengthens local and national economic competitiveness through the efficient movement of goods and people and access to commerce and employment. 9o� 11 Since 2010, Spokane County and Spokane Valley's r� populations have grown about 17% and 19% respectively. The County's population reached 566,000 in 2025,� doubling since construction of 1-90 began in the late 1960s. Source: WA State Office of Financial Management Argonne Bridge at 1-90 Total $27.5 million ■ Funding Secured $3.3 million ❑Funding Gap $24.2 million FY'27 CDS Request $3 million Sullivan/Trent Interchange Total $54.2 million . Funding Secured $17.8 million Funding Gap $36.4 million FY'27 CDS Request $3 million South Barker Corridor Total $41 million ® Funding Secured $16.6 million ❑1-mirlinu Gap $24.4 million FY'27 CDS Request $3 million Barker/1-90 Interchange Total $50 million . Funding Secured None ❑Funding Gap $50 million FY'27 CDS Request $3 million CDS = Congressionally Directed Spending See project flyers for detailed information October 14, 2025 POLICY PRIORITIES Public Health and Safety • With public safety being the top priority and our desire to support law enforcement in their efforts to maintain taw and order at all levels, the City asks for assistance to mitigate potential impacts of being a non -sanctuary citywithin a sanctuary state • Support initiatives to promote work with the U.S. Marshal's Service to share intelligence, coordinate enforcement operations and ensure offenders are swiftly apprehended and prosecuted. Multi -agency collaboration serves as a force multiplier, allowing combined resources and expertise to more effectively disrupt crime networks and combat the spread of illegal drugs. Programs within the Department of Justice such as the Fugitive Task Force JAG grants and the High -Intensity Drug Trafficking Areas Program are valuable in this regard • Support for funding and grant programs that assist with law enforcement personnel, safety and equipment needs including continuation of the COPS Program (Community Oriented Policing Program) and the Byrne JAG (Justice Assistance Grant) program for critical law enforcement equipment, fixture and personnel needs as well as increased public defense and prosecution requirements. • Strengthen the U.S. border to inhibit the movement of drugs, weapons, contraband and people while prioritizing the health and welfare of U.S. citizens. • Encourage the federal government to establish funding assistance to aid in the planning and construction of jails and facilities for behavioral health, detention and law enforcement. • Uphold laws and regulations that provide local governments with the ability to regulate its public spaces, including, but not limited to, open use of controlled substances, overnight camping, etc. • Support for federal programs and funding to increase drug enforcement and treatment programs as well as passing legislation addressesing the growing epidemic of substance abuse-. sueh as: e Reauthoriza 'on of the SUPPORT Act. . • Oppose funding for controversial harm reduction efforts such as safer supply programs, supervised consumption sites and the distribution of safe smoking kits, as they have shown to increase overdose rates and other concerning outcomes • Support legislation that updates regulations for Institutions for Mental Diseases (IMDs), as the 16-bed Medicaid exception serves as a disincentive for building larger facilities and contributes to psychiatric bed shortages Examples include H.R. 4022 (Increasing Behavioral Health Treatment Act) and H.R. 5462 (Michelle Atyssa Go Act). • To encourage more effective outcomes, provide more flexibility for opioid treatment programs with regard to duration of stays as recommended by the National Institute of Drug Abuse. • Continue funding at the local level for emergency management, as it plays a crucial role in safeguarding the lives and well-being of our citizens. minimizes economic disruption and promotes resilience throughout the community. • Evaluate the methodology for state -level allocations and local redistributions to ensure fairness and equity for each community such as the national opioid settlement. • Ensure safety regulations and other protections for communities that experience frequent transport of hazardous materials via train through the passage of the Railway Safety Act. • Enact measures requiring railroads to maintain their properties to deter trespassers, encampments, and associated negative impacts upon adjacent businesses and neighborhoods and requiring prompt clean up after public health and safety incidents. DRAFT 10-14-25 POLICY PRIORITIES CONTINUED Transportation and Infrastructure • Encourage Congress to continue federal participation in locally directed projects, given the unprecedented growth and maintenance needs of existing infrastructure within the region. • Continued partnership with Washington State's Congressional representatives and the U.S. Department of Transportation to ensure that coordination between federal agencies does not delay the efficient use of federal transportation funds. • Eliminate obstacles to the efficient implementation of federal transportation projects. • Continue funding levels for discretionary programs such as BUILD and CRISI. • Provide flexibility in project management to ensure efficient use of funding. • Streamline ,grant agreement development, review and execution so funding can be spent more expeditiously. Encourage the U.S. Dept. of Transportation to work with states to establish Disadvantaged Business Enterprise (DBE) goals on a regional rather than statewide basis, as more remote agencies must bear the cost of travel for contracted services from larger metropolitan areas and prioritize the development of the new DBE certification process. The City encourages members of Congress to visitthe Inland Northwester region to see how extraordinary growth is driving these critical infrastructure projects and the City of Spokane Valleye'rty's wise stewardship of federally_ awarded funds. Housing and Homelessness • 6ontintia prograffls and polieies to respond to and address hofflelessness such Promote targeted reforms to programs with proven results and preserve access to essential services for people on the cusp of or currently experiencing homelessness. Examples include Continuum of Care Program, Homeless Assistance Grants and Medicaidete. • Assess HUD requirements to ensure cost effectiveness and prioritize funds for programs that provide a hand up and empower individuals to become self-sufficient. • Expand opportunities to better servehelp horneiess youth who are experiencing homelessness and substance use disorders. An example would be ++lJB to finding additional measures besides HUD point -in -time counts, as homeless youth are often not included in those counts. • Promote innovative solutions and partnerships to stabilize the property insurance market as rising premiums and restrictive coverage have escalated premiums. These increases are driven by factors like the growing frequency of natural disasters, higher reconstruction costs and inflation, which disproportionately affect affordable housing developers, low and moderate -income households and first time homebuyers. • Promote construction and preservation of affordable housing through programs such as Low -Income Housing Tax Credit Program L HTC , HOME Investment Partnership Program and Community Development Block Grants (CDBG).et-c— • Support for federal incentives to increase and diversify housing options for an arrayof income levels, including very low-income and workforce housing. • Support for HUD to adequately fund its Housing Choice Voucher Program to create stability and certainty for Public Housing Authorities to continue assisting families and individuals in need of affordable housing options and extend sufficient notice if funding should run short. DRAFT 10-14-25 POLICY PRIORITIES CONTINUED Economic Development and Workforce • Support policies and programs that expand and grow the manufacturing sectors in the City of Spokane Valley and across the region. • Simplifythe small business loan process at the federal level to streamline assistance. et of .2.8.2.3, vvhieh preempts local atithoft •to regdlata titilities. Preserve local authority for permitting and siting of broadband infrastructure. • Support policies and programs that expand the availability and affordability of workforce housing options in the City of Spokane Valley and across the region Value of Hydropower Spokane Valley and the Inland Northwest Region depend on hydropower for clean, reliable, affordable energy and the City supports policies that protect this important source of renewable energy. Ensure that stakeholders who rely on the benefits of the Columbia River system participate in conversations at the federal level, including but not limited to, growers and producers, public utilities, ports, local government and river users. SUPPORT FOR LOCAL AND REGIONAL INITIATIVES • Fairchild Air Force Base remains a critical hub for global air -refueling missions that underpin U.S. and allied force projection around the world Ensuring the safety and effectiveness of both military and civilian aviation operations must take priority over incompatible projects that could compromise flight paths, radar reliability or mission readiness An example would be proposed large wind turbine farms what would impede flight paths near Fairchild AFB and Spokane International Airport Science Act submittat to expand their Spokane Valley facility and boost production highly -engineered alumintifn plate, a eritical component On the U.S. semiconductor stipp+y • Support of the Regional Spokane Coeur d'Alene American Aerospace Materials Manufacturing Center (AAMMC) Tech Hub • Support for Spokane County's $3 million CDS request for a Regional Stabilization Center. DRAFT 10-14-25 Mard Patterson From: Jean Gulden <jeangulden@gmail.com> Sent: Tuesday, October 14, 2025 2:25 PM To: Council Meeting Public Comment Cc: Michael Gulden Subject: Marijuana shop license for former TT's [EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or clicking links. 1. The Meeting Date 10-14-2025 2. Your First and Last Name Bonny "Jean" Gulden 3. Your City of Residence Spokane Valley, WA 4. Public comments It is my and fellow residents understanding that a business license for a marijuana shop has been applied for at the former TT's restaurant location at the corner of Dishman Mica & Bowdish roads. I am opposed to this and request the license be denied for the following reasons: 1. A WSU/WA state study show crime, especially property crime, significantly increases in immediate area. NCJ#305928 -10-2021 "The analysis found modest but statistically significant increases in property crime in census block groups containing new retail stores..." a finding consistent with previous research showing an increase in neighborhood crime. 2. Marijuana Addiction is real. A brief search reveals there are pages of marijuana dependency/addiction treatment centers. Let's ad to our community businesses that will uplift and encourage healthy lifestyles, not addiction. 3. Interestingly, another WA state study shows that marijuana shops actually increase opioid dependency and its accompanying crime, too. How? Shorter distance to the closest cannabis retail outlet was associated with an increased number of missed methadone doses during the first and second 90 days of treatment. Re: WSU Spokane study -Spatial access to opioid treatment program and alcohol and cannabis outlets: analysis of missed doses of methadone during the first, second, and third 90 days of treatment Solmaz Amiri, Robert B. Lutz, Michael G. McDonell , John M. Roll & Ofer Amram. So when opioid addicts seek help and get involved in a methadone treatment program, they are significantly more likely to fail in their attempt if a cannabis retail outlet is close to them; lets keep them farther away to help folks desiring to break free of opioid addiction. 4. More continuing mental health problems: Research suggests that cannabis use affects negatively on onset and outcome of schizophrenia, but less is known about possible effects in mood disorders. Bipolar in- and outpatients (N = 3459) were enrolled in an observational study. The influence of cannabis exposure on clinical and social treatment outcome measures was examined over the course of 1 year, as well as the effects on these associations of third mediating variables. Over 12 months of treatment, cannabis users exhibited less compliance and higher levels of overall illness severity, mania, and psychosis compared with nonusers. Additionally, cannabis users experienced less satisfaction with life and had a lower probability of having a relationship compared with nonusers. There was little evidence that cannabis -outcome associations were mediated by third variables. 5. Our police are overloaded and understaffed. Adding more `high' drivers to our roads is not going to be healthy for us, the public, fellow drivers, pedestrians, nor for our police. If driving high was not a concern, why would the police have started a `Drive High, Get DUI" program, requested additional training and guidance, etc. Originally the legalization was predicted to decrease workload but police have reported this is not true. Indeed, each `high'/impaired stop takes about 5 hours of official time from stop to release, thus another increased financial burden on our community. 6. According to the WA Assistant of Communications - Adam Wilson at the time - the Cannabis Central Reporting System (CFRS) has significant limitations, including an inability to provide law enforcement with real time tracking information. LCB is intent on replacing the aging system used to track sales but does not think it can do so until 2031 or later. Sales have reportedly `gone down'. Yet there is certainly no way to prove this since most sales are cash and there is no seed to sale tracking. Indeed, under reporting on a sale with a 37% + tax seems highly advantageous to client and seller alike. In addition, licensees cannot see their past entries so even if they want to report accurately, they are unable to catch errors made. Numerous contractors have offered me a much lower price in the last 5-10 years for cash deals; clearly they have found ways to under report income thus pocketing more profit and robbing the state and its communities of their taxes. 7. According to the CDC, cannabis use directly affects brain function, specifically memory, learning, attention, decision making, coordination, emotions and reaction time. Have we not learned from the cigarette industry that the more available, the less expensive, the worse our community is effected? With cigarettes the effect was mostly long term in the form of cancer and heart disease but with cannabis, the effect is immediate. It takes its toll on families through poor decision making, poor memory, poor self-control - which can easily lead to child abuse - and even poor reaction time which can mean the DUI is given after the impaired driver injures or kills someone. Long-term effects include increases in psychosis, anxiety, respiratory health, cardiovascular disease increase, brain health, and addiction as well as increased risk of falls & accidents. Again, for the benefit of us all, let us strive for a healthier, not a sicker, higher risk community. 8. State law draws only a 1,000 foot zone around child care centers. Since many centers listed in the Spokane Valley 99206 zip code do not reflect an exact address online, it is impossible for us to be certain there are none within the prescribed 1,000 feet. That said, Care -A -Lot is less than a quarter mile away, the LDS church within the 1,000 feet. We have seen an observable increase in homeless - and of high at 5:00 a.m. and 2:00 a.m. homeless - along the Sprague corridor, since the opening of the cannabis shops there. We have also seen an increase in property crimes over the years. While correlation does not always equal causation, the above studies would show the two are closely tied. Please care enough about our community and our residents to prevent this additional cannabis shop in our area. Sincerely, B. Jean Gulden Michael Gulden Spokane Valley WA 99206 10/14/2025 When Transparency Gets Twisted -Sullivan Water Line Ben Lund — 37 year resident and serving Spokane for 25 years as a business owner Good evening Mayor, Deputy Mayor, Councils and Leadership We've now heard the Sullivan Water Line story from Councilmember Merkel and his followers more times than anyone can count — we've discussed it until the cows come home — a Montana term. At this point, it's not about transparency — it's about repetition. The same topic, the same claims, and the same refusal to hear the facts. "Honestly, it's starting to look less like a transparency issue and more like a hearing problem. And Councilmember — with all due respect — there's a simple, low-cost fix for that." (Hold up the red Q-tip) "It's called a Q-tip. I'd recommend trying it.,, Here are the facts — once again: • The Sullivan Water Line originated from the Sullivan Bridge project roughly ten years ago. • It has nothing to do with the Ice Rink project. City Manager Hohman, Mayor Haley, and Councilmember Wick have each explained this clearly and publicly. The matter is settled. What's troubling is how this topic keeps being used to divide our community rather than bring us together. That is the definition of what not to do when it comes to transparency. True transparency means being open, factual, and honest — not using misinformation to create confusion, mistrust, or political advantage. As one concerned citizen said last week — it's one against six. Thank you And since we're talking about transparency, here are a few important dates the public deserves to remember about the Councilmember's civil case: • October 30, 2025 — Motion to compel the production of public record requests. • July 27, 2026 — Trial begins. It is expected to conclude by November 2026. So, let's ask the real transparency question: How much have taxpayers spent so far on court and attorney costs because of this Councilmember? What's the total expected by the end of this year — and through November 2026? That's the transparency Spokane Valley citizens deserve — not recycled drama, but clear answers about how our money is being spent. Thank you — because true transparency begins with accountability. 1 7v SUM, ci Spokan��- jUalley City of Spokane Valley, WA 2026 Preliminary Budget As of October 14, 2025 Suok'ane Valley) This page left intentionally blank. Placeholder for Table of Contents spokane jValley� This page left intentionally blank. Council 2026 Budget Goals 1. Increase public safety response to ensure everyone feels safe in Spokane Valley. 2. Prioritize infrastructure maintenance and preservation and advance strategic capital projects through grant awards. 3. Continue economic development efforts to maximize business growth and develop tourism destinations. 4. Maintain our strong financial position. 5. Utilize strategic partnerships to aggressively reduce and prevent homelessness in Spokane Valley. 6. Expand homeownership opportunities so more local people own homes. Fiscal Policies The Fiscal Policies adopted by the City Council are important for the long-range fiscal strength of Spokane Valley. These policies set a framework that the City will follow to responsibly manage resources and, if necessary, the circumstances under which we will utilize reserves to sustain operations during economic downturns. Financial Management The City will strive to: 1. Maintain basic service levels with minimal resources to achieve success. 2. Minimize personnel costs and overhead by continuing to contract for services when it makes financial and operational sense to do so. 3. Work to incorporate the business plan process into the budget process. 4. Leverage city funds with grant opportunities. 5. Minimize city debt with a pay-as-you-go philosophy. o The State of Washington sets the maximum level of allowable debt for cities based on the assessed value of the property. The City of Spokane Valley carries an exceptionally low debt burden and currently utilizes only 0.57% of its total debt capacity, and more importantly, only 2.86% 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 objectives are: Adopt a General Fund Budget with recurring revenues equal to or greater than recurring expenditures. Maintain a minimum General Fund ending fund balance of at 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. Increase the Service Level Stabilization Reserve Fund #121 to approximately 14% of the General Fund or $8 million. The increase will be funded over a number of years to limit the impact on city operations. Interest income will continue to accrue to support the growth of this fund over time. 4. If necessary, utilize a portion of the Service Level Stabilization Reserve Fund #121 ($8 million) to maintain the ending fund balance minimum. 5. Commit to the strategy that the Service Level Stabilization Reserve Fund #121 will not be reduced below $4.8 million (60% of $8 million) without City Council approval. If the Council should deem this necessary, the City will then first replenish Fund #121 to at least $4.8 million before any annual General Fund transfers are made to Capital Reserve Fund #312. 6. Maintain the 2026 property tax assessment at a level to support ongoing City operations. For the 2026 levy, we anticipate this will result in a levy of $14,109,800 plus an estimated new construction of $200,000 for a total levy of $14,309,800. Any allowable potential increase not taken will be banked for future use as provided by law. 7. Grow our economy so the existing tax base can support basic programs. U=l • • •11 F• , • Spokane jValley� This page left intentionally blank TO: City Manager and Members of the City Council FROM: Chelsie Walls, Finance Director SUBJECT: 2026 Budget and Budget Development Process The following 2026 city budget provides significant policy direction by the City Council to the staff and community. The City of Spokane Valley budget, established with input from the City Council, staff and the public, includes the financial planning and legal authority to obligate public funds, and serves four functions: 1. Policy Document The budget functions as a policy document in that the decisions made within it reflect the general principles or plans that guide future actions. As a policy document, the budget makes specific attempts to link desired goals and policy direction to the actual day-to-day activities of the city staff. 2. Operational Guide The budget of the City reflects its operation. Activities of each city function and organization have been planned, debated, formalized and described in the following sections. This process will help to maintain an understanding of the various operations of the City and how they relate to each other and to the attainment of the policy issues and goals of the City Council. 3. Link with the General Public The budget provides a unique opportunity to allow and encourage public review of city operations. It describes the city's activities, the reason or cause for those activities, future implications and the direct relationship to the citizenry. 4. Legally Required Financial Planning Tool The budget is a financial planning tool, which has been its most traditional use. In this light, preparing and adopting a budget is a State law requirement of all cities as stated in Title 35A of the Revised Code of Washington (RCW). The budget must be adopted as a balanced budget and must be in place prior to the beginning of the city's fiscal year. The budget is the legal authority to expend public monies and controls those expenditures by limiting the amount of the appropriation at the fund level. The revenues of the City are estimated, along with available cash carry -forward, to indicate funds available. The budget considers unforeseen contingencies and provides for the need for periodic adjustments. 2026 Budget Development Process Historically the City has utilized a budgeting approach that assumed for most functions of government that the current year's budget was indicative of the base required for the following year. However, with the volatility that was seen in the economy with the Great Recession and again with the COVID-19 pandemic and subsequent inflation, the City moved to a budget development process that consciously reviews service levels in each department and determines the appropriate level of funding that meets Council goals relative to available resources. The 2026 budget process began in March 2025, with initial budget preparations shared with the City Council at a Budget Workshop on June 10, 2025. By the time the 2026 Budget is scheduled to be adopted on December 9, 2025, the Council will have had an opportunity to discuss it on eight separate occasions, including three public hearings to gather input from community members: -. AD '--- Budget APRIL JUNE AUG SEPT Timeline & MAY Department Budget Report on Public budgets workshop estimated Hearing #1 compiled revenues and Revenues inducing expenditures property taxes O --- -®-- -® 4 0 - DEC NOV OCT OCT OCT 2nd Reading Public list Reading Public City manager Budget Hearing #3 Budget Hearing #2 presentation ordinance Final budget ordinance Preliminary of budget Adoption of budget 2026 budget! Once adopted, the final operating budget is published, distributed and made available to the public, and then enters a budget implementation and monitoring stage. Throughout the year, expenditures are monitored by the Finance Department and department directors to ensure that actual expenditures comply with the approved budget. The Finance Department provides the City Manager and City Council with monthly reports to keep them abreast of the city's financial condition and individual department compliance with approved appropriation levels. Any budget amendments made during the year are adopted by the City Council ordinance following a public hearing. The City Manager is authorized to transfer budgeted amounts within a fund; however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions, salary ranges or other conditions of employment must be approved by the City Council. When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for a particular fund, it may do so by ordinance adopted by the Council after holding one public hearing. Budget Principles The budget was prepared using the following budget principles: • Department directors have primary responsibility for formulating budget proposals in line with City Council and City Manager priority direction, and for implementing them once approved. • The Finance Department is responsible for coordinating the overall preparation and administration of the city's budget. This function is fulfilled in compliance with applicable State of Washington statutes governing local government budgeting practices. • The Finance Department assists department staff in identifying budget problems, formulating solutions and alternatives and implementing any necessary corrective actions. • Interfund charges will be based on recovery of costs associated with providing those services. • Budget amendments requiring City Council approval will occur through the ordinance process at the fund level prior to fiscal year-end. • The city's budget presentation will be directed at displaying the city's services plan in a Council/constituent-friendly format. • No long-term debt will be incurred without the identification of a revenue source to repay the debt. Long-term debt will be incurred for capital purposes only. • The City will strive to maintain equipment replacement funds in an amount necessary to replace the equipment at the end of its useful life. Life cycle assumptions and required contributions will be reviewed annually as part of the budget process. New operations in difficult economic times may make it difficult to fund this principle in some years. • The City will pursue an ending general fund balance at a level of no less than 50% of recurring expenditures. This figure is based on an evaluation of both cash flow and operating needs. BASIS OF ACCOUNTING & BUDGETING Basis of accounting refers to when revenues and expenditures are recognized, recorded in the accounting system and ultimately reported in the financial statements. The city budget is based on two types of Basis of Accounting: Modified Accrual Basis of Accounting is used for all governmental funds. Modified accrual recognizes revenues when they become both measurable and available to finance expenditures of the current period. Accrual Basis of Accounting is used for enterprise, internal service and fiduciary funds. Under this system revenues and expenses are recognized in the period incurred rather than when cash is either received or disbursed. Annual appropriation budgets are adopted for all funds with Governmental Funds utilizing a modified cash basis of accounting for budget purposes and Proprietary and Fiduciary Funds utilizing a working capital approach. Budgets are adopted at the fund level that constitutes the legal authority for expenditures, and annual appropriations for all funds lapse at the end of the fiscal period. TYPES OF FUNDS The city's accounting records are maintained in accordance with methods prescribed by the State Auditor under the authority of the Revised Code of Washington (RCW), Chapter 43.09.20, and in compliance with generally accepted accounting principles as set forth by the Governmental Accounting Standards Board. The accounts of the City of Spokane Valley are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of double -entry accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The city's resources are allocated to and accounted for in individual funds depending on their intended purpose. Details on the types of funds and revenues are outlined within the budget document. Governmental Fund Types Governmental funds are used to account for activities typically associated with state and local government operations. All governmental fund types are accounted for on a spending or "financial flows" measurement focus, which means that typically only current assets and current liabilities are included on related balance sheets. The operating statements of governmental funds measure changes in financial position, rather than net income. They present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. 1. General Fund Primary fund that accounts for all financial resources except those required or elected to be accounted for in another fund. 2. Special Revenue Funds Revenues that are legally restricted or designated to finance particular activities. • #101 — Street Fund • #103 — Paths & Trails Fund • #104 — Hotel / Motel Tax — Tourism Facilities Fund • #105 — Hotel / Motel Tax Fund • #106 — Solid Waste Fund • #107 — PEG Fund • #108 — Affordable & Supportive Housing Sales Tax Fund • #109 — Tourism Promotion Area Fund • #110 — Homeless Housing Program Fund • #111 — Transportation Benefit District Fund • #120 — CenterPlace Operating Reserve Fund • #121 — Service Level Stabilization Reserve Fund • #122 — Winter Weather Reserve Fund 3. Debt Service Funds Resources designated for the retirement of debt. • #204 — LTGO Debt Service Fund 4. Capital Project Funds Designated for the acquisition or construction of general government capital projects. • #301 — REET 1 Capital Projects Fund • #302 — REET 2 Capital Projects Fund • #303 — Streets Capital Projects Fund • #309 — Parks Capital Projects Fund • #310 — Civic Facilities Capital Projects Fund • #311 — Pavement Preservation Fund • #312 — Capital Reserve Fund • #314 — Railroad Grade Separation Projects Fund • #315 — Transportation Impact Fees Fund • #316 — Economic Development Capital Projects Fund Proprietary Fund Types A second type of fund classification is the proprietary funds that are used to account for activities similar to those found in the private sector, where the intent of the governing body is to finance the full cost of providing services based on the commercial model which uses a flow of economic resources approach. Under this approach, the operating statements for the proprietary funds focus on a measurement of net income (revenues and expenses) and both current and non -current assets and liabilities are reported on related balance sheets. Their reported fund equity (total net position) is segregated into restricted, unrestricted, and invested in capital assets classifications. 1. Enterprise Funds Operations that provide goods or services to the general public and are supported primarily by user charges. • #402 — Stormwater Management Fund • #403 — Aquifer Protection Area Fund 2. Internal Service Funds Operations that provide goods or services to other departments or funds of the City. • #501 — Equipment Rental and Replacement Fund • #502 — Risk Management Fund • #503 — Public Safety Equipment Replacement Reserve Fiduciary Fund Types A third type of fund classification is the fiduciary funds that are used to account for activities conducted for the benefit of those outside the City. Fiduciary funds have the same measurement focus and basis of accounting as proprietary funds. Under this approach, the operating statements for the fiduciary funds focus on a measurement of net income (revenues and expenses) and both current and non -current assets and liabilities are reported on related balance sheets. Net position is always classified as restricted. 