(The Center Square) – Spokane Valley officials discussed amending the city’s 2025 budget on Tuesday to offset $350,000 in legal fees related to lawsuits against Councilmember Al Merkel.
The city council will vote on the amendment next week to add over $5.4 million in revenues and nearly $14 million in spending to the budget. Roughly $3.5 million reflects transfers between the city’s fund, with $9.3 million of the new spending on capital projects, which reserves can cover.
Recurring revenues in the general fund only exceed expenditures by $411,000, so the council wants to pull $353,000 in public safety funding to pay for its lawsuits against Merkel. The Valley spent at least $235,000 on issues related to Merkel last year and expects more in the future.
The Capital Reserve Fund, or Fund No. 312, will have $4.3 million in reserves after the budget amendment, but more than $50 million when considering the general fund and other reserves.
“We could use Fund 312 to fund these wasteful expenditures in regards to this political persecution of me, but instead,” Merkel said, “we’re choosing to defund public safety items.”
Councilmember Jessica Yaeger said Merkel might call it persecution, but she chalked it up to holding him accountable. She filed complaints last year over his alleged violations of the state Public Records Act, which ultimately led to the council filing legal action against Merkel.
A hearing examiner ruled that Merkel “more likely than not” violated the law, which he refutes.
The council tried to get Merkel to comply after the ordeal, but he thinks his peers keep moving the goalposts, now suing to force his hand. Merkel has said he plans to seek full legal redress.
The hits to the Public Safety Department they discussed on Tuesday would drop its respective salaries and benefits to those employees by $223,000. Another $130,000 reduction will result in the city only replacing 12 patrol vehicles instead of the 14 they usually swap out each year.
City staff indicated that replacing only 12 vehicles would still meet the city’s needs this year, and the loss in salaries and benefits accounts for a vacant position that the department hasn’t filled this year.
“If it’s that important, you don’t think you’d find $280,000 or whatever, $100,000 that it is out of another fund?” resident Mike Dolan testified. “It’s kind of an obvious attack on Mr. Merkel here.”
Dolan, who often rises in support of Merkel, said the council member is innocent until proven guilty and deserves equal representation. Notably, the council voted against providing Merkel with an attorney, which is consistent with local law. City Manager John Hohman said Merkel could’ve avoided this.
Violating the Public Records Act could result in significant fines for the Valley. Merkel refuted claims again Tuesday that his public communication constitutes a public record. While the alleged misconduct is over his social media activity, Merkel specifically referred to comments made in public.
“This is not a personal persecution; this is a risk management exercise in trying to prevent further harm from coming to the city,” Hohman said. “Please, Councilmember Merkel, I’m pleading with you, just start following the rules, and this could all end.”
