Fall in Spokane Valley means changing leaves, carving pumpkins, and the annual vote by the city’s elected leaders against raising property taxes.
The Spokane Valley City Council voted Tuesday to oppose a 1% increase in property taxes next year, extending the city’s streak of opposing the tax to 16 years in a row.
By forgoing the increase, the City Council will save the typical homeowner in the Valley less than $4, while forgoing an additional $138,060 in revenue next year. The levy rate will remain at 79 cents per $1,000 of assessed value in 2025.
Councilman Rod Higgins and Vice Mayor Tim Hattenberg were the only members of the board to support the increase.
State law allows governments to collect 1% more in property taxes each year, and most governments do so because of limited funding options. Taxes are the primary funding mechanism, and the 1% is unique in that it is one of the few ways governing bodies can raise taxes without voter approval.
Property taxes are the main recurring revenue source of the city’s general fund behind sales tax returns. The city expects to raise $13.8 million this year and about $14.1 million in 2025.
While funding constraints always exist for local governments, Spokane Valley has some pressing concerns that are unique to this budgeting exercise.
The Spokesman-Review reports that next year’s spending is expected to grow five times faster than what the city collects, with city officials saying the council’s general fund receipts exceed spending by just $2,000. It warns that only
Sales tax revenues across the state remain stagnant, meaning local governments aren’t seeing as much growth as they budgeted for in past years.
There also isn’t enough funding to meet the City Council’s goal of adding more than 20 deputies and officers to the Spokane Valley Police Department.
Hattenburg said the city has been missing out on funding for the effort for decades, which is why he opposed it Tuesday.
Mr Higgins cited broader budget concerns when asked why he supported the increase. He said he was advised that the city council’s annual decisions could affect bonds issued by the city in the future because the city could be seen as a less reliable lender.
“If you run out of money and don’t use everything that’s available, as we tend to do now, that’s going to have an impact on bond rates,” Higgins said.
Higgins also worries that withholding increases could ultimately lead to cuts to city services, given the city’s existing financial problems.
“We are understaffed and we are also evaluating other needs, including hiring additional police officers,” Higgins said. “So it doesn’t make much sense for us not to accept it. We’ll have to find it somewhere else where it could be more painful.”
Congress is expected to adopt a final budget for 2025 in November. Interested residents can submit comments at the final public hearing on the process, to be held at Spokane Valley City Hall on Nov. 12 at 6 p.m.