1. Custodial Funds Fees and taxes collected by the City on behalf of other governments, such as Washington State and Spokane County. • #632 — Passthrough Fees and Taxes Fund MAJOR REVENUE SOURCES General Fund #001 • Property Tax Property taxes play an essential role in the finances of the municipal budget. State law limits the City to a $3.60 levy per $1,000 assessed valuation, deducting from there the levy of up to $1.50 by the Spokane County Fire Districts #1 and #8, along with deducting up to $0.50 for the Library District, which leaves the City with the authority to levy up to $1.60 for its own purposes. The levy amount must be established by ordinance by November 30 prior to the levy year. • Retail Sales and Use Tax The sales tax rate for retail sales transacted within the boundaries of the City of Spokane Valley is 9%. The tax that is paid by a purchaser at the point of sale is remitted by the vendor to the Washington State Department of Revenue who then remits the taxes back to the various agencies that have imposed the tax. The City receives less than one percent of sales tax, with allocation of the 9% tax rate to agencies as follows: - State of Washington 6.50% - City of Spokane Valley 0.85% - Spokane County 0.15% - Spokane Public Facilities District 0.10% * - Criminal Justice 0.10% - Public Safety - County 0.10% * - Public Safety - City 0.10% * - Juvenile Jail 0.10% * - Mental Health 0.10% * - Law Enforcement Communications 0.10% * - Spokane Transit Authority 0.80% * 9.00% * Indicates voter approved sales taxes 2.50% local tax • Criminal Justice Sales Tax Local Sales Tax for Criminal Justice funding is to be used solely for criminal justice purposes, such as the City's law enforcement contract. This tax is authorized at 1 /10 of 1 % of retail sales transacted in the County. Of the total amount collected, the State distributes 10% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the County and cities within the County. • Public Safety Sales Tax - County Beginning in 2005, an additional 0.1 % voter -approved increase in sales tax was devoted to public safety purposes. This 0.1 % was approved by the voters again in August 2009. Of the total amount collected, the State distributes 60% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the cities within the County. • Public Safety Sales Tax - City Beginning in 2026, an additional 0.1 % voter -approved increase in sales tax was devoted to public safety purposes. This 0.1 % was approved by the voters in August 2025. Of the total amount collected, the State distributes 85% of the receipts to the City, with the remaining 15% distributed to Spokane County. Gambling Tax Gambling tax revenues must be spent primarily on law enforcement purposes pertaining to gambling. Funds remaining after necessary expenditures for such enforcement purposes may be used for any general government purpose. Gambling taxes are to be paid quarterly to the City, no later than the last day of January, April, July and October. The City imposes a tax on the following forms of gambling at the following rates: Bingo (5% gross, less prizes); raffles (5% gross, less prizes); punchboards and pull tabs (5% gross, less prizes); amusement games (2% gross, less prizes); card playing (6% gross). • Leasehold Excise Tax Taxes on property owned by state or local governments and leased to private parties (city's share). • Franchise Fees Cable TV is the only franchise fee levied in the City at a rate of 5% of gross revenues. This is a fee levied on private utilities for the right to use city streets, alleys and other public properties. State -Shared Revenues State -shared revenues are received from liquor sales, marijuana revenues and motor vehicle excise taxes. These taxes are collected by the State of Washington and shared with local governments based on population. State -shared revenues are distributed on either a monthly or quarterly basis, although not all quarterly revenues are distributed in the same month of the quarter. The 2025 population figure used in the 2026 Budget is 110,200 as reported by the Office of Financial Management (OFM) for Washington State on April 1, 2025. This figure is important when determining the distribution of state -shared revenues on a per capita basis. • Fines and Forfeitures / Public Safety Fines and penalties are collected as a result of Municipal Court rulings, false alarm fees and other miscellaneous rule infractions. All court fines and penalties are shared with the State, with the City, on average, retaining less than 50% of the amount collected. • Community Development Community Development revenues are largely composed of fees for building permits, plan reviews and right-of-way permits. • Recreation Program Fees The Parks and Recreation Department charges fees for selected recreation programs. These fees offset direct costs related to providing the program. • CenterPlace Fees The Parks and Recreation Department charges fees for the use of CenterPlace. Uses include regional meetings, weddings, receptions and banquets. Rental rooms include classrooms, the great room and dining rooms. • Investment Interest The City earns investment interest on sales tax money held by the State of Washington prior to the distribution of the taxes to the City, as well as on city -initiated investments. Street Fund #101 Motor Vehicle Fuel Excise Tax (gas tax) The State of Washington collects a $0.554 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2026 the Municipal Research and Services Center estimates the distribution back to cities will be $18.33 per person. Based upon a City of Spokane Valley population of 110,200 (per the Washington State Office of Financial Management on April 1, 2025) we anticipate the City will collect $2,020,000 in 2026. RCW 47.30.050 specifies that 0.42% of this tax must be expended for paths and trails activities and based upon the 2026 revenue estimate, this computes to $8,500. The balance of $2,011,500 will be credited to Fund #101 for street maintenance and operations. • Telephone Utility Tax The City of Spokane Valley levied a 6% telephone utility tax via Ordinance #08-014 with collections beginning in 2009. Telephone companies providing this service pay the tax to the City monthly. Telephone tax has been estimated at $960,000 for 2026. • Solid Waste Road Wear Fee The road wear fee is collected as part of the City's contract for solid waste collection services with Waste Management of Washington, Inc. See the explanation under Fund #106 below. Paths & Trails Fund #103 Cities are required to spend 0.42% of the motor vehicle fuel tax receipts on paths and trails (please see the explanation for Street Fund #101), which we anticipate will be $8,500 in 2026. Because the amount collected in any given year is relatively small, it is typical to accumulate State distributions for several years until adequate dollars are available for a project. Hotel / Motel Tax — Tourism Facilities Fund #104 The City imposes a 1.3% tax under RCW 67.28.181 on all charges made for the furnishing of lodging at hotels, motels and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The revenues generated by this tax may only be used for capital expenditures for acquiring, constructing, improving or making other related capital expenditures for large sporting venues or venues for tourism -related facilities. This tax is estimated to generate $590,000 in 2026. Hotel / Motel Tax Fund #105 The City imposes a 2% tax under RCW 67.28.180 on all charges made for the furnishing of lodging at hotels, motels and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The tax is taken as a credit against the 6.5% state sales tax so that the total tax that a patron pays in retail sales tax and hotel/motel tax combined is equal to the retail sales tax in the jurisdiction. The revenues generated by this tax may be used solely for paying for tourism promotion and for the acquisition and/or operation of tourism -related facilities. This tax is estimated to generate $900,000 in 2026. Solid Waste Fund #106 Under the city's contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc., Sunshine pays an annual contract administrative fee to the City. Also, under the city's contract for solid waste collection services with Waste Management of Washington, Inc., Waste Management pays an administrative fee of 12.5% of gross receipts. This fee shall be used by the City for costs related to solid waste services, including costs for contract administration, solid waste planning and management, and a portion of the city's Street Preservation and Maintenance Programs. Of the amounts collected under the fee, no more than 1 % of gross receipts may be used for contract administration while the remainder is recorded in the Street Fund #101 for use on pavement management and maintenance. PEG Fund #107 Under the city's cable franchise, the franchise grantee remits to the City in a capital contribution in support of Public Education Government (PEG) capital requirements, an amount equal to $0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise. Capital contributions collected under this agreement are allocated to PEG capital uses exclusively. PEG capital uses include, in part, the set-up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. Affordable and Supportive Housing Sales Tax Fund #108 In 2020, the Council authorized the City to collect the affordable and supportive sales tax, which is a rebate of the State sales tax to cities and counties. The amount received by the City is up to 0.0146% of the taxable retail sales within the City capped at the 2019 fiscal year taxable retail sales. The Department of Revenue has estimated this capped distribution to be $200,000 for the City. The City will receive these revenues for 20 years, and the revenues may only be used to support affordable housing within the City or for rental assistance as outlined in RCW 82.14.540. Tourism Promotion Area Fund #109 In 2022, a qualified lodging business (40 or more lodging units) within the City of Spokane Valley submitted a petition to form a tourism promotion area (TPA). The Council adopted resolution 22- 017 to establish and operate pursuant to chapter 35.101 RCW, a Tourism Promotion Area fund. The City estimates that the annual revenue from the lodging charges collected from the operators of lodging businesses within the Spokane Valley TPA is expected to be $1,300,000. This estimated amount is based on a daily lodging charge of $4.00 per room night and will vary from year to year depending upon fluctuating occupancy rates of lodging businesses in the Spokane Valley TPA and based upon program review. Homeless Housing Program Fund #110 In 2023, the Council passed Resolution #23-009 to declare the Council's intent to operate a local homeless and housing program and assume collection of available document recording fees for this purpose. As part of operating a homeless and housing program, the City first needed to form a Homeless Housing Task Force and adopt a five-year Homeless Housing Action Plan that identifies how the City will work to eliminate homelessness consistent with the State's adopted strategic plan. Document recording fees are collected by Spokane County and passed through to the City based on the City's proportionate share of real estate excise tax (BEET) collected on a monthly basis. Transportation Benefit District Fund #111 In 2023, Council adopted Ordinances 23-018 and 23-022 forming and assuming the powers of a Transportation Benefit District in the City. The Council also adopted Ordinance 23-024, establishing a $20 vehicle license tab fee. The fee was effective July 2024 and is anticipated to generate $1,800,000 in revenues in the 2026 Budget. These funds are used in the Street Fund #101 for use on pavement management and maintenance LTGO Debt Service Fund #204 This fund is used to account for the accumulation of resources for and the payment of limited tax general obligation (LTGO) bonds, also referred to as councilmanic or non -voted bonds. When LTGO bonds are issued, the City irrevocably pledges the full faith, credit and resources necessary to make timely payments of principal and interest, within constitutional and statutory limitations pertaining to non -voted general obligations. In 2003, the City issued $9,430,000 in limited tax general obligation (LTGO) bonds the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014, the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond repayment (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: • $5,650,000 remained on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20-year period ending December 1, 2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. On January 1, 2025, the outstanding balance on this portion of the bond issue will be $2,145,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds matured in December 2023 and were completely paid off at that time. In 2016, the City issued $7,275,000 in LTGO bonds, the proceeds of which were used to finance the construction of a new City Hall, along with $6.3 million of city cash that had been set aside for this purpose. These bonds will be paid off in annual installments over the 30-year period ending December 1, 2045. Annual debt service payments on these bonds are provided by transfers in from the General Fund. On January 1, 2025, the outstanding balance on the bond issue will be $5,665,000. REET 1 Capital Proiects Fund #301 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an excise tax on each sale of real property at the rate of one -quarter of one percent of the selling price. The revenue generated is used for financing capital projects as specified in the capital facilities plan under the Growth Management Act. REET 2 Capital Projects Fund #302 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an additional excise tax on each sale of real property at the rate of one -quarter of one percent of the selling price. The revenue generated is used for financing public works capital projects as specified in the capital facilities plan under the Growth Management Act. Stormwater Management Fund #402 A stormwater fee is imposed upon every developed parcel within the City, which is an annual charge of $60 for each single-family unit and $60 per 3,160 square feet of impervious surface for all other properties. These charges are uniform for the same class of customers and service facilities. These fees are estimated to generate $6,170,000 in 2026. Interfund Transfers Many funds receive a portion of their revenues from other funds in the form of an interfund transfer. These transfers typically represent payments for either services rendered by one fund for another or a concentration of revenues for a specific project or purpose. The following interfund transfers are planned for 2026: 0 287,000 380,000 0 0 0 0 0 0 0 1,800,000 250,200 250,200 1,750,000 398,750 0 0 0 0 0 0 0 0 0 0 651,193 600,000 0 0 0 0 0 0 0 518,374 0 0 0 0 1,372,150 1,372,150 1,042,421 0 0 0 0 37,659 0 359,182 92,500 0 0 0 0 0 0 1,100, 000 0 0 0 0 0 0 652,831 0 0 0 0 0 0 Total In 667,000 4,050,400 398,750 1,251,193 518,374 3,786,721 396,841 92,500 1,100, 000 652,831 12,914,610 Total in Tatalt7ut 2,244,081 287,000 380,000 1,800,000 2,311,202 2,222,350 3,669,977 12,914,610 Total out 0 #001 — General Fund is budgeted to transfer out $2,244,081 including: • $398,750 to Fund #204 — LTGO Debt Service Fund for bond payments on the 2016 LTGO Bonds for the City Hall construction. $92,500 to Fund #501 - Equipment Rental and Replacement Fund for an IT equipment reserve. $1,100,000 to Fund #502 - Risk Management Fund for the 2024 property and liability insurance premium. $652,831 to Fund #503 - Public Safety Equipment Replacement Fund to build a reserve to replace police vehicles and other public safety equipment. #105 - Hotel / Motel Tax Fund is budgeted to transfer $30,000 to Fund #001 - General Fund for the purpose of financing advertising at CenterPlace. #110 - Homeless Housing Program Fund is budgeted to transfer $380,000 to Fund #001 - General Fund for the purpose of partially funding the City's homeless outreach team and reserved shelter beds. #111 - Transportation Benefit District Fund is budgeted to transfer $1,800,000 to Fund #101 - Street Fund for the purpose of funding street maintenance operations. #301 - REET 1 Capital Projects Fund is budgeted to transfer out $2,311,202 including: • $250,200 to Fund #101 - Street Fund to support street maintenance activities. • $651,193 to Fund #303 - Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $1,372,150 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. • $37,659 to Fund #314 - Railroad Grade Separation Projects Fund for the Sullivan Road Interchange project. #302 - REET 2 Capital Projects Fund is budgeted to transfer out $1,891,950 including: $250,200 to Fund #101 - Street Fund to support street maintenance activities. $600,000 to Fund #303 - Street Capital Projects Fund that will be applied towards grant matches for street construction projects. $1,372,150 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. #312 - Capital Reserve Fund is budgeted to transfer out $4,990,123 including: • $1,750,000 to Fund #101 - Street Fund to fund local access street improvements. • $518,374 to Fund #309 - Parks Capital Projects Fund that will be applied towards parks capital projects. • $1,042,421 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. • $359,182 to Fund #314 - Railroad Grade Separation Projects Fund that will be applied to the grade separation project at Pines Road. SIGNIFICANT ASSUMPTIONS Budget Summary for All Funds • Based upon funding levels anticipated in the 2026 budget, city staff will strive to maintain adequate levels of service. • Appropriations for all city funds will total $134.2 million including $35.4 million in capital expenditures, comprised in part of: o $1.9 million in Fund #101 — Street Fund o $5.9 million in Fund #303 — Street Capital Projects o $894,000 in Fund #309 — Park Capital Projects o $4.8 million in Fund #311 — Pavement Preservation Projects o $16.9 million in Fund #314 — Railroad Grade Separation Projects o $4.5 million in Fund #402 — Stormwater Management Projects o $320,000 in Fund #501 — Equipment Rental and Replacement • To partially offset the $35.4 million in capital costs, we anticipate $24.5 million in grant revenues which results in about 69% of capital expenditures being covered with state and federal money. • Budgets will be adopted across 31 separate funds. • The funded full-time equivalent employee (FTE) count will remain the same in 2026 at 118.25. • The 2026 Budget reflects the twelfth consecutive year the City will set aside city monies in an amount equivalent to 6% of General Fund recurring expenditures for pavement preservation in Fund #311 — Pavement Preservation. However, approximately $1 million of this that has historically come from a recurring transfer from the General Fund is now being provided as a nonrecurring transfer from the Capital Reserve Fund #312 due to budget constraints in the General Fund. • Positions and salary ranges are based on the city's compensation and classification plan. • Payroll tax and benefit amounts are based on staff benefit plans. • Contract costs for public safety, park maintenance, aquatics and street maintenance are based on estimates by city staff. • The City sets money aside in Fund #501 — Equipment Rental and Replacement for the eventual replacement of its vehicles as well as a reserve to replace equipment in the kitchen at CenterPlace and major IT equipment. • The City sets money aside in Fund #503 — Public Safety Equipment Replacement for the eventual replacement of police vehicles and other public safety equipment. 2026 General Fund Revenues • Total recurring 2026 revenues are estimated at $68.6 million as compared to $64.1 million in 2025, which is an increase of $4.5 million or 7.05%. • The two largest sources of revenue continue to be Sales Tax and Property Tax which are collectively estimated to account for 80.24% of 2026 General Fund recurring revenues. • The 2026 general sales tax estimate (excluding criminal justice and public safety sales taxes) is currently estimated at $33.5 million which reflects an increase of $541,200 or 1.64% over the 2025 estimate. • The Property Tax levy does not include the potential annual increase allowed by State law. o The 2026 levy is estimated at $14,309,800. o The levy assumes we start with the 2025 levy of $14,109,800, forgo the potential annual increase allowed by State law, and finally add taxes related to new construction which we estimate to be $200,000. • Franchise fees and business registrations are primarily based on projected receipts in 2025. • State shared revenues are based upon a combination of historical collections including 2025 collections through July, and per capita distribution figures reported by the Municipal Research and Services Center. • Fines and forfeitures are estimated by Spokane Valley and based on historical collections. • Building permit and land use fees are estimated by Spokane Valley and based on historic collections. 2026 General Fund Expenditures • Total 2026 recurring expenditures are budgeted at $68.5 million as compared to $63.5 million in 2025. This is an increase of $4.9 million or 7.74%. o The increase of 7.74% consists of an increase of 11.85% in Public Safety costs and an increase of 0.78% in all other General Fund Departments. • The City commitment of 6% of recurring General Fund expenditures to pavement preservation equals $3.8 million and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element ($3.8 million / $68.5 million = 6%). The $3.8 million that is transferred to Pavement Preservation Fund #311 is comprised of the following: • $0 from General Fund #001 — Could not be afforded in the General Fund for 2026 due to budget constraints in that fund • $1.4 million from REST 1 Capital Projects Fund #301 • $1.4 million from REET 2 Capital Projects Fund #302 • $1 million from Capital Reserve Fund #312 — One-time transfer that will be evaluated annually Nonrecurring expenditures total $1 .8 million and include: o $40,000 for Information Technology expenditures including: ■ $20,000 to replace outdated copiers ■ $10,000 to replace physical server equipment ■ $10,000 for a software contingency o $544,000 for the replacement of police vehicles ■ This was originally part of the recurring expenditures but is now being done as a nonrecurring item as funding is available due to budget constraints in the General Fund. o $58,000 for various Facilities items including: ■ $30,000 to replace carpeting and paint at CenterPlace ■ $18,000 for four portable heating/AC units ■ $10,000 for PCB boards in case of HVAC failures at City Hall o $425,000 in professional services for the City's update of the Comprehensive Plan o $80,000 to refresh the audio/visual equipment in the Great Room at CenterPlace o $652,831 transfer out to the Public Safety Equipment Replacement Fund #503 for future replacement costs of police vehicles already purchased in prior years ■ This was originally part of the recurring expenditures but is now being done as a nonrecurring item as funding is available due to budget constraints in the General Fund. General Fund Revenues Over (Under) Expenditures and Fund Balance • 2026 recurring revenues are anticipated to exceed recurring expenditures by $121,547. • Total 2026 expenditures are anticipated to exceed total revenues by $1,253,284. • The total unrestricted General Fund ending fund balance is anticipated to be $41.4 million at the end of 2026 which is 60.54% of total recurring expenditures of $68.5 million. Our goal is to maintain an ending fund balance of at least 50.0%. Highlights of Other Funds Revenues • Motor vehicle fuel tax (MVFT) revenue that is collected by the State and remitted to the City is estimated to be $2 million according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2 million will be credited to the Street O&M Fund #101 and 0.42% or $8,500 to the Paths and Trails Fund #103. • Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated to be $960,000. • Real estate excise tax (REST) revenue is computed by the City and is primarily used to match grant funded street projects as well as pay a portion of the annual payment on the 2014 general obligation bonds. In 2026 we estimate these revenues to be $1,500,000 per each '/4% for a total of $3,000,000. • Hotel/Motel tax revenues are computed by the City and are dedicated to the promotion of visitors and tourism. In 2026 we estimate the tax will generate $1,490,000, which includes $900,000 in Fund #105 Hotel / Motel Tax Fund from the 2% tax and $590,000 in Fund #104 Hotel / Motel Tax — Tourism Facilities Fund from the 1.3% tax. • The City began receiving the affordable and supportive housing sales tax in 2020 and will receive these revenues as a rebate of the State's sales taxes for 20 years. The amount received by the City is capped at 0.0146% of the taxable retail sales within the City for fiscal year 2019, and the revenues may only be used to support affordable housing or rental assistance within the City as outlined in RCW 82.14.540. These revenues are estimated at $193,000 in 2026 in the Affordable and Supportive Housing Sales Tax Fund #108. • The Tourism Promotion Fees in the Tourism Promotion Area Fund #109 is estimated to be $1,300,000 in 2025. This estimated amount is based on a daily lodging charge of $4.00 per room night assessed on qualified lodging businesses (40 or more lodging units) within the City of Spokane Valley. • Vehicle License Fees in the Transportation Benefit District Fund #111 are estimated to be $1,800,000 in 2026. This estimate is based on vehicle counts in the City of Spokane Valley from the Washington Department of Licensing multiplied by the $20 license fee. • The Stormwater Management Fee is based on an equivalent residential unit (ERU) that is equal to 3,160 square feet of impervious surface that is billed at a rate of $60 per single family residence and $60 per ERU for commercial properties (an ERU for a commercial property is computed as total square feet of impervious surface divided by 3,160). In 2026 we estimate this fee will generate $6,170,000. • Grant revenues that will be applied to a variety of construction projects are estimated at $24.5 million in 2026. By fund, we anticipate grant revenues as follows: o Fund #001 — General Fund - $861,500 o Fund #303 — Street Capital Projects - $4.6 million o Fund #309 — Parks Capital Projects - $375,500 o Fund #311 — Pavement Preservation - $2.1 million o Fund #314 — Railroad Grade Separation Projects Fund - $16.5 million Expenditures • Fund #101 — Street Fund appropriations include: o $7.6 million for maintenance of city streets, including $1.7 million in snow operations and $2.7 million in traffic related services. • Fund #105 — Hotel/Motel Tax Fund appropriations include: o $960,000 for tourism promotion activities. • Fund #106 — Solid Waste Fund appropriations include: o $230,201 for Education/Contract Administration. • Fund #109 — Tourism Promotion Area Fund appropriations include: o $1.8 million for Professional Services. • Fund #303 — Street Capital Projects Fund includes an appropriation of $5.9 million for a variety of street construction projects. • Fund #309 — Parks Capital Proiects includes a $893,874 appropriation to cover Greenacres Park improvements. • Fund #311 — Pavement Preservation includes $4.8 million of pavement preservation projects that will be financed through transfers from other City funds as outlined above under the heading of General Fund Recurring Expenditures. • Fund #314 — Railroad Grade Separation Proiects includes appropriations in the amount of 16.9 million towards the Pines Road Grade Separation project and the Sullivan Road Interchange project. • Fund #402 — Stormwater Fund includes $8.9 million in expenditures, including: o $4.3 million for the maintenance of the city's stormwater facilities o $4.5 million for various capital projects o $100,000 for the studies related to the city's Stormwater permit and the watershed • Fund #403 — Aquifer Protection Area Fund includes a $1,000,000 appropriation to various capital projects City's Foundation and Mission Spokane Valley's foundation is based on the city's primary objective to be responsive, focused on customer service, open to the public, progressive, efficient, lean and fair while providing a high quality of life. Citizen involvement, along with guidance from the City Council, established the city's vision, core beliefs and customer service standards. These foundations influence the development of the City Council goals for each year as well as the goals of the individual departments. Spokane Valley Vision Statement A city of opportunities where people thrive and businesses prosper. Core Beliefs Supporting this vision are the core beliefs of Spokane Valley that were established through the December 2007 adoption of Resolution 07-019, which in part reads: ■ We believe Spokane Valley should be a visionary city encouraging its citizens and their government to look to the future beyond the present generation and to bring such ideas to public discussion and to enhance a sense of community identity. ■ We believe that elected body decision -making is the only lawful and effective way to conduct the public's legislative business and that careful observance of a clear set of Governance Coordination Rules of Procedure can best enhance public participation and decision -making. ■ We believe in the City Council as policy leaders of the City. One or more City Councilmembers are encouraged to take the lead, where practical, in sponsoring ordinances or resolutions excepting quasi-judicial or other public hearings and the statutory duties of the City Manager as set forth in RCW 35A.13.020. ■ We believe in hearing the public view. We affirm that members of the public should be encouraged to speak and be heard through reasonable rules of procedure when the public business is being considered, thus giving elected officials the broadest perspectives from which to make decisions. ■ We believe that the City of Spokane Valley's governance should be known as "user friendly," and that governance practices and general operations should consider how citizens will be served in the most responsive, effective and courteous manner. ■ We believe that the economic and commercial job base of the community should be preserved and encouraged to grow as an alternative to increasing property taxes. We believe it's imperative to have an expanded and diverse economic base. ■ We believe that Councilmembers set the tone for civic discussion and should set an example by: a) Setting high standards of decorum and civility b) Encouraging open and productive conversation amongst themselves and with the community about legislative matters c) Demonstrating respect for divergent points of view expressed by citizens, fellow Councilmembers and the staff d) Honoring each other and the public by debating issues within City Hall and the community without casting aspersions on members of Council, the staff or the public e) Accepting the principle of majority rule and working to advance the success of "corporate" decisions ■ We solicit the City Manager's support in conducting the affairs of the City with due regard for: a) Promoting mutual respect between the citizens, City staff and the City Council by creating the organizational teamwork necessary for effective, responsive and open government b) Providing the City Council and the public reasonable advance notice when issues are to be brought forward for discussion c) Establishing and maintaining a formal citywide customer service program with an emphasis on timely response, a user-friendly atmosphere and an attitude of facilitation and accommodation within the bounds of responsibility, integrity and financial capability of the City, including organizational and job description documents while pursuing "best practices" in customer service d) Seeking creative ways to contain or impede the rising cost of governmental services, including examination of private sector alternatives in lieu of governmentally provided services e) Providing a database of future projects and dreams for the new City of Spokane Valley so that good ideas from its citizens and leaders are not lost and the status of projects can be readily determined Customer Service Standards The commitment to provide excellent customer service for our citizens, businesses and visitors resulted in the development of customer service standards. The city's goal is to deliver service that is complete, consistent and equitable to all our customers and is based on the principles of integrity, respect and responsiveness. Regardless of the reason for, the method, or frequency of contact, our customers will be treated with courtesy, respect and professionalism. Customer service standards are divided into three categories: ■ Be Respectful o Demonstrating courtesy and professionalism o Listening effectively o Responding in a timely manner o Exemplifying a no -surprise atmosphere ■ Be Knowledgeable o Fostering a team -oriented approach o Providing alternatives o Anticipating questions o Having and/or knowing your resources o Being organized ■ Be Welcoming o Acknowledging customers when they enter o Steering customers in the right direction o Promoting an enjoyable work environment o Maintaining a clean and uncluttered work environment o Treating people as individuals Financial Projection This budget document is the tool we use to guide the City forward in accomplishing the Council's goals while remaining squarely within the current budget and forecasted projections. Over time, this provides the City with a good indicator of the progress the City is making to provide high -quality services in a cost-effective way while remaining within budget and forecasted projections. Based on the Financial Projection, department budgets have been thoroughly reviewed to keep 2026 expenditures in line with projected revenues. The City views the changes in the economy as an opportunity to reevaluate goals and strategies to meet the challenges set before us. As an open, collaborative government, we continue to encourage our citizens to provide the necessary feedback as we endeavor to plan our city's future together. The Financial Forecast is limited to five years as it becomes increasingly difficult to forecast economic indicators beyond a five-year horizon. It is important to note that the Financial Projection is an imperfect tool, which is why it is updated on an ongoing basis. The following General Fund financial projection is being created following a period of relatively robust tax collections that have continued due to economic stimulus provided during the COVID- 19 pandemic, as well as high inflation. The high levels of inflation kept sales tax collections at high levels through 2023 while also increasing city costs. However, sales tax collections began flattening throughout 2024, causing challenges with balancing revenues and expenditures for the 2025 budget and beyond. CITY OF SPOKANE VALLEY, WA General Fund Budget Projection RECURRING ACTIVITY Revenues Property Tax Sales Tax Sales Tax - Public Safety Sales Tax - Criminal Justice Gambling Tax and Leasehold Excise Tax Franchise Fees/Business Registration State Shared Revenues Fines and Forfeitures/Public Safety Community and Public Works Recreation Program Revenues Grant Proceeds Miscellaneous Department Revenue Miscellaneous & Investment Interest Transfers in - #105 (h/m tax-CP advertising) Transfers in - #110 (recording fees H&H Services) Total Recurring Revenues 10/14/2025 2026 2027 2028 2029 2030 Proposed Projection 1 Projection Projection Projection Budget 1 14,309,800 14,509,800 14,709,800 14,909,800 15,109,800 2 33,541,200 35,084,100 35,820,900 37,038.800 38,298,100 3 4,274,900 4,471,500 4,565.400 4,720,600 4,881,100 4 2,906,400 3,040,100 3,103,900 3,209,400 3,318,500 5 516,700 532,200 548,200 564,600 581,500 6 1,330,000 1,343,300 1,370,200 1,397,600 1,425,600 7 2,644,100 2,670,500 2,697,200 2,724,200 2,751,400 8 481,400 486,200 491,100 496,000 501,000 9 4,057,100 4.178,800 4,304,200 4,433,300 4,566,300 10 716,700 752,500 775,100 798,400 822,400 11 436,500 436,500 20,000 20,000 20,000 12 79,500 80,300 81,100 81,900 82,700 13 2,625,000 2,651,300 2,677,800 2.704,600 2,731,600 14 287,000 30,000 30,000 30,000 30,000 15 380,000 380,000 380,000 380,000 380,000 68,586,300 70,647,100 71,574,900 73,509,200 75,500,000 Expenditures City Council 16 981,653 1,011,100 1,041,400 1,072,600 1,104,800 City Manager 17 849,583 875,100 901,400 928,400 956,300 City Attorney 18 1,029,326 1,060,200 1,092,000 1,124,800 1,158,500 Communications 19 708,709 730,000 751,900 774,500 797,700 Housing & Homeless Services 20 673,326 693.500 714,300 735,700 757,800 Public Safety 21 44,678,317 46,912,200 49,257,800 51,720,700 54,306,700 Deputy City Manager 22 654,355 674,000 694,200 715,000 736.500 Finance 23 1,565,135 1,612,100 1,660,500 1,710.300 1,761,600 Human Resources 24 417,105 429,600 442,500 455,800 469,500 Information Technology 25 474,987 489,200 603,900 519,000 534,600 Facilities 26 1,477, 326 1,521,600 1,567,200 1,614,200 1,662,600 Engineering 27 2,350,526 2,421,000 2,493,600 2,568,400 2,645,500 Building 28 2,117,276 2,180,800 2,246,200 2,313,600 2,383,000 Economic Development 29 1,314,961 1,354,400 1,395,000 1,436,900 1,480.000 Planning 30 1,055,912 1,087,600 1,120,200 1,153,800 1,188,400 Parks&Rec - Administration 31 474,166 488,400 503,100 518,200 533,700 Parks & Rec - Maintenance 32 2,681,798 2,762,300 2,845,200 2,930,600 3,018,500 Parks & Rec - Recreation 33 360,774 371,600 382,700 394,200 406,000 Parks & Rec -Aquatics 34 680,560 701,000 722,000 743,700 766,000 Parks & Rec - Senior Center 35 29,933 30,800 31,700 32,700 33,700 Parks & Rec- CenterPlace 36 735,625 757,700 780,400 803,800 827,900 General Government 37 1,562,150 1,609,000 1,657,300 1,707,000 1,758,200 Transfers out - #204 (2016 LTGO debt service) 38 398,750 397,750 401,600 400,150 400,150 Transfers out - #309 (park capital projects) 39 0 0 0 0 0 Transfers out - #311 (pavement preservation) 40 0 0 0 0 0 Transfers out -#501(ITequipreserve) 41 92,500 92,500 92,500 92,500 92,500 Transfers out - #502 (insurance premium) 42 1,100,000 1,232,000 1,379,800 1,545,400 1,730,800 Transfers out - #503 (public safety equipment) 43 0 0 0 0 0 Total Recurring Expenditures 68,464,753 71.495,450 74,678,400 78,011,950 81,510,950 Recurring Revenues Over (Under) Recurring Expenditures 121,547 (848,350) (3,103,500) (4,502,750) (6,010,950) NONRECURRING ACTIVITY Revenues Grant Proceeds 425,000 0 0 0 0 Total Nonrecurring Revenues 425,000 0 0 0 0 Expenditures General Government - IT capital replacements 40,000 0 0 0 0 Public Safety (police vehicle replacements) 544,000 0 0 0 0 Facilities (CenterPlace repairs & improvements) 30,000 0 0 0 0 Facilities (portable heating/AC units) 18,000 0 0 0 0 Facilities (PCB boards for City Hall HVAC) 10,000 0 0 0 0 Planning (Comp Plan Update) 425,000 0 0 0 0 Parks & Rec (audio/visual refresh for Great Room) 80,000 0 0 0 0 Transfers out -#503(public safety equipment) 652,831 0 0 0 0 Total Nonrecurring Expenditures 1.799,831 0 0 0 0 Nonrecurring Revenues Over (Under) Nonrecurring Expenditures (1,374,831) 0 0 0 0 EXCESS (DEFICIT) OF TOTAL REVENUES OVER (UNDER) TOTAL EXPENDITURES (1,253,284) (848,350) (3,103,500) (4,502,750) (6,010,950) ESTIMATED BEGINNING UNRESTRICTEDFUND BAL. 42,698,813 41.445,529 40,597,179 37,493,679 32,990,929 ESTIMATED ENDING UNRESTRICTED FUND BAL. 41,445,529 40,597,179 37,493,679 32,990,929 26,979,979 Ending fund balance as a % or recurring expenditures 1 60.54%1 56.78%1 50.21%1 42.29%1 33.10% 2027 Projection Projection assumes: 1 An increase of 2 An increase of 3 An increase of 4 An increase of 5 An increase of 6 An increase of 7 An increase of 8 An increase of 9 An increase of 10 An increase of 11 An increase of 12 An increase of 13 An increase of 14 An increase of 15 An increase of 16 An increase of 17 An increase of 18 An increase of 19 An increase of 20 An increase of 21 An increase of 22 An increase of 23 An increase of 24 An increase of 25 An increase of 26 An increase of 27 An increase of 28 An increase of 29 An increase of 30 An increase of 31 An increase of 32 An increase of 33 An increase of 34 An increase of 35 An increase of 36 An increase of 37 An increase of 38 An increase of 39 An increase of 40 An increase of 41 An increase of 42 An increase of 43 An increase of Projection Assumptions 2028 Projection plus new construction o $200,000 in 2027 2 10°/ in 2028 in 2027, ° 2.10% in 2028, in 2027, 2.10% in 2028, in 2027, 3.00% in 2028, in 2027, 2.00% in 2028, in 2027, 1.00% in 2028, in 2027, 1.000/6 in 2028, in 2027, 3.00% in 2028, in 2027, 3.00% in 2028, in 2027, 0.00% in 2028, in 2027, 1.00% in 2028, in 2027, 1.000 in 2028, in 2027, 0.00% in 2028, in 2027, 0.00% in 2028, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2027, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028, in 2028. 