2017, 09-08 Special Meeting MINUTES
Special Council Meeting
Special Regional Council of Governments Meeting
Hosted by Spokane County Board of County Commissioners
Friday, September 8, 2017
10:00 a.m.— 12:30 p.m.
Spokane County Fair and Expo Center, Conference Facility
404 N Havana Street, Spokane Valley,Washington
Attendance:
Spokane Valley Council Staff'
Mayor Rod Higgins John Hohman, Deputy City Manager
Deputy Mayor Arne Woodard Erik Lamb, Deputy City Attorney
Councilmember Pam Haley Chris Bainbridge, City Clerk
Councilmember Sam Wood
Absent:
Councilmember Caleb Collier
Councilmember Mike Munch
Councilmember Ed Pace
Others in Attendance: Spokane County Commissioners Al French and Josh Kerns; and various elected
officials and staff from within and around the region, and some members of the public.
1. Welcome and Review of Meeting Agenda—Spokane County Commissioner Al French
Commissioner French welcomed everyone to the meeting and after Mr. French went over the agenda, he
introduced Colonel Samuelson.
2. Fairchild AFB 92nd ARW-Commander Colonel Ryan Samuelson
Colonel Samuelson gave a brief introduction of himself and explained the mission and vision of the 92°d
Air Refueling Wing; said Fairchild is the largest tanker base in the world with 44 aircraft now and
anticipating over sixty in the future; said they will increase the number of airmen over the next few years;
and he spoke of how the base will increase as well; mentioned some of the awards the base received; and
spoke of their relationship and stewardship with the community, and said they will keep the dialogue open
and remain engaged.
3. City and Town Updates—Priorities From Each Jurisdiction.
Spokane Valley Mayor Higgins reported that where the circus was located a few years ago,we now have a
new city hall; said October 14 will be a dedication/open house beginning at 9:30 a.m.; said the project was
on time and within budget;he mentioned the City's great bond rating; said railroad crossings at Barker and
Pines are a work in progress with each project carrying an approximate$20 million price tag;he mentioned
the City's Industrial Park which is the largest between Minneapolis and Seattle and has plans to expand;
said of the $20 million for the Barker project,the City has approximately$10 million; mentioned the I-90
interchange and of the desire for State Legislators to help as we need another access to I-90.
Cheney Mayor Trulove mentioned his City's residential construction;said the students are starting to come
back as classes start after this weekend;mentioned the City's focus on water problems with their eight wells
and lots of green space; said they had to restrict water and are working on how to fund water re-use to
irrigate their big playfields; said their citizens passed the levy lift last year for public safety, and the next
time the issue will be for a fire truck.
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Although not a city or town, HUB Executive Director Phil Champin explained that the HUB is a 501ce,
non-profit which provides events for the community; said that this fall they will be celebrating their tenth
anniversary and will have an open house, a free family fun festival, and a ribbon cutting September 29,
from 4:00 p.m.to 7:00 p.m.
Commissioner French mentioned that the Council of Governments meeting was the original idea of former
Commissioner Mark Richard, mentioned that it has worked well these last seven years, and he thanked
everyone for coming.
4. Spokane County Budget Update—Spokane County Commissioner Al French
Commissioner French explained that the County is finding itself in a very difficult situation this year as a
result of a series of events over the last twenty years; said the County is not growing financially at the same
rate as the cities as a result of many things, such as incorporations, annexations, unfunded mandates,
initiatives,etc.He went over the various aspects of the County budget including the general fund,which he
explained includes such departments as the assessor and auditor, he mentioned a financial structural gap
and that they have worked to overcome that. Mr. French said the County's budget is almost$700 million;
that the general fund accounts for about 25% of that, and some of the rest include internal services,
construction funds, debt service, and special revenues; and the only fund that is being challenged is the
general fund, and one of the main items in that fund is criminal justice which he said includes about 75%
of that general fund. Mr. French said there are only five states that fund the criminal justice system at the
local level, and all the other states fund that at the state level; he said they are carrying the cost of the
criminal justice system, i.e. the courts, the jail, the sheriff, the public defender, and the prosecutor, based
upon the local taxes generated in the community.
