The Spokane Valley City Council kicked off the 2026 city budget process during an all-day budget workshop on June 10. The process takes about six months, and the final 2026 budget is scheduled for adoption on November 18, 2025. The workshop agenda included an economic forecast and revenue projections, a review of the Council’s goals and city’s fiscal policies, and individual presentations and discussions on each department’s forecasted 2026 expenses.
Three funds were reviewed at the workshop. The General Fund is estimated at $65.8 million, a 3.61% increase over 2025. Continuing the Council’s commitment to public safety, 64% of the general fund budget is dedicated to police and public safety, with 36% of the remaining budget funding all other city services. The Street Fund is $7.6 million, an increase of 2.88%, and the Stormwater Fund is $4.3 million, an increase of 7.02%. Currently, there is a deficit of $1.3 million in the General Fund and $600,000 in the Street Fund, which will need to be balanced by reducing services or increasing revenues.
The city’s finance director reviewed several revenue sources, explaining that revenues from sales tax, the city’s primary revenue source, have decreased in 2024, and the revenue is not keeping pace with expenditures. Additionally, property tax is flat to declining. The City Council has not taken the state-allowed 1% property tax increase since 2009. While home valuations have gone up and property owners’ taxes have increased, due to Washington state law, the city’s rate per thousand has gone down, so the City does not realize any increase in property taxes from property values increasing. The only increase in property taxes is from new construction, estimated to be $200,000 in 2025. Fuel taxes have also decreased, and phone utility tax has slightly increased.
The draft 2026 budget will continue to evolve throughout the year with community and Council input. Community members are encouraged to share their thoughts with Councilmembers via phone or email or speaking for up to three minutes during Public Comment at Council meetings, which occur most Tuesday evenings at 6 p.m. at Spokane Valley City Hall. Three public hearings on the budget are scheduled for September 16, October 14 and November 18, during which residents are invited to provide input.
About Spokane Valley City Council
City Council meetings occur most Tuesdays at 6 p.m. at Spokane Valley City Hall, 10210 E. Sprague Avenue, online via Zoom or Comcast channel 14. Meeting agendas and minutes are available at SpokaneValleyWA.gov/Agendas. Email the Council at CityCouncil@SpokaneValleyWA.gov or learn more at SpokaneValleyWA.gov/CityCouncil.
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Spokane Valley City Hall is open Monday through Friday from 8 a.m. to 5 p.m. Find information at SpokaneValleyWA.gov, sign up to receive email updates at SpokaneValleyWA.gov/SignUp, or follow the City on social media.