2029 2030 Projection I Projection year through 2030 3.40% in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and 3.40% in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 3.40% 3.40% 3.40% 3.40% 3.00% 3.00% 2.00% 2.00% 1.00% 1.00% 1.00% 1.00% 3.00% 3.00% 3.00% 3.00% 0.00% 0.00% 1.00% 1.00% 1.00% 1.00% 0.00% 0.00% 0.00% 0.00% in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2029, and in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 in 2030 Table 1.2 Financial Forecast and Program Impact Summary The General Fund forecast for the years 2027 through 2030 uses the adopted 2026 Budget as a beginning point and currently assumes levels of service that are identical to those provided by the City in 2026. Rather than a hard and fast prediction of the City's future finances, this is a planning tool that allows us to determine how best to match existing and proposed programs and levels of service with anticipated financial resources and make adjustments if necessary. It is noteworthy that the Estimated Beginning Unrestricted Fund Balance figure listed in 2026 is as of October 14, 2025, and is based upon preliminary and unaudited figures. As we progress through the process of "closing the 2025 books" we anticipate this figure will change due to the fact we will continue to record both 2025 revenues and expenses as we begin the 2026 fiscal year. External Input As representatives of the citizens of the City of Spokane Valley, the City Council strives to form policy that fairly represents all segments of our community, including residents, businesses and those visiting our City. To maintain balance in serving the different needs that exist in the City of Spokane Valley, it is necessary to receive feedback from customers and constituents. Previously, the City utilized citizen surveys to obtain feedback on various contract services including solid waste and the cable franchising process. Community meetings are used to inform citizens of upcoming planning and infrastructure changes. Citizen input was sought during the development of the original Comprehensive Plan, the most recent Comprehensive Plan Update that was completed in the latter part of 2016 and will continue to be sought on subsequent Comprehensive Plan updates. The City Council utilizes public comment during Council meetings to assist the Councilmembers in decision -making. City staff recognizes the importance of citizen concerns and the role citizens play in the health of our City. THE SV Express System allows citizens to share their concerns and report issues affecting the City. Staff are then able to respond in a timely manner and have a conversation with the citizen to work to resolve the reported concern. The public can also choose to take a more active role in participation through public forums such as public hearings and open house functions as well as through service on advisory committees. In the future, focus groups may be utilized to allow for more focused feedback on a particular subject so Council and staff can get a better feel for how a particular subject is received in the community, thereby allowing citizens to play active roles in guiding the way services are delivered. Internal Input The City of Spokane Valley city staff is comprised of knowledgeable professionals who provide the Council with specialized knowledge to assist them in making informed decisions. From demand analysis, which determines when the workload is heaviest and how to best accommodate it, to staff reports that consider alternative methods of service delivery or other cost -saving measures, employees are invaluable in providing reports that present complex information in a manner that makes it understandable and approachable. In addition, performance measure results are analyzed, summarizing multi -year performances linked to targets and making comparisons to other entities. Employees are often the information conduit from the citizens to the Council, relaying resident concerns and/or changing trends. Staff often bring forward innovative ways of providing efficient service delivery. Strategic planning through several long-range plans allows staff to look at current trends to make future forecasts and continually update plans as necessary. While much public input goes into these documents, the forecasting and planning are done by skilled staffers who strive to create innovative ways of achieving our future vision while meeting current needs, complying with the law, and operating within financial constraints. These include the Comprehensive Plan, Six -Year Transportation Improvement Program (TIP), Five -Year Financial Forecast, CenterPlace Marketing Plan, Parks Master Plan and Streets Master Plan. City Departments and Divisions o Strategic and Responsive Government Managing our city's operations and budget carefully and openly • City Council • City Manager • Deputy City Manager • Office of the City Attorney • Finance Department • City Services Department • City Facilities Division • Information Technology (IT) Division • Human Resources Department Safe and Accountable Community Maintaining public safety and upholding services, enforcement and codes that keep our community safe • Public Safety • Building and Code Enforcement Division Connected and Maintained Network p Building and maintaining roads and systems that safely and efficiently move people and goods and protect the environment • Public Works: Administration Division • Public Works: Engineering Division • Public Works: Street Maintenance Division • Public Works: Stormwater Utility Strong and Diverse Economy Generating revenue to fund city services through the many places to live, eat, shop, work, play and access services • Economic Development Department • Planning Division Exceptional Quality of Life Creating opportunities for people to connect, have fun and improve their physical and mental health • Parks and Recreation Department The City of Spokane Valley was incorporated on March 31, 2003, as a non -charter code city and operates under a Council -Manager form of government. It is governed under the optional municipal code of RCW Chapter 35A. Under this form of government, legislative authority is concentrated in the elected City Council, which hires a professional administrator to implement its policies. There are seven positions on the City Council, all of which are at -large positions. At -large means all Councilmembers represent all the citizens of the City versus each Councilmember representing a specified area within the City. Councilmembers are generally elected to four-year terms, with elections held every two years. For continuity, position terms are staggered by two years so that all positions are not open for election at the same time. Pursuant to RCW 35A.13.030, biennially the members choose a chair of the Council who receives the title of Mayor. The Mayor presides over all meetings and is recognized as the head of the City for ceremonial purposes. In addition to the position of Mayor, pursuant to RCW 35A.13.035, a Mayor pro tempore or Deputy Mayor is chosen by the Council. This position runs in concert with the position of Mayor and fulfills the duties of the Mayor during any absence or disability of the Mayor. Mayor Pam Haley Councilmember Rod Higgins Position 1 Position 5 Deputy Mayor Tim Hattenburg Position 6 Councilmember Jessica Yaeger Councilmember Al Merkel Councilmember Ben Wick Position 4 Position 2 Position 3 _ C7. 1 i ti- Councilmember Laura Padden Position 7 2025 Accomplishments • Updated and adopted a 2026 State Legislative Agenda and 2026 Federal Legislative Agenda • Authorized a ballot measure for a new public safety sales tax that will provide funding for the city to hire additional police personnel in the 2026 budget • Collaborated with state and federal legislators and lobbyists to further the city's interests • Continued to participate in regional homelessness discussions to investigate options to address this issue • Adopted a balanced 2026 budget that met the city's goal of having recurring revenue exceed recurring expenditures 2026 Goals 1. Increase public safety response to ensure everyone feels safe in Spokane Valley 2. Prioritize infrastructure maintenance, preservation and advance strategic capital projects through grant awards 3. Continue economic development efforts to maximize business growth and develop tourism destinations 4. Maintain our strong financial position 5. Utilize strategic partnerships to aggressively reduce and prevent people experiencing homelessness in Spokane Valley 6. Expand homeownership opportunities so more local people own homes The City Manager Department is accountable to the City Council for the operation of the organization, effective support of elected officials in achieving their goals, fulfillment of the statutory requirements of the City Manager, implementation of City Council policies and the provision of a communication linkage among citizens, the City Council, city departments and other government agencies. The City Manager Department includes the City Clerk and oversight of Human Resources and the Office of the City Attorney. Both departments work directly with all other departments and have their own mission statements and goals. As the City's Chief Executive Officer, the City Manager has overall responsibility for policy development, program planning, fiscal management, administration, and operation of all city functions, programs and activities. The City Manager's administrative direction is provided by the City Council. The City Manager assesses community and citizen needs to ensure objectives and priorities are focused to meet those needs in an effective, cost-efficient manner; directs development and implementation of initiatives for service quality improvement; provides daily leadership and works with the city's management team to ensure a high-performance, service - oriented work environment consistent with sound management principles. All city employees report directly or indirectly to the City Manager. Police services are contracted through the Spokane County Sheriff's Department with the Spokane Valley Police Chief reporting to the City Manager. Essential Services • Directs the implementation of the City Council's annual goals • Develops and directs the implementation of policies, procedures and work standards for the City • Prepares and recommends long-range plans for city services and programs • Monitors the status of contracts • Develops and recommends adoption of the annual budget • Coordinates the preparation of reports or presentations to the City Council or outside agencies • Develops specific proposals for action on current and future city needs • Acts as the Emergency Management Coordinator for the City • Monitors staff performance on qualitative and quantitative measures • Participates with local, regional, state and national jurisdictions to represent Spokane Valley's interests • Maintains good working relationships with community constituents City Clerk The City Clerk's Office, which consists of the City Clerk and Deputy City Clerk, manages the city's official records and public disclosure, supports the City Council, including agenda development and preparation of the official minutes, provides legal notices to the public regarding city business and supports all city departments. As the custodian of all city records, the City Clerk's office oversees record archival and all document imaging for state compliance. Essential Services • Prepares City Council agendas and packets • Certifies official city documents and custodian of city seal • Supervises city's official file record maintenance • Administers the city's Municipal Code and any insurance claims • Serves as Public Records Officer and handles public record requests • Ensures proper format for and processes resolutions and ordinances • Administers City Council, City Manager, Finance Director and Police Chief oath of office • Monitors contracts and other documents for signature, recording and posting • Coordinates volunteer opportunities for City and regional boards, committees and commissions • Attends all Council meetings and transcribes minutes and presides at bid openings • Responsible for publication of all legal notices • Serves as official Parliamentarian at Council meetings and the city's election official 2025 Accomplishments • Focused staff efforts on the city's budget priorities of public safety, pavement preservation, transportation and infrastructure, economic development, housing and homelessness and communications • Worked to support City Council's 2025 goals as referenced under the Legislative Branch budget • Presented Council with a balanced 2026 budget, which includes General Fund recurring revenues exceeding recurring expenditures and an ending fund balance of at least 50% of recurring expenditures • Collaborated with federal and state legislators and lobbyists to further city interests • Developed the 2026 State and Federal Legislative Agendas for Council consideration • Developed a Continuity of Operations Plan (COOP) for Council consideration 2026 Goals • Provide direction and oversight on staff's work toward accomplishing budget priorities in public safety, pavement preservation, transportation and infrastructure, and economic development • Work to support the City Council's 2026 goals as referenced under the Legislative Branch budget • Present Council with a balanced 2027 budget that includes General Fund recurring revenues exceeding recurring expenditures and an ending fund balance of at least 50% of recurring expenditures • Collaborate with federal and state legislators and lobbyists on behalf of the interests of Spokane Valley • Prepare the 2027 State and Federal Legislative Agendas for Council consideration The Deputy City Manager works under the general direction of the City Manager and with the city's management team to coordinate efforts toward the achievement of departmental and city government. The Deputy City Manager participates in and makes suggestions to the City Manager in the formulation of strategy and city policy involving organization, procedures and services. Duties also include advising the City Manager in determining the needs of various departments, preparing and presenting services for approval by the City Manager and City Council, and coordinating the implementation of approved services. The Deputy City Manager performs operations oversight for contract administration, with a primary focus on the city's Public Safety operations and the IT Division and oversees the Parks and Recreation and Finance Departments through department directors for each of those departments. Essential Services • Works with the City Manager, department and division heads in planning, organizing, coordinating and implementing services affecting assigned areas of responsibility • Briefs the City Manager on issues of concern in the divisions and departments and functions in assigned area of responsibility to ensure proper action • Coordinates with Spokane Valley Police Chief on various operational issues to ensure Law Enforcement services meet requirements of the Interlocal Agreement and expectations of City Council and City Manager • Coordinates with Spokane County representatives, including presiding District Court Judge, Spokane County Prosecutor and others to address operational, budgetary and other ongoing issues with Public Safety agreements • Meets and corresponds with various citizens, professionals, businesses and other groups to answer questions and secure their assistance in carrying out various services • Coordinates the preparation of the annual budget for departments within assigned areas • Reviews results of major studies and coordinates the preparation of reports and recommendations • Attends Council meetings and reports on activities for which he is responsible as requested by the City Manager; confers with officials of city, county, state and federal agencies regarding plans and priorities for existing and planned services • Demonstrates continuous effort to improve operations, decrease turnaround times, streamline work processes and work cooperatively and jointly to provide quality seamless customer service Contract Administration Under the direction of the Deputy City Manager, Contract Administration works with contractors and agencies to help ensure that the city government remains small and lean while delivering services efficiently and effectively. This idea was incorporated early in the City of Spokane Valley's existence to maintain the original concept of a "contract city" that is not focused on growing government but instead utilizes the best possible options to provide services to citizens and businesses, whether that is the private sector or other government agencies. Contract Administration regularly evaluates service delivery, examining cost trends, performance and value compared to other liked -size cities. Additionally, a primary focus is ensuring that local tax revenues generated from the City are invested in the community and are not used to subsidize other jurisdictions. Contract Administration evaluates current service deliverables based on current and anticipated demand while employing the best business practices and sound fiscal policy to ensure that staffing levels match demand and all efficiencies are incorporated while interacting with customers to answer questions and provide information on contract services. Current contracts include: Public Safety Contract Administration is responsible under the Deputy City Manager for negotiating and administering all public safety contracts, which total over 65% of the General Fund recurring expenditures budget. All public safety contracts are provided by Spokane County. Contract Administration reviews cost estimates, final cost reconciliations and performance measures. Periodically, Contract Administration will review the contracts and re -negotiate the terms. Public Safety Service contracts administered include: ■ Animal Control ■ Detention Services ■ District Court ■ Emergency Management Cable Television Franchise ■ Law Enforcement - Sheriff's ■ Pretrial Services Community Oriented Policing 0 Prosecutor Services Effort (SCOPE) and Spokane 0 Public Defender Regional Emergency Communications (SREC) Cable television services that utilize the city's rights -of -way to run lines to connect to customers must operate by authority of a city franchise. Contract Administration negotiates the terms of the franchise agreements and administers the terms of the agreement, such as customer service standards, use of the right-of-way and payment of the franchise fees and Public, Education, and Government (PEG) Funds. Solid Waste Contract Administration is an active participant on the negotiation and evaluation team for solid waste disposal and collection, as well as the development of the City's Solid Waste Plan. 2025 Accomplishments • Support the 2025 goals of the Legislative and Executive Branch • Work with the City Manager and staff to develop the 2026 budget • Work with City Council, City Manager, staff and Spokane Valley Police Department to implement updated levels of service and staffing for Police, including submission and passage of a voted public safety sales tax • Construct improvements at Spokane Valley Police Department Precinct to accommodate new officers • Assist with solid waste management plan update 2026 Goals • Support the 2026 Goals of the Legislative and Executive Branch • Work with City Manager and staff to develop the 2027 budget • Work with City Council, City Manager, staff and Spokane Valley Police Department to identify and develop options for managing costs within law enforcement contract to help address structural deficiency that exists between annual law enforcement cost increases and available revenues Review and provide options for enhancing and improving non -law enforcement components of criminal justice system to meet City Council priorities to improve public safety. These components are necessary to allow the increased police staffing to make a meaningful impact on public safety The Office of the City Attorney represents the city's legal interests. The Office of the City Attorney is responsible for providing legal advice and support to the City Council and city employees, representing the city in civil legal actions, and oversee outside legal counsel handling complex litigation and advise City Council and city employees regarding the same. Essential Services • Negotiate and draft and/or review all contracts • Negotiate and draft franchise agreements with utility providers • Meet and negotiate with Spokane County on service contracts • Meet and negotiate with other jurisdictions on a variety of matters, including interlocal agreements • Defend City in litigation and administrative hearings • Represent City in code enforcement litigation and collections • Advise on labor relations and employment law • Advise on numerous miscellaneous issues of general governance on a daily basis • Draft, or review and revise, ordinances, resolutions and policies as appropriate • Draft legal memoranda on a full range of municipal issues • Review and compile responses to public record requests when necessary • Provide training to staff on legal issues with broad application, such as public records, the Open Public Meeting Act, public disclosure rules, ethics, administrative and land -use regulations, contracts and purchasing and ordinance drafting • Attend all City Council and Planning Commission meetings • Review and advise on all real property transfers (easements, deeds, acquisitions, etc.) • Participate in the Governance Manual Committee • Maintain office and document organization necessary to successfully complete all tasks • Provide guidance to staff on solid waste issues 2025 Accomplishments • Provided a full range of legal services to the City and all departments • Drafted ordinances and resolutions for Council's consideration and adoption • Provided updates to the City Manager, Council and staff on legal matters impacting the City, such as opioid class action settlements, intersection between Federal immigration laws and the Keep Washington Working Act, public defender caseload standards, etc. • Assisted City Council and departments in analyzing existing processes and developing new processes for legal compliance on multiple topics including, among others, the following: o Trespass policy for City buildings and tracking procedure o Conduct standards for Councilmembers and the process to enforce violations thereof o Reviewed and revised existing administrative policies and procedures as appropriate • Provided continuous and ongoing legal support to departments and to the City Council to develop, adopt, revise and enforce city code provisions and regulations • Provided legal services in connection with development and operation of "The Course at Spokane Valley", including negotiating venue agreement with the NCAA for championship cross country event! • Provided ongoing legal advice regarding compliance with the Washington Public Records Act and assisted with responding to several public records requests throughout the year, including reviewing thousands of records to assess and complete necessary redactions • Provided legal support for the continued development and implementation of the city's homelessness services program • Represented the City in hearings before the City Hearing Examiner regarding land use and code enforcement decisions • Provided constant support for code enforcement in requiring non -compliant properties to adhere to the city code • Worked with SVPD, code enforcement and the licensed massage industry to develop new business licensing requirements for massage businesses to combat illicit massage businesses • Collaborated with multiple departments to develop and process procurement contracts for securing cameras for use in City parks • Provided legal advice to staff in developing a Flock camera system to enhance public safety alongside the County • Reviewed and negotiated grant agreements with Washington state and federal agencies for City projects • Managed, monitored and assigned outside legal counsel to represent the City in pending litigation, including but not limited to securing a favorable global settlement in litigation to recover damages for defects in the construction of City Hall, and protecting the City from financial liability under the Washington Public Records Act • Negotiated and drafted utility franchise agreements with utility providers • Provided extensive and ongoing legal advice critical to completing transportation infrastructure projects, including but limited to the Pines Grade Separation Project using RAISE funds administered by the Federal Railroad Administration • Advised the City on risk and legal liability mitigation/avoidance • Drafted amendments to the Revised Code of Washington pertaining to Public Records Act exemptions and the document recording fees for homelessness programs. Worked with state representatives and other stakeholders to successfully cause the Washington Legislature to adopt said law changes 2026 Goals Continue to provide the City with a full range of legal services consistent with the City Attorney Office business plan, including but in no way limited to: o Provide legal advice to Council, City Manager and all city departments o Update Council, City Manager and staff on legal matters of city interest o Develop processes and/or revise existing processes to attain and maintain legal compliance o Draft and review ordinances and resolutions for Council consideration o Coordinate, monitor and facilitate outside counsel representing the City in litigation o Risk mitigation o Code enforcement • Develop comprehensive updates to the city's sign regulations for Council consideration and approval • Assist the City to develop and implement measures to enhance public safety • Provide continued legal support to facilitate the completion of the Pines Grade Separation Project • Assist the city's efforts to update the Comprehensive Plan • Negotiate franchise agreements with those water purveyors currently operating within the City without a franchise agreement and present the same to the Council for consideration and adoption The Finance Department provides financial management services for all city departments. Responsibilities include accounting and financial reporting, payroll, accounts payable, purchasing, budgeting and financial planning, treasury and investments. The department is also responsible for generating and analyzing financial data related to the city's operations. Finance is responsible for the administration, coordination, supervision and control of the city's financial activities engaged in by the City. These functions are performed through a combination of interrelated activities including financial management, general accounting and information technology. The department prepares Finance Activity Reports and the Annual Comprehensive Financial Report (ACFR), which is subject to an annual audit by the Washington State Auditor's Office. Essential Services Financial management responsibilities include: • Budget development and monitoring • Preparation of periodic budget amendments • Treasury control and management of the city's cash and investment portfolio • Debt financing and management • Collaboration with Economic Development, Public Works and Parks staff on financing options for capital projects General accounting responsibilities include: • Internal and external financial reporting including preparation of the Annual Financial Report • Coordination with the Washington State Auditor's Office for the city's annual audit which on average represents approximately 800 auditor hours each year • General ledger accounting • Cash receipting including preparation of daily deposits for city departments • Tracking and receipting telephone utility tax payments • Tracking and receipting quarterly gambling tax payments • Processing payroll and accounts payable for 118.25 full-time equivalent employees as well as seasonal and temporary employees • Process approximately 4,000 accounts payable checks • Project accounting, including grant accounting and processing reimbursement requests • Advertise and call for applications for grants • Advertise and call for applications for lodging tax grants 2025 Accomplishments Completed the implementation of the Payroll Modules in the Enterprise ERP financial system Maintained a consistent level of service in payroll, accounts payable, budget development and periodic and annual financial report preparation and information technology services • Continued to provide adequate training opportunities to allow staff members to remain current with changes in pronouncements by the Governmental Accounting Standards Board (GASB) • Completed the 2024 Annual Financial Report by May 30, 2025, and received a "clean audit opinion" from the Washington State Auditor's Office • Continued to work with Public Works to evaluate available funding for capital projects as well as the city's pavement management program • Worked with other city departments to support the implementation of the city's Housing and Homeless programs • Worked with other city departments to file a voted public safety sales tax ballot measure with Spokane County for the August 5, 2025 election, and upon passage of the ballot measure, submitted documentation to the Department of Revenue so that revenue collection for the new public safety sales tax is effective January 1, 2026 2026 Goals • Maintain a consistent level of service in payroll, accounts payable, budget development, periodic and annual financial report preparation and information technology services • Continue to provide adequate training opportunities to allow staff members to remain current with changes in pronouncements by the Governmental Accounting Standards Board (GASB) • Complete the 2025 Annual Financial Report by May 30, 2026, and receive a "clean audit opinion" from the Washington State Auditor's Office • Continue to work with Public Works to evaluate available funding for capital projects as well as the city's pavement management program • Continue to work with other city departments to support the implementation of the city's Housing and Homeless programs • Work toward the development and implementation of a paperless accounts payable process The City Services Department advances City Council goals and priorities by advancing the city, state and federal legislative initiatives, collaborating with community stakeholders, sharing information about services and programs and administering key city services. Essential Services Administration • Assists in the development and implementation of city goals, work plans, and performance measures Legislative Services • In concert with City Council priorities, leads the city's effort to advance the city, state and federal legislative initiatives and priorities • Monitors and analyzes regional, state and federal legislation, ordinances and policy changes • Establishes and oversees the implementation of programs that support or advance economic development, transportation initiatives, community -based services or other city priorities Communications and Community Involvement • Serves as a liaison to various civic and/or governmental organizations and committees, taskforces, boards and commissions; confers regularly with other municipalities, chamber of commerce, authorities and commissions • Provide regular, timely, clear and accurate information to the community • Provide opportunities where community members can get involved, share their thoughts and inform city decision -making Housing and Homelessness • Provides first point of contact for residents seeking information or assistance with issues related to housing and homelessness • Oversees the development and management of contracts with service providers for homeless outreach and other services • Advance the city's priorities in regional collaborative efforts focused on housing and homelessness • Serves as the liaison for the city's Homeless and Housing Task Force Real Estate and City Facilities • Conducts studies to determine the best use of assets and develops plans to enhance the use of city property • Coordinates and oversees the acquisition of various properties that advance city council goals and/or support programs • Oversees the planning of new facilities and expansion, renovation and maintenance of existing facilities 2025 Accomplishments • Managed and implemented a Homeless and Housing Program • Participated in key regional homeless and housing committees • Coordinated the Spokane Valley Homeless and Housing Task Force meetings • Developed and assisted with the implementation of the city's state and federal legislative agenda • Continued to establish strong relationships with regional stakeholders to advance city priorities and goals • Provided regular, timely, clear and accurate information to the community through the enews, social media, news releases, website, etc. • Created and executed factual, creative, non -biased messaging to educate voters about Proposition 1 Public Safety Sales Tax Ballot Measure. Voters passed the measure by 58.32%. • Rebranded and launched the You Rock! Community Engagement Program to recognize individuals making a difference in the community. • Hosted opportunities for the community to engage with Councilmembers, staff and each other and for the City to share information and hear from community members, through: o New monthly Community Conversations networking receptions o Events like the new Cops and Kids Car Show and Greenacres Park re -opening o Community meetings and tabling opportunities like the Wellesley Ave. Pavement Preservation project meeting o Tabling events like the Farmers Market o Youth field trips at City Hall 2026 Goals • Continue to manage and implement a Homeless and Housing Program • Continue to participate in key regional homeless and housing committees • Coordinate the Spokane Valley Homeless and Housing Task Force meetings • Develop and assist with the implementation of the city's state and federal legislative agenda • Update the Strategic City Communications Plan • Provide regular, timely, clear and accurate information to the community • Engage community members and provide opportunities to get involved, share their thoughts and inform city decision -making The City Services Administrator provides management and oversight of the city's Facilities Division, which is responsible for the overall operations and maintenance of the City Hall facility, the SVPD Police Precinct building, CenterPlace Regional Events Center and the Street Maintenance Shop, as well as any other city facilities that are acquired. The Facilities Division is responsible for grounds maintenance, janitorial services, lighting and maintenance of the HVAC and other building systems. Essential Services • Manages the maintenance and development of city facilities, including the Precinct Building, which houses the Spokane Valley Police Department, District Court courtroom and ticket counter • Implements facility operational changes • Oversee service contracts including janitorial, groundkeeping, snow removal • Plan maintenance and emergency work, perform routine safety inspections and ensure facilities are well -maintained • Ensure facilities comply with state regulations, health and security standards, and energy efficiency requirements • Ensure the safety and functionality of all facilities, including fire safety, elevators, and security monitoring • Oversee facility renovations and upgrades 2025 Accomplishments • Coordinated all maintenance, repairs and capital replacement activities for all city -owned facilities • Continued to assist with City Hall repairs • Coordinate maintenance and operation of new city facilities • Began the implementation of the Clean Building requirements • Pursued grant opportunities to address Clean Building requirements • Addressed maintenance requests for all City facilities timely and efficiently • Managed snow plowing, janitorial, landscaping and other miscellaneous contracts 2026 Goals • Continue to coordinate all maintenance, repairs and capital replacement activities for all city -owned facilities • Continue to assist with City Hall repairs • Continue to pursue grant opportunities to address clean building requirements • Develop an Operation and Maintenance Program for CenterPlace, City Hal, and the SVPD Precinct • Continue to implement the Clean Building requirements • Continue to address maintenance requests for all city facilities timely and efficiently • Continue to manage snow plowing, janitorial, landscaping and other miscellaneous contracts The city's Information Technology Division seeks to provide and support technology to best serve internal and external IT users. The IT Division is responsible for the design, maintenance and support of the city's data network, and maintains all primary computer applications, including the financial management and permitting systems. Essential Services • Design, support and maintenance of city's data and voice network • Manage, procure and support cellular phones and mobile devices • Research, order, deliver, repair and maintain all desktop, tablet, laptop and peripheral equipment • Maintain and support primary computer applications • Provide technical support of open public meetings, including the operation of live video conferencing applications and work with vendors involved with broadcast production of City Council meetings • Secure and maintain the city's data and voice network and related equipment to allow staff to provide services to the public • Ensure public meetings are presented online in real-time • Support design, development, and inclusion of IT systems within capital projects • Assist with cameras and security systems • Ensure network security • Fulfill public records • Provide tech solutions to allow staff and City to provide services more effectively and efficiently 2025 Accomplishments • Assist with onboarding of Human Capital Management and Payroll system • Manage cybersecurity training program for city staff • Manage network infrastructure to ensure minimum downtime for computers and phones • Complete Ransomware Resiliency cybersecurity performance audit • Replacement of end -of -life network infrastructure to maintain network availability • Begin Parks security camera project installs 2026 Goals • Continue maintaining cybersecurity training program for city staff • Implement policies to continue improving the City's cybersecurity posture • Continue Parks security camera deployment project • Provide software application support to staff • Maintain network infrastructure to minimize downtime for computer systems and phones • Work through staff PC replacement efficiently to ensure minimal downtime • Collaborate with staff to provide effective solutions while meeting budget goals The Human Resources (HR) Department is responsible for providing personnel consultation and employee services to the management of the City of Spokane Valley and its employees, supporting a motivated workforce to deliver quality services to the community. HR provides services in compensation, benefits, training and organizational development, staffing, employee relations, and communications, as well as risk management services. Essential Services ■ Employee recruitment ■ Labor relations ■ Risk management ■ ADA coordination and consultation ■ Employee training ■ Employee law compliance ■ Compensation administration ■ Policy development and administration ■ Employee Wellness Program ■ Performance management ■ Benefit administration ■ Employee onboarding ■ Title VI coordination and response Human Resources is a key partner with city departments to ensure the organization has the talent to reach its many goals. With the support of the Wellness Committee, the City continues to achieve the WellCity Award by developing a qualified Wellness Program, which is anticipated to reduce employee healthcare expenses by more than $35,000 per year. The Human Resources office also provides Risk Management services to the City in the identification, assessment and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor and control the probability and/or impact of such risks. Further, the Human Resources Manager functions as the Americans with Disabilities Act (ADA) coordinator, guiding the city's efforts to promote access to its citizens. As the city's designated contact for persons requesting accommodation, the Human Resource Manager works with the public to provide reasonable access to city services. Human Resources prepares the City for the many changes in the external business environment, including increased governmental mandates and legislation, recruitment needs as the pool of skilled workers decreases, the increasing cost of labor and changing workforce demographics. 2025 Accomplishments • Implemented personnel changes related to 2024 collective bargaining • Opted into a low -risk Employee Long Term Disability Plan saving the City more than 30k in premiums per year • Deployed the new personnel/payroll system and resolved issues as needed • Continued to implement systems/policies that enhance employee security within city facilities • Attained the AWC WeIlCity Award for 2025 • Entered into a long-term contract to lower employee investment expense and increasing returns for 401 a and 457 participation. 