Concerning the structural gap,Mr. French said they are looking at a growth rate of revenues in the county
of 2.3%and expenditures growing at 3.4%; and while some would suggest the County should take control
of their expenses,he said they would love to but a lot of their expenses are beyond their control as they are
statutorily required to provide certain services.He spoke of the cities' 1%cap on property tax and inflation
which he said,is generally more than 1%;said sales tax revenues go where the sales occurred;he mentioned
initiative 747 which was enacted in 2001 which limits property tax revenue increases to 1% plus new
construction; said in 2014, 2015 and 2016 they used their banked capacity for road projects. Mr. French
mentioned the McCleary decision and how the property taxes will be increasing next year then reducing in
subsequent years; and explained the breakdown of property taxes and how much goes to school districts;
he also noted they have a shrinking sales tax base; said the County lost about $8 million when Spokane
Valley and Liberty Lake incorporated; then lost more with the North Division annexation into the City of
Spokane, as well as the West Plaines annexation to Spokane and Airway Heights. Mr. French stated that
there aren't many retail sales areas inside the County. He spoke of the salaries and benefits of County
employees,and that during the recession they reduced staff,and there has been no cost of living adjustment
for five years; also staff pays more for medical benefits; he noted they eliminated the Boundary Review
Board, and shortened the County office hours, all in an attempt to live within their means; he also noted
that neighbors take care of neighborhood parks. Commissioner French mentioned they are taking steps to
educate and inform the public and receive public input regarding budget choices;said they will hold public
forums and hearings as they work to validate, formulate, approve and adopt their budget by December 4.
Mr. French noted the jail's inmate population last March was about three times what it should be, which
has resulted in about$2 million in overtime,and said they are examining ways to reduce costs and that will
also be part of the public process,and said he encourages that input and at the end of their public meetings,
they will have a list of all the generated ideas. A question was asked of Mr. French if the County is still
considering the idea of a future sports complex, and Mr. French said neither that nor a port district is a
priority of the Commissioners.
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5. City of Spokane Update- Spokane Mayor David Condon
Mayor Condon introduced Spokane's new Chief Financial Officer Tim Dunivant. Mayor Condon also
spoke of budgets and the McCleary"fix"and said he views this as an opportunity to collaborate with other
entities,and he gave a general overview of the fix.
6. City and Town Updates—Priorities From Each Jurisdiction.
Ms. Micki Harnois, said she was speaking on behalf of five small cities as well as the AWC (Association
of Washington Cities) Board of Directors District one; she went over the various counties involved with
those entities as well as some of the legislative priorities for the next session; mentioned the upcoming
AWC Citizen Action Days; and spoke of some of the events associated with Latah, Spangle, Waverly,
Rockford, and Fairfield.
7. Spokane International Airport Update—Airport Chief Executive Officer Larry Krauter
Mr. Krauter spoke of several federal issues associated with airports; mentioned that the pilot shortage has
resulted in several Horizon flight cancellations. Mr. Krauter spoke about legislation to reauthorize the
federal aviation programs to level funding increases for the Airport Improvement Program which supports
airport capital projects; said one of the measures would allow the $4.50 per passenger per flight segment
fee to be increased to $8.50; mentioned Homeland Security's REAL ID Act, which deals with sources of
identification such as driver's licenses and that although that passed several years ago, Washington State
has received an extension; spoke of the elimination of state taxes on the construction of hangars;mentioned
SB 5756 and expanding aerospace manufacturing tax relief(the Boeing Bill);which was amended to spread
the benefit throughout the entire state; and he mentioned a bill which addresses the possible interference of
drones with aircraft. Mr.Krauter also spoke of future plans for the Spokane Airport as well as Felts Field.
8. Spokane Transit Authority Update—Planning and Development Director Karl Otterstrom
Mr. Otterstrom briefly went over their Moving Forward campaign and the approval of last year's ballot
measure; said the increased fee will help support economic development and the people the STA serves;
spoke of some of the planned bus improvements as well as ADA accessibility; mentioned the West Plains
Transit Center,the improvements to Sprague Avenue,and more efficient bus stops;he also mentioned fleet
expansion,and of their continuing area partnerships.
9. City and Town Updates—Priorities From Each Jurisdiction.
Liberty Lake Mayor Peterson spoke of pumps, pipes, pavements, and partnerships, mostly all associated
with the golf courses and the road construction taking place in Liberty Lake,as well as the new interchange
at Henry Road.
10.Around the Room Agenda Items&Suggestions for Next Council of Governments Meeting
There were no suggested agenda items for the next meeting.
There being no further business,at approximately 12:10 p.m.,the meeting adjourned.
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Christine Bainbridge, Ci Clerk
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