City staff presented a range of revenue options for the 2026 budget during the March 4 workshop and told the Spokane Valley City Council that voter-approved measures have narrow deadlines if the city wants a measure on the August ballot.

Staff reviewed councilmanic and voter options: the council can choose the annual, allowable 1-percent property‑tax lift (staff estimated it would raise about $141,000) or pursue a voter-approved levy-lid lift for a larger, multi-year increase. Chelsea, a finance presenter, explained the city currently receives only a small share of total property taxes paid by homeowners in the region and that a modest 1-percent increase would raise a modest sum for operations.

On sales taxes, staff outlined a city‑specific public‑safety sales tax option. Under the model shown, a 0.1‑percent city public‑safety sales tax could generate roughly $2.6–$2.8 million annually based on recent collection trends; staff noted historical lows near $1.4–$1.6 million in severe recessions. Staff advised that a city‑specific measure typically returns more revenue to the city than a later county‑level measure because Spokane Valley would directly receive 85 percent of the revenue while the county retains 15 percent, and the city’s pro‑rata share differs if the county moves first.

Staff emphasized calendar constraints: to place a sales‑tax measure on an August 5, 2025 ballot the city must begin public steps in March and file a final resolution by May 2. An alternative November date would require an August filing. Staff also noted procedural council requirements such as a public hearing and the city governance manual’s super‑majority guidance when proposing new taxes.

Council members debated the merits of voter measures and internal cost reductions. Some members favored letting voters decide a public-safety sales tax if staff can present clear uses and outreach; others urged pursuing internal reallocation and additional fee revenue before proposing new taxes. Staff said they will bring more detailed cost, revenue and outreach plans for council consideration.