2026 Goals • Successfully negotiate employee compensation for 2027 • Support employee wellness by attaining the AWC WeIlCity Award for 2026 • Revaluation of city vehicles to reduce insurance expense. • Organize and offer anti -harassment training for employees. • Support City initiatives in meeting budget cost reductions. • Implement changes due to new employee recruitment and performance systems Public safety is the highest priority for the Spokane Valley City Council. The City meets its obligations to provide superior public safety for its citizens through contracts with Spokane County. Contract Administration is responsible for negotiating and administering all public safety contracts under the supervision and guidance of the Deputy City Manager. Contract Administration reviews cost estimates, final cost reconciliations and performance measures. Periodically, Contract Administration will review the contracts and re -negotiate the terms. Public Safety Service Contracts Administered Include: • Animal Control • Detention Services • District Court • Emergency Management • Law Enforcement • Sheriff's Community Oriented Policing Effort (SCOPE) • Spokane Regional Emergency Communications (SREC) • Pretrial Services • Prosecutor Services • Public Defender In 2026, public safety services will account for 65% of the city's recurring expenditures. The majority of public safety funding is directed to Law Enforcement services. Given the amount of funding directed towards public safety and particularly law enforcement, details regarding services are important to include in the budget to provide information regarding the Spokane Valley Police Department's structure, the costs for various service units and the performance received. Details of the law enforcement services provided under the interlocal agreement are included on the following pages. Table 1. Spokane Valley Police Department Staffing (pursuant to Interlocal Agreement) 2022 2023 2024 2025 2026* Change +/- De d i cate d Administrative 3 3 3 3 3 Patrol 61 61 61 66 69 +3 Traffic 7 7 7 8 9 +1 Community Services 1 1 1 1 1 Behaviorial Health' 2 2 2 2 2 Homeless Services 1 1 1 2 2 Domestic Violence 1 1 1 1 1 School Resource Officer 4 4 4 4 5 +1 SVIU (Property and Drug Investigations) 12 12 12 15 19 +4 Total Dedicated 92 92 92 102 111 Shared (Split with County) Investigations 3 3 3 4 4 Major Crimes 9 9 9 9 9 Sex Crimes 8 8 8 8 9 +1 Investigative Task Force 1 1 1 1 2 +1 Regional Intelligence Group 1 1 2 2 2 Joint Terrorism Task Force 1 1 1 1 1 Safe Streets (Drugs and Gangs) 5 5 5 5 5 Emergency Operations Team 2 2 2 2 2 Administration (Technical and PIO) 2 2 2 2 2 Professional Standards 1 1 1 2 2 Training 4 4 4 4 4 Total Shared 37 37 38 40 42 *2026 numbers are anticipated as City Council approval for additional officers has not been completed as of the date of preparing this document. 1. Historically the City has received services from two behavioral health ("BHU") deputies under a state grant. The City's contract has only included one BHU deputy in the event grant funding was removed. In 2025, grant funding was changed and no longer pays for the BHU deputies. The City Council will include two BHU deputies in the contract with the Sheriff's Office and this addition is reflected as an additional dedicated officer in the "Change" column to identify the additional contracted position and costs to the City in 2026. Table 2. City Costs by Spokane Valley Police Department Service Unit Service Unit 2025 % Dedicated Patrol $ 14,212,749 44.5% SV Investigative Unit $ 2,990,062 9.4% Traffic $ 1,842,264 5.8% Valley Command Staff $ 1,374,364 4.3% K-9 $ 782,551 2.5% School Resource Officers $ 811,410 2.5% Domestic Violence $ 385,475 1.2% Community Services $ 239,310 0.7% Subtotal $ 22,638,184 70.9% Shared Investigations $ 2,952,006 9.2% Property Drugs (Safe Streets) $ 1,060,074 3.3% Regional Intelligence Group $ 942,523 3.0% Emergency Operations Team $ 204,534 0.6% Subtotal $ 5,159,137 16.2% Special Units SWAT $ 294,422 0.9% Tactical Team $ 31,519 0.1% Helicopter $ 95,756 0.3% Explosives Disposal $ 108,336 0.3% Subtotal $ 530,032 1.7% Support Dispatch $ 1,403,286 4.4% Records $ 848,526 2.7% Forensics $ 607,050 1.9% SCOPE $ 208,984 0.7% Property Room $ 422,266 1.3% CAD/RMS Matinenance $ 90,269 0.3% Reservists $ 10,704 0.0% Subtotal $ 3,591,085 11.3% Total $ 31,918,439 1 100.0•/ - Training, PIO and Fleet costs are included in units above. Separately Budgeted Law Enforcement Costs Vehicles $ 910,000 Ten New Officers $ 2,325,032 Table 3. Workload indicators and Performance Measures (pursuant to Interlocal Agreement) 2021 2022 2023 2024 Average Workload indicators Citizen Calls for Service 51,038 51,193 53,191 49,764 51,297 Calls with Deputy Response 28,940 29,217 29,322 26,278 28,439 Deputy -Initiated Incidents 11,133 12,935 18,357 16,800 14,806 Incidents Requiring Documentation 10,511 11,885 14,907 13,657 12,740 Total Deputy Involved Incidents 40,073 42,152 47,679 43,078 43,246 Traffic Stops 5,658 5,791 9,027 7,639 7,029 Arrests 1,841 2,303 2,396 1,986 2,132 Collisions Responded To 1,771 1,767 1,699 1,597 1,709 Traffic Infractions 2,218 2,195 4,022 3,081 2,879 Traffic Stops with Criminal Charges 1,251 1,411 1,583 1,340 1,396 Property Crimes 5,855 6,306 5,341 5,191 5,673 Person Crimes 1,175 1,305 1,258 1,174 1,228 Cases Investigated 2,096 2,383 2,843 1,224 2,137 Charges Filed 412 735 735 612 624 Cases Reviewed 6,107 6,321 5,985 6,363 6,194 Performance Measures Collisions Response Rate 59% 57% 62% 59% 59% Collisions Per 1,000 population 27.52 26.85 25.71 25.05 26.28 Property Crimes Per 1,000 59.14 61.52 51.68 47.71 55.01 Person Crimes Per 1,000 11.86 12.80 12.05 10.79 11.87 $ Value of Recovered Items $1,275,416 $447,728 $ 1,572,475 $ 570,894 $ 966,628 % of reviewed cases investigated (Property) 34% 38% 36% 19% 32% Citizen Complaints/1,000Incidents * 0.33 0.40 0.73 1.16 66% • of Complaints Sustained 29.00% 25.00% 15.00% 18.00% 22% • Use of Force Within Policy 100% 100% 99% 100% 100% Avg. Response Time Priority 1 0:04:51 0:09:55 0:06:19 0:06:50 0% Avg. Response Time Priority 2 0:23:24 0:28:45 0:20:42 0:20:59 2% Avg. Response Time Priority 3 0:48:16 0:55:33 0:44:21 0:43:38 3% %of Incidents Deputy -Initiated 28% 31% 39% 39% 34% Average Day/Night Platoon Staffing 6.13 6.30 6.60 6.44 6.45 The Building and Code Enforcement Division within the Community and Economic Development Department is responsible for implementing and enforcing the city and state building codes, as well as city development and property regulations. The division is divided into two sections, the Building Section and the Code Enforcement Section. Building The purpose of building codes, as adopted by the State and the City of Spokane Valley, is to promote the health, safety and welfare of the occupants or users of the building and structures and the public by requiring minimum performance standards for structural strength, exit systems, stability, sanitation, light, ventilation, energy conservation and fire safety through the following codes. • International Building Code • International Residential Code • International Mechanical Code • International Fuel Gas Code • Uniform Plumbing Code • International Fire Code • International Existing Building Code • International Wildland Urban Interface Code • ICC A117.1 Standard for Accessible and Usable Buildings and Facilities • Washington State Energy Code Implementation of these regulations through plan review and inspection of building construction projects ensures that citizens can correctly assume that the buildings and structures in which they occupy are safe. Essential Services • Commercial construction plan review • Residential construction plan review • Accessibility (handicap) plan review • Commercial and residential construction inspection • Permit intake, processing and issuance • Permit coordination Code Enforcement Code Enforcement is responsible for enforcing city codes related to private properties. This work includes investigating cases and conditions regarding junk vehicles, garbage, unsafe structures, various zoning violations, traffic safety hazards and sign code violations while maintaining a proactive enforcement model as directed by the administration. Code Enforcement personnel work with residents and business owners, helping to maintain both residential and commercial properties in a safe and clean condition. Work regularly requires coordination with law enforcement and fire prevention personnel to mitigate life and fire safety hazards as well as working with the Spokane Regional Health Department and Housing and Homeless Coordinator staff on issues related to homeless individuals, senior citizens and families in distress. In addition, Code Enforcement acts as a community resource directing citizens to other service agencies for assistance as appropriate. 2025 Accomplishments • Enhanced customer support by creating self-help guides and making them available via the online permit portal and SVexpress. • Built successful communication network of regional building official staff to further improve consistency in code enforcement throughout region. • Continued collaboration with police, fire, homeless and housing, WA Labor & Industries, and utility purveyors towards addressing nuisance properties holistically. • Implemented initial improvements to Permit Center/front counter security protocols. • Maintained high level of Permit Center customer service to permittees and other agencies. 2026 Goals • Implement improvements to permit software to automate reporting of data related to staff time dedicated to reinspection, rereview and reinvestigation of permits and Code Enforcement cases. • Maintain awareness of Washington State Building Code Council actions on state building code update, adoption, and amendments; including Washington State Energy Code. • Continue to work with City Clerk staff towards determining a process for scanning commercial address files and cataloging archived documents. • Continue coordination with police, fire, homeless and housing, and other agencies to address nuisance conditions on and emanating from chronic nuisance properties. • Collaborate with safety committee towards completing front desk safety and security updates. The Public Works Department is comprised of the Engineering Division and Streets Maintenance Division. Additionally, the Public Works Department includes Surface and Stormwater Utility Management and Solid Waste Program Management. The Engineering Division is comprised of four sections, including the Capital Improvement Program, Development Engineering, Traffic Management and Operations and the Surface and Stormwater Utility. Capital Improvement Program The Capital Improvement Program Section (CIP) plans, designs and constructs new facilities and preserves and reconstructs existing facilities owned by the City of Spokane Valley. These projects include roads, bridges, trails, parks and civic and community buildings. This requires careful prioritized long-range planning, acquisition and management of state and federal grant funding, coordination with stakeholder groups, acquisition of real estate, and proficient project management in the design and construction administration phases. Essential Services • Provide transportation infrastructure to facilitate safe and efficient mobility for citizens and commerce. • Prioritize and coordinate submittals of grant requests for federal and state funding sources • Implement the Pavement Management Program • Develop the annual Six -Year Transportation Improvement Program (TIP) and the update of the current year TIP • Manage Capital Projects in accordance with city, state, and federal requirements • Conduct public involvement activities to inform project design and construction phasing decisions • Coordinate with local utility companies • Administer the bid and award process • Provide construction administration, including inspection, documentation and contract management for projects • Ensure proper project closeout • Ensure compliance with grant agency requirements • Coordinate with Spokane Regional Transportation Council (SRTC) and other local, regional and state jurisdictions on the metropolitan transportation plan, regional transportation policies and projects • Collaborate with other city departments and divisions, such as Street Maintenance, Stormwater, Traffic, Parks and Recreation, Development Engineering and Economic Development The Development Engineering Section (DE) ensures that land actions and commercial building site permits comply with adopted codes and standards for private infrastructure development through plan review and construction inspections. Development Engineering periodically updates the city's development code and design standards pertaining to construction activities, ensuring adherence to federal and state requirements, as well as the city's adopted Comprehensive Plan. As the City does not have surveyors, a surveying consultant reviews all surveying information provided in plats, binding site plans (BSPs), easements and right-of-way dedications to ensure accuracy and compliance with state law. Essential Services ■ Provide engineering plan reviews in association with land use actions, property development and building permits ■ Identify, develop and institute city code amendments as regulatory guidelines change ■ Identify, develop and institute city design standard changes as regulatory standards change ■ Provide construction oversight for various development and capital projects ■ Review, issue and monitor grading permits ■ Review, issue and monitor right-of-way permits ■ Provide right-of-way inspections for various development and capital projects The Traffic Engineering Section (TE) provides traffic engineering services for safe and efficient multi -modal transportation systems throughout the City. Traffic Engineering oversees the operation of traffic signals, the installation and maintenance of roadway signs and roadway channelization (striping). Traffic Engineering is also responsible for transportation planning and design in support of the CIP, private development projects and regional transportation efforts. Essential Services ■ Optimize and coordinate traffic signal installation, maintenance and operation ■ Oversee, monitor and develop mitigation measures for traffic congestion citywide ■ Identify and schedule the collection of annual traffic data for the city's principal roadway network ■ Prepare traffic control, signal, signing and channelization plans and specifications in cooperation with capital projects ■ Scope and review traffic studies for private development that utilizes the services of the city's street network ■ Identify projects that mitigate transportation impacts or correct deficiencies caused by the increased traffic volumes associated with new development ■ Identify capital improvement projects that improve the transportation system throughout the City ■ Develop Transportation Management Plans and studies that identify school zone safety, pedestrian and bike facilities ■ Assist the DE and CIP sections in preparing grant applications for various projects that impact the city's transportation network ■ Monitor motorized and non -motorized crashes to address safety concerns on the citywide street network ■ Review Traffic Control Plans for compliance with the Manual on Uniform Traffic Control Devices Handbook (MUTCD) ■ Provide review of Traffic Control Plans and permits for oversized loads, special events and transportation network access control ■ Partner with the Washington State Department of Transportation (WSDOT), the Spokane Regional Transportation Council (SRTC), Spokane County and neighboring jurisdictions to coordinate regional transportation needs ■ Coordinate with Spokane Regional Transportation Management Center (SRTMC) on transportation management within the City and region ■ Implement, monitor and maintain the City's Intelligent Transportation Systems (ITS) and Traffic Operations Center ■ Approve or deny oversized, overweight and superload routes which include bridge crossings 2025 Accomplishments • Implemented approved capital projects • Administered state and federal funds received for capital projects • Successfully acquired $13.1 M grant funds for 5 capital projects, with additional grant applications pending for winter 2025 • Completed the majority of utility relocation efforts, initiated the Phase 1 BNSF construction phase and advanced the Phase 2 Pines Road Grade Separation Project to the construction phase • Advanced the preliminary engineering phase of the Sullivan/Trent Interchange Project, including alternative selection • Obtained additional grant funding and pursued additional opportunities to fund the construction of the Sullivan/Trent Interchange Project • Initiated the design phase of the Argonne Bridge Project and pursued additional opportunities to fund the construction • Continued to coordinate regional transportation issues with SRTC, WSDOT and other agencies • Completed a speed limit evaluation pilot study for presentation to Council aimed at moving to a Citywide setting of safer speed limits • Continued implementation of the enhanced Underground Injection Control (UIC) and National Pollution Discharge Elimination System (NPDES) programs • Completed the Solid Waste Management Plan update • Extended the curbside and roll off solids waste contracts through March 2030 • Processed a record number of right-of-way permits, and processed approach permits, engineering permits, and land use applications in a professional and timely manner and ensured consistency with city codes 2026 Goals • Enhance the employee professional development program • Focus on staff retention to protect investment made in highly skilled workforce • Continue to recruit/hire the highest caliber candidates into city staff • Implement approved capital projects • Administer state and federal funds received for capital projects • Prepare and apply for grant applications for capital projects • Reach 60% completion of the construction phase of the Pines Road Grade Separation Project • Pursue additional opportunities to fund the construction of the Sullivan/Trent Interchange Project, reach 60% design on the preferred alternative. • Reach 30% design on Argonne Bridge/190 Replacement Project. • Improve coordination for regional transportation issues with SRTC, WSDOT and other agencies • Start planning & scoping efforts on the 190/Barker Interchange expansion/reconstruction • Implement traffic impact fees citywide • Process engineering permits and land use applications in a professional and timely manner and ensure consistency with city codes • Utilize Automated Traffic Signal Performance Measures (ATSPMs) to improve operations on primary corridors through travel time and delay reductions. • Implement Citywide speed limit evaluations to set safe speed limits based on roadway and roadside context and user comfort The Public Works Department is comprised of the Engineering Division and Streets Maintenance Division. Additionally, the Public Works Department includes Surface and Stormwater Utility Management and Solid Waste Program Management. The Street Maintenance Division is comprised of five sections, including Street System Maintenance, Winter Roadway Operations, Traffic Control System Maintenance, Bridge Maintenance and Fleet Management Program. The division provides responsive maintenance and repairs for approximately 464 centerline miles of city streets, accounts for the efficient and safe movement of both motorized and non -motorized users within the limits of the City, and coordinates interconnection to the regional transportation system. Maintenance work includes snow and ice control, street pavement repairs, traffic signals and signs, landscaping and vegetation control, and many other street maintenance and repair activities. Street System Maintenance The Street Maintenance Division provides responsive maintenance and repairs for approximately 464 center line miles of city streets. Most street maintenance services provided are contracted services, under the oversight of city staff. Street and stormwater maintenance and repair account for over three million dollars annually to provide asphalt patching, crack sealing, gravel shoulder repairs, curb and sidewalk repairs, gravel road grading and stormwater repairs. The street sweeping contract provides routine monthly maintenance along with a dedicated full spring sweep and partial fall sweep, performed in conjunction with the stormwater management program. The contract for storm drain cleaning is responsible for cleaning drywells, catch basins, culverts, swale inlets and bridge drains. The City contracts for services that provide litter and trash control on arterial streets, mowing, and maintaining all city dry land grass and snow removal from sidewalks on city -owned bridges and along critical roadways. Additionally, the City contracts for roadway landscaping services to maintain all city -owned rights -of -way and provide weed control on all major arterials including sidewalks. Essential Services • Monitor the city's street system network for immediate and ongoing repair and maintenance issues • Provide Public Works emergency response to assist with natural disaster debris and hazardous spills • Coordinate and monitor street sweeping and storm drain cleaning activities • Coordinate and monitor right-of-way landscape maintenance and litter control During the winter months, the Street Maintenance Division provides winter roadway operations using city forces and equipment, as well as contracted equipment and labor. The City maintains a fleet of snowplows, sanding trucks and liquid deicer trucks, which are available at moment's notice when winter storms appear. The city -owned snowplows are responsible for clearing of the Priority 1 and 2 streets, along with selected residential hillsides. In addition to city staff, the City contracts with outside labor forces to use city equipment to maintain 24-hour a day service. If residential plowing is necessary, the City has on -call contracts for road grader and operator services. Essential Services Monitor winter weather events to respond in accordance with the COSV Snow and Ice Plan which includes: o Provide round-the-clock maintenance response o Apply deicer to hills, bridges and intersections as winter conditions dictate o Remove snow and ice from arterial roadways continually during winter events o Provide sidewalk snow removal, ice control, and storm inlet maintenance o Organize and monitor contractors assigned to winter snow removal Traffic control system maintenance includes ongoing planning, preventative maintenance and emergency repairs of the city's traffic management systems. The system includes a citywide Intelligent Traffic System (ITS), including 91 signalized intersections or crosswalks, 182 street light luminaires, 58 school zone flashing beacon installations, 53 rectangular rapid flashing beacons crosswalk installations at 20 crosswalks, 20 miles of fiber optic cabling, 19 traffic observation cameras and all associated computer and software components. Additionally, the traffic control system includes roadway markings, streetlight systems, enhanced pedestrian crossings and over 25,000 street signs. Essential Services • Provide 24-hour standby and emergency repair • Conduct routine, including weekly, monthly and annual system assessments and preventive maintenance • Provide coordination with school districts for school zone beacons updates • Provide traffic control system inspection for ITS and other capital projects • Monitor, evaluate and coordinate the integrated traffic control system with the Spokane Regional Transportation Management Center (SRTMC) • Coordinate the city's major arterial traffic control systems for maintaining efficient traffic movements Bridge Maintenance Program The City of Spokane Valley's Bridge Maintenance Program combines cost effective actions and strategies to maximize the useful life of the Valley's bridges. There are two types of maintenance; normal annual maintenance and maintenance work that is noted during bridge inspections. The objective of the program is to ensure public safety through inspection, maintenance, rehabilitation and replacement of the 15 city -owned bridges. Additionally, the City provides safety inspections on two bridges owned by the Union Pacific Railroad and one owned by Burlington Northern Railroad. Essential Services • Conduct required bridge inspections and reporting • Develop maintenance and repair programs for individual bridges • Assist city maintenance staff and contracted workforces in necessary bridge maintenance efforts • Develop and manage bridge load ratings and guidelines for all city bridges • Develop, monitor and maintain a bridge capital project program • Conduct bridge repairs and capital bridge projects • Approve or deny oversized, overweight and superload routes which include bridge crossings Fleet Management Program The Fleet Management Program oversees the maintenance and operation of the City's vehicles, snowplows, and construction equipment. Its primary goal is to ensure the fleet remains safe, reliable, and compliant with all vehicle laws and regulations; while supporting staff with the equipment they need to perform essential services. Essential Services • Monitor and maintain the entire City fleet. • Maintain an inventory of all City -owned vehicles, snowplows and construction equipment • Develop and implement a fleet assessment and replacement plan to ensure safety and reliability. • Conduct diagnostic services and preventative maintenance • Provide real-time response for emergency repairs • Research and recommend asset replacements in line with the established plan, or as needed in emergencies OO * • • • Utilized Automated Traffic Signal Performance Measures (ASTPMs) for Argonne Road, Pines Road and Sullivan Road corridors to monitor and improve operations • Continued annual roadway maintenance and repair projects, including resurfacing several local and collector streets • Continued winter roadway operations, including capability for full -city plows during significant snow events • Continued identifying funding opportunities for the entire Pavement Management Program • Continued the implementation of the snowplow replacement program and brought online two new snow plows, secured via 2024 and 2025 budget years • Finalized implementation of a city -provided Traffic Signal Maintenance Shop due to the decrease in county -provided signal maintenance services • Continue ongoing roadway and bridge maintenance and repairs • Develop bridge repair funding pro -rated to the standards for $'s of inventory owned • Implement ATSPMs across a wider range of the signal network using existing software • Continue winter operations capabilities • Continue the implementation of the snowplow replacement program, putting into service one new snow plow each year until 2030 • Continue seeking funding opportunities for the entire Pavement Management Program • Work with other departments in developing a citywide, comprehensive Asset Management Program, which will include transportation maintenance and operations facilities The Public Works Department oversees the city's Surface and Stormwater Utility, the city's floodplain management services and manages the city's contracts for solid waste collection and disposal. The city's Surface and Stormwater Utility manages the city's efforts to collect, treat, store and discharge stormwater while managing the risks to public safety, health and property from flooding and erosion. It also monitors and implements the Clean Water Act requirements for stormwater discharges, including the implementation of the city's National Pollutant Discharge Elimination System (NPSES) permit, Underground Injection Control (UIC) rules and monitoring regulations for discharges in Aquifer Protection Areas and Total Maximum Daily Load (TMDL) requirements for the Spokane River and provides required annual reporting to the Washington State Department of Ecology. Finally, the Surface and Stormwater Utility is also responsible for administering the National Flood Insurance Program (NFIP) within the City as required by the Federal Emergency Management Agency (FEMA). As part of these efforts, staff enforces local floodplain ordinances, assists homeowners and developers, and works with FEMA on determining local flood elevations. Spokane Valley's Solid Waste program manages the collection, transfer, transport and disposal of the City's solid waste primarily through four contracts with private solid waste haulers. Solid waste includes garbage, recyclables, organics (like yard debris and food scraps), construction debris and household hazardous waste. Spokane Valley is one of the few cities in the state that has opted to solely manage the solid waste generated within the city. The overall objectives of the program include providing reliable and affordable solid waste services while protecting the environment and informing the citizens of solid waste services and best practices. The program's guiding document is the Solid Waste and Moderate -Risk Waste Management Plan, which is required to be kept current, reviewed, and revised at least every five years to keep it current. Essential Services • Provide inventory, inspection and investigations for all city stormwater facilities • Provide Geographic Information System (GIS) mapping related to stormwater facilities, both public and private, throughout the City • Maintain the city's compliance with all environmental and utility laws, codes and regulations • Provide floodplain management services on behalf of the City • Provide floodplain management services to other agencies and private entities • Assist in the planning, design and construction of capital improvements throughout the City, focusing on project utility requirements • Manage city street sweeping and storm draining cleaning planning and operations • Manage the operations and maintenance of all city storm drainage structures • Represent the City in Stormwater Public Education and Outreach efforts • Represent the City on regional aquifer protection committees • Represent the City in regional solid waste and recycling efforts • Provide management, implementation and oversight of the city's Solid Waste Management Program • Manage the city's solid waste and recycling collection services contracts • Respond to citizen inquiries, implement solid waste legislation, monitor hauler compliance with contract requirements, process annual rate changes • Represent the City on regional solid waste and recycling committees • Finalized the hydraulic and mapping evaluation for the Glenrose and Central Park Floodplain and submitted its final concurrence package to FEMA for approval • Continued collaboration efforts with local, state and federal stormwater regulatory bodies • Inventory and mapping of all city stormwater facilities continued • Continued ongoing stormwater maintenance and repairs utilizing in-house and contracted services • Incorporated stormwater system improvements with other capital projects for efficiency • Continued implementation of the enhanced Underground Injection Control (UIC) and National Pollution Discharge Elimination System (NPDES) programs • Developed and implemented a new Solid Waste Management Plan • Contracted with consultant to assist with current and future solid waste contracts • Began process to hire a full-time solid waste program manager • Extended curbside collection and roll off solid waste contracts through March 2030 • Finalize the Glenrose and Central Floodplain mapping for FEMA • Continue collaboration efforts with local, state, and federal stormwater regulatory bodies • Continue the inventory and mapping of all city stormwater facilities • Continue ongoing stormwater maintenance and repairs utilizing in-house and contracted services • Implement stormwater system improvements, integrating with other capital projects for efficiency • Continue implementation of the UIC and NPDES programs • Work with other departments in developing a citywide comprehensive Asset Management Program, which will include stormwater facilities • Hire a full-time solid waste program manager • Implement and educate citizens on incremental changes to Solid Waste program due to recent state legislation The Community and Economic Development (CED) Department is comprised of three divisions, including Building and Code Enforcement, Planning and Economic Development. The CED Department strengthens and builds community identity by administering business retention, expansion and recruitment; promoting tourism through destination marketing and youth sports recruitment; developing strategic initiatives and studies; coordinating with regional partners; managing Geographical Information Systems (GIS); implementing and enforcing the city and state building codes; and ensuring that city plans are consistent with state land use laws. The sections below provide additional information for the CED Department programs. Essential Services • Encourage a diverse and stable business environment • Promote and facilitate the implementation of the city's economic development strategies • Provide information and make connections for businesses • Collaborate with regional partners to further CED programs • Conduct special studies and reports related to CED priorities and projects • Develop and implement strategies for business retention, expansion and recruitment • Maintain the WA state business license database and review home business permits • Maintain the community's vision for growth in the city's Comprehensive Plan • Review and revise the laws that regulate the use of property • Maintain the safety and functionality of both residential and commercial structures • Ensure compliance with local codes, such as building and zoning regulations • Provide GIS technology to inform and engage citizens and business owners • Coordinate destination marketing to promote tourism and increase overnight stays 2025 Accomplishments • Pursued grant opportunities to enhance economic development and tourism strategies • Facilitated and managed the development of the cross country course at Flora Park • Collaborated with partners to host business -focused webinars and workshops • Continued to connect business owners in a variety of sectors with technical assistance • Implemented marketing campaigns to recruit skilled labor and new businesses • Managed retail recruiter to acquire new, interesting, and unique retail businesses • Administered the Tourism Promotion Area (TPA) Program • Implemented year three of the city's Five -Year Destination Marketing Plan • Managed the implementation of destination marketing campaigns and sports recruitment • Promoted existing signature events that create city identity and a desirable place to live • Co -managed marketing initiatives and campaigns at CenterPlace Regional Event Center • Completed the development of an outward -facing GIS application for the general public 2026 Goals • Continue to develop the cross country course at Flora Park to championship events • Improve retail sales in Spokane Valley to provide general fund revenues for city services • Secure grant funding for the cross country course in collaboration with Spokane Sports • Provide direct technical assistance to Spokane Valley businesses • Host business -focused webinars or workshops for small business owners • Develop campaigns for workforce, shop local and youth entrepreneurship • Foster collaboration between event venues and city hotels to grow events • Identify tools for measuring the economic impact of TPA -funded programs and initiatives • Explore opportunities for destination events with a focus on youth sports • Complete the land use permit processes for the Flora Road cross country complex • Complete the draft update to the comprehensive plan and development regulations • Continue to process land use applications and permits in a timely and efficient manner • Market Spokane Valley as ideal for business growth • Administer the tourism program and implement the Destination Marketing Plan • Manage the TPA Hotel Commission including workplan and budget • Implement destination marketing and sports recruitment campaigns. • Promote signature events to identity and a sense of place The Planning Division within the Community and Economic Development Department oversees both long-range and current planning for the City. The division oversees the development and implementation of the Comprehensive Plan, Shoreline Master Program and Housing Action Plan, including developing and processing amendments to the comprehensive plan, zoning, subdivision regulations and related procedural requirements. The division handles land use permit processing such as subdivisions, shoreline permits, conditional use permits, boundary line adjustments and zoning letters. The division also ensures the City maintains consistency with state laws like the Growth Management Act (GMA), Shoreline Management Act (SMA), State Environmental Policy Act (SEPA), subdivisions and other related land use laws. Essential Services • Ensure that the city's plans are consistent with the GMA (RCW 36.70A) • Ensure and document that the city's plans are consistent with the SMA (RCW 90.58) • Maintain the city's compliance with the SEPA (RCW 43.21 C) • Evaluate and process amendments to the Comprehensive Plan • Evaluate and process amendments to the Spokane Valley Municipal Code • Coordinate, evaluate and process short subdivisions, subdivisions, binding site plans, street vacations, conditional use permits and other land use permit applications • Prepare and conduct required public hearings related to land use issues, code text amendments and city plan adoptions • Maintain and provide city information, including demographics, planning data and comprehensive plan statistics to the US Census Bureau 2025 Accomplishments • Collaborated with regional partners in long-range planning efforts related to the periodic update • Obtained grants to support city planning initiatives and fulfill requirements of the periodic update • Developed and implemented a GMA-required public engagement plan for the periodic update • Developed and conducted analysis for greenhouse gas and resiliency sub -elements, as required by the GMA • Completed the assessment phase of the Comprehensive Plan, development regulations and critical areas for the periodic update as required by the GMA due in 2026 • Reviewed and updated land use processes to ensure they were efficient and streamlined • Continued to process land use development applications in a timely and efficient manner 2026 Goals • Complete the required Comprehensive Plan periodic update • Continue to process land use development applications in a timely and efficient manner • Review and update land use processes to ensure they are efficient and streamlined • Collaborate with regional partners in long-range planning efforts • Continue to seek and obtain grants to support city planning initiatives and fulfill mandated requirements • Complete shoreline permitting for Flora Park warm-up loop along Spokane River With offices located in the CenterPlace Regional Event Center, the Parks and Recreation Department consists of six divisions, including Parks Administration, Parks Maintenance, Recreation, Aquatics, Senior Center and CenterPlace. The department is comprised of nine FTEs with a Park Maintenance Worker position that will remain vacant in 2025. Parks Maintenance and Aquatics services are contracted with external businesses or agencies. The Parks and Recreation Department also provides various recreation programs, contracts with private recreation program providers, and maintains a database of local recreation programs and services to help match citizens with existing services. Parks Administration and Maintenance Manages and sustains eleven high -quality parks, each offering a diverse array of experiences within a safe and aesthetically pleasing environment. These parks provide enjoyable, restorative and memorable spaces, along with physical amenities that promote active living and foster opportunities for social interaction. Essential Services • Implements the goals and objectives of the City Council • Develops policies and procedures • Facilitates the upkeep and use of parks, baseball fields, sand volleyball courts, basketball, tennis and pickleball courts and other public recreation areas, including the Appleway Trail and Centennial Trail • Manages the park maintenance, aquatic operation and janitorial and event services contracts • Works to acquire and develop new park facilities • Coordinates facility maintenance at CenterPlace • Issues and administers park reservations and city special event permits Recreation Delivers diversified recreational and educational experiences for all ages, while fostering vigorous community partnerships and advocating health, wellness and physical activity. Essential Services • Provides summer day camp, winter break camp, summer park program and outdoor movies • Informs and engages the community to participate in available recreational programs through a variety of methods, including publication of seasonal recreation guides, social media posts and collaboration with the city's e-newsletter • Coordinates and offers over 20 additional recreation programs year-round • Works to actively engage partnerships to provide, enhance and offer additional recreational program opportunities for all community members. Partnerships include Spokane County Library District, YMCA, Spokane Parks Foundation, local school districts, City of Spokane Parks and Recreation, Evergreen Regional Volleyball Association, Spokane Indians Youth Baseball, Coyle Outside, Skyhawks and Supertots, Spokane Dance Class, Western Dance Association and more • Maintains a database of local recreation programs and services to help match citizens with existing providers Aquatics The City of Spokane Valley owns three outdoor swimming pools that offer public open swim opportunities, drowning prevention through swim lessons, adult exercise programs, swim team and private facility rentals. The daily operation and maintenance of the city's pools is provided through a contract with YMCA of the Inland Northwest with programming facilitated through the Recreation Division. In addition, the City leases a portion of Valley Mission Park to Splash Down, a privately -operated family water park. CenterPlace Regional Event Center Promotes corporate and private events that help stimulate our local economy through travel and tourism, produces customized, high -quality events to provide an experience that showcases Spokane Valley values. Essential Services • Regional focal point for Northeastern Washington, Northern Idaho and Western Montana • 54,000 square foot facility located in Mirabeau Point Park • Open seven days a week, the facility is also the home of the Parks and Recreation Department and the Spokane Valley Senior Center • Reserves and rents to over 1,000 educational, corporate and social events annually • Manages food services and marketing contracts • Partners with Spokane Community College, Central Valley School District and Spokane Valley Farmers Market • Manages outdoor venues and interior rooms including North Meadow, West Lawn Plaza, Great Room, Fireside Lounge, Auditorium, numerous large and small meeting rooms and commercial kitchen Spokane Valley Senior Center Empowers adults 50+ for personal independence, healthy aging, social connection and life-long learning experiences, serves as a hub and focal point, complements existing services, provides programs, activities and opportunities for the aging population and operates as a multi -purpose senior center to provide health, social, educational, referral and recreational services. Support Services • Supports the Spokane Valley Senior Center at CenterPlace from 8 a.m. to 4 p.m. Monday through Friday • Coordinates activities and programming schedules within the building • Coordinates needed senior center maintenance with the city's Facilities Division • Facilitates Meals on Wheels program and supports the SVSCA with an active membership of over 1,000 • Attends SVSCA Board Meetings and acts as liaison between SVSCA and City 2025 Accomplishments • Recruited and trained new Parks Maintenance and Operations Coordinator to manage Park Maintenance contracts for designated parks, signature parks, trails and janitorial and event services • Initiated the required six -year update to Parks and Recreation Master Plan • Worked with Public Works to complete Phase 2 improvements to Greenacres Park including new tennis and pickleball courts, basketball courts, community garden, walking paths and an expanded playground, splashpad and parking facilities. • Implemented a donation agreement with RAVE Foundation for a new Seattle Reign FC soccer mini -pitch at Greenacres Park • Awarded $2.5 million in federal and state grant funding through RCO for the Balfour Park Playground and Spray Park • Awarded a $415,000 Washington State legislative appropriation for the Balfour Park Sport Courts • Worked with Economic Development and Public Works to construct the $7 million Flora Property cross country course • Executed an Inler Agency Agreement with DNR for public access to the 100-acre Pinecroft Natural Area Preserve at Mirabeau Park • Executed a Venue Lease Agreement with NCAA for the 2027 Men's and Women's West Regional Cross Country Championships • Established an MOU for bringing the Nike Bob Firman Invitational and Nike XR Western Regionals to The Course Spokane Valley in 2026 ,2027, 2028 and 2029. 2026 Goals • Establish Maintenance and Operations at The Course Spokane Valley at Flora Park • Complete the required six -year update to the Parks and Recreation Master Plan • Implement a Park Sponsorship and Fundraising Services Agreement with Spokane Parks Foundation 0 Initiate a Capital Fundraising Campaign for Balfour Park • Develop the Sport Courts at Balour Park with state funding • Complete design and construction documents for 2027 construction of the Balfour Playground and Spray Park • Continue to work with Economic Development to market and program CenterPlace and The Course Spokane Valley at Flora Park • Develop basic public access infrastructure at Summerfield and Ponderosa properties • Establish a new Food Services Catering Contract at CenterPalce • Install and implement park security cameras throughout the City's park system Spokane Valle -I/ This page left intentionally blank. CITY OF SPOKANE VALLEY, WA 2026 Budget Summary General Fund 001 42,698,813 69,011,300 70,264,584 70,264,584 41,445,529 Street Fund 101 4,622,937 9,309,700 13,932,637 9,444,544 4,488,093 Paths & Trails Fund 103 69,393 10,500 79,893 0 79,893 Hotel/Motel Tax- Tourism Facilities Fund 104 963,211 655,000 1,618,211 0 1,618,211 Hotel/Motel Tax Fund 105 268,610 925,000 1,193,610 960,000 233,610 Solid Waste 106 1,387,281 306,000 1,693,281 230,201 1,463,080 PEG Fund 107 278,249 58,000 336,249 73,000 263,249 Affordable & Supportive Housing Sales Tax Func 108 1,249,516 223,000 1,472,516 0 1,472,516 Tourism Promotion Area Fund 109 778,447 1,330,000 2,108,447 1,775,000 333,447 Homeless Housing Program Fund 110 239,063 372,000 611,063 380,000 231,063 Transportation Benefit District Fund 111 2,030 1,800,000 1,802,030 1,800,000 2,030 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 6,638,129 285,400 6,923,529 0 6,923,529 Winter Weather Reserve Fund 122 588,932 24,800 613,732 500,000 113,732 LTGO Bond Debt Service Fund 204 0 989,550 989,550 989,550 0 REET 1 Capital Projects Fund 301 6,733,690 1,775,000 8,508,690 2,311,202 6,197,488 REET 2 Capital Projects Fund 302 5,476,261 1,775,000 7,251,261 2,222,350 5,028,911 Street Capital Projects 303 2,132,391 5,899,081 8,031,472 5,899,081 2,132,391 Park Capital Projects Fund 309 503,459 893,874 1,397,333 893,874 503,459 Civic Facilities Capital Projects Fund 310 13,957,667 20,000 13,977,667 0 13,977,667 Pavement Preservation Fund 311 5,834,942 5,868,624 11,703,566 4,876,203 6,827,363 Capital Reserve Fund 312 8,278,436 700,000 8,978,436 3,669,977 5,308,459 Railroad Grade Separation Projects Fund 314 35,723 16,887,041 16,922,764 16,938,221 (15,457) Transportation Impact Fees Fund 315 1,841,134 442,000 2,283,134 0 2,283,134 Economic Development Capital Projects Fund 316 0 0 0 0 0 104,878,314 119, 560,870 182, 993,655 123,227,787 101,211,397 Estimated Estimated Beginning _ 'i ndij Fund Working ; Total Working Working Capital Funds No., Capital Revenues Sources Appropriations GapitaT Stormwater Management Fund Aquifer Protection Area Fund Equipment Rental & Replacement Fund Risk Management Fund Public Safety Equipment Replacement Fund Passthrough Fees & Taxes Total of all Funds 402 6,238,431 6,343,000 12,581,431 8,896,611 3,684,820 403 869,210 450,000 1,319,210 0 1,319,210 501 1,216,112 626,050 1,842,162 330,000 1,512,162 502 383,728 1,106,000 1,489,728 1,100,000 389,728 503 1,297,444 652,831 1,950,275 0 1,950,275 632 0 620,000 620,000 620,000 0 10,004,925 9,797,881 19,802,806 10,946,611 8,856,195 114, 883,239 129,358,751 202,796,461 134,174, 398 110,067,592 CITY OF SPOKANE VALLEY, WA 2026 Budget 2025 As Adopted Amendment As Amended 10/14/2025 Revenues Property Tax 14,081,000 0 14,081,000 14,309,800 228,800 1.62% Sales Tax 33,000,000 0 33,000,000 33,541,200 541,200 1.64% Sales Tax - Public Safety 1,609,400 0 1,609,400 4,274,900 2,665,500 165.62% Sales Tax - Criminal Justice 2,833,700 0 2,833,700 2,906,400 72,700 2.57% Gambling Tax and Leasehold Excise Tax 523,000 0 523,000 516,700 (6,300) (1.20%) Franchise Fees/Business Registration 1,320,000 0 1,320,000 1,330,000 10,000 0.76% State Shared Revenues 2,527,400 0 2,527,400 2,644,100 116,700 4.62% Fines and Forfeitures/Public Safety 482,100 0 482,100 481,400 (700) (0.15%) Community and Public Works 3,616,900 187,000 3,803,900 4,057,100 253,200 6.66% Recreation Program Revenues 658,100 0 658,100 716,700 58,600 8.90% Grant Proceeds 437,000 227,486 664,486 436,500 (227,986) (34.31%) Miscellaneous Department Revenue 87,000 0 87,000 79,500 (7,500) (8.62%) Miscellaneous & Investment Interest 2,105,700 0 2,105,700 2,625,000 519,300 24.66% Transfers in - #105 (h/m tax-CP advertising) 30,000 0 30,000 287,000 257,000 856.67% Transfers in - #110 (recording fees H&H Services) 344,000 0 344,000 380,000 36,000 10.47% Total Recurring Revenues 63,655,300 414,486 64,069,786 68,586,300 4,516,514 7.05% Exaenditures City Council 754,111 350,000 1,104,111 981,653 (122,458) (11.09%) City Manager 858,450 0 858,450 849,583 (8,867) (1.03%) City Attorney 983,089 0 983,089 1,029,326 46,237 4.70% Communications 703,352 0 703,352 708,709 5,357 0.76% Housing & Homeless Services 657,321 18,000 675,321 673,326 (1,995) (0.30%) Public Safety 40,167,009 (223,200) 39,943,809 44,678,317 4,734,508 11.85% Deputy City Manager 637,381 0 637,381 654,355 16,974 2.66% Finance 1,506,684 0 1,506,684 1,565,135 58,451 3.88% Human Resources 402,280 0 402,280 417,105 14,825 3.69% Information Technology 445,653 0 445,653 474,987 29,334 6.58% Facilities 1,486,876 0 1,486,876 1,477,326 (9,550) (0.64%) Engineering 2,401,735 158,064 2,559,799 2,350,526 (209,273) (8.18%) Building 2,125,485 0 2,125,485 2,117,276 (8,209) (0.39%) Economic Development 1,252,280 0 1,252,280 1,314,961 62,681 5.01% Planning 1,112,227 0 1,112,227 1,055,912 (56,315) (5.06%) Parks & Rec - Administration 469,981 0 469,981 474,166 4,185 0.89% Parks & Rec - Maintenance 2,424,043 0 2,424,043 2,681,798 257,755 10.63% Parks & Rec - Recreation 361,235 0 361,235 360,774 (461) (0.13%) Parks & Rec - Aquatics 677,500 0 677,500 680,560 3,060 0.45% Parks & Rec - Senior Center 35,202 0 35,202 29,933 (5,269) (14.97%) Parks & Rec - CenterPlace 724,628 0 724,628 735,625 10,997 1,52% General Government 1,663,450 0 1,663,450 1,562,150 (101,300) (6.09%) Transfers out - #204 (2016 LTGO debt service) 401,550 0 401,550 398,750 (2,800) (0,70%) Transfers out - #309 (park capital projects) 0 0 0 0 0 0.00% Transfers out - #311 (pavement preservation) 0 0 0 0 0 0.00% Transfers out - #501 (IT equip reserve) 92,500 0 92,500 92,500 0 0.00% Transfers out - #502 (insurance premium) 900,000 0 900,000 1,100,000 200,000 22.22% Transfers out - #503 (public safety equipment) 0 0 0 0 0 0.00% Total Recurring Expenditures 63,244,022 302,864 63,546,886 68,464,753 4,917,867 7.74% Recurring Revenues Over (Under) Recurring Expenditures 411,278 11',1,622 522,900 121,547 CITY OF SPOKANE VALLEY, WA 2026 Budget Revenues Grant Proceeds (Energy Efficiency Grants) Grant Proceeds (Comp Plan update) Donation Transfers in - #312 (City Hall repairs) Transfers in - #312 (public safety space planning) Total Nonrecurring Revenues Expenditures General Government - IT capital replacements Public Safety (police vehicle replacements) Public Safety (Precinct remodel) Facilities (Precinct repairs & improvements) Facilities (CenterPlace repairs & improvements) Facilities (energy retrofits) Facilities (portable heating/AC units) Facilities (PCB boards for City Hall HVAC) Planning (Comp Plan update) Parks & Rec (audio/visual refresh for Great Room) Sculpture Placement Costs City Hall Repairs CLFR Related Project Expenditures Financial Software Capital Costs Transfers out - #310 Transfers out - #312 (2023 fund bal >509/6) Transfers out - #503 (Public Safety Equip Replc) Total Nonrecurring Expenditures Nonrecurring Revenues Over (Under) Nonrecurring Expenditures Excess (Deficit) of Total Revenues As Adopted -.. Amendment As I Amended 10/14/2025 0 482,200 482,200 0 (482,200) (100.00%) 0 0 0 425,000 425,000 0.00% 0 30,000 30,000 0 (30,000) (100.00%) 0 0 0 0 0 0.00% 0 0 0 0 0 0.00% 0 512,200 512,200 425,000 (87,200) (17.02%) 50,000 0 50,000 40,000 (10,000) (20.00%) 910,000 (130,000) 780,000 544,000 (236,000) (30.26%) 0 0 0 0 0 0.00% 30,000 0 30,000 0 (30,000) (100.00%) 0 482,200 482,200 30,000 (452,200) (93.78%) 60,000 0 60,000 0 (60,000) (100.00%) 0 0 0 18,000 18,000 0.00% 0 0 0 10,000 10,000 0.00% 0 0 0 425,000 425,000 0.00% 0 0 0 80,000 80,000 0.00% 0 30,000 30,000 0 (30,000) (100.00%) 0 0 0 0 0 0.00% 0 1,185,300 1,185,300 0 (1,185,300) (100.00%) 0 304,700 304,700 0 (304,700) (100.00%) 0 2,125,000 2,125,000 0 (2,125,000) (100.00%) 0 0 0 0 0 0.00% 473,722 0 473,722 652,831 179,109 37.81% 1,523,722 3,997,200 5,520,922 1,799,831 (3,721,091) (67.40%) (1,523,722) (3,485,000) (5,008,722) (1,374,831) Over (Under) Total Expenditures (1,112,444)? (3,373,378) (4,485,822) (1;253,284)' Beginning unrestricted fund balance 47,184,635 47,184,635 42,698,813 Ending unrestricted fund balance 46,072,191 42,698,813 41,445,529 Fund balance as a percent of recurring expenditures 72.85% 67.99Y 60.54% Total revenues 63,655,300 926,686 64,581,986 69,011,300 Total expenditures 64,767,744 4,300,064 69,067,808 70,264,584 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (1,112,444) (1373,378) (4,485,822) (1,253,284) Beginning unrestricted fund balance 47,184, 635 47,184, 635 42, 698,813 Ending unrestricted fund balance 46,072,191 42,698,813 41,445,529 SPEGtAL REVENUE FUNDS #101 - STREET FUND RECURRING ACTIVITY Revenues Utility Tax Motor Vehicle Fuel (Gas) Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Solid Waste Road Wear Fee Investment Interest Miscellaneous Transfer in - #111 Transfer in - #301 Transfer in - #302 Total Recurring Revenues Expenditures CITY OF SPOKANE VALLEY, WA 2026 Budget �if26 AS Adopted Amendment AS Amended 900,000 0 900,000 1,969,700 0 1,969,700 138,200 0 138,200 100,000 0 100,000 1,700,000 0 1,700,000 10,000 0 10,000 10,000 0 10,000 2,785,000 (985,000) 1,800,000 0 0 0 0 0 0 7,612,900 (985,000) 6,627,900 960,000 2,011,500 137,800 110,000 1,900,000 120,000 20,000 1,800,000 250,200 250,200 7,559,700 Street Department 3,002,698 0 3,002,698 2,956,040 Street Administration 111,272 0 111,272 82,672 Winter Operations 1,705,580 0 1,705,580 1,734,583 Bridge Program 117,297 (25,000) 92,297 118,350 Traffic Program 2,428,238 0 2,428,238 2,667,899 Transfer out - #303 (Thorpe Bridge Project) 0 25,000 25,000 0 Total Recurring Expenditures 7,365,085 0 71365,085 7,559,544 Recurring Revenues Over (Under) Recurring Expenditures 247,815'` (985,000) (737,185) 156' NONRECURRING ACTIVITY Revenues Transfers in - #312 Total Nonrecurring Revenues Expenditures Capital Equipment Replacement Programs Local Street Program Total Nonrecurring Expenditures Nonrecurring Revenues Over (Under) Nonrecurring Expenditures Excess (Deficit) of Total Revenues Over (Under) Total Expenditures Beginning fund balance Ending fund balance 10/14/2025 60,000 6.67% 41,800 2.12% (400) (0.29%) 10,000 10.00% 200,000 11.76% 110,000 1100.00% 10,000 100.00% 0 0.00% 250,200 0.00% 250,200 0.00% 931,800 14.06% (46,658) (1.55%) (28,600) (25.70%) 29,003 1.70% 26,053 28.23% 239,661 9.87% (25,000) (100.00%) 194,459 2.64% 1,750,000 0 1,750,000 1,750,000 0 0.00% 1,750,000 0 1,750,000 1,750,000 0 0.00% 135,000 0 135,000 1,750,000 0 1,750,000 1,885,000 0 1,885,000 135,000 1,750,000 0.00% 0.00% 1,885,000 0 0.00% (135,000) 0 (135,000) (135,000) 111,815 (985,000) (872,18) (134,844) 5,495,122 5,495,122 4,622,937 5,607,937 4,622,937 4,488,093 Total revenues 9,362,900 (985,000) 8,377,900 9,309,700 Total expenditures 9,250,085 0 9,250,085 9,444,544 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures 112,815 (985,000) (872,185) (134,844) Beginning unrestricted fund balance 5,495,122 5,495,122 4,622,937 Ending unrestricted fund balance 5,607,937 4,622,937 4,488,093 CITY OF SPOKANE VALLEY, WA 2026 Budget As Adopted I Amendment As Amended SPECIAL REVENUE FUNDS ;. continued #103 - PATHS & TRAILS FUND Revenues Motor Vehicle Fuel (Gas) Tax Investment Interest Total revenues Expenditures Transfers out Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance #104 - HOTEL / MOTEL TAX - TOURISM FACILITIES FUND Revenues 10/14/2025 8,300 0 8,300 8,500 200 2.41% 2,000 0 2,000 2,000 0 0.00% 10,300 0 10,300 10,500 200 1.94% 0 0 0 0 0 0 0 10,300 10,300 10,500 59,093 59,093 69,393 69,393 69,393 79,893 0 0.00% 0 0.00% Hotel/Motel Tax 590,000 0 590,000 590,000 0 0.00% Investment Interest 200,000 0 200,000 65,000 (135,000) (67.50%) Transfers in - #105 0 500,000 500,000 0 (500,000) (100.00%) Total revenues 790,000 500,000 1,290,000 655,000 (635,000) (49.22%) Expenditures Transfer out - #316 (cross country course) 0 2,500,000 2,500,000 0 (2,500,000) (100.00%) Total expenditures 0 2,500,000 2,500,000 0 (2,500,000) (100.00%) Revenues over (under) expenditures 790,000 (1,210,000) 655,000 Beginning fund balance 2,173,211 2,173,211 963,211 Ending fund balance 2,963,211 963,211 1,618,211 #105 - HOTEL / MOTEL TAX FUND Revenues Hotel/Motel Tax Investment Interest Total revenues Expenditures Transfers out - #001 Transfers out - #104 Tourism Promotion Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance #106 - SOLID WASTE FUND Revenues Solid Waste Administrative Fee Grant Proceeds Investment Interest Total revenues Expenditures Wages / Benefits / Payroll Taxes Education & Contract Administration Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 900,000 0 900,000 900,000 0 0.00% 20,000 0 20,000 25,000 5,000 25.00% 920,000 0 920,000 925,000 5,000 0.54% 30,000 0 30,000 287,000 257,000 856.67% 0 500,000 500,000 0 (500,000) (100.00%) 893,000 (500,000) 393,000 673,000 280,000 71.25% 923,000 0 923,000 960,000 37,000 4.01% (3,000) (3,000) (35,000) 271,610 271,610 268,610 268,610 268,610 233,610 250,000 0 250,000 250,000 0 0.00% 0 158,600 158,600 0 (158,600) (100.00%) 70,000 0 70,000 56,000 (14,000) (20.00%) 320,000 158,600 478,600 306,000 (172,600) (36.06%) 250,000 0 250,000 160,201 (89,799) (35.92%) 70,000 158,600 228,600 70,000 (158,600) (69.38%) 320,000 158,600 478,600 230,201 (248,399) (51.90%) 0 0 75,799 1,387,281 1,387,281 1,387,281 1,387,281 1,387,281 1,463,080 SPECIAL REVENUE FUNDS - continued #107 - PEG FUND Revenues Comcast PEG Contribution Investment Interest Total revenues Expenditures PEG Reimbursement - CMTV Capital Outlay Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance CITY OF SPOKANE VALLEY, WA 2026 Budget 20Z5 As Adopted _..._ Amendment As Amended 10l14/2025 55,000 0 55,000 50,000 (5,000) (9.09%) 5,000 0 5,000 8,000 3,000 60.00% 60,000 0 60,000 58,000 (2,000) (3.33%) 39,500 0 39,500 39,500 0 0.00% 33,500 0 33,500 33,500 0 0.00% 73,000 0 73,000 73,000 0 0.00% (13,000) (13,000) (15,000) 291,249 291,249 278,249 278,249 278,249 263,249 #108 - AFFORDABLE & SUPPORTIVE HOUSING SALES TAX Revenues Affordable & Supportive Housing Sales Tax 200,000 0 200,000 193,000 (7,000) (3.50%) Grant Proceeds (CHIP Grant) 0 1,000,000 1,000,000 0 (1,000,000) (100.00%) Investment Interest 15,000 0 15,000 30,000 15,000 100.00% Total revenues 215,000 1,000,000 1,215,000 223,000 (992,000) (81.65%) Expenditures Spokane Housing Authority Passthrough 0 1,000,000 1,000,000 0 (1,000,000) (100.00%) Total expenditures 0 1,000,000 1,000,000 0 (1,000,000) (100.00%) Revenues over (under) expenditures 215,000 215,000 223,000 Beginning fund balance 1,034,516 1,034,516 1,249,516 Ending fund balance 1,249,516 1,249,516 1,472,516 #109 - TOURISM PROMOTION AREA FUND Revenues Tourism Promotion Area Fee 1,300,000 0 1,300,000 1,300,000 0 0.00% Investment Interest 0 0 0 30,000 30,000 0.00% Total revenues 1,300,000 0 1,300,000 1,330,000 30,000 2.31% Expenditures Professional Services 1,275,000 25,000 1,300,000 1,775,000 475,000 36.54% Total expenditures 1,275,000 25,000 1,300,000 1,775,000 475,000 36.54% Revenues over (under) expenditures 25,000 0 (445,000) Beginning fund balance 778,447 778,447 778,447 Ending fund balance 803,447 778,447 333,447 #110 - HOMELESS HOUSING PROGRAM FUND Revenues Recording Fees 290,000 0 290,000 365,000 75,000 25.86% Investment Interest 0 0 0 7,000 Total revenues 290,000 0 290,000 372,000 75,000 28.28% Expenditures Transfer out - #001 344,000 0 344,000 380,000 36,000 10.47% Total expenditures 344,000 0 344,000 380,000 36,000 10.47% Revenues over (under) expenditures (54,000) (54,000) (8,000) Beginning fund balance 293,063 293,063 239,063 Ending fund balance 239,063 239,063 231,063 Revenues Vehicle License Fees Total revenues Expenditures Transfer out - #101 Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance CITY OF SPOKANE VALLEY, WA 2026 Budget As As Adopted Amendment Amended 10/14/2025 2,785,000 (985,000) 1,800,000 1,800,000 0 0.00% 2,785,000 (985,000) 1,800,000 1,800,000 0 0.00% 2,785,000 (985,000) 1,800,000 1,800,000 0 0.00% 2,785,000 (985,000) 1,800,000 1,800,000 0 0.00% 0 0 0 2,030 2,030 2,030 2,030 2,030 2,030 #120 - CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest 0 0 0 0 Miscellaneous 0 0 0 0 0 0 0 0 Total revenues Expenditures 0 0.00% 0 0.00% 0 0.00% Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 0 0 0 Beginning fund balance 300,000 300,000 300,000 Ending fund balance 300,000 300,000 300,000 #121 -SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest 288,000 0 288,000 285,400 (2,600) (0.90%) Total revenues 288,000 0 288,000 285,400 (2,600) (0.90%) Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 288,000 288,000 285,400 Beginning fund balance 6,350,129 6,350,129 6,638,129 Ending fund balance 6,638,129 6,638,129 6,923,529 #122 - WINTER WEATHER RESERVE FUND Revenues Investment Interest 15,000 0 15,000 24,800 9,800 65.33% Transfers in - #001 0 0 0 0 0 0.00% Subtotal revenues 15,000 0 15,000 24,800 9,800 65.33% Expenditures Street maintenance expenditures 500,000 0 500,000 500,000 0 0.00% Total expenditures 500,000 0 500,000 500,000 0 0.00% Revenues over (under) expenditures (485,000) (485,000) (475,200) Beginning fund balance 573,932 573,932 588,932 Ending fund balance 88,932 88,932 113,732 CITY OF SPOKANE VALLEY, WA 2026 Budget DEBT SERVICE FUNDS #204 LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District Transfers in - #001 Total revenues Expenditures Debt Service Payments - CenterPlace Debt Service Payments - City Hall Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance CAPITAL PROJECTS FUNDS #301 - REET 1 CAPITAL PROJECTS FUND Revenues REET 1 - Taxes Investment Interest Total revenues Expenditures Transfers out - #101 Transfers out - #303 Transfers out - #311 (pavement preservation) Transfers out - #314 Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance #302 - REET 2 CAPITAL PROJECTS FUND Revenues REET 2 - Taxes Investment Interest Total revenues Expenditures Transfers out - #101 Transfers out - #303 Transfers out - #311 (pavement preservation) Transfers out - #314 Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 2025 As Adopted I Amendment As Amended 569,400 0 569,400 590,800 401,550 0 401,550 398,750 970,950 0 970,950 989,550 10/14/2025 21,400 3.76% (2,800) (0.70%) 18,600 1.92% 569,400 0 569,400 590,800 21,400 3.76% 401,550 0 401,550 398,750 (2,800) (0.70%) 970,950 0 970,950 989,550 18,600 1.92% 0 0 0 0 0 0 0 0 0 1,500,000 500,000 2,000,000 1,500,000 (500,000) (25.00%) 200,000 0 200,000 275,000 75,000 37.50% 1,700,000 500,000 2,200,000 1,775,000 (425,000) (19.32%) 0 0 0 250,200 250,200 0.00% 356,000 0 356,000 651,193 295,193 82.92% 1,372,150 0 1,372,150 1,372,150 0 0.00% 0 0 0 37,659 37,659 0.00% 1,728,150 0 1,728,150 2,311,202 583,052 33.74% (28,150) 471,850 (536,202) 6,261,840 6,261,840 6,733,690 6,233,690 6,733,690 6,197,488 1,500,000 500,000 2,000,000 1,500,000 (500,000) (25,00%) 275,000 0 275,000 275,000 0 0.00% 1,775,000 500,000 2,275,000 1,775,000 (500,000) (21.98%) 0 0 0 250,200 250,200 0.00% 483,300 505,000 988,300 600,000 (388,300) (39.29%) 1,372,150 0 1,372,150 1,372,150 0 0.00% 36,500 0 36,500 0 (36,500) (100.00%) 1,891,950 505,000 2,396,950 2,222,350 (174,600) (7,28%) (116,950) (121,950) (447,350) 5,598,211 5,598,211 5,476,261 5,481,261 5,476,261 5,028,911 #303 - STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds Developer Transfers in - #101 Transfers in - #301 Transfers in - #302 Transfers in - #312 Transfers in - #315 Total revenues Expenditures Street Construction /Reconstruction Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance #309 - PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds Developer Contributions Transfers in - #312 Total revenues Expenditures Park Capital Projects Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance CITY OF SPOKANE VALLEY, WA 2026 Budget 10/14/2025 4,480,512 0 4,480,512 4,647,888 167,376 3.74% 968,833 0 968,833 0 (968,833) (100.00%) 0 25,000 25,000 0 (25,000) (100.00%) 356,000 0 356,000 651,193 295,193 82.92% 483,300 505,000 988,300 600,000 (388,300) (39.29%) 200,000 0 200,000 0 (200,000) (100.00%) 0 0 0 0 0 0.00% 6,488,645 530,000 7,018,645 5,899,081 (1,119,564) (15.95%) 6,488,645 630,000 7,018,645 5,899,081 (1,119,564) (15.95%) 6,488,645 530,000 7,018,645 5,899,081 (1,119,564) (15.95%) 0 0 0 2,132,391 2,132,391 2,132,391 2,132,391 2,132,391 2,132,391 1,561,761 126,100 1,687,861 375,500 (1,312,361) (77.75%) 0 749,400 749,400 0 (749,400) (100.00%) 300,000 914,900 1,214,900 518,374 (696,526) (57.33%) 1,861,761 1,790,400 3,652,161 893,874 (2,758,287) (75.52%) 1,861,761 1,790,400 3,652,161 893,874 (2,758,287) (75.52%) 1,861,761 1,790,400 3,652,161 893,874 (2,758,287) (75.52%) 0 0 0 503,459 503,459 503,459 503,459 503,459 503,459 #310 - CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Judgments & Settlement 0 11,810,000 11,810,000 0 (11,810,000) (100.00%) Transfers in -#001 0 2,125,000 2,125,000 0 (2,125,000) (100.00%) Investment Interest 1,200 0 1,200 20,000 18,800 1566.67% Total revenues 1,200 13,935,000 13,936,200 20,000 (13,916,200) (99.86%) Expenditures Transfer out 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 1,200 13,936,200 20,000 Beginning fund balance 21,467 21,467 13,957,667 Ending fund balance 22,667 13,957,667 13,977,667 CITY OF SPOKANE VALLEY, WA 2026 Budget CAPITAL PROJECTS FUNDS - continued #311 -PAVEMENT PRESERVATION Revenues Transfers in - #001 Transfers in - #301 Transfers in - #302 Transfers in - #312 Grant Proceeds Total revenues Expenditures Pavement preservation Pre -project GeoTech Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance #312 - CAPITAL RESERVE FUND Revenues Investment Interest Total revenues Expenditures Transfers out - #101 (Local Street Program) Transfers out - #303 (Subarea Transportation Plan) Transfers out - #309 (Sullivan Park waterline) Transfers out - #309 (Greenacres Park Ph2) Transfers out - #311 (Pavement Preservation) Transfers out - #314 (Pines Rd Underpass) WSDOT Sullivan Park Property Acquisition Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 2025 1 As Adopted Amendment As Amended 10/14/2025 0 0 0 0 0 0,00% 1,372,150 0 1,372,150 1,372,150 0 0.00% 1,372,150 0 1,372,150 1,372,150 0 0.00% 1,032,100 0 1,032,100 1,042,421 10,321 1.00% 112,011 0 112,011 2,081,903 1,969,892 1758.66% 3,888,411 0 3,888,411 5,868,624 1,980,213 50.93% 2,000,000 0 2,000,000 4,826,203 2,826,203 141.31% 50,000 0 50,000 50,000 0 0.00% 2,050,000 0 2,050,000 4,876,203 2,826,203 137.86% 1,838,411 1,838,411 992,421 3,996,531 3,996,531 5,834,942 5,834,942 5,834,942 6,827,363 650,000 0 650,000 700,000 50,000 7.69% 650,000 0 650,000 700,000 50,000 7.69% 1,750,000 0 1,750,000 200,000 0 200,000 0 914,900 914,900 300,000 0 300,000 1,032,100 0 1,032,100 1,708,023 0 1,708,023 0 759,600 759,600 4,990,123 1,674,500 6,664,623 (4,340,123) (6,014,623) 14,293,059 14,293,059 9,952,936 8,278,436 #314 - RAILROAD GRADE SEPARATION PROJECTS FUN[ Revenues Grant Proceeds 39,496,674 0 39,496,674 Transfers in - #301 0 0 0 Transfers in - #302 36,500 0 36,500 Transfers in - #312 1,708,023 0 1,708,023 Total revenues 41,241,197 0 41,241,197 Expenditures Railroad Grade Separation Projects Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 1,750,000 0 0.00% 0 (200,000) (100.00%) 518,374 (396,526) (43.34%) 0 (300,000) (100.00%) 1,042,421 10,321 1.00% 359,182 (1,348,841) (78.97%) 0 (759,600) (100.00%) 3,669,977 (2,994,646) (44.93%) (2,969,977) 8,278,436 5,308,459 16,490,200 (23,006,474) (58.25%) 37,659 37,659 0,00% 0 (36,500) (100.00%) 359,182 (1,348,841) (78.97%) 16,887,041 (24,354,156) (59.05%) 41,241,197 0 41,241,197 16,938,221 (24,302,976) (58.93%) 41,241,197 0 41,241,197 16,938,221 (24,302,976) (58.93%) 0 0 (51,180) 35,723 35,723 35,723 35,723 35,723 (15,457) Revenues Transportation Impact Fees Investment Interest Total revenues Expenditures Transfers out - #303 Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance CITY OF SPOKANE VALLEY, WA 2026 Budget As Adopted Amendment As Amended 10/14/2025 400,000 0 400,000 400,000 0 0.00% 30,000 0 30,000 42,000 12,000 40.00% 430,000 0 430,000 442,000 12,000 2.79% 0 0 0 0 0 0.00% 0 0 0 0 0 0.00% 430,000 430,000 442,000 1,411,134 1,411,134 1,841,134 1,841,134 1,841,134 2,283,134 #316 - ECONOMIC DEVELOPMENT CAPITAL PROJECTS FUND Revenues Transfers in - #104 0 2,500,000 2,500,000 0 (2,500,000) (100.00%) Total revenues 0 2,500,000 2,500,000 0 (2,500,000) (100.00%) Expenditures Cross Country Course Project 0 4,696,520 4,696,520 0 (4,696,520) (100.00%) Total expenditures 0 4,696,520 4,696,520 0 (4,696,520) (100.00%) Revenues over (under) expenditures 0 (2,196,520) 0 Beginning fund balance 2,196,520 2,196,520 0 Ending fund balance 2,196,520 0 0 ENTERPRISE. FUNDS #402 - STORMWATER FUND RECURRING ACTIVITY' Revenues Stormwater Management Fees Investment Interest Total Recurring Revenues Expenditures Wages / Benefits / Payroll Taxes Supplies Services & Charges Intergovernmental Payments Vehicle rentals - #501 Total Recurring Expenditures Recurring Revenues Over (Under) Recurring Expenditures NONRECURRING ACTIVITY Revenues Grant Proceeds Total Nonrecurring Revenues Expenditures Capital - various projects Watershed studies Asset management software system Total Nonrecurring Expenditures Nonrecurring Revenues Over (Under) Nonrecurring Expenditures Excess (Deficit) of Total Revenues Over (Under) Total Expenditures Beginning working capital Ending working capital CITY OF SPOKANE VALLEY, WA 2026 Budget 202S,- As Adopted Amendment As Amended 6,170,000 90,000 0 0 6,170,000 90,000 6,170,000 173,000 6,260,000 0 6,260,000 6,343,000 10/14/2025 0 0.00% 83,000 92.22% 83,000 1.33% 1,578,815 0 1,578,815 1,762,983 184,168 11.66% 37,200 0 37,200 58,000 20,800 55.91% 2,272,306 0 2,272,306 2,360,193 87,887 3.87% 88,000 0 88,000 91,310 3,310 3.76% 16,500 0 16,500 24,125 7,625 46.21% 3,992,821 0 31992,821 4,296,611 303,790 7.61% 2267,1790 2,267,179 2,046,389' 0 0 0 0 0 0.00% 0 0 0 0 0 0.00% 1,500,000 0 1,500,000 150,000 0 150,000 50,000 0 50,000 1,700,000 0 1,700,000 4,500,000 3,000,000 200.00% 100,000 (50,000) (33.33%) 0 (50,000) (100.00%) 4,600,000 2,900,000 170.59% (1700,000) 0 (1,700,000) (4,600,000) 567,175 0 567,179 (2,553t611) 5,671,252 5,671,252 6,238,431 6,238,431 6,238,431 3,684,820 Total revenues 6,260,000 0 6,260,000 6,343,000 Total expenditures 5,692,821 0 5,692,821 8,896,611 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures 567,179 0 567,179 (2,553,611) Beginning unrestricted fund balance 5,671,252 5,671,252 6,238,431 Ending unrestricted fund balance 6,238,431 6,238,431 3,684,820 #403 - AQUIFER PROTECTION AREA Revenues Spokane County Investment Interest Total revenues Expenditures Capital - various projects Effectiveness study Total expenditures Revenues over (under) expenditures Beginning working capital Ending working capital 0 420,000 420,000 420,000 0 0.00% 20,000 0 20,000 30,000 10,000 50.00% 20,000 420,000 440,000 450,000 10,000 2.27% 1,000,000 0 1,000,000 0 (1,000,000) (100.00%) 0 0 0 0 0 0.00% 1,000,000 0 1,000,000 0 (1,000,000) (100.00%) (980,000) (560,000) 450,000 1,429,210 1,429,210 869,210 449,210 869,210 1,319,210 INTERNAL SERVICE FUNDS #501 - ER&R FUND Revenues Vehicle rentals - #001 Vehicle rentals - #101 Vehicle rentals - #101 (plow replace.) Vehicle rentals - #402 Transfers in - #001 (IT equipment reserve) Investment Interest Total revenues Expenditures Small tools & minor equipment Vehicle purchase Snow plow purchase Total expenditures Revenues over (under) expenditures Beginning working capital Ending working capital #502 - RISK MANAGEMENT FUND Revenues CITY OF SPOKANE VALLEY, WA 2026 Budget :.10,5 As Adapted Amendment As I Amended 10/14/2025 79,500 0 79,500 83,850 4,350 5.47% 71,200 0 71,200 78,575 7,375 10.36% 300,000 0 300,000 300,000 0 0.00% 16,500 0 16,500 24,125 7,625 46.21% 92,500 0 92,500 92,500 0 0.00% 20,000 0 20,000 47,000 27,000 135.00% 579,700 0 579,700 626,050 46,350 8.00% 10,000 0 10,000 10,000 0 0.00% 0 0 0 50,000 50,000 0.00% 175,000 0 175,000 270,000 95,000 54.29% 185,000 0 185,000 330,000 145,000 78.38% 394,700 394,700 296,050 821,412 821,412 1,216,112 1,216,112 1,216,112 1,512,162 Investment Interest 4,800 0 4,800 6,000 1,200 25.00% Transfers in-#001 900,000 0 900,000 1,100,000 200,000 22.22% Total revenues 904,800 0 904,800 1,106,000 201,200 22.24% Expenditures Auto & Property Insurance 900,000 0 900,000 1,100,000 200,000 22.22% Total expenditures 900,000 0 900,000 1,100,000 200,000 22.22% Revenues over (under) expenditures 4,800 4,800 6,000 Beginning fund balance 378,928 378,928 383,728 Ending fund balance 383,728 383,728 389,728 #503 - PUBLIC SAFETY EQUIPMENT REPLACEMENT FUND Revenues Transfers in - #001 (replacement amts) 473,722 0 473,722 652,831 179,109 37.81 % Total revenues 473,722 0 473,722 652,831 179,109 37.81% Expenditures Equipment Purchases 0 650,000 650,000 0 (650,000) (100.00%) Total expenditures 0 650,000 650,000 0 (650,000) (100.00%) Revenues over (under) expenditures 473,722 (176,278) 652,831 Beginning fund balance 1,473,722 1,473,722 1,297,444 Ending fund balance 1,947,444 1,297,444 1,950,275 CITY OF SPOKANE VALLEY, WA 2026 Budget Fit?UCIARY FUNKS #632 - PASSTHROUGH FEES & TAXES FUND Revenues Fees & taxes collected for other governments Total revenues Expenditures Fees & taxes remitted to other governments Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Total of Expenditures for all Funds Total grant revenues (included in total revenues) Total Capital expenditures (included in total expenditures) 10/14/2025 600,000 0 600,000 620,000 20,000 3.33% 600,000 0 600,000 620,000 20,000 3.33% 600,000 0 600,000 620,000 20,000 3.33% 600,000 0 600,000 620,000 20,000 3.33% 0 0 0 0 0 0 0 0 0 147,856,886 20,790,686 168,647,572 129,358,751 149,838,426 16,845,084 166,683,510 134,174,398 46,087,958 1,994,386 48,082,344 24,456,991 56,300,103 8,111,220 64,411,323 35,448,879 CITY OF SPOKANE VALLEY, WA 2026 Budget Revenues by Fund General Fund Property Tax $ 14,309,800 Sales Tax 33,541,200 Sales Tax - Public Safety 4,274,900 Sales Tax - Criminal Justice 2,906,400 Gambling and Leasehold Excise Tax 516,700 Franchise Fees/Business Registration 1,330,000 State Shared Revenues 2,644,100 Service Revenues 4,057,100 Fines and Forfeitures 481,400 Recreation Program Fees 716,700 Miscellaneous, Investment Int., Transfers 4,233,000 Total General Fund $ 69,011,300 Other Funds 101 Street Fund $ 9,309,700 103 Paths & Trails Fund 10,500 104 Hotel/Motel Tax Tourism Facilities Fund 655,000 105 Hotel/Motel Tax Fund 925,000 106 Solid Waste Fund 306,000 107 PEG Fund 58,000 108 Affordable & Supportive Housing Sales Tax 223,000 109 Tourism Promotion Area Fund 1,330,000 110 Homeless Housing Program Fund 372,000 111 Transportation Benefit District Fund 1,800,000 121 Service Level Stabilization Reserve Fund 285,400 122 Winter Weather Reserve Fund 24,800 204 LTGO Bond Debt Service Fund 989,550 301 REET 1 Capital Projects Fund 1,775,000 302 REET 2 Capital Projects Fund 1,775,000 303 Street Capital Projects Fund 5,899,081 309 Parks Capital Projects Fund 893,874 310 Civic Facilities Capital Projects Fund 20,000 311 Pavement Preservation Fund 5,868,624 312 Capital Reserve Fund 700,000 314 Railroad Grade Separation Projects Fund 16,887,041 315 Transportation Impact Fees Fund 442,000 402 Stormwater Management Fund 6,343,000 403 Aquifer Protection Area Fund 450,000 501 Equipment Rental & Replacement Fund 626,050 502 Risk Management Fund 1,106,000 503 Public Safety Equipment Replacement Fund 652,831 632 Passthrough Fees & Taxes Fund 620,000 Total Other Funds $ 60,347,451 Total All Funds $ 129,358,751 a J > J W Q CC O 5 M LiJ Z rl QLL Y _ o O s. 01 H O V N u a> > c °0 v �_ > of o \ co 0 o v "o o � 'P -' E LL -i vn y r v- o E u 06 LL - N U In v v a C cu L OC LL O u a-+ C (/) f0 LL aC V N LL �� 3 •a J i n J } Z -0 Ln a•-M aV LL O N N V Y c c 7 N E c LL N LL c U L c s to c O N O f0 d Q N L o ��o @ ,moo L 7 Ln LL I c L V) (0 m Y 0- CE�.Il _ L, U 41 LL 0 4� In) v L L N 0 CITY OF SPOKANE VALLEY, WA 2026 Budget Detail Revenues by Type Prooertv Tax Property Tax 12,993,487 13,312,953 13,526,561 14,081,000 14,309,800 Property Tax - Delinquent 156,971 146,960 170,199 0 0 13.150,458 13, 459, 913 13, 696,760 14,081, 000 14, 309, 800 Sales Taxes Sales Tax 32,347,046 32,522,920 32,239,528 33,000,000 33,541,200 Sales Tax - Public Safety 1,529,941 1,583,962 1,684,946 1,609,400 4,274,900 Sales Tax - Criminal Justice 2,685,503 2,774,860 2,678,148 2,833,700 2,906,400 36,562,490 36,881,742 36,602,622 37,443,100 40,722,500 Gambling and Leasehold Excise Tax Amusement Games 16,661 113,503 17,064 15,000 15,000 Card Games 453,158 2,476 411,119 400,000 400,000 Bingo & Raffles 982 19,021 2,399 1,000 1,500 Punch Boards & Pull Tabs 109,535 409,219 97,423 100,000 92,000 Leasehold Excise Tax 5,412 12,220 12,152 7,000 8,200 585,748 556,439 540,157 523,000 516,700 Licenses & Permits General Business Licenses 231,082 238,732 241,949 220,000 230,000 Franchise Fees 1,169,326 1,098,089 949,327 1,100,000 1,100,000 1,400,408 1,336,821 1,191, 276 1,320,000 1,330,000 State Shared Revenues Payment in Lieu of Taxes - DNR 3,096 0 2,250 4,000 2,500 CJ - High Crime 335,772 343,866 357,623 344,000 350,000 MVET Criminal Justice - Population 36,579 39,281 41,754 43,500 46,300 CJ Contracted Services 217,671 231,199 245,532 231,000 240,000 CJ Special Programs 129,552 138,480 146,546 152,300 163,100 Marijuana Excise Tax Distribution 271,849 271,857 270,900 224,000 254,100 DUI - Cities 7,730 10,820 9,223 13,000 10,000 Liquor Board Excise Tax 740,373 754,305 731,842 713,700 770,300 Liquor Board Profits 810,471 818,871 810,757 801,900 807,800 2,553,093 2,608,679 2,616,427 2,527,400 2,644,100 Community and Public Works Accessory Dwelling 2,023 3,646 3,768 2,000 3,000 Building & Planning Fees 438,338 367,401 345,970 291,800 596,900 Building Permits 2,015,646 1,924,191 1,623,677 1,850,000 1,624,000 Code Enforcement 44,694 22,746 42,952 20,000 25,000 Demolition Permits 5,020 3,330 4,573 5,000 4,500 Entertainment License 1,575 0 0 1,600 0 Grading Permits 42,079 42,085 42,302 33,000 37,000 Home Profession Fee 3,536 5,612 5,877 3,000 3,700 Mechanical Permits 173,337 163,929 159,017 160,000 160,000 Misc. Permits & Fees 33,083 137,845 102,932 83,000 213,000 Planning Fees 944,967 870,068 1,021,429 870,000 900,000 Plumbing Permits 70,719 65,822 65,565 80,000 65,000 Right of Way Permits 253,579 255,997 313.405 397,000 414,000 Street Vacation Permits 13,824 1,477 3,046 7,000 10,500 Temporary Use Permit Fees 1,040 0 558 500 500 4,043,460 3,864,149 3,735,071 3,803,900 4,057,100 CITY OF SPOKANE VALLEY, WA 2026 Budget Detail Revenues by Type Fines and Forfeitures Public Safety False Alarm Services 63,914 55,738 54,164 55,000 55,000 Public Safety Grants 50,792 0 70,868 50,000 50,000 Fines & Forfeits - Traffic 279,392 374,655 330,506 347,600 339,600 Other Criminal- Non Traffic Fines 29,408 73,399 60,491 29,600 36,800 423,506 503,792 516,029 482,100 481,400 Recreation Program Revenues Activity Fees (To use a recreational facility) 437,640 645,077 686,835 467,300 512,600 Program Fees (To participate in a program) 177,846 232,453 265,674 220,800 204,100 615,486 877,530 952,509 688,100 716,700 Grant Proceeds COVID-19 Stimulus Funding 5,713,803 9,464,426 157,372 0 0 OPD Public Defender Improvement 19,500 19,500 19,500 20,000 19,500 Homeless Services 97,830 0 0 227,486 0 FEMA 4,478 0 0 0 0 COPS Hiring Grants 0 0 36,794 417,000 417,000 RCO Grants 0 0 11,452 0 0 Energy Efficiency Grants 0 0 0 482,200 0 Comprehensive Plan Update 0 0 0 0 425,000 Miscellaneous Grants 0 48,647 0 0 0 5,835,611 9,532,573 225,118 1,146,686 861,500 Miscellaneous AWC Health & Wellness 0 0 0 1,000 1,000 Investment Earnings 1,135,547 3,262,326 2,972,575 2,000,000 2,500,000 Sales Tax Interest 38,136 103,311 116,779 40,000 59,000 Leases 48,494 178,531 137,810 85,000 78,000 Interest on Gambling Tax 19 0 0 100 100 Police Precinct Rent 42,276 45,659 41,854 42,000 42,000 Police Precinct Maintenance 36,809 20,816 23,494 21,000 21,000 Judgments and Settlements 173,608 3,565,298 2,216,970 0 0 Miscellaneous Revenue 29,923 4,596 503,734 1,000 1,000 Copy Charges 1,067 318 68 1,000 500 Pass -Through Services 1,629 1,530 2,023 1,600 1,900 1,507,508 7,182,385 6,015,307 2,192,700 2,704,500 Transfers Transfers in - #105 (h/m tax-CP advertising) 12,982 14,155 30,000 30,000 287,000 Transfers in - #110 0 0 192,628 344,000 380,000 Transfers in - #312 606,537 4,801,397 1,541,519 0 0 619,519 4,815,552 1,764,147 374,000 667,000 Total General Fund Revenue 67,297,287 81,619,575 67,855,423 64,581,986 69,011,300 CITY OF SPOKANE VALLEY, WA 2026 Budget - Other Funds Detail Revenues by Type 101 - Street Fund Motor Vehicle Fuel (Gas) Tax 1,951,437 1,969,114 1,900,820 1,969,700 2,011,500 Multimodal Transportation Revenue 137,638 139,065 137,687 138,200 137,800 Right -of -Way Maintenance Fee 101,652 112,552 124,680 100,000 110,000 Solid Waste Road Wear Fee 0 2,163,489 2,474,890 1,700,000 1,900,000 Utility tax 1,003,537 960,872 969,131 900,000 960,000 Investment Interest 12,416 122,690 282,537 10,000 120,000 Other Miscellaneous Revenues & Grants 425,161 31,457 74,924 10,000 20,000 Transfer in - #111 0 0 709,274 1,800,000 1,800,000 Nonrecurring Transfer in - #001 3,084,919 3,530,048 3,200,423 0 0 Nonrecurring Transfer in - #106 271,000 1,862,929 0 0 0 Nonrecurring Transfer in - #122 500,000 0 0 0 0 Transfer in - #301 0 0 0 0 250,200 Transfer in - #302 0 0 0 0 250,200 Nonrecurring Transfer in - #311 0 2,677,099 0 0 0 Nonrecurring Transfer in - #312 0 250,000 0 1,750,000 1,750,000 7,487,760 13,819,315 9,874,366 8,377,900 9,309,700 103 - Paths & Trails Fund Motor Vehicle Fuel (Gas) Tax 8,231 8,305 8,017 8,300 8,500 Investment interest 579 1,946 2,456 2,000 2,000 8,810 10,251 10,473 10,300 10,500 104 - Hotel/Motel Tax - Tourism Facilities Fund Hotel/Motel Tax 591,849 588,684 578,559 590,000 590,000 Investment interest 82,662 234,243 243,247 200,000 65,000 Transfers in - #105 273,000 515,198 793,575 500,000 0 947,511 1.338,125 1,615,381 1,290,000 655,000 105 - Hotel/Motel Tax Fund Hotel/Motel Tax 901,685 905,678 905,894 900,000 900,000 Investment Interest 11,320 26,189 47,449 20,000 25,000 913,005 931,867 953,343 920,000 925,000 106 - Solid Waste Solid Waste Administrative fee 268,611 276,172 252,216 250,000 250,000 Grant Proceeds 1,987,350 0 0 158,600 0 Investment Interest 43,191 91,696 55,803 70,000 56,000 2,299,152 367,868 308,019 478,600 306,000 107 - PEG Fund Comcast PEG contribution 64,640 56,295 50,295 55,000 50,000 Investment Interest 3,246 10,249 10,448 5,000 8,000 67,886 66,544 60,743 60,000 58,000 108 - Affordable & Supportive Housing Sales Tax Affordable & Supportive Sales Tax 202,181 193,105 192,959 200,000 193,000 Grant Proceeds (CHIP Grant) 0 0 0 1,000,000 0 Investment Interest 8,061 29,958 40,925 15,000 30,000 210,242 223,063 233,884 1,215,000 223,000 109 - Tourism Promotion Area Tourism Promotion Area Fee 0 1.309,506 1,403,643 1,300,000 1,300,000 Investment Interest 0 24,548 56,798 0 30,000 Tourism Interest 0 3,644 4,563 0 0 0 1,337,698 1,465, 004 1,300,000 1,330,000 110 - Homeless Housing Program Recording Fees 0 125,527 350,030 290,000 365,000 Investment Interest 0 1,020 9,114 0 7,000 0 126,547 359,144 290,000 372,000 111 - Transportation Benefit District Vehicle License Fees 0 0 703,596 1,800,000 1,800,000 Investment Interest 0 0 7,708 0 0 0 0 711,304 1,800,000 1,800,000 CITY OF SPOKANE VALLEY, WA 2026 Budget - Other Funds Detail Revenues by Type 121 - Service Level Stabilization Reserve Investment Interest 0 151,854 298,276 288,000 285,400 Transfer in - #001 0 0 400,000 0 0 0 151,854 698,276 288,000 286,400 122 - Winter Weather Reserve Fund Investment Interest 7,088 16,788 25,364 15,000 24,800 Transfer in - #001 89,805 500,000 0 0 0 96,893 516,788 25,364 15,000 24,800 204 - Debt Service - LTGO 03 Fund Facilities District Revenue 501,200 527,200 551,600 569,400 590,800 Transfers in-#001 401,400 401,150 398,950 401,550 398,750 Transfers in-#301 81,100 80,600 0 0 0 Transfers in - #302 81,100 80,600 0 0 0 1,064,800 1,089,550 950,550 970,950 989,550 301 - REET 1 Capital Projects Fund REET 1 - 1st Quarter Percent 2,790,020 1,678,860 1,782,354 2,000,000 1,500,000 Investment Interest 96,965 274,630 299,363 200,000 275,000 2,886,985 1,953,490 2,081,717 2,200,000 1,775,000 302 - REET 2 Capital Projects Fund REET 2 - 2nd Quarter Percent 2,790,020 1,678,860 1,782,354 2,000,000 1,500,000 Investment Interest 117,019 305,242 275,934 275,000 275,000 2,907,039 1,984,102 2,058,288 2,275,000 1,775,000 303 - Street Capital Projects Fund Grant Proceeds 4,235,814 5,340,138 5,256,703 4,480,512 4,647,888 Developer Contributions 853,467 934,884 237,804 968,833 0 Investment Interest 11,652 50,219 25,910 0 0 Transfers in - #001 0 51,372 0 0 0 Transfers in - #101 0 0 6,305 25,000 0 Transfers in - #106 110,746 0 0 0 0 Transfers in - #301 899,463 499,948 510,117 356,000 651,193 Transfers in - #302 226,701 2,583,768 568,356 988,300 600,000 Transfers in - #312 113,786 43,240 76,935 200,000 0 6,451,629 9,603,569 6,682,130 7,018,645 5,899,081 309 - Parks Capital Projects Fund Grant Proceeds 0 158,658 42,131 1,687,861 375,500 Developer Contribution 0 0 0 749,400 0 Donations 0 0 22,430 Investment Interest 0 1,158 0 0 0 Transfers in - #001 160,145 515,939 303,043 0 0 Transfers in - #302 124,020 5,000 0 0 0 Transfers in - #310 0 40,192 0 0 0 Transfers in - #312 332,267 4,312,623 528,544 1,214,900 518,374 616,432 5,033,570 896,148 3,652,161 893,874 310 - Civic Facilities Capital Projects Fund Judgments & Settlement 0 0 0 11,810,000 0 Transfers in - #001 0 0 0 2,125,000 0 Investment Interest 13,652 4,851 2,193 1,200 20,000 13,652 4,851 2,193 13,936,200 20,000 311 - Pavement Preservation Fund Grants 2,052,175 2,614,216 1,115,001 112,011 2,081,903 Developer Contribution 0 29,700 0 0 0 Investment Interest 73,150 138,459 46,470 0 0 Transfers in-#001 1,001,800 1,011,800 1,021,900 0 0 Transfers in - #101 (local streets) 0 1,372,761 0 0 0 Transfers in - #106 3,193 0 0 0 0 Transfers in - #301 550,241 827,278 1,170,350 1,372,150 1,372,150 Transfers in-#302 914,900 827,279 1,170,350 1,372,150 1,372,150 Transfers in-#312 0 0 0 1,032,100 1,042,421 4,595,459 6,821,493 4,524,071 3,888,411 5,868,624 CITY OF SPOKANE VALLEY, WA 2026 Budget - Other Funds Detail Revenues by Type 312 - Capital Reserve Fund Investment Interest 236,054 803,378 738,664 650,000 700,000 Transfers in - #001 3,593,000 5,358,054 6,397,832 0 0 3,829,054 6,161,432 6,136,496 650,000 700,000 314 - Railroad Grade Separation Projects Fund Grant Proceeds 677,412 799,967 3,105,511 39,496,674 16,490,200 Investment Interest 0 0 0 0 0 Developer Contribution 518 144,686 0 0 0 Rental income 10,500 0 0 0 0 Transfers in - #301 0 0 79,773 0 37,659 Transfers in - #302 0 0 0 36,500 0 Transfers in - #312 633,818 625,148 1,212,925 1,708,023 359,182 1,322,248 1,569,801 4,398,209 41,241,197 16,887,041 315 - Transportation Impact Fees Fund Transportation Impact Fees 361,614 429,485 218,139 400,000 400,000 Investment Interest 9,683 42,404 55,202 30,000 42,000 371,297 471,889 273,341 430,000 442,000 316 - Economic Development Capital Proiects Fund Transfer in - #104 (cross course) 0 13,015 4,386,985 2,500,000 0 Transfer in - #312 (fairgrounds building) 7,010 0 0 0 0 7,010 13,015 4,386,985 2,500,000 0 402 - Stormwater Management Fund Stormwater Management Fee 2,031,000 5,585,386 6,164,687 6,170,000 6,170,000 Grant Proceeds - Nonrecurring 0 306,666 696,918 0 0 Investment Interest 40,038 172,947 247,163 90,000 173,000 Miscellaneous Revenues 0 0 21,396 0 0 2,071,038 6,064,999 7,130,164 6,260,000 6,343,000 403 - Aquifer Protection Area Fund Spokane County 514,576 515,898 419,456 420,000 420,000 Grant Proceeds 236,685 621,476 157,511 0 0 Investment Interest 20,421 57,692 44,024 20,000 30,000 Transfers in - #001 0 0 1,376,386 0 0 771,682 1,195,066 1,997,377 440,000 450,000 501 - Equipment Rental & Replacement Fund Vehicle rentals - #001 31,300 59,600 46,750 79,500 83,850 Vehicle rentals - #101 10,250 27,750 41,950 71,200 78,575 Vehicle rentals - #101 (plow replace.) 275,000 275,000 300,000 300,000 300,000 Vehicle rentals - #402 6,750 6,750 13,000 16,500 24,125 Transfers in - #001 0 0 171,500 0 0 Transfers in - #101 (Additional vehicle) 0 70,568 100,280 92,500 92,500 Miscellaneous revenues 325 976 48,800 0 0 Investment Interest 20,448 52,639 47,276 20,000 47,000 344,073 493,283 769,556 579,700 626,050 502 - Risk Management Fund Transfers in - #001 450,000 600,000 700,000 900,000 1,100,000 Investment Interest 4,889 4,803 17,369 4,800 6,000 454,889 604,803 717,369 904,800 1,106,000 503 - Public Safety Equipment Re0acment Transfers in - #001 0 0 1,473,722 473,722 652,831 0 0 1,473,722 473,722 652,831 632 - Passthrough Fees & Taxes Fund Fees & Taxes collected for other governments 433,410 601,526 612,403 600,000 620,000 433,410 601,526 612,403 600,000 620,000 Total of"Other Fund" Revenues 40,171,956 62,456,359 61,406,020 104,065,586 60,347,451 General Fund Revenues 67,297,287 81,619,575 67,855,423 64,581,986 69,011,300 Total Revenues 107,469,243 144,075,934 129,261,443 168,647,572 129,358,751 101 105 106 107 109 110 111 122 204 301 302 303 309 311 312 314 402 501 502 632 CITY OF SPOKANE VALLEY, WA 2026 Budget Expenditures by Fund and Department General Fund Council $ 981,653 City Manager 849,583 City Attorney 1,029,326 Communications 708,709 Housing & Homeless Services 673,326 Public Safety 45,222,317 Operations & Administrative Deputy City Manager 654,355 Finance 1,565,135 Human Resources 417,105 Information Technology 474,987 Facilities 1,535,326 Public Works Engineering 2,350,526 Building 2,117,276 Economic Development 1,314,961 Planning 1,480,912 Parks & Recreation Administration 474,166 Maintenance 2,681,798 Recreation 360,774 Aquatics 680,560 Senior Center 29,933 CenterPlace 815,625 General Government 3,846,231 Total General Fund $ 70,264,584 Other Funds Street Fund $ 9,444,544 Hotel/Motel Tax Fund 960,000 Solid Waste Fund 230,201 Tourism Promotion Area Fund 73,000 PEG Fund 1,775,000 Homeless Housing Program Fund 380,000 Transportation Benefit District Fund 1,800,000 Winter Weather Reserve Fund 500,000 LTGO Bond Debt Service Fund 989,550 REET 1 Capital Projects Fund 2,311,202 REET 2 Capital Projects Fund 2,222,350 Street Capital Projects Fund 5,899,081 Parks Capital Projects Fund 893,874 Pavement Preservation Fund 4,876,203 Capital Reserve Fund 3,669,977 Railroad Grade Separation Projects 16,938,221 Stormwater Management Fund 8,896,611 Equipment Rental & Replacement (ER&R) 330,000 Risk Management Fund 1,100,000 Passthrough Fees & Taxes Fund 620,000 Total Other Funds $ 63,909,814 Total All Funds $ 134,174,398 Q L LLI J i ui ui Z C Q � Y LL a i cn a LL O °J N V O N 00 Ln d' l0 N O Vl- cu v u � a bD op C N (O 2 N } > N o O V N + o U lD C_U C � Q O C 7 a. 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" 0 : M co 0 (D O (D m (D t- w n (_D O NV) O O It 00 O O 0 r M (0 (D t- M O O (M (`•) O N n O V• r r UJ � (D (D CC)N (O D) M V U) U7 U) O r- U) U.) t` n O m co N N W M n O t,- (O M <t r CO (D N M fM co U1 (D U) M eY M (D (0 O) UJ h (D CD m W M O N U) Ln CD 1-7 CO N N cli ? 06 b9 69 (n N U_ a) � a) f0 T a1 (n U) `- N c O V) p c C () E U) E ma) c c oD c 0 a) c 0 o o Q a) y > a1°i a) :? m _ °� d o rn p .g m c c c m E c °� c O� U a� m c (� aci n c m o p V =I (n ii Q E 'N U f0 c (0 c a) p = N r c c c oa C C N p N C j c c -0 c Y 'o m N Q N 0 N 0 ~ d UUUUSd O0� LL w m w a¢��QUU CITY OF SPOKANE VALLEY, WA 2026 Budget General Fund Department Changes from 2025 to 2026 City Council Wages, Payroll Taxes & Benefits 384,411 407,753 23,342 6.07% Supplies 1,100 2,300 1,200 109.09% Services & Charges 718,600 571,600 (147,000) (20.46%) Total 1,104,111 981,653 (122,458) (11.09%) City Manager Wages, Payroll Taxes & Benefits 776,450 775,633 (817) (0.11%) Supplies 6,000 5,000 (1,000) (16.67%) Services & Charges 76,000 68,950 (7,050) (9.28%) Total 858,450 849,583 (8,867) (1.03%) City Attorney Wages, Payroll Taxes & Benefits 824,420 865,704 41,284 5.01% Supplies 6,445 6,511 66 1.02% Services & Charges 152,224 157,111 4,887 3.21% Total 983,089 1,029,326 46,237 4.70% Communication Wages, Payroll Taxes & Benefits 607,892 617,709 9,817 1.61% Supplies 1,000 6,000 5,000 500.00% Services & Charges 94,460 85,000 (9,460) (10.01%) Total 703,352 708,709 5,357 0.76% Housing & Homeless Services Wages, Payroll Taxes & Benefits 229,221 237,376 8,155 3.56% Supplies 1,300 2,000 700 53.85% Services & Charges 444,800 433,950 (10,850) (2.44%) Total 675,321 673,326 (1,995) (0.30%) Public Safety Wages/Payroll Taxes/Benefits 0 0 0 0.00% Supplies 30,000 0 (30,000) (100.00%) Other Services and Charges 203,700 200,000 (3,700) (1.82%) Intergovernmental Services 39,710,109 44,478,317 4,768,208 12.01% Total 39,943,809 44,678,317 4,734,508 11,85% Deputy City Manager Wages, Payroll Taxes & Benefits 628,114 638,966 10,852 1.73% Supplies 500 5,200 4,700 940.00% Services & Charges 8,767 10,189 1,422 16.22% Total 637,381 654,355 16,974 2.66% Finance Wages, Payroll Taxes & Benefits 1,481,518 1,539,969 58,451 3.95% Supplies 5,666 5,666 0 0.00% Services & Charges 19,500 19,500 0 0.00% Total 1,506,684 1,565,135 58,451 3.88% Human Resources Wages, Payroll Taxes & Benefits 373,140 383,375 10,235 2.74% Supplies 1,700 2,200 500 29.41% Services & Charges 27,440 31,530 4,090 14.91% Total 402,280 417,105 14,825 3.69% Information Technology Wages, Payroll Taxes & Benefits 432,003 461,337 29,334 6.79% Supplies 650 650 0 0.00% Services & Charges 13,000 13,000 0 0.00% Total 445,653 474,987 29,334 6.58% CITY OF SPOKANE VALLEY, WA 2026 Budget General Fund Department Changes from 2025 to 2026 Facilities Wages, Payroll Taxes & Benefits 615,541 631,796 16,255 2.64% Supplies 101,900 104,000 2,100 2.06% Services & Charges 769,435 741,530 (27,905) (3.63%) Total 1,486,876 1,477,326 (9,550) (0.64%) Engineering Wages, Payroll Taxes & Benefits 2,131,000 1,962,077 (168,923) (7,93%) Supplies 43,450 42,450 (1,000) (2,30%) Services & Charges 385,349 345,999 (39,350) (10.21%) Total 2,559,799 2,350,526 (209,273) (8.18%) Building Wages, Payroll Taxes & Benefits 1,787,315 1,761,416 (25,899) (1.45%) Supplies 44,450 44,950 500 1.12% Services & Charges 293,720 310,910 17,190 5.85% Total 2,125,485 2,117,276 (8,209) (0.39%) Economic Development Wages, Payroll Taxes & Benefits 800,090 862,771 62,681 7,83% Supplies 5,400 5,400 0 0.00% Services & Charges 446,790 446,790 0 0.00% Total 1,252,280 1,314,961 62,681 5.01 % Planning Wages, Payroll Taxes & Benefits 738,027 839,462 101.435 13,74% Supplies 4,300 4,300 0 0,00% Services & Charges 369,900 212,150 (157,750) (42.65%) Total 1,112,227 1,055,912 (56,315) (5.06%) Parks & Rec- Admin Wages, Payroll Taxes & Benefits 311,603 313,960 2,357 0,76% Supplies 2,800 6,800 4,000 142.86% Services & Charges 155,578 153,406 (2,172) (1,40%) Total 469,981 474,166 4,185 0.89% Parks & Rec- Maintenance Wages, Payroll Taxes & Benefits 130,611 131,666 1,055 0.81% Supplies 59,500 56,500 (3,000) (5.04%) Services & Charges 2,233,932 2,493,632 259,700 11.63% Total 2,424,043 2,681,798 257,755 10.63% Parks & Rec- Recreation Wages, Payroll Taxes & Benefits 260,982 261,489 507 0.19% Supplies 19,000 13,450 (5,550) (29.21%) Services & Charges 81,253 85,835 4,582 5.64% Total 361,235 360,774 (461) (0.13%) Parks & Rec- Aquatics Supplies 500 500 0 0.00% Services & Charges 677,000 680,060 3,060 0.45% Total 677,500 680,560 3,060 0.45% Parks & Rec- Senior Center Wages, Payroll Taxes & Benefits 28,964 27,524 (1,440) (4,97%) Supplies 1,600 850 (750) (46.88%) Services & Charges 4,638 1,559 (3,079) (66.39%) Total 35,202 29,933 (5,269) (14.97%) Continued'to next page) CITY OF SPOKANE VALLEY, WA 2026 Budget General Fund Department Changes from 2025 to 2026 (ConfiWed from preylgt)s page Parks & Rec- CenterPlace Wages, Payroll Taxes & Benefits 530,922 561,669 30,747 5.79% Supplies 50,063 30,863 (19,200) (38.35%) Services & Charges 143,643 143,093 (550) (0.38%) Total 724,628 735,625 10,997 1.52% General Government Supplies 72,500 41,600 (30,900) (42,62%) Services & Charges 1,091,150 1,136,850 45,700 4.19% Intergovernmental Services 484,800 368,700 (116,100) (23.95%) Capital outlays 15,000 15,000 0 0.00% Total 1,663,450 1,562,150 (101,300) (6.09%) Transfers out - #204 401,550 398,750 (2,800) (0.70%) Transfers out - #309 0 0 0 0.00% Transfers out - #311 Pavement Preservation 0 0 0 0.00% Transfers out - #501 92,500 92,500 0 0,00% Transfers out-#502 900,000 1,100,000 200,000 22.22% Transfers out - #503 0 0 0 0.00% Total recurring expenditures 63,546,886 68,464,753 4,917,867 7.74% Summary b" Category Wages, Payroll Taxes & Benefits 13,072,224 13,281,652 209,428 1.60% Supplies 459,824 387,190 (72,634) (15.80%) Services & Charges 8,410,879 8,342,644 (68,235) (0.81%) Transfers out - #204 401,550 398,750 (2,800) (0.70%) Transfers out - #309 0 0 0 0.00% Transfers out - #311 0 0 0 0.00% Transfers out - #501 92,500 92,500 0 0.00% Transfers out - #502 900,000 1,100,000 200,000 22.22% Transfers out - #503 0 0 0 0.00% Intergovernmental Svc (public safety) 39,710,109 44,478,317 4,768,208 12.01% Intergovernmental Svc 484,800 368,700 (116,100) (23.95%) Capital outlay 15,000 15,000 0 0.00% 63,546,886 68,464,753 4,917,867 7.74% This department accounts for the cost of providing effective elected representation of the citizenry in the governing body. The Council makes policy decisions for the City and is accountable to Spokane Valley citizens by making decisions regarding how resources are allocated, the appropriate levels of service, and establishing goals and policies for the organization. Budget Summary 2t12 2023 2024 2O25 202ti Actual Actual FActual Budget Budget Personnel - FTE Equivalents Mayor 1.0 1.0 1.0 1.0 1.0 Council 6.0 6.0 6.0 6.0 6.0 Total FTEs 7.0 7.0 7.0 7.0 7.0 Budget Detail Wages, Payroll Taxes & Benefits $ 323,194 $ 346,014 $ 362,524 $ 384,411 $ 407,753 Supplies 1,098 1,013 2,565 1,100 2,300 Services & Charges 280,060 299,761 423,201 718,600 571,600 Total Legislative Branch $ 604,352 $ 646,788 $ 788,290 $ 1,104,111 $ 981,653 City Manager Division This department is accountable to the City Council for the operational results of the organization, effective support of elected officials in achieving their goals, fulfillment of the statutory requirements of the City Manager, implementation of City Council policies, and provision of a communication linkage between citizens, the City Council, City departments, and other government agencies. Budget Summary 2022 2023 2024 2025 27-- Actual Actuat Actual Budget Budget Personnel - FTE Equivalents City Manager 1.0 1.0 1.0 1.0 1.0 City Clerk 1.0 1.0 1.0 1.0 1.0 Deputy City Clerk 1.0 1.0 1.0 1.0 1.0 Executive Assistant (CM) 1.0 1.0 1.0 1.0 1.0 Office Assistant 1 0.5 0.5 0.5 0.5 0.5 Legislative Coordinator 1.0 0.0 0.0 0.0 0.0 Total FTEs 5.5 4.5 4.5 4.5 4.5 Budget Detail Wages, Payroll Taxes & Benefits $ 757,420 $ 698,786 $ 695,700 $ 776,450 $ 775,633 Supplies 4,099 4,651 2,199 6,000 5,000 Services & Charges 43,233 58,979 48,790 76,000 68,950 Nonrecurring expenditures 4,723 0 0 0 0 Total City Manager Division $ 809,475 $ 762,416 $ 746,689 $ 858,450 $ 849,583 City Attorney Division The Office of the City Attorney represents the city's legal interests, including oversight of claims and litigation. The Office of the City Attorney is responsible for providing legal advice and support to the City Council and city employees, as well as prosecuting and defending all civil matters, including through the use of outside counsel. Budget Summary Personnel - FTE Equivalents City Attorney 1.0 1.0 1.0 1.0 1.0 Senior Deputy City Attorney 1.0 1.0 1.0 1.0 1.0 Deputy City Attorney 1.0 1.0 1.0 1.0 1.0 Paralegal 0.0 1.0 1.0 1.0 1.0 Administrative Assistant - Legal 1.0 1.0 1.0 1.0 1.0 Total FTEs 4.0 5.0 5.0 5.0 5.0 Interns 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 575,912 $ 719,096 $ 746,306 $ 824,420 $ 865,704 Supplies 1,657 2,047 2,124 6,445 6,511 Services & Charges 262,044 379,148 204,087 152,224 157,111 Total City Attorney Division $ 839,613 $ 1,100,291 $ 952,517 $ 983,089 $ 1,029,326 Communication Serves as a liaison to various civic and/or governmental organizations and committees, taskforces, boards and commissions; confers regularly with other municipalities, chamber of commerce, authorities and commissions. Provides regular, timely, clear an accurate information to the community and provide opportunities where community members can get involved, share their thoughts and inform city decision -making. In concert with City Council priorities, leads the city's effort to advance the city, state and federal legislative initiatives and priorities. Monitors and analyzes regional, state and federal legislation, ordinances and policy changes. Budget Summary Personnel - FTE Equivalents City Services Administrator 0.0 0.34 0.34 0.34 0.34 Legislative Coordinator 0.0 1.0 1.0 1.0 1.0 Communications Manager 0.0 1.0 1.0 1.0 1.0 Communications Specialist 0.0 1.0 1.0 1.0 1.0 Total FTEs 0.0 3.34 3.34 3.34 3.34 Budget Detail Wages, Payroll Taxes & Benefits $ 0 $ 180,767 $ 351,127 $ 607,892 $ 617,709 Supplies 0 10,408 2,123 1,000 6,000 Services & Charges 58,786 27,570 64,735 94,460 85,000 Total Communications Division $ 58,786 $ 218,745 $ 417,985 $ 703,352 $ 708,709 Housing & Homeless Services Provides first point of contact for residents seeking information or assistance with issues related to housing and home- lessness. Oversees the development and management of contracts with service providers for homeless outreach and other services. Advance the city's priorities in regional collaborative efforts focused on housing and homelessness. Serves as the liaison for the City's Homeless and Housing Task Force. Budget Summary 2022 2023 2024 2ti25 202g6 Actual Actual FActual Budget Bud et Personnel - FTE Equivalents City Services Administrator 0.0 0.33 0.33 0.33 0.33 Housing & Homeless Services Coordinator 0.0 1.0 1.0 1.0 1.0 Total FTEs 0.0 1.33 1.33 1.33 1.33 Budget Detail Wages, Payroll Taxes & Benefits $ 118,177 $ 124,182 $ 132,833 $ 229,221 $ 237,376 Supplies 101 273 75 1,300 2,000 Services & Charges 144,751 62,868 209,056 444,800 433,950 Nonrecurring Expenditures 3,809 0 1,196 0 0 Total H&H Services Division $ 266,838 $ 187,323 $ 343,160 $ 675,321 $ 673,326 The Public Safety department budget provides funds for the protection of persons and property in the city. The City contracts with Spokane County for law enforcement, district court, prosecutor services, public defender services, probation services, jail and animal control services. See following page for detail information on each budgeted section. Recurring Expenditures: Judicial System - The Spokane County District Court is contracted $ 3,327,607 to provide municipal court services. The contract provides for the services of judge and court commissioner with related support staff. Budgeted amount also includes jury management fees. Law Enforcement - The Spokane County Sheriffs Office is 38,914,414 responsible for maintaining law and order and providing police services to the community under the direction of the Police Chief. The office provides for the preservation of life, protection of property, and reduction of crime. Jail System - Spokane County provides jail and probation 2,046,780 services for persons sentenced by any City of Spokane Valley Municipal Court Judge for violating laws of the city or state. Animal Control - Spokane County will provide animal control 389,516 services to include licensing, care and treatment of lost or stray animals, and response to potentially dangerous animal confrontations. Non -Departmental Grant expenditures 0 Total Recurring Expenditures 44,678,317 Nonrecurring Expenditures: Public Safety (police vehicle replacements) 544,000 Total Nonrecurring Expenditures 544,000 Total Recurring and Nonrecurring Expenditures $ 45,222,317 City of Spokane Valley 2026 Budget Public Safety Recurring: Judicial System: District Court Contract $ 1,322,524 $ 1,372,934 $ 1,364,769 $ 1,742,870 $ 1,599,719 Public Defender Contract 840,530 920,165 961,802 963,837 1,117,207 Prosecutor Contract 396,534 329,993 369,984 456,404 400,000 Pretrial Services Contract 181,059 183,168 187,482 198,736 210,681 Subtotal Judicial System 2,740,647 2,806,260 2,884,037 3,361,847 3,327,607 Law Enforcement System: Sheriff Contract 25,620,656 27,079,308 29,143,218 34,020,271 38,512,539 Law Enforcement Vehicles 0 910,655 0 0 0 Emergency Management 90,156 103,517 93,954 107,231 201,875 Operating Supplies 86 42 164 0 0 Repair & Maint Supplies 2,064 2,042 435 0 0 Small Tools and Minor Equipment 176 0 0 0 0 Non -Capital Equipment for JAG Grant 16,443 0 0 0 0 Repair & Maint Supplies 0 1,960 0 0 0 Fuel 25 25 0 0 0 Law Enf. Repair & Maintenance Supplies 5,171 17,492 0 0 0 Janitorial Supplies 2,659 4,583 0 0 0 Small Tools and Minor Equipment 320 1,511 0 0 0 Wages & Benefits 21,971 63,855 0 0 0 Advertising 122 0 0 0 0 GIS Services 0 6,698 3,831 2,500 0 Miscellaneous Srvs/Contingency 763 818 426 200,000 200,000 Vehicle License & Registration 164 55 60 0 0 False Alarm Bank Fees 1,064 823 888 1,200 0 Law Enforcement Building R&M 6,307 6,412 0 0 0 Building & Grounds R&M 0 2,156 0 0 0 Prior Years' Settle & Adjust (331,433) 0 0 0 0 Electricity/Gas 22,482 23,591 0 0 0 Water 1,603 1,734 0 0 0 Sewer 817 822 0 0 0 Janitorial Services 41,184 61,358 0 0 0 Taxes and Assessments 813 1,984 0 0 0 Law Enforcement Building R&M 1,249 0 0 0 0 Miscellaneous Services 146 295 0 0 0 Building & Grounds R&M 62,554 20,260 0 30,000 0 Subtotal Law Enforcement System 25,567,562 28,311,996 29,242,976 34,361,202 38,914,414 Jail System: Jail Contract 1,667,693 2,460,267 1,602,125 1,841,748 2,046,780 Subtotal Jail System 1,667,693 2,460,267 1,602,125 1,841,748 2,046,780 Other: Animal Control Contract 330,961 354,410 367,405 379,012 389,516 Hearing Examiner 0 1,643 680 0 0 Subtotal Other 330,961 356,053 368,085 379,012 389,516 Subtotal Recurring 30,306,863 33,934,576 34,097,223 39,943,809 44,678,317 Professional Services (Precinct Space Study) 0 84,787 80,508 0 0 Building R&M 34,965 0 0 0 0 Improvements to Buildings 8,168 52,522 20,666 0 0 Precinct Improvements w/ JAG Funds 23,635 0 0 0 0 Heavy Duty Machinery & Equipment 34,678 117,947 0 0 0 Capital Equipment 79,840 73,126 31,786 0 0 Law Enforcement Vehicles 0 1,531,089 0 780,000 544,000 Subtotal Nonrecurring 181,286 1,859,471 132,960 780,000 544,000 Total Public Safety $ 30.488,149 $ 35,794,047 $ 34,230,183 $ 40,723,809 $ 45,222,317 0 N 0 N Uc � 0D � QUu Y 00 U Ln Q m rp N "+ C O a U H v u C Y C c9 U2 CD 3 00 Y C Lr m C_ O N (a U 2 U V L' U LD C Y a � o m 0 u O1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 C 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 C 0 0 0 0 V1 0 Vi 0 L%i 0 V1 m m N N N ti The Operations & Administrative Services Department is composed of three divisions, the Deputy City Manager Division, the Finance Division, the Human Resources Division, and the Information Technology Division. Deputy City Manager Division The Deputy City Manager (DCM) supervises the Parks & Recreation Department, Office of the City Attorney, Finance Department, IT Department, and oversees the City's Public Safety contracts. In 2023, the Deputy City Manager supervised the Facilities division until it was assumed by the City Services Administrator. The Deputy City Manager assists the City Manager in organizing and directing the other operations of the City, and assumes the duties of City Manager in his/her absence. Budget Summary Personnel - FTE Equivalents Deputy City Manager 1.0 1.0 1.0 1.0 1.0 Senior Admin Analyst 1.0 1.0 1.0 1.0 1.0 Administrative Analyst 1.0 1.0 1.0 1.0 1.0 Total FTEs 3.0 3.0 3.0 3.0 3.0 Budget Detail Wages, Payroll Taxes & Benefits $ 468,133 $ 555,772 $ 597,009 $ 628,114 $ 638,966 Supplies 103 0 0 500 5,200 Services & Charges 47,164 46,751 10,761 8,767 10,189 Total Deputy City Manager Division $ 515,400 $ 602,523 $ 607,770 $ 637,381 $ 654,355 Finance Division The Finance Division provides financial management services for all City departments. Programs include accounting and financial reporting, payroll, accounts payable, purchasing, budgeting and financial planning, treasury, and investments. The division is also responsible for generating and analyzing financial data related to the City's operations. The department prepares Finance Activity Reports for review by the City Manager and City Council as well as the Annual Comprehensive Financial Report (ACFR) that is subject to an annual audit by the Washington State Auditor's Office. Budget Summary Personnel - FTE Equivalents Finance Director 1.0 1.0 1.0 1.0 1.0 Accounting Manager 1.0 1.0 1.0 1.0 1.0 Accounting & Finance Program Manager 0.0 1.0 1.0 1.0 1.0 Accountant/Budget Analyst 3.75 2.75 2.75 2.75 2.75 Accountant 1 0.0 1.0 1.0 1.0 1.0 Accounting Technician 2.0 2.0 2.0 2.0 2.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Database Administrator 1.0 0.0 0.0 0.0 0.0 Total FTEs 9.75 9.75 9.75 9.75 9.75 Budget Detail Wages, Payroll Taxes & Benefits $ 1,183,149 $ 1,237,511 $ 1,402,917 $ 1,481,518 $ 1,539,969 Supplies 6,825 7,767 4,195 5,666 5,666 Services & Charges 15,053 12,630 11,490 19,500 19,500 Total Finance Division $ 1,205,027 $ 1,257,908 $ 1,418,602 $ 1,506,684 $ 1,565,135 Information Technology Division IT Division is responsible for the design, maintenance and support of the City's data network. This division maintain all primary computer applications including the financial management and permitting systems. Budget Summary 2022 2023 2024 2025 2026 Actual Actual IFActual Budget Budget Personnel - FTE Equivalents IT Manager 1.0 1.0 1.0 1.0 1.0 IT Specialist 2.0 2.0 2.0 2.0 2.0 Total FTEs 3.0 3.0 3.0 3.0 3.0 Budget Detail Wages, Payroll Taxes & Benefits $ 390,153 $ 380,822 $ 358,961 $ 432,003 $ 461,337 Supplies 273 205 31 650 650 Services & Charges 5,278 5,509 5,153 13,000 13,000 Total Finance Division $ 395,704 $ 386,536 $ 364,145 $ 445,653 $ 474,987 Human Resources Division Human Resources (HR) is administered through the City Manager. The HR operation provides services in compensation, benefits, training and organizational development, staffing, employee relations, and communications. The Human Resources Office also provides Risk Management services as well as Website and Mobile App design and maintenance Budget Summary 2022 2023 2024 20216 2026 Actual Actual Actual Budget Budget Personnel - FTE Equivalents Human Resource Manager 1.0 1.0 1.0 1.0 1.0 Human Resource Technician 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 307,005 $ 323,305 $ 342,365 $ 373,140 $ 383,375 Supplies 1,037 2,224 1,474 1,000 1,500 Services & Charges 36,166 61,015 88,555 28,140 32,230 Total Human Resources Division $ 344,208 $ 386,544 $ 432,394 $ 402,280 $ 417,105 Facilities The City Services Administrator provides management and oversight of the City's facilities. This department is responsible for the overall operations and maintenance of the City Hall facility, the City's Valley Precinct facility, CenterPlace and the Street Maintenance Shop. The Facilities Department is responsible for, among other things, grounds maintenance, janitorial services, lighting, and maintenance of the HVAC and other building systems. Budget Summary Personnel - FTE Equivalents City Services Administrator 0.0 0.33 0.33 0.33 0.33 Facilities Manager 0.0 0.0 1.0 1.0 1.0 Lead Maint Worker -Facilities 0.8 0.8 1.0 1.0 1.0 Maint Worker -Facilities 1.0 1.0 2.0 2.00 2.00 Custodian 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.80 3.13 5.33 5.33 5.33 Budget Detail Wages, Payroll Taxes & Benefits $ 260,042 $ 288,174 $ 848,855 $ 615,541 $ 631,796 Supplies 36,765 43,896 101,094 101,900 104,000 Services & Charges 400,487 316,302 976,638 769,435 741,530 Nonrecurring expenditures 67,046 107,254 153,926 572,200 58,000 Total Administrative Division $ 764,340 $ 755,626 $ 2,080,513 $ 2,059,076 $ 1,535,326 Engineering Division The Engineering Division includes the following functions: Capital Improvement Program (CIP) plans, designs, and constructs new facilities and maintains, preserves, and reconstructs existing facilities owned by the City of Spokane Valley, Development Engineering (DE) ensures that land actions and commercial building permits comply with the adopted codes for private infrastructure development through plan review and construction inspection. Traffic Management and Operations provides traffic engineering for safe and efficient multi -faceted transportation systems throughout the City (included in the Street Fund #101). Utilities oversees the City's surface and Stormwater Utility and coordinates other utility issues on behalf of the City as assigned (included in the Stormwater Management Fund #402 ). Personnel - FTE Equivalents General Administrative Assistant Assistant Engineer CAD Manager City Engineer CPW Liaison Engineer Engineering Manager - CIP Engineering Manager - Utility Engineering Tech I Engineering Tech 11 Engineering Tech Supervisor Main/Construction Inspector Planning & Grants Engineer Project Manager Public Works Director Senior Dev Engineer Senior Engineer-Proj Mgmt. Senior Planning Grants Engineer Water Resource Sr. Engineer Development Senior Dev Engineer Assistant Engineer Engineering Manager - Development Maint/Construction Inspector ROW Inspector Water Resource Sr. Engineer Total FTEs Interns Budget Detail Budget Summary 1.0 0.90 0.90 0.90 1.4 1.5 0.75 0.75 0.75 0.0 ` 0.5 0.0 0.0 0.0 0.0 1.0 1.00 0.0 0.0 0.0 0.0 0.20 0.20 0.20 0.20 * 0.5 0.0 0.3 0.25 0.50 * 1.0 1.0 0.5 0.5 1.0 * 0.0 0.0 0.5 0.5 0.0 1.5 0.75 0.75 0.75 0.75 ` 0.75 0.6 0.6 0.6 0.5 0.0 0.5 0.5 0.5 0.5 ` 2.0 0.0 0.0 0.0 0.0 0.0 0.5 0.5 0.5 0.5 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 1.0 1.0 0.0 0.0 0.0 0.0 1.7 0.9 0.9 0.9 0.7 ` 0.375 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 13.825 0.0 0.75 1.25 0.0 1.75 0.0 1.0 11.850 0.0 0.75 1.25 0.75 1.0 0.0 1.0 11.10 0.0 0.75 1.25 0.0 1.0 0.0 1.0 10.35 0.0 0.00 0.75 0.75 1.0 1.0 1.0 11.65 0.0 Wages, Payroll Taxes & Benefits $ 1,655,389 $ 1,399,471 $ 1,715,138 $ 2,131,000 $ 1,962,077 Supplies 23,130 34,865 23,536 43,450 42,450 Services & Charges 135,390 264,904 342,721 385,349 345,999 Total Engineering Division $ 1,813,909 $ 1,699,240 $ 2,081,395 $ 2,559,799 $ 2,350,526 • 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, Building and Code Enforcement Division The Building and Code Enforcement Division is responsible for implementing and enforcing the State Building Code and Spokane Valley Municipal Code as required by state law. The purpose of the Building Codes, as adopted by the State of Washington and City of Spokane Valley, is to promote the health, safety, and welfare of the occupants or users of the building and structures and the general public by requiring minimum performance standard for structural strength, exit systems, stability sanitation, light, ventilation, energy conservation, and fire safety to ensure the City's comply with various codes. The Code Enforcement arm of the division is responsible for enforcing SVMC throughout the City, primarily on private property. The Code Enforcement Team works directly with property owners in maintaining property to City -adopted standards relating to vegetation, camping, vehicles, trash and rubbish, and structure conditions. Budget Summary 1kEtitAc#oaf Actti Bud> �iut eta . Personnel - FTE Equivalents Building Official 1.0 1.0 1.0 1.0 1.0 Assistant Building Official 1.0 1.0 1.0 1.0 1.0 Development Service Coordinator 1.0 1.0 1.0 1.0 1.0 Senior Permit Specialist 0.0 0.0 0.0 1.0 1.0 Engineering Tech 1.0 1.0 1.0 0.0 0.0 Permit Facilitator 2.0 2.0 2.0 2.0 2.0 Plans Examiner 1.0 1.0 1.0 1.0 1.0 Building Inspector II 3.0 3.0 3.0 3.0 3.0 Office Assistant)) 1.0 1.0 1.0 0.0 0.0 Office Assistant) 2.0 2.0 2.0 2.0 1.0 Administrative Assistant 0.0 0.0 0.0 1.0 1.0 Senior Planner 0.0 0.0 0.0 0.0 0.0 Planner 0.0 0.0 0.0 0.0 0.0 Code Enforcement Officer 2.0 2.0 2.0 2.0 2.0 Total FTEs 15.0 15.0 15.0 15.0 14.0 Budget Detail Wages, Payroll Taxes & Benefits $ 1,557,184 $ 1,636,737 $ 1,674,877 $ 1,787,315 $ 1,761,416 Supplies 20,584 29,237 21,464 44,450 44,950 Services & Charges 340,190 199,624 126,911 293,720 310,910 Total Building Division $ 1,917,958 $ 1,865,598 $ 1,823,252 $ 2,125,485 $ 2,117,276 Economic Development Division The Economic Development Department oversees Geographical Information Systems, Marketing and Communications, Current and Long Range Planning, Tourism, Business Licensing, and Business Development. The Department works to build relationships with businesses, the community, and economic development partners to pursue strategies that ensure long-term fiscal strength of the City. Budget Summary Personnel - FTE Equivalents Economic Development Director 1.0 1.0 1.0 1.0 1.0 Economic Development Specialist 0.0 1.0 1.0 1.0 1.0 Tourism & Marketing Officer 0.0 0.0 1.0 1.0 1.0 Public Information Officer 1.0 0.0 0.0 0.0 0.0 Senior Transportation Planner 1.0 1.0 0.0 0.0 0.0 GIS Analyst 0.77 0.77 0.77 0.77 0.77 Housing & Homeless Services Coordinator 1.0 0.0 0.0 0.0 0.0 Business License Specialist 1.0 1.0 1.0 1.0 1.0 Total FTEs 5.77 4.77 4.77 4.77 4.77 Interns 1.0 1.0 1.0 1.0 1.0 Budget Detail Wages, Payroll Taxes & Benefits $ 712,814 $ 683,308 $ 731,476 $ 800,090 $ 862,770 Supplies 2,569 1,287 3,354 5,400 5,400 Services & Charges 316,323 413,127 301,097 446,790 446,791 Nonrecurring Expenditures 25,677 165,195 0 0 0 Total Engineering Division $ 1,057,383 $ 1,262,917 $ 1,035,927 $ 1,252,280 $ 1,314,961 This position is budgeted partially to the Economic Development Division in the General Fund with the balance budoeted as a part of the Stormwater Fund #402. Planning Division The Planning Division oversees both long-range and current planning for the City. The Division oversees the development and implementation of the Comprehensive Plan, Shoreline Master Program, and Housing Action Plan, including developing and processing amendments to the comprehensive plan, zoning, subdivision regulations, and related procedural requirements. The Division handles land use permit processing such as subdivisions, shoreline permits, conditional use permits, boundary line adjustments, and zoning letters. The Division also ensures the City maintains consistency with state laws like the Growth Management Act, the Shoreline Management Act, the State Environmental Policy Act, Subdivisions, and other related land use laws. Budget Summary Personnel - FTE Equivalents Planning Manager 1.0 1.0 1.0 1.0 1.0 Senior Planner 1.0 1.0 1.0 1.0 1.0 Associate Planner 0.0 0.0 0.0 2.0 2.0 Planner 3.0 3.0 3.0 1.0 1.0 Total FTEs 5.0 5.0 5.0 5.0 5.0 Budget Detail Wages, Payroll Taxes & Benefits $ 627,005 $ 665,222 $ 679,354 $ 738,027 $ 839,461 Supplies 2,724 1,304 2,057 4,300 4,300 Services & Charges 105,422 165,442 185,534 369,900 212,151 Nonrecurring expenditures 0 0 0 0 425,000 Total Planning Division $ 735,151 $ 831,968 $ 866,945 $ 1,112,227 $ 1,480,912 The Parks and Recreation Department is composed of six divisions including Administration, Maintenance, Recreation, Aquatics, Senior Center, and CenterPlace. The overall goal of the department is to provide quality recreation programs and acquisition, renovation, development, operation and maintenance of parks and maintenance of parks and recreation facilities. Parks Administration Division The Administration Division provides direction and leadership for the Parks and Recreation Department in implementing the goals and objectives of the City Council and facilitates the general upkeep of parks and public areas of the City. Budget Summary 2032 2023 2024 2025 2026 Actual Actual Actual Budget Budget Personnel - FTE Equivalents Parks & Recreation Director 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages, Payroll Taxes & benefits $ 274,893 $ 287,849 $ 320,784 $ 311,603 $ 313,962 Supplies 3,336 3,207 10,212 2,800 6,800 Services & Charges 62,370 90,908 81,863 155,578 153,404 Total Parks Administration Division $ 340,599 $ 381,964 $ 412,859 $ 469,981 $ 474,166 Maintenance Division The Parks Maintenance Division is responsible for the contracted maintenance and upkeep of our parks and public areas including the Centennial Trail. Budget Summary kAJAP Personnel - FTE Equivalents Parks & Rec- Maintenance 0.0 2.0 1.0 1.0 1.0 Recreation Coordinator 0.0 0.0 0.0 1.0 1.0 Budget Detail Wages, Payroll Taxes & Benefits $ 0 $ 30,944 $ 47,125 $ 130,611 $ 131,665 Supplies 4,430 27,517 16,075 59,500 56,500 Services & Charges 998,507 1,091,276 1,960,113 2,233,932 2,493,633 Nonrecurring expenditures 18,741 373 30,000 30,000 0 Total Maintenance Division $ 1,021,678 $ 1,150,110 $ 2,053,313 $ 2,454,043 $ 2,681,798 Recreation Division The Recreation Division coordinates and facilitates the delivery of recreation programs and service throughout the City and the City's Park system. Budget Summary 2022 .. 1023.... 2024. 2#1255. :.,, 2U s .:_ . Aetiat ' _c#uai +Afuat Bud e. ',' dud et: Personnel - FTE Equivalents Recreation Coordinator 1.0 1.0 1.0 1.0 1.0 Recreation Specialist 0.6 0.6 0.6 0.6 0.6 Recreation Coordinator 1.6 1.6 1.6 1.6 1.6 Budget Detail Wages, Payroll Taxes & Benefits $ 190,939 $ 206,665 $ 207,910 $ 260,982 $ 261,489 Supplies 9,527 8,507 10,055 19,000 13,450 Services & Charges 62,484 58,473 82,580 81,253 85,835 Total Recreation Division $ 262,950 $ 273,645 $ 300,545 $ 361,235 $ 360,774 Aquatics Division The City of Spokane Valley owns three pools: Park Road Pool, Terrace View Pool, and Valley Mission Pool. Services include open swim, swim lessons, swim team and facility rentals. In addition, the City leases a portion of Valley Mission Park to Splashdown Inc. for a water park. The City currently is contracting with the YMCA for all aquatic activities within the City. The YMCA provides the lifeguards and maintains the pools during the season. Budget Summary 2022 2023 2024 20255 209 Actual Actual Actual Bud et Budget Budget Detail Supplies $ 1,154 $ 660 $ 2,152 $ 500 $ 500 Services & Charges 442,104 567,200 666,004 677,000 680,060 Total Aquatics Division $ 443,258 $ 567,860 $ 668,156 $ 677,500 $ 680,560 Senior Center Division The City of Spokane Valley Parks and Recreation Department assumed operational control of the Valley Senior Center in 2003, Budget Summary 2022 2023 2024 2025 2026 Actual Actual Actual Budget Budget Personnel - FTE Equivalents Senior Center Specialist 0.4 0.4 0.4 0.4 0.4 Total FTEs 0.4 0.4 0.4 0.4 0.4 Budget Detail Wages, Payroll Taxes & Benefits $ 9,693 $ 18,670 $ 25,497 $ 28,964 $ 27,524 Supplies 600 1,114 0 1,600 850 Services & Charges 2,525 1,100 990 4,638 1,559 Total Senior Center Division $ 12,818 $ 20,884 $ 26,487 $ 35,202 $ 29,933 CenterPlace Division Construction of Mirabeau Point CenterPlace began in late 2003 and was completed mid -year 2005. The project represented the culmination of eight years of planning and fundraising by Mirabeau Point Inc. and the joint involvement of the City and Spokane County. The approximately 54,000 square foot facility houses the City of Spokane Valley Senior Center, a great room/banquet facility, numerous meeting rooms, multi -purpose rooms and a high tech lecture hall. The facility combines with Mirabeau Meadows Parks and Mirabeau Springs to form a regional focal point for Northeastern Washington and Northern Idaho. Budget Summary Personnel - FTE Equivalents Centerpiece Coordinator 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 0.0 0.0 0.0 0.0 0.0 Office Assistant I 1.0 1.0 1.0 1.0 1.0 Office Assistantll 1.0 1.0 1.0 1.0 1.0 Part Time Office Assistant 0.0 0.0 0.0 0.0 0.0 Maintenance Worker -Facilities 1.84 1.84 0.0 0.0 0.0 Total FTEs 4.8 4.84 3.00 3.00 3.00 Budget Detail Wages, Payroll Taxes & Benefits $ 468,991 $ 531,770 $ 116,420 $ 530,922 $ 561,668 Supplies 88,339 109,875 149,511 50,063 30,863 Services & Charges 317,167 370,188 115,809 143,643 143,094 Nonrecurring Expenditures 0 75,538 0 0 80,000 Total CenterPlace Division $ 874,497 $ 1,087,371 $ 381,740 $ 724,628 $ 815,625 The General Government Department accounts for those activities that are not specific to the functions of any particular General Fund Department or operation. Expenditures recorded here are composed of City Hall bond payments; information technology equipment and services; capital costs that benefit more than one department; support of agencies external to the City that provide social service programs and economic development services; and transfers to other City funds for property/casualty insurance premiums (Fund #502), city hall bond payment (Fund #204) and capital equipments (Fund #501). Budget Summary zap za 3 zaxa z s ; F za Actual Actual Actual Sua Bud et 9 uoplies Employee Recognition -Operating Supplies $ 1,694 $ 3,102 $ 4,144 $ 3,500 $ 0 Desktop Hardware -Non Capital 3,664 25,880 7,900 21,500 21,500 Desktop Software Licensing -Non Capital 12,052 429 0 0 0 Miscellaneous 2,660 2,842 1,644 2,500 500 Fuel 0 518 0 0 0 Network Hardware -Non Capital 10,894 4,599 11,589 9,000 4,000 Server Hardware 3,044 778 2,067 5,000 5,000 Office & Operating Supplies 4,907 3,550 14,813 1,000 1,000 Security Hardware 13,562 3,930 1,366 22,000 2,000 Small Tools & M 5,504 9,942 4,841 7,000 7,000 Vehicle Supplie 908 613 538 1.000 600 Network Software Licensing 572 0 0 0 0 Security Software Licensing 22,197 4,558 0 0 0 Server Software Licensing 4,038 1,626 371 0 0 85,696 62,367 49,273 72,500 41,600 Accounting & Auditing 77.459 138,580 134,563 130,000 140,000 Alcohol Treatment: Liquor Excise Tax 14,777 15,019 14,779 15,000 15,000 Alcohol Treatment: Liquor Profits 16,209 16,377 16,215 16,500 16,500 County Data Sharing Passthrough Costs 5,809 7,528 5,593 7,600 6,600 Desktop Software/Subscription Maint 0 55,847 55,608 61,000 61,000 Equip Repair & Maint-Hardware Support 15 55 36 0 0 Equip Repair & Maint-Hardware Support 5,303 0 0 0 0 Equipment Rental 3,869 3,869 3,869 4,000 4,000 Hosted Software as a Service 0 156,471 226,931 254,000 257,900 Interest 459 0 0 0 0 Internet Service 1,558 2,458 271 0 0 Internet Service 8,319 7,926 10,396 11,100 11,400 IT Support 1,592 2.999 68,303 85,000 20,000 Merchant Charges (Bankcard Fees) 1,134 55 279 1,000 1,000 Miscellaneous Services 2,264 5,631 6,674 5,000 5,000 Network Hardware Subscription/Maint 0 19,071 26,748 23,500 28,500 Network Infrastructure Access - SCRAPS 1,218 1,133 1,133 1,200 1,400 Network Software Subscription/Maint 8,248 5,413 873 600 20,600 Outside Agencies - Social Svc & Econ. Dev. 140,552 193,238 6,606 0 0 Postage 714 18 53 1,000 200 Printing & Binding 0 0 0 500 0 Professional Services 0 250 0 0 0 Professional Services 0 14,344 0 0 0 Professional Services - Misc Studies 94,000 22,250 63,256 210,250 210,250 Registrations 0 0 1,500 0 0 Security Hardware Subscription/Maint 0 12,028 6,014 19,800 24,800 Security Software Subscription/Maint 154 24,557 39,824 30,200 90,200 Server Hardware Subscription/Maim 0 5,303 5,837 18,000 18,000 Server Software Subscription/Maim 0 67 18 0 0 Server Software Subscription/Maint 146,094 110,245 143,338 110,800 113,600 Sewer 504 432 364 0 0 Telephone 31,282 2,042 218 0 0 Telephone 6,474 7,721 10,185 12,600 12,600 Vehicle Repair & Maintenance 0 0 61 0 0 $ 591,460 $ 836,352 $ 861,270 $ 1,108,950 $ 1,148,850 ontinued from previous page) Budget Summary Actuat . �,, Aetaat Asival :: Bclge#,-.;" rusigei ;�, tergovemmental Services Election Costs $ 0 $ 122,554 $ 81,396 $ 123,000 $ 0 Voter Registration 97,033 91,732 0 100,000 100,000 Taxes and assessments 12,020 12,951 18,600 13,000 18,800 Spokane County Air Pollution Authority 148,194 193,276 217,440 230,300 237,200 257,247 420,513 317,436 466,300 356,000 apital Outlays Computer Hardware - Capital 50,495 0 22,482 15,000 15,000 Lease Asset 48,494 88,271 72,497 0 0 98,989 88,271 94,979 15,000 15,000 ebt Service: Principal Lease Principal 43,820 70,854 73,274 0 0 Lease Interest 4,002 7,786 8,347 0 0 Interest and Other Debt Service Costs 1,200 700 700 700 700 49,022 79,340 82,321 700 700 terfund Payments for Service Transfer out - #204 (city Hall bond payment) 401,400 401,150 398,950 401,550 398,750 Transfer out - #309 (park capital projects) 160,000 160,000 160,000 0 0 Transfer out-#311 (pavement preservation) 1,001,800 1,011,800 1,021,900 0 0 Transfer out - #501 (IT Capital equip reserve) 0 0 86,500 92,500 92,500 Transfer out -#502(risk management) 450,000 600,000 700,000 900,000 1,100,000 2,013,200 2,172,950 2,367,350 1,394,050 1,591,250 Subtotal Recurring Expenditures $ 3,095,614 $ 3,659,793 $ 3,772,629 $ 3,057,500 $ 3,153,400 Land Acquisition 186,000 0 663,310 0 0 Building Improvements 0 0 195,958 0 0 IT capital replacement 7,906 33,830 68,792 50,000 40,000 Capital Office 0 0 24,542 0 0 Computer Hardware -Capital 86,532 12,992 0 0 0 Computer Software- Capital 30,425 417,329 245,308 304,700 0 310,863 464,151 1,197,910 354,700 40,000 erp ating Professional Services 0 128,574 56,370 0 0 Professional Services - Econ Dev Grants 0 785,714 344,477 0 0 Professional Services - Social Services 0 4,000,000 1,753,700 0 0 Professional Services - H&H Grants 0 947,728 415,503 0 0 Professional Services - Children Services 0 157,381 73,268 0 0 Professional Services - Aging Services 0 2,447 2,500 0 0 CLFR Expenditures 43,514 110,375 42,700 1,185,300 0 43,514 6,132,219 2,688,518 1,185.300 0 Transfer out - #101 Transfer out - #122 Transfer out - #303 Transfer out - #309 Transfer out - #310 Transfer out - #312 (Capital Reserve) Transfer out - #501 (ER&R - Parks Vehicles) Transfer out - #503 (Pub Safety Equip Replace) Nonrecurring Expenditures Total Governmental Division 3,084,919 3,630,048 3,200,423 0 0 89,805 0 0 0 0 0 51,372 0 0 0 145 360,358 143,043 0 0 0 0 0 2,125,000 0 3,593,000 5,358,054 4,397,833 0 0 0 0 85,000 0 0 0 0 1,473,722 473,722 652,831 6,767,869 9,299.832 9,300,021 2,598,722 652,831 7,122,246 15,896,202 13,186,449 4,138,722 692,831 $ 10,217,860 $ 19,555,995 $ 16,959,078 $ 7,196,222 $ 3,846,231 The Street Maintenance Division, funded by Street Fund #101 was established to account for the activities associated with the provision of efficient and safe movement of both motorized and non -motorized vehicles, as well as pedestrians within the limits of the City, and coordinate convenient interconnect to the regional transportation system. Maintenance work includes snow and ice control, street pavement repairs, traffic signals and signs, landscaping and vegetation control, and many other street maintenance and repair activities. The Street Maintenance Division provides responsive maintenance and repairs for approximately 461 center line miles of City streets. Many of the services overseen by street maintenance staff are contracted services, including street and stormwater maintenance, roadway landscape maintenance, and street sweeping. Additionally, during winter months, city maintenance staff manage snow and ice services utilizing both City -owned and operated equipment, as well as contracted equipment and labor services. Budget Summary 202 » 2Q23 2025, 20206 ttsit ifaa[. " ,cfiu al 8►ttl 8 e Personnel - FTE Equivalents Assistant Engineer 0.0 0.0 0.0 0.0 0.0 Construction Inspector 1.5 1.5 1.5 1.5 1.5 Engineering Techll 0.25 0.25 0.90 0.90 0.90 Maintenance/Construction Inspector 0.50 0,50 2.0 2.0 2.0 Mechanic 0.75 0,75 0.75 0.75 0.75 Planning Grants Engineer 0.375 0.25 0.0 0.0 0.0 Public Works Superintendent 1.0 1.0 1.0 1.0 1.0 Stormwater Foreman 0.1 0.1 0.1 0.1 0.1 Streets Foreman 1.0 1.0 1.0 1.0 1.0 Traffic Signal Technician 0.0 1.0 1.0 1.0 1.0 Traffic Engineer 1.0 1.0 1.0 1.0 1.0 Traffic Engineering Manager 1.0 1.0 1.0 1.0 1.0 Total FTEs 7,475 8.350 10.25 10.25 10.25 (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 StormwaterFund #402. Budget Summary Actual Ac#uajf ".'_ Actual Bud a#" Bud efi" " Revenues Utility Tax $ 1,003,537 $ 960,872 $ 969,131 $ 900,000 $ 960,000 Motor Vehicle Fuel Tax 1,951,437 1,969,114 1,900,820 1,969,700 2,011,500 Multimodal Transportation Revenue 137,638 139,065 137,687 138,200 137,800 Right -of -Way Maintenance Fee 101,652 112,552 124,680 100,000 110,000 Solid Waste Road Wear Fee (local streets) 0 2,163,489 2,474,890 1,700,000 1,900,000 Investment Earnings 12,416 122,690 282,537 10,000 120,000 Miscellaneous 425,162 13,212 74,924 10,000 20,000 Transfer in-#111 0 0 709,274 1,800,000 1,800,000 Transfer in - #301 0 0 0 0 250,200 Transfer in - #302 0 0 0 0 250,200 Total revenues 3,631,842 5,480,994 6,673,943 6,627,900 7,559,700 Nonrecurring Revenues Utility Tax Recovery 0 0 0 0 0 Insurance proceeds 0 18,245 0 0 0 Transfers in - #001 3,084,919 3,530,048 3,200,423 0 0 Transfers in-#106 271,000 1,862,929 0 0 0 Transfers in -#122 500,000 0 0 0 0 Transfers in -#311 0 2,677,099 0 0 0 Transfers in -#312 0 250,000 0 1,750,000 1,750,000 Total Nonrecurring Revenues 3,855,919 8,338,321 3,200,423 1,750,000 1,750,000 Expenditures Street Department 4,711,609 4,546,373 3,465,469 3,002,698 2,956,040 Street Administration 92,796 140,961 96,976 111,272 82,672 Winter Operations 2,258, 399 1,593,725 1,559,294 1,705,580 1,734,583 Bridge Program 62,308 138,122 85,151 92,297 118,350 Local Street Program 0 2,212,183 1,544,013 0 0 Traffic Program 146,835 216,883 1,777,200 2,428,238 2,667,899 Transfer out - #303 (Thorpe Bridge Project) 0 0 0 25,000 0 Total Recurring Activity 7,271,947 8,848,247 8,528,103 7,365,085 7,559,544 Nonrecurring Expenditures Small Tools & Minor Equipment 4,356 17,597 0 0 0 Repairs & Maintenance 0 8,168 0 0 0 Traffic Control Improvements 0 0 201,888 0 0 Heavy Duty Machinery & Equipment 48,553 15,693 55,760 0 0 Capital Equipment (Repl. Programs) 0 96,265 0 135,000 135,000 Bridge Replacement Program 0 0 0 0 0 Traffic Signal Program Tools & Equipment 0 103,714 72,098 0 0 Transfers out - #311 0 1,372,761 0 0 0 Transfers out - #501 (Bucket TruckrVehicles signal p 0 70,568 100,280 0 0 Local Street Program 0 0 0 1,750,000 1,760,000 Total Nonrecurring expenditures 52,909 1,684,766 430,026 1,885,000 1,885,000 Revenues over (under) expenditures 162,905 3,286,302 916,237 (872,185) (134,844) Beginning fund balance 1,156,301 1,319,206 4,605,508 5,521,745 4,622,937 Less restriced balances 0 0 0 (26,623) 0 Ending fund balance $ 1,319,206 $ 4,605,508 $ 5,521,745 $ 4,622,937 $ 4,488,093 The State of Washington collects a $0.554 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2026 the Municipal Research and Services Center estimates the distribution back to cities will be $18.33 per person. Based upon a City of Spokane Valley population of 110,200 (per the Washington State Office of Financial Management on April 1, 2025) we anticipate the City will collect $2,020,000 in 2026. RCW 47.030.050 specifies that 0.42% of this tax must be expended for the construction of paths and trails and based upon the 2026 revenue estimate this computes to $8,500. The balance or $2,011,500 will be credited to Fund #101 for Street maintenance and operations. The portion of the motor vehicle tax allocated to the Paths and Trails Fund is by State Law restricted for the construction and/or improvement of paths and trails within the City. Because the cost of such projects is typically much greater than the funds generated in a single year, we typically leave the fund balance untouched until an adequate fund balance is available. The City transferred $50,000 in 2014 and $9,300 in 2016 and $50,000 in 2018 to Parks Capital Projects Fund #309 to be applied towards the Appleway Trail projects. Budget Summary 3Q22 21123F2024 !f ; 2E12�6 Actual Actuat Actual ' 8ud Bud et Revenues Motor Vehicle Fuel (Gas) Tax $ 8,230 $ 8,305 $ 8,017 $ 8,300 $ 8,500 Investment Interest 580 1,947 2,456 2,000 2,000 Total revenues 8,810 10,252 10,473 10,300 10,500 Expenditures Transfers out 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over (under) expenditures 8,810 10,252 10,473 10,300 10,500 Beginning fund balance 29,558 38,368 48,620 59,093 69,393 Ending fund balance $ 38,368 $ 48,620 $ 59,093 $ 69,393 $ 79,893 The Hotel/Motel Tax - Tourism Facilities Fund accounts for the receipt and expenditure of a special excise tax of 1.3% on the sale or charge made for the furnishing of lodging under RCW 82.08, These funds will be used solely for capital expenditures for acquiring, constructing, making improvements to or other related capital expenditures for large sporting venues, or venues for tourism -related facilities, which facilities generate overnight guests at lodging facilities subject to the taxes imposed. Budget Summary 2Ef22 2f323 _ 2U24 ;.. d g6 Actual Actual.,;.:- Actuaj dud et; Revenues HotellMotel Tax $ 591,849 $ 588,685 $ 578,559 $ 590,000 $ 590,000 Investment Interest 82,662 234,242 243,247 200,000 65,000 Transfers in - #105 273,000 515,198 793,575 500,000 0 Total revenues 947,511 1,338,125 1,615,381 1,290,000 655,000 Expenditures Transfers out - #316 (Cross Country Course) 0 13,015 4,386,985 2,500,000 0 Tourism Promotion 0 2,000,000 0 0 0 Total expenditures 0 2,013,015 4,386,985 2,500,000 0 Revenues over(under)expenditures 947,511 (674,890) (2,771,604) (1,210,000) 655,000 Beginning fund balance 4,672,194 5,619,705 4,944,815 2,173,211 963,211 Ending fund balance $ 5,619,705 $ 4,944,815 $ 2,173,211 $ 963,211 __L 1,618,211 The Hotel/Motel Fund accounts for the receipt and expenditure of a special excise tax of 2% on the sale or charge made for the furnishing of lodging under RCW 82.08. These funds will be used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition or operation of tourism -related facilities, and marketing of special events and festivals designed to attract tourists. Budget Summary 2421 202 ;024 2#1256 2026 Actuat Actu1 Actu�1 Bud et =Budget Revenues Hotel/Motel Tax $ 901,685 $ 905,678 $ 905,894 $ 900,000 $ 900,000 Investment Interest 11,320 26,189 47,448 20,000 25,000 Total revenues 913,005 931,867 953,342 920,000 925,000 Expenditures Tourism Promotion 284,604 309,702 458,388 393,000 673,000 Transfers out-#001 12,982 14,155 30,000 30,000 287,000 Transfers out-#104 273,000 515,198 793,575 500,000 0 Total expenditures 570,586 839,055 1,281,963 923,000 960,000 Revenues over (under) expenditures 342,419 92,812 (328,621) (3,000) (35,000) Beginning fund balance 165,000 507,419 600,231 271,610 268,610 Ending fund balance $ 507,419 $ 600,231 $ 271,610 $ 268,610 $ 233,610 In 2003, the City of Spokane Valley entered into an interlocal agreement with the City of Spokane and Spokane County to join the existing Spokane Regional Solid Waste Management System for a period of eight years. In 2011, that agreement was extended through November 16, 2014. Committed to ensuring Spokane Valley citizens are provided with solid waste services that are affordable, sustainable, and environmentally responsible, in June 2014 the City of Spokane Valley opted to contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc. Services provided under the contract were effective November 17, 2014, and continue for a period of ten years with options for two three-year extensions. Terms of the contract require Sunshine to pay the City an annual administrative fee of $125,000 that will be used by the City to offset contract administrative costs and solid waste management within the city, including solid waste public educational efforts. The contract also provides that a road maintenance fee will be paid by Sunshine at the rate of $1 per ton for each ton in excess of 45,500 tons in a single contract year. Payments will be made to the City by March 31 of the year following the calendar year being measured. In June 2017, the City entered a contract with Waste Management for the collection of garbage, recyclables, and compostables for the period of April 1, 2018 through March 31, 2028 with the option of two additional two-year extensions. Terms of the contract required Waste Management to pay the City a one-time fee of $47,500 upon contract execution to reimburse the City for the costs of procuring the contract. Waste Management is also required to pay the City an monthly administrative fee of 12.5% of gross receipts. During the years of 2013 and 2014, the General Fund #001 funded various studies and fees related to the solid waste program and transferred $60,000 to the Solid Waste Fund #106 for the purpose of providing information materials and marketing necessary to inform residents and businesses of the change in solid waste transfer, transport and disposal. The total amount paid out of the General Fund for these expenditures was $202,121, Beginning in 2015 the Solid Waste Fund will reimburse the General Fund for these costs over a 5-year period, which equated to an annual payment of $40,425 in the years 2015 through 2018, and a final payment of $40,422 in 2019. Budget Summary 2022 2023 2024 2025 2026 Actual Actual Actual Budget Bud et Revenues Solid Waste Administrative fees $ 268,611 $ 276,172 $ 252,216 $ 250,000 $ 250,000 Grant Proceeds 1,987,350 0 0 158,600 0 Investment interest 43,191 91,696 55,804 70,000 56,000 Total revenues 2,299,152 367,868 308,020 478,600 306,000 Expenditures Wages / Benefits / Payroll Taxes 0 0 0 250,000 160,201 Education & Contract Administration 62,757 301,877 115,375 228,600 70,000 Transfers out - #101 271,000 1,862,929 0 0 0 Transfers out - #303 110,746 0 0 0 0 Transfers out - #311 3,194 0 0 0 0 Total expenditures 447,697 2,164,806 115,375 478,600 230,201 Revenues over (under) expenditures 1,851,455 (1,796,938) 192,645 0 75,799 Beginning fund balance 1,140,119 2,991,574 1,194,636 1,387,281 1,387,281 Ending fund balance $ 2,991,574 $ 1,194,636 $ 1,387,281 $ 1,387,281 $ 1,463,080 Under the City's cable franchise, the franchise grantee remits to the City as a capital contribution in support of Public Education Government (PEG) capital requirements an amount equal to $0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise. Capital contributions collected under this agreement are allocated to PEG capital uses exclusively. PEG capital uses include in part the set up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. Budget Summary 2fl2 2p23 ^ . 2Q24 ; 2© g5 201,4 ; Revenues Comcast PEG contribution $ 64,640 $ 56,294 $ 50,295 $ 55,000 $ 50,000 Investment interest 3,247 10,249 10,449 5,000 8,000 Total revenues 67,887 66,543 60,744 60,000 58,000 Expenditures PEG Reimbursement - CMTV Capital Outlay Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 0 38,964 0 23,450 0 62,414 67,887 4,129 165,895 233,782 $ 233,782 $ 237,911 0 39,500 39,500 7,406 33,500 33,500 7,406 73,000 73,000 53,338 (13,000) (15,000) 237,911 291,249 278,249 $ 291,249 $ 278,249 $ 263,249 In the year 2020, the Council authorized the City to collect the affordable and supportive sales tax, which is a rebate of the State sales tax to cities and counties. The amount received by the City is up to 0.0146% of the taxable retail sales within the City capped at the 2019 fiscal year taxable retail sales. The Department of Revenue has estimated this capped distribution to be $200,000 for the City. The City will receive these revenues for 20 years, and the revenues may only be used to support affordable housing within the City or for rental assistance as outlined in RCW 82.14.540. Budget Summary 2022 f, 1023 2024 2tf25 026 Actual AcEuai Victual Bud et Butl 0 Revenues Affordable & Supportive Housing Sales Tax $ 202,181 $ 193,105 $ 192,959 $ 200,000 $ 193,000 Grant Proceeds (CHIP Grant) 0 0 0 1,000,000 0 Investment Interest 8,061 29,958 40,925 15,000 30,000 Total revenues 210,242 223,063 233,884 1,215,000 223,000 Expenditures Spokane Housing Authority Passthrough Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 0 0 0 0 210,242 223,063 367,327 577,569 $ 577,569 $ 800,632 0 1,000,000 0 0 1,000,000 0 233,884 215,000 223,000 800,632 1,034,516 1,249,516 $ 1,034,516 $ 1,249,516 $ 1,472,516 In the year 2022, qualified lodging businesses (40 or more lodging units) within the City of Spokane Valley submitted a petition to form a tourism promotion area (TPA). The Council adopted resolution 22-017 to establish and operate pursuant to chapter 35.101 RCW, a Tourism Promotion Area fund. The City estimates that the annual revenue from the lodging charges Promotion Area fund. Revenues are calculated based on a daily lodging charge of $4.00, Budget Summary Revenues Tourism Promotion Area Fee $ 0 $ 1,309,505 $ 1,403,642 $ 1,300,000 $ 1,300,000 Investment interest 0 28,192 61,362 0 30,000 Total revenues 0 1,337,697 1,465,004 1,300,000 1,330,000 Expenditures Professional Services 0 655,957 1,368,297 1,300,000 1,775,000 Total expenditures 0 655,957 1,368,297 1,300,000 1,775,000 Revenues over (under) expenditures 0 681,740 96,707 0 (445,000) Beginning fund balance 0 0 681,740 778,447 778,447 Ending fund balance $ 0 $ 681,740 $ 778,447 $ 778,447 $ 333,447 In 2023 Council passed Resolution #23-009 to declare Council's intent to operate a local homeless and housing program, and assume collection of available document recording fees for this purpose. As part of operating a homeless and housing program, the City first needed to form a Homeless Housing Task Force and adopt a five-year homeless housing action plan that identifies how the City will work to eliminate homelessness consistent with the State's adopted strategic plan. Document recording fees are collected by Spokane County and passed through to the City based on the City's proportionate share of real estate excise tax (REET) collected on a monthly basis. Budget Summary 2022 2023 2024 2025 2026 ActuaE Actual Actuat Budget Budget Revenues Recording Fees $ 0 $ 125,527 $ 350,030 $ 290,000 $ 365,000 Investment Interest 0 1,020 9,114 0 7,000 Total revenues 0 126,547 359,144 290,000 372,000 Expenditures Transfers out - #001 0 0 192,628 344,000 380,000 Professional Services 0 0 0 0 0 Total expenditures 0 0 192,628 344,000 380,000 Revenues over(under)expenditures 0 126,547 166,516 (54,000) (8,000) Beginning fund balance 0 0 126,547 293,063 239,063 Ending fund balance $ 0 $ 126,547 $ 293,063 $ 239,063 $ 231,063 In 2023 Council adopted Ordinances 23-018 and 23-022 forming and assuming the powers of a Transportation Benefit District in the City in accordance with Chapter 36.73 RCW. Council also adopted Ordinance 23-024 establishing a $20 vehicle license tab fee. The fee was effective July 2024 and is anticipated to generate $1,800,000 in revenues in the 2026 Budget. These funds are used in the Street Fund #101 for use on pavement management and maintenance. Budget Summary 022 ; 2023^04}2F777ii12& Actiaf iActuai.. Actual idt �.d et Revenues Vehicle License Fees $ 0 $ 0 $ 703,596 $ 1,800,000 $ 1,800,000 Investment Interest 0 0 7,708 0 Total revenues 0 0 711,304 1,800,000 1,800,000 Expenditures Transfer out4101 0 0 709,274 1,800,000 1,800,000 Total expenditures 0 0 709,274 1,800,000 1,800,000 Revenues over (under) expenditures 0 0 2,030 0 0 Beginning fund balance 0 0 0 2,030 2,030 Ending fund balance $ 0 $ 0 $ 2,030 $ 2,030 $ 2,030 The CenterPlace Operating Reserve Fund was established as a result of a covenant related to the issuance of limited tax general obligation bonds initially issued in 2003 and refunded in 2014. The bonds were issued for the purpose of constructing the CenterPlace facility. As a part of the bond issuance the City agreed to establish a $300,000 operating reserve account that could be used to make debt service payments on the bonds and/or pay for operating expenses of CenterPlace. If at any time the City were to draw on these reserves it would have to prepare and follow a plan for reinstatement of those funds drawn. This reserve is required to be in place for the life of the bonds which run through December 1, 2033. Budget Summary 2022 2023 2024 :2025 2026 Actu al Actual Actual Budget, Budget,," Revenues Investment Interest $ 0 $ 0 $ 0 $ 0 $ 0 Transfers in 0 0 0 0 0 Total revenues 0 0 0 0 0 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over (under) expenditures 0 0 0 0 0 Beginning fund balance 300,000 300,000 300,000 300,000 300,000 Ending fund balance $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 The City has committed to maintaining an ending fund balance in the General Fund of at least 50% of recurring expenditures which is equivalent to 6-months of operations. The Service Level Stabilization Reserve Fund serves as an emergency source of temporary financing to the General Fund in the event a downturn in the local economy resulted in a reduction of revenues that would otherwise compromise either the General Fund's minimum 50% reserve balance or historical levels of service. If an event such as a downturn in the economy resulted in the General Fund reserves dropping below 50% of recurring expenditures, then the Service Level Stabilization Reserve Fund could be drawn against to maintain the fund balance minimum. The use of this reserve balance is outlined in the Fiscal Policies at the beginning of this budget document. Budget Summary 2022 3023 2024 2025 Actual Actual Actual Budget Bur Revenues Investment Interest $ 0 $ 151,854 $ 298,275 $ 288,000 $ 285,400 Transfers in #312 0 0 400,000 0 0 Total revenues 0 151,854 698,275 288,000 285,400 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over (under) expenditures 0 151,854 698,275 288,000 285,400 Beginning fund balance 5,500,000 5,500,000 5,651,854 6,350,129 6,638,129 Ending fund balance $ 5,500,000 $ 5,651,854 $ 6,350,129 $ 6,638,129 $ 6,923,529 The Winter Weather Reserve Fund was established through Ordinance No. 05-018 to provide an emergency reserve for use during unusually harsh winters and storms where the Street Fund #101 budget and fund balance are inadequate to accommodate the amount of related street maintenance, including but not limited to snow plowing, sanding, and deicing, that may be necessary. In the event the City draws against this fund in any given winter, we will strive to replenish the balance back to approximately $500,000 through subsequent years' transfers. Due to the uncertainty of when this fund might be drawn upon we actually budget the same $500,000 in both 2025 and 2026 even though we recognize there exists only $500,000 to address this issue if it should arise. Budget Summary 2022 2023 2024 2025 2026 Actual Actual Actual Buduet Budget Revenues Investment Interest $ 7,088 $ 16,788 $ 25,364 $ 15,000 $ 24,800 Transfers in - #001 89,805 500,000 0 0 0 Total revenues 96,893 516,788 25,364 15,000 24,800 Expenditures Transfer out - #101 500,000 0 0 0 0 Street Maintenance Expenditures 0 0 0 500.000 500,000 Total expenditures 500,000 0 0 500,000 500,000 Revenues over (under) expenditures (403,107) 516,788 25,364 (485,000) (475,200) Beginning fund balance 434,887 31,780 548,568 573,932 588,932 Ending fund balance $ 31,780 $ 548,568 $ 573,932 $ 88.932 $ 113,732 This fund is used to account for the accumulation of resources for, and the payment of limited tax general obligation (LTGO) bonds also referred to as councilmanic or non -voted bonds. When LTGO bonds are issued the City irrevocably pledges the full faith, credit and resources necessary to make timely payments of principal and interest, within constitutional and statutory limitations pertaining to non -voted general obligations. In 2003 the City issued $9,430,000 in LTGO bonds, the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond payments (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: • $5,650,000 remained on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20-year period ending December 1, 2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1, 2026, the outstanding balance on this portion of the bond issue will be $2,145,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10-year period ending December 1, 2023. Annual debt service payments on these bonds were provided by equal distributions from the 1 st and 2nd quarter percent real estate excise tax (Funds #301 and #302). This debt was completely liquidated during 2023. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which will be used to finance the construction of a new City Hall building along with $6.3 million of City cash that has been set aside for this purpose. These bonds will be paid off in annual installments over the 30-year period ending December 1, 2045. Annual debt service payments on these bonds are provided by transfers in from the General Fund. At January 1, 2026, the outstanding balance on the bond issue will be $5,665,000. Budget Summary 2022 ' : 2023 2024 20 Actuael Budget t BudgeLtAc#uel #206 Revenues Spokane Public Facilities District $ 501,200 $ 527,200 $ 551,600 $ 569,400 $ 590,800 Transfers in-#001 401,400 401,150 398,950 401,550 398,750 Transfers in - #301 81,100 80,600 0 0 0 Transfers in - #302 81,100 80,600 0 0 0 Total revenues 1,064,800 1,089,550 950,550 970,950 989,550 Expenditures Debt Service Payment - CenterPlace 500,000 527,200 551,600 569,400 590,800 Debt Service Payment - Roads 163,400 161,200 0 0 0 Debt Service Payments - City Hall/LTGO'16 401,400 401,150 398,950 401,550 398,750 Total expenditures 1,064,800 1,089,550 950,550 970,950 989,550 Revenues over (under) expenditures 0 0 0 0 0 Beginning fund balance 0 0 0 0 0 Ending fund balance $ 0 $ 0 $ 0 $ 0 $ 0 This fund is used to account for the collection and expenditures of the first one -quarter of one -percent real estate excise tax (REST 1) that is authorized through RCW 82.46. This quarter percent must be expended for purposes identified in the capital facilities plan element of our comprehensive plan. RCW 82.46.010(6), defines "capital projects" as: those public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; administrative and judicial facilities. Revenues recorded in this fund are typically used as a matching funds for street related construction projects that are accounted for in Street Capital Projects Fund #303 and the Pavement Preservation Fund #311. Budget Summary 2022! ' 2023 2024 202S 026 Actual Actual Actual Budget Bud et Revenues REET 1 -Taxes $ 2,790,020 $ 1,678,860 $ 1,782,354 $ 2,000,000 $ 1,500,000 Investment Interest 96,965 274,630 299,363 200,000 275,000 Total revenues 2,886,985 1,953,490 2,081,717 2,200,000 1,775,000 Expenditures Transfers out - #101 0 0 0 0 250,200 Transfers out - #204 81,100 80,600 0 0 0 Transfers out - #303 899,463 499,950 510,117 356,000 651,193 Transfers out -#311(pavement preservation) 550,242 827,278 1,170,350 1,372,150 1,372,150 Transfers out - #314 0 0 0 0 37,659 Total expenditures 1,530,805 1,407,828 1,680,467 1,728,150 2,311,202 Revenues over(under)expenditures 1,356,180 545,662 401,250 471,850 (536,202) Beginning fund balance 3,958,748 5,314,928 5,860,590 6,261,840 6,733,690 Ending fund balance $ 5,314,928 $ 5,860,590 $ 6,261,840 $ 6,733,690 $ 6,197,488 This fund is used to account for the collection and expenditures of the second one -quarter of one -percent real estate excise tax (REET 2) that is authorized through RCW 82.46. This quarter percent may only be levied by cities that are planning under the Growth Management Act and may only be expended for purposes identified in the capital facilities plan element of their comprehensive plan. RCW 82.46.035(5) defines "capital projects" as: public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, bridges, domestic water systems, storm and sanitary sewer systems, and planning, construction, reconstruction, repair, rehabilitation, or improvement of parks. Noteworthy here is that acquisition of land for parks is not a permitted use of REET 2 receipts, although it is a permitted use for street, water and sewer projects. Revenues recorded in this fund are typically used as a matching funds for street related construction projects that are accounted for in Street Capital Projects Fund #303 and the Pavement Preservation Fund #311. Budget Summary 2t122 , 2423 924 2fl25 2©25 AdOOt a tti N Actuil Bt;a 4t 011ag"et Revenues REET 2-Taxes $ 2,790,020 $ 1,678,860 $ 1,782,354 $ 2,000,000 $ 1,500,000 Investment Interest 117,020 305,243 275,933 275,000 275,000 Total revenues 2,907,040 1,984,103 2,058,287 2,275,000 1,775,000 Expenditures Transfers out - #101 0 0 0 0 250,200 Transfers out - #204 81,100 80,600 0 0 0 Transfers out-#303 226,701 2,583,769 568,356 988,300 600,000 Transfers out - #309 124,020 5,000 0 0 0 Transfers out-#311 (pavement preservation) 914,900 827,279 1,170,350 1,372,150 1,372,150 Transfers out - #314 0 0 0 36,500 0 Transfers out - #403 0 0 0 0 0 Total expenditures 1,346,721 3,496,648 1,738,706 2,396,950 2,222,350 Revenues over(under)expenditures 1,560,319 (1,512,545) 319,581 (121,950) (447,350) Beginning fund balance 5,230,856 6,791,175 5,278,630 5,598,211 5,476,261 Ending fund balance $ 6,791,175 $ 5,278,630 $ 5,598,211 $ 5,476,261 $ 5,028,911 The Street Capital Projects Fund accounts for monies used to finance street construction and reconstruction projects adopted in the City's 6-year Transportation Improvement Plan (TIP). Revenues to finance the projects comes from a combination of State and Federal Grants, which typically cover upwards of 80% of projects costs, with the City match portion coming from transfers from the REET 1 Capital Projects Fund #301, REET 2 Capital Projects Fund #302, and sometimes Stormwater Management Fund #402. Budget Summary 2Q22 2023 "4024 209 20266, 4ctuat Actual ltutua! dud et " Busi et Revenues Grant Proceeds $ 4,235,813 $ 6,038,450 $ 5,256,703 $ 4,480,512 $ 4,647,888 Developer Contribution 0 0 0 968,833 0 Miscellaneous 11,652 107,469 25,910 0 0 Voluntary Traffic Mitigation Fees 853,467 179,320 237,804 0 0 Transfers in-#001 0 51,372 0 0 0 Transfers in - #101 0 0 6,305 25,000 0 Transfers in - #106 110,746 0 0 0 0 Transfers in-#301 899,463 499,950 510,117 356,000 651,193 Transfers in-#302 226,701 2,061,340 568,356 988,300 600,000 Transfers in - #312 113,787 565,669 76,935 200,000 0 Total revenues 6,451,629 9,503,570 6,682,130 7,018,645 5,899,081 Expenditures Street Construction/Reconstruction 5,701,093 9,477,366 6,519,094 7,018,645 5,899,081 Total expenditures 5,701,093 9,477,366 6,519,094 7,018,645 5,899,081 Revenues over (under) expenditures 750,536 26,204 163,036 0 0 Beginning fund balance 1,192,615 1,943,151 1,969,355 2,132,391 2,132,391 Ending fund balance $ 1,943,151 $ 1,969,355 $ 2,132,391 $ 2,132,391 $ 2,132,391 The Park Capital Projects Fund was created to account for park related capital improvements. The source of financing typically consists of an annual transfer from the General Fund #001; however, in some years the City will utilize money set aside for capital projects in other funds. This has occurred with transfers in from the Paths and Trails Fund #103 and the Capital Reserve Fund #312, which have been applied towards various sections of the Appleway Trail project and improvements at Balfour Park. Budget Summary Revenues Grant Proceeds $ 0 $ 158,658 $ 42,132 $ 1,687,861 $ 375,500 Donations 0 0 22,430 749,400 0 Transfers in - #001 160,145 515,939 303,043 0 0 Transfers in - #302 124,020 5,000 0 0 0 Transfers in - #310 0 40,192 0 0 0 Transfers in-#312 332,267 4,312,623 528,543 1,214,900 518,374 Investment Interest 0 1,158 0 0 0 Total revenues 616,432 5,033,570 896,148 3,652,161 893,874 Expenditures Parks Capital Projects 457,385 4,872,412 731,148 3,652,161 893,874 Total expenditures 457,385 4,872,412 731,148 3,652,161 893,874 Revenues over(under)expenditures 159,047 161,158 165,000 0 0 Beginning fund balance 18,254 177,301 338,459 503,459 503,459 Ending fund balance $ 177,301 $ 338,459 $ 503,459 $ 503,459 $ 503,459 The Civic Building Capital Projects Fund was initially set-up to accumulate resources to ultimately acquire or construct a City Hall building. The initial sources of revenue to set-up the fund reserves were transfers from the General Fund during 2005 through 2007, and as recently as December 31, 2009, this fund had a fund balance of $5,828,600, During 2010 and 2011 the City determined that street repairs and reconstruction represented a more immediate City need and opted to expend nearly $2,000,000 of the fund balance for these projects. The projects themselves were part of a septic tank elimination program (STEP) initiated by Spokane County that resulted in the installation of sewer lines down many City streets. At that time the City decided to completely reconstruct the effected streets rather than patch them. In 2012 the City used this fund to finance a variety street related capital projects as well as the $2.5 million acquisition of an 8.4 acre parcel of land on Sprague Avenue that is adjacent to Balfour Park. Partially offsetting the cost of the land acquisition was the subsequent sale of 2.82 acres of this parcel to the Spokane County Library District who had planned to construct a library building consisting of no less than 30,000 square feet. In order for the Library District to actually construct a new building on this site they first had to have a successful voted bond issue to provide the necessary financing. In the event the Library District is unable to pass a bond, they may sell the 2.82 acres parcel back to the City for the original purchase price of $839,285. An amendment was made to the interlocal agreement in October 2017 which extended the agreement through October 2022 with the option to extend through October 2024. Through this amendments, the City also agreed to contribute $1.3 million, of which the $839,285 would be part, in frontage and/or joint site improvements on the Library site. Construction on the frontage improvements occurred in 2021 and 2022 and the construction of the new library began in 2022, The remaining improvements were made during 2023 during Balfour Park construction activities. In 2015 the General Fund began to make two annual transfers to this fund that were each related to the eventual construction of a new City Hall facility. These transfers ended after 2016: • The first transfer in the amount of $72,500, when added to the City's $434,600 annual lease payment for space in its current space totals $507,100 which was the amount we anticipated our annual bond repayment would be if we were to issue approximately $8,000,000 of limited tax general obligation bonds with a 2% issue cost over 30-years at 4.50%. • The second transfer was our estimate of the annual operating costs of a City Hall facility including utilities, janitorial, grounds maintenance and snow removal, and operating and maintenance supplies. The purpose behind making these transfers beginning in 2015 was to "create" this appropriation capacity within the General Fund. These amounts were transferred out to the General Fund in 2016 and 2017 in order to cover lease payments for the prior City Hall location in years in which the City had both a lease payment and a bond payment for the new City Hall building. Revenues Judgments & Settlement Transfers in - #001 Investment Interest Total revenues Expenditures Transfers out - #309 (Balfour Park) Payment to Library District Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary $ 0 $ 0 $ 0 0 0 0 13,653 4,850 2,193 13,653 4,850 2,193 u 13,653 840,056 $ 853,709 40,192 799,093 839,285 (834,435) 853,709 $ 19,274 2021 Budget $ 11,810,000 $ 0 2,125,000 0 1,200 20,000 13,936,200 20,000 2,193 13,936,200 20,000 19,274 21,467 13,957,667 $ 21,467 $13,957,667 $13,977,667 This fund was created during the 2011 Budget development process for the purpose of setting money aside for yet to be determined street capital improvement projects. Since inception, the pavement preservation program has been funded through a series of transfers from other City funds as well as grant proceeds. Below is a table summarizing the funding sources for Fund #311, including actuals for 2011 through 2024 and budgeted amounts for 2025 and 2026: ' ' deneraf, .J Streetomfl !'�+leer Fee 1 'Replace REET 1&2. � Capjtat ,I :lkeservw Grants iuiat tual 2011 584,681 0 0 0 0 500,000 0 0 1,084,681 2012 2,045,203 0 0 0 0 0 0 0 2,045,203 2013 0 282,000 0 616,284 300,000 0 0 35,945 1,234,229 2014 888,823 282,000 0 616,284 368,944 0 0 2,042,665 4,198,716 2015 920,000 206,618 0 616,284 502,098 0 0 835,224 3,080,224 2016 943,800 67,342 0 559,808 730,572 0 0 1,654,698 3,956,220 2017 953,200 67,342 0 0 1,320,958 0 0 89,208 2,430,708 2018 962,700 67,342 1,000,000 0 1,370,658 0 0 1.422,404 4,823,104 2019 972,300 0 1,608,028 0 1,468,600 0 0 2,398,330 6,447,258 2020 982,023 0 1,513,532 0 1,545,277 0 0 98,281 4,139,113 2021 991,843 0 1,537,776 0 1,654,557 0 0 0 4,184,176 2022 1,001,800 0 3,194 0 1,465,141 0 0 2,052,175 4,522,310 2023 1,011,800 1,372,761 0 0 1,654,557 0 0 2,643,915 6,683,033 2024 0 0 0 0 1,170,350 0 0 0 1,170,350 2025 0 0 0 0 2,744,300 0 1,032,100 0 3,776,400 2026 0 0 0 0 2,744,300 0 1,042,421 0 3,786,721 12,258,173 2,345,405 5,662,530 2,408,660 19,040,312 500,000 13,272,845 57,562,446 Beginning in 2013, the City committed to finance pavement preservation at a level equivalent to 6% of General Fund recurring expenditures, which has continued from that year through the 2024 budget development. Because this is a Capital Project Fund whose sole purpose is to provide for Pavement Preservation projects, any money not expended in a given year will remain in the fund and will be available for re -appropriation in subsequent years. The fund balance of Fund #123 was exhausted with the 2016 transfer of $559,808 as a consequence of following this funding strategy. During the 2025 budget development, it was determined that the General Fund could not support a recurring transfer to the Fund #311 due to budget constraints. Going forward, a nonrecurring transfer will be made at the discretion of Council and as funds are available. In 2026 the Pavement preservation will be funded by Transfers of $2,744,300 from the REET 1 Capital Projects Fund #301, REET 2 Capital Projects Fund #302, and $1,042,421 from fund #312. The City will take advantage of grant programs directed at pavement preservation as they become available. Budget Summary Revenues Transfers in-#001 $ 1,001,800 $ 1,011,800 $ 1,021,900 $ 0 $ 0 Transfers in-#101 0 1,372,761 0 0 0 Transfers in - #106 3,194 0 0 0 0 Transfers in-#301 550,242 754,668 1,170,350 1,372,150 1,372,150 Transfers in-#302 914,900 899,889 1,170,350 1,372,150 1,372,150 Transfers in-#312 0 0 0 1,032,100 1,042,421 Investment Interest 73,149 138,460 47,508 0 0 Grant Proceeds 2,052,175 2,643,916 1,113,963 112,011 2,081,903 Total revenues 4,595,460 6,821,494 4,524,071 3,888,411 5,868,624 Expenditures Pavement preservation Pre -project GeoTech Transfer out - #101 (local streets) Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 3,523,847 6,632,747 4,654,888 2,000,000 4,826,203 0 0 0 50,000 50,000 0 2,677,099 0 0 0 3,523,847 9,309,846 4,654,888 2,050,000 4,876,203 1,071,613 (2,488,352) (130,817) 1,838,411 992,421 5,544,087 6,615,700 4,127,348 3,996,531 5,834,942 $ 6,615,700 $ 4,127,348 $ 3,996,531 $ 5,834,942 $ 6,827,363 This fund was created in 2013 to be used to account for the accumulation of resources for yet to be determined capital projects. The source of funds consists primarily of General Fund reserves in excess of the City's 50% fund balance minimum. Since 2023, $52,265,836 has been transferred from the General Fund. Projects approved by City Council from this fund include in part: • $1,421,321 towards a Barker Road / BNSF Grade Separation project. • $3,485,417 towards a Pines Road / BNSF Grade Separation project. • $500,000 towards Sullivan Road / BNSF Interchange project. • $2,567,741 towards Barker Road corridor improvements. • $6,531,714 towards Balfour Park construction and improvements. • $1,400,000 towards the replacement of police vehicles. • $250,000 towards a surface treatment pilot program. • $1,048,900 for the installation of a new water line at Sullivan Park. Budget Summary Revenues Transfers in - #001 $ 3,593,000 $ 5,358,054 $ 4,397,832 $ 0 $ 0 Grant Proceeds 0 0 1,000,000 0 0 Investment Interest 236,054 803,376 738,664 650,000 700,000 Total revenues 3,829,054 6,161,430 6,136,496 650,000 700,000 Expenditures Transfers out -#001-City Hall Repairs 606,537 4,801,397 1,461,011 0 0 Transfers out - #001 -Precinct Space Planning 0 0 80,508 0 0 Transfers out -#101- Local Street Program 0 250,000 0 1,750,000 1,750,000 Transfers out - #121 0 0 400,000 0 0 Transfers out - #303 - School Beacons 113,786 43,240 0 0 0 Transfers out - #303 - Subarea Transportation Plan 0 0 76,935 200,000 0 Transfers out -#309- Balfour Park improvements 332,267 4,223,646 362,119 0 0 Transfers out - #309 - Sullivan Park waterline 0 40,499 6,717 914,900 518,374 Transfers out - #309 - Spokane Valley River Loop T 0 48,478 0 0 0 Transfers out - #309 - Greenacres Park Ph2 0 0 159,708 300,000 0 Transfers out -#311- Pavement Preservation 0 0 0 1,032,100 1,042,421 Transfers out - #314 -Pines Grade Separation 0 253,344 448,087 1,708,023 359,182 Transfers out -#314- Barker Rd Overpass 633,819 269,085 726,330 0 0 Transfers out - #314 - Sullivan Rd Interchange 0 102,720 118,281 0 0 Transfers out - #316 - Fairground Building 7,010 0 0 0 0 WSDOT Sullivan Park Property Acquisition 0 0 0 759,600 0 Sprague Ave. Property Acquisition 0 790,783 0 0 0 Total expenditures 1,693,419 10,823,192 3,839,696 6,664,623 3,669,977 Revenues over (under) expenditures 2,135,635 (4,661,762) 2,296,800 (6,014,623) (2,969,977) Beginning fund balance 14,522,386 16,658,021 11,996,259 14,293,059 8,278,436 Ending fund balance $16,658,021 $11,996,259 $14,293,059 $ 8,278,436 $ 5,308,459 This fund was created to account for the design and construction costs of various railroad grade separation projects that are included in the Bridging the Valley concept. Due to the anticipated size, scope, and duration of these projects, managing them in a separate fund allows for the necessary monitoring without being obscured by the variety and quantity of the other projects in the Street Capital Projects Fund #303 as well as keeping these projects from skewing the average volume of activity in Fund #303, Revenues for this fund consist of grant proceeds and transfers in from other City funds, such as the General Fund #001, the REET 1 Capital Project Fund #301 and the Capital Reserve Fund #312. Expenditures in the years of 2025 and 2026 are primarily related to the Pines Road Underpass project. Budget Summary 2022 2023 2024 2026 2026 Actual Actual Actuat Budget Budget Revenues Grant Proceeds $ 677,412 $ 944,651 $ 3,105,511 $ 39,496,674 $16,490,200 Investment Interest 518 0 0 0 0 Rental Income 10,500 0 0 0 0 Transfers in - #301 0 0 79,773 0 37,659 Transfers in - #302 0 0 0 36,500 0 Transfers in - #312 633,819 625,149 1,212,925 1,708,023 359,182 Total revenues 1,322,249 1,569,800 4,398,209 41,241,197 16,887,041 Expenditures Railroad Grade Separation Projects 1,644,581 1,719,800 4,479,946 41,241,197 16,938,221 Total expenditures 1,644,581 1,719,800 4,479,946 41,241,197 16,938,221 Revenues over (under) expenditures (322,332) (150,000) (81,737) 0 (51,180) Beginning fund balance 589,792 267,460 117,460 35,723 35,723 Ending fund balance $ 267,460 $ 117,460 $ 35,723 $ 35,723 $ (15,457) Beginning in 2021, the City began collecting transportation impact fees allowed pursuant to RCW 82.02.050-82.02.110 and SVMC 22.100. These are fees specifically allowed to address impacts from new development and they may be imposed on all developments within a designated area. The City has performed several studies to determine the impact areas on which the fees are being imposed. All fees collected must be applied to transportation system improvements identified in the corresponding study. Budget Summary 2tt;2 242362A#tQ6 AuaT;u Atua1 duel Luc! Revenues Transportation Impact Fees $ 361,613 $ 429,485 $ 218,139 $ 400,000 $ 400,000 Investment Earnings 9,684 42,404 55,202 30,000 42,000 Total revenues 371,297 471,889 273,341 430,000 442,000 Expenditures Transfers out - #303 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 371,297 471,889 273,341 430,000 442,000 Beginning fund balance 294,607 665,904 1,137,793 1,411,134 1,841,134 Ending fund balance $ 665,904 $ 1,137,793 $ 1,411,134 $ 1,841,134 $ 2,283,134 The Economic Development Capital Projects Fund #316 accounts for capital projects that will have a positive impact on tourism in Spokane Valley through the development of assets in the community that will increase retail, overnight lodging, and dining. These projects will primarilty be funded through lodging taxes from the Hotel/Motel Tax - Tourism Facilities Fund #104. Budget Summary kctai ",ctuai Actt�l dud et ttd et". Revenues Transfers in - #312 $ 46,642 $ 0 $ 0 $ 0 $ 0 Transfers in - #104 0 13,015 4,386,985 2,500,000 0 Total revenues 46,642 13,015 4,386,985 2,500,000 0 Expenditures Fairgrounds Building 46,642 0 0 0 0 Cross Country Course 0 13,015 2,190,465 4,696,520 0 Total expenditures 46,642 13,015 2,190,465 4,696,520 0 Revenues over (under) expenditures 0 0 2,196,520 (2,196,520) 0 Beginning fund balance 0 0 0 2,196,520 0 Ending fund balance $ 0 $ 0 $ 2,196,520 $ 0 $ 0 The purpose of the Stormwater Management Fund is to account for the funds related to the cleaning, maintenance, and improvement of the City's storm drainage system. The revenue for this fund originates from a stormwater fee collected by Spokane County on behalf of the City. The annual fee is $58 for each single family unit, and for other property types a fee of $58 per each 3,160 square feet of parcel impervious surfacing is collected. Budget Summary 2022 2023 2029 2025 2026 Actual Actual Actual Budget Budget Personnel - FTE Equivalents Operating Administrative Assistant 0.0 0.0 0.10 0.10 0.10 Assistant Engineer 0.0 0.0 1.35 1.35 1.35 Communication & Marketing Officer 0.0 0.2 0.0 0.0 0.0 Engineer 1.0 1.0 1.0 1.0 1.0 Engineering Manager -Utility 0.0 0.5 1.0 1.0 1.0 Engineering Technician 1 0.5 0.5 0.3 0.3 0.3 Engineering Technician 11 1.0 1.0 1.3 1.3 1.3 GIS Analyst 0.23 0.00 1.23 1.23 1.23 Maintenance/Construction Inspector 0.0 0.0 0.25 0.25 0.25 Mechanic 0.25 0.25 0.25 0.25 0.25 Senior Development Engineer 0.0 0.0 0.25 0.25 0.25 Senior Engineer-Proj Mgmt 0.0 0.0 0.6 0.6 0.6 Senior Planning Grants Engineer 0.25 0.00 0.0 0.0 0.0 Stormwater Forman 0.9 0.9 0.9 0.9 0.9 Capital Maintenance/Construction Inspector 0.0 0.0 0.3 0.3 0.3 Construction Inspector 0.0 0.0 0.45 0.45 0.45 Senior Engineer-Proj Mgmt 0.0 0.0 2.1 2.1 2.1 4.13 4.38 8.53 11.38 11.38 Interns 2.0 2.0 0.0 0.0 2.0 (continued to next page) (continued from previous page) Budget Summary RecurriggActiuity'- . . Revenues Stormwater Management Fees $ 2,031,000 $ 5,585,386 $ 6,164,687 $ 6,170,000 $ 6,170,000 Miscellaneous Revenues 0 0 21,396 0 0 Investment Interest 40,038 172,947 247,163 90,000 173,000 Total revenues 2,071,038 5,758,333 6,433,246 6,260,000 6,343,000 Expenditures Wages, Payroll Taxes & Benefits 379,033 660,155 826,203 1,578,815 1,762,983 Supplies 32,301 104,040 30,793 37,200 58,000 Services & Charges 1,290,799 1,464,894 2,205,663 2,272,306 2,360,193 Intergovernmental Services 43,149 45,640 68,083 88,000 91,310 Vehicle rentals-#501 6,750 6,750 13,000 16,500 24,125 Total expenditures 1,752,032 2,281,479 3,143,742 3,992,821 4,296,611 Recurring revenues over (under) Recurring Expenditures 319,006 3,476,854 3,289,504 2,267,179 2,046,389 Revenues Grant Proceeds 0 306,665 696,918 0 0 Total Nonrecurring revenues 0 306,665 696,918 0 0 Expenditures Capital - Various Projects 109,307 1,551,242 2,459,241 1,500,000 4,500,000 Stormwater Comprehensive Plan 272,923 0 0 0 0 Watershed studies 69,162 23,044 27,949 150,000 100,000 Asset management software system 0 0 0 50,000 0 Generator for Maintenance Shop 13,144 0 0 0 0 Total Nonrecurring expenditures 464,536 1,574,286 2,487,190 1,700,000 4,600,000 Nonrecurring revenues over (under) Nonrecurring Expenditures (464,536) (1,267,621) (1,790,272) (1,700,000) (4,600,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (145,530) 2,209,233 1,499,232 567,179 (2,553,611) Beginning working capital 2,401,719 2,278,363 4,388,846 5,671,252 6,238,431 Ending working capital $ 2,256,189 $ 4,487,596 $ 5,888,078 $ 6,238,431 $ 3,684,820 In 1985 voters of Spokane County approved a ballot proposition to create the Spokane Aquifer Protection Area (APA) as well as corresponding aquifer protection area fees with both sunsetting December 31, 2005. Boundaries of the APA included portions of unincorporated areas (including what is now Spokane Valley) and the cities of Liberty Lake, Millwood and Spokane. In 2004 the City of Spokane Valley approved a resolution authorizing the inclusion of its municipal boundaries within the APA. The APA program was subsequently reauthorized through 2025 with voter approval. All fees are collected by Spokane County and include: • An annual fee of $15 per household for the withdrawal of water from properties within the APA. • An annual fee of $15 per household for on -site sewage disposal within the APA. • For commercial properties an annual fee ranging from $15 to $960 depending upon water meter size. In 2004 the City of Spokane Valley (City) entered into an interlocal agreement with Spokane County (County) that authorized the County to collect and retain APA fees through 2010 for a variety of projects including: • up to $100,000 annually through 2010 to the Spokane Regional Health District to provide for data base management related to monitoring of septic tanks and their potential impact on water quality in the Spokane Valley Rathdrum Prairie Aquifer. • a septic tank elimination program (STEP) designed to replace septic tanks with sanitary sewer systems. In the 2004 interlocal agreement the City and County also agreed that for the years 2011 through 2025 the APA fees remaining after the payment of reasonable administration and billing fees incurred by the County would be distributed annually between the County, City and City of Spokane on a proportional basis relative to the amount generated in unincorporated areas, the City and City of Spokane. The fees collected on the City's behalf by Spokane County are expended entirely on stormwater related projects that are designed to protect the aquifer. These fees plus grant monies received from a number of granting agencies finance a variety of capital projects. Budget Summary Revenues Spokane County $ 514,576 $ 515,898 $ 419,456 $ 420,000 $ 420,000 Grant Proceeds 236,685 621,476 157,511 0 0 Investment Interest 20,421 57,691 44,023 20,000 30,000 Transfer in -#001 0 0 1,376,386 0 0 Total Revenues 771,682 1,195,065 1,997,376 440,000 450,000 Expenditures Capital -Various projects 370,999 1,125,339 2,158,414 1,000,000 0 Total Expenditures 370,999 1,125,339 2,158,414 1,000,000 0 Revenues over(under)expenditures 400,683 69,726 (161,038) (560,000) 450,000 Beginning working capital 1,119,839 1,520,522 1,590,248 1,429,210 869,210 Ending working capital $ 1,520,522 $ 1,590,248 $ 1,429,210 $ 869,210 $ 1,319,210 The Equipment Rental & Replacement Fund (ER&R) is an Internal Service Fund that is designed to provide the funds necessary to purchase new vehicles and equipment at predetermined life cycles. This fund operates by charging each City department a monthly rental rate for the vehicles they use. The fee is based upon the estimated useful life of the vehicle and its replacement cost. The theory behind this program is that it allows City departments to budget vehicle replacement costs as a reoccurring expense over an extended period of time rather than as an intermittent capital expense that may be difficult to afford in any single year. In the event a City department requires an additional vehicle that actually adds to the fleet rather than simply replaces an existing vehicle, then that department must budget for the initial purchase price and transfer the necessary funds to the ER&R Fund to make the acquisition. In subsequent years the department will then begin paying a replacement fee spread out over the estimated useful life of the new vehicle. Beginning in 2017 a CenterPlace Kitchen Reserve was established through a transfer in from the General Fund in the amount of $36,600 per year for 5 years to build a total reserve of $183,000, which is the estimated replacement cost of the significant kitchen appliances and equipment at CenterPlace. Snow Plow Replacement Program The snow plow fleet currently consists of nine plow trucks. Six of the trucks are equipped with sanders and three of the trucks are equipped with 1,000-gallon tanks for placement of liquid deicer. Over the past five years the City has continued to improve the snow removal operations and has updated the snow plan accordingly. These improvements in snow operations have dictated that operating nine plows is a very efficient way to remove snow from the arterial and hillside roadways. Operating nine plows allows the performance of a full city arterial and designated hillsides plow in approximately 12 hours. In the future new plows will be purchased to replace the aging fleet as noted below and older plows will serve as backups and eventually be retired from the fleet beginning in 2022. The recommended snow plow fleet consists of eleven plows with two serving as backup plows. The two backup plows ensure that arterial roadways and hillside priority roadways can be cleared of snow per the snow plan. Having backup plows provides the City with additional plows that can be deployed in case of a mechanical breakdown or an accident during a winter storm event. Snowplow Fleet Truck# Model Year YR Acquired Retiremen tAge Replacem entYr Notes 209 1998 2011 27 2025 ' 207 was surpiused in 2024 and 205 in 2025 203 is being kept as a parts vehicle. ` Mnimum 11 operational each winter plus 1 reserve. 211 2000 2012 26 2026 206 1996 2009 31 2027 208 1997 2009 31 2028 204 1 1995 2009 34 2029 210 2010 2011 20 2030 218 2016 2016 219 2020 2020 225 2025 2024 Surplused truck 207 230 2025 2024 Surplused truck 206 231 2025 2024 Surplused truck 203 - Used for parts 232 2025 2025 209 to be surplused in spring 2026 233 2026 2026 This truck will replace 211 234 2027 2027 This truck will replace 206 235 2028 2028 This truck will replace 208 236 2029 2029 This truck will replace 204 237 2030 1 2030 IThis truck will replace 210 238 2032 1 2032 1 1 12 year replacement cycle - actual truck # tbd next Tram Budaet Summary Revenues Vehicle rentals-#001 $ 31,300 $ 59,600 $ 46,750 $ 79,500 $ 83,850 Vehicle rentals - #101 10,250 27,750 41,950 71,200 78,575 Vehicle rentals -#101(plow replace.) 275,000 275,000 300,000 300,000 300,000 Vehicle rentals -#402 6,750 6,750 13,000 16,500 24,125 Miscellaneous Revenues 325 976 28,800 0 0 Transfers in - #001 (Center -Place kitchen reserve) 0 0 100,280 92,500 92,500 Transfers in - #101 ff equipment reserve) 0 70,568 0 0 0 Transfers in - #101 (New signal maint vehicles) 0 0 171,500 0 0 Investment Interest 20,449 52,639 47,276 20,000 47,000 Total Revenues 344,074 493,283 749,556 579,700 626,050 Expenditures Small tools & minor equipment 0 649 0 10,000 10,000 Vehicle Purchase 248,500 220,150 527,446 0 50,000 Snow plow purchase 103,926 332,881 777,420 175,000 270,000 Heavy Duty Machinery & Equipment 0 0 0 0 0 Total Expenditures 352,426 553,680 1,304,866 185,000 330,000 Revenues over (under) expenditures (8,352) (60,397) (555,310) 394,700 296,050 Beginning working capital 1,425,471 1,417,119 1,356,722 821,412 1,216,112 Ending working capital $ 1,417,119 $ 1,356,722 $ 801,412 $ 1,216,112 $ 1,512,162 The City of Spokane Valley is exposed to risks of loss related to a number of sources including tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; natural disasters; and unemployment claims filed by former employees through the State of Washington. The Risk Management Fund was established to account for all such related revenues and expenses. Revenues for this fund are comprised almost entirely from an annual transfer of money from the General Fund and the single largest expense is typically the insurance premium the City pays to our insurance provider, the Washington Cities Insurance Authority (WCIA). Budget Summary 2094 At�1Actual Atua1 Bu u, et Revenues Transfers in-#001 $ 450,000 $ 600,000 $ 700,000 $ 900,000 $ 1,100,000 Investment Interest 4,889 4,803 17,369 4,800 6,000 Total Revenues 454,889 604,803 717,369 904,800 1,106,000 Expenditures Auto& Property insurance 417,837 572,251 732,152 900,000 1,100,000 Unemployment Claims 1,850 49 21,814 0 0 Judgments and Settlements 0 0 45,000 0 0 Total Expenditures 419,687 572,300 798,966 900,000 1,100,000 Revenues over(under)expenditures 35,202 32,503 (81,597) 4,800 6,000 Beginning working capital 392,820 428,022 460,525 378,928 383,728 Ending working capital $ 428,022 $ 460,525 $ 378,928 $ 383,728 $ 389,728 The Public Safety Equipment Replacement Fund is an Internal Service Fund that is designed to provide the funds necessary to purchase new vehicles and equipment at predetermined life cycles. This fund operates by transfers from the General Fund for equipment replacement. Budget Summary 2022 2023' 024 2fl 2026, Actualctual. Attu l Btid et:;Su et Revenues Transfers in - #001 (replacment amounts) $ 0 $ 0 $ 473,722 $ 473,722 $ 652,831 Transfers in - #001 (transfer for equipment for future additional officers) 0 0 1,000,000 0 0 Total Revenues 0 0 1,473,722 473,722 652,831 Expenditures Equipment Purchases 0 0 0 650,000 0 Total Expenditures 0 0 0 650,000 0 Revenues over(under)expenditures 0 0 1,473,722 (176,278) 652,831 Beginning working capital 0 0 0 1,473,722 1,297,444 Ending working capital $ 0 $ 0 $ 1,473,722 L 1,297,444 $ 1,950,275 This fund was created during the 2022 Budget development process to account for State assessed District Court fees collected by Spokane County and remitted to the City as well as passthrough tax revenues such as leasehold excise and sales taxes. The City then remits the funds to the State Treasurer and County Prosecutor. These are fuduciary activities according to GASB accounting pronouncements. Budget Summary 2027 2023, 2324 '2t12�5 Actual Actual >` ` Actusl Bid et Bud et Revenues Fees & Taxes collected for other governments $ 433,410 $ 601,526 $ 612,403 $ 600,000 $ 620,000 Total Revenues 433,410 601,526 612,403 600,000 620,000 Expenditures Fees & Taxes remitted to other governments 433,410 601,526 612,403 600,000 620,000 Total Expenditures 433,410 601,526 612,403 600,000 620,000 Revenues over (under) expenditures 0 0 0 0 0 Beginning working capital 0 0 0 0 0 Ending working capital $ 0 $ 0 $ 0 $ 0 $ 0 N N ` ` O O O O O O O O O O O O O o O O O O O O O O O O CD o 0 0 o �C,�� N+ O o 0 0 0 0 0 0 0 0 0 0 CD o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O (O o 0 o O oo O O O O o O O o 0 o O O o 0 0 0 0 0 0 0 0 o O o 0 o n a r o v o N o 0 0 0 0 0 0 0 0 0 0 0 0 0 — o o 0 o o o 0 0 0 0 0 o 0 0 0 CO LO O'T M� M in N M O M O (O V r (O O O O O O O N N (O dr M O 47 — M M (O LO J ao N N O -'r M, M (n N M O M O (O CO r u[ O O o o o 0 N N CO V M M M r M M r � O M — CA Lo (M V Ln Lo (p O O O M (O N M O ND N CO P. t0 O O O O O O N N O� M In n N O O (O M 47 N M O O N LO In r o O O O O O O N O (O V V' M V M r (V CD r 6 0 N o a) o ' a o d N } QO CO 't c) o o (O M N N M O w N m N I---(O O c) O o o o N o O V' V' In M r (V N r o OD J C N o a) ccc) Co V N Q W � a+ W 4) d' O O O N �- CON O O w c) N O I-- O o 0 c)o o o N o O <Y 'n QZ d _ . r co N N r o Y N c) O 'o O N a w LL a, q In a' C)O C)N LO N O O CO C) LO N (O O O O O O O C) N O (O V V) 0 E S9 o r O o N o 0 00 7 V N U LL Q Cn Cn G O O N N N O O co O LD O (O O O O O O O O N O .-- .- (O (6 C,j . r CD N N O O O Cy N r CO O O O O M U) N O O O (O OD CO O O O O O O O N O — CO co 6 ^ r c? r0 O N (O n 0 0 0 o (O o N O (O — o o o 0 o 0 0 o CO N O CO n r M C) N (O M O o 0 o (D (O N O v) O O O O O O N CO O O V N O CO r M O o � r N O M LO U) Cn V CO Ln N N co O O a) N N O (C) Cl) Up N N U� CO 00 N O � (C) O (C) M (n CA u) OD CO N LO O OD co C)r D N O co co O r r r• � N O (D O) O r CO O M O n W (h r ND O (O V O 04 (O O Lo V o N cl r u) N O N 7 O N (7 V N N CD N N N 0 N Oo) tn CN 1O rn LO co a c C V cc O O L C O c Cl L O I O C c c O u c C O u C O f r :7C m U N O C CCL (D E L) N N LL Yp 0) C C a) (0 a) (0 N N ) O O U c E o o� �.4Y c �4. cc LL 'm o m U) c O a a) rn E c o c c LL LL O v p w (D C (0 N N LLCL riU c m j 10 N a'� rn Q2wU)U N aro E .N a m cm aa) = a�i� v° c o) c m.� c a w w w w w LL U 3 O L 0 U w o o E E a (Oi a') °c a 'S LL m m o v E U 5 w c N (Ca N m !n U N 'A v� Q) rn 'E o) ¢ w 0 w d m ot3 4f A'f 4f otf CD O O M ¢ c U 2¢ U E •N U c m E U=¢ c c O E ... m w. n �o iA f0 N (n O �a D LL E0 0' N C 7 0 .j U O) O Q Q Q Q 0 Q -ZL Y Y Y Y O V O N N 0 UUUU2LL 01i 25 a, aw m wd UUUUUUa 2 ri fi d- ~ ~ a) p ik J ~ Appendix A EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Effective January 1, 2026 Note: Slight rounding differences may exist behveen the figures retiected on this page and the actual payroll rates computed by the Payroll System. Salary Schedule 26 Placeholder for Capital Expenditures Accrual Basis — A basis of accounting in which revenues and expenditures are recorded at the time they occur as opposed to when cash is actually received or spent. Appropriation — A legal authorization granted by the City Council to make expenditures and to incur obligations for a specific purpose. Assessed Valuation — The valuation set upon real estate and certain personal property by the County Assessor as a basis for levying property taxes. Authorized Positions — Employee positions, which are authorized in the adopted budget, to be filled during the year. Bond — A long-term promise to repay a specified amount (the face amount of the bond) on a particular date (the maturity date). The most common types of bonds are general obligation revenue bonds. Bonds are primarily used to finance capital projects. Budget — A plan of financial activity for a specified period of time (fiscal year or biennium) indicating all planned revenues and expenses for the budget period. Budget Message — The opening section of the budget that provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous years, and the views and recommendations of the Mayor. Capital Improvement — Expenditures related to the acquisition, expansion or rehabilitation of an element of the government's physical plant; sometimes referred to as infrastructure. Capital Outlay — Fixed assets that have a general value of $5,000 or more and have a useful economic lifetime of more than one year. Capital Project — Major construction, acquisition or renovation activities that add value to government's physical assets or significantly increase their useful life, also called capital improvements. Capital Projects Fund — A fund created to account for all resources and expenditures used for the acquisition of fixed assets except those financed by enterprise funds. Contingency — A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contractual Services — Services rendered to a government by private firms, individuals, or other governmental agencies. Debt Service — Payment of interest and principal on borrowed money according to a predetermined payment schedule. Department — The basic unit of service responsibility, encompassing a broad mandate of related service responsibilities. Division — Can be a subunit of a department that encompasses a substantial portion of the duties assigned to a department. Encumbrance — The commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a specified future expenditure. Expense — Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other charges. Face Value — The amount of principal that must be paid at maturity for a bond issue. Fiscal Year — A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. Full-time Equivalent Position (FTE) — A full-time or part-time position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time person working 20 hours per week would be equivalent to 0.5 of a full-time position. Fund — A fiscal entity with revenues and expenses that are segregated for the purpose of carrying out a specific purpose or activity. GAAP — Generally Accepted Accounting Principles. Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules and procedures that define accepted accounting principles. GASB — The Governmental Accounting Standards Board, established in 1985, is the current standard -setting board for governmental GAAP. General Fund — The principal operating fund of the City used for general governmental operations. Taxes and fees that generally have no restriction on their use support it. General Obligation (G.O.) Bonds — This type of bond is backed by the full faith, credit and taxing power of the government issuing it. Indirect Cost — A cost necessary for the functioning of the organization as a whole, but which cannot be identified with a specific product, function or activity. Infrastructure — The physical assets of a government (e.g. streets, water, sewer, public buildings, and parks). Interfund Transfers — The movement of monies between funds of the same governmental entity. Levy — To impose taxes for the support of governmental activities. Long -Term Debt — Debt with a maturity of more than one year after the date of issuance. Mission Statement — A broad statement of the intended accomplishment or basic purpose of a program. Modified Accrual Accounting — A basis of accounting in which expenditures are accrued but revenues are accounted for when they become measurable and available. Since this type of accounting basis is a conservative financial approach, it is recommended as the standard for most governmental funds. Operating Budget — The portion of the budget that pertains to daily operations that provide basic governmental services. Ordinance — A formal legislative enactment by the City Council. If it is not in conflict with any higher form of law, such as a statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. Program — The smallest organization that delivers a specific set of services. A program may be an entire department, or if a department encompasses significantly diverse responsibilities or large workforces, a single department may be divided into two or more programs. 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. Taxes — Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those who pay, for example, sewer service charges. Unreserved Fund Balance — The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation. User Charges — The payment of a fee for direct receipt of a public service by the party who benefits from the service. Vision Statement — A short statement that conveys the big picture of the organization. It is general in scope, not restricting. It answers the question ,Why?„