Landlords Letter 
Rod Higgins, Spokane Valley City Council


Throughout history governments have inflated their money supply, be it by clipping coinage (as the Greeks and Romans used to do) or printing worthless paper money (as most governments do today), to generate more money than they could through taxation or borrowing. Inflation is an insidious tax the government uses to fleece its citizens. And, when you look at the Federal Reserve’s “target” inflation, you can’t help but wonder: Why do we need inflation at all?

Generally, inflation is considered to be a rise in the overall price level of goods and services. However, before our government changed its definition, inflation was defined as an increase in the money supply.

Price levels can be manipulated, and in the case of our Consumer Price Index (CPI), is “adjusted” to reflect just about whatever the government wants it to be. The CPI purports to reflect the price level of a basket of consumer goods and services, albeit with important day to day living costs such as food and fuel omitted. The money supply, however, is not so easy to fiddle.

There are several significant flaws with the CPI. First, it assumes that “a rise in the general price level” can be reduced to a single number. But prices don’t increase evenly across the board. Take, for instance, big-ticket items like medical care and housing, which tend to rise more rapidly.

Trying to quantify a general increase in prices as a single number for over 334 million people—as the CPI claims to do—is almost a fool’s errand, unless it can be used for political advantage.

However, be aware that a report of, say, January 2023 price increases of 6.4% means 6.4% above those of January 2022. But 2023’s 6.4% is on top of those of 2022, which is on top of those of 2021, and so on. Therefore, inflation is always far worse than it appears, because it‘s cumulative, not an isolated number. Don’t be lulled into thinking the government has a handle on its problems; far from it.
So, what to do? Become debt free. I know, the general philosophy is go into debt and pay it off with depreciating dollars. Fine, if the government doesn’t change the rules (think FDR and his gold executive order). Lay in stores for at least 3-6 months, have a means to protect yourself, and mentally prepare for some very interesting times.

After taking last week off to attend the Association of Washington Cities Legislative Days event where city representatives from across the state travel to Olympia to network and visit their legislators, Council reconvened Tuesday in a Study Session format. Its first order of business was to address a federal funding application.

During the last administration, congressional earmarks (Congressionally Directed Spending Requests) were banned. However, in 2021, they were reinstated. Pursuant to that, our federal congressional delegation, led by Senator Murray, has put out a 2023 call for projects. The City has in the past received: $3 million for South Barker Corridor, 2021; $2.65 million for the Sullivan and Trent Interchange Project, and $5 million for the Pines Rail Crossing Project, 2022.

This year’s request is reflected below.

                            Funding    Secured    Unsecured    Total Project

Rank    Project Name      Requested    Funding      Funding       Cost

  1    Sullivn/Trnt                                             

          Interchange    $3 million      $  6.7 M         $ 35.6 M    $42.29 M

  2    S. Barker           $3 million    $10.3 M         $ 18.3 M    $28.62 M

      Corridor

  3    Argonne I-90    $3 million    $  1.3 M    $ 22.7 M    $24.00 M

       Bridge

The application is due February 28th. Historically, the CDS earmarks have required a 13.5% non-federal match. No change is expected. Motion to authorize the City Manager to submit the above requests passed unanimously.

The Washington State Department of Transportation (WSDOT) issued a call for projects on February 6th for its Local Bridge Program (FLBP). The purpose of the program is to improve the condition of bridges through replacement, rehabilitation, and preventive maintenance. $150 million is available with a $25 million per project maximum. No local match is required.

City staff has suggested applying for the Sullivan & Trent Interchange Project under the “replacement” category. The project to date has secured approximately $6.6 million in federal grant funds, which will cover engineering and right-of-way acquisition, leaving the construction phase to be funded.

Other grant funding is currently being sought under the WSDOT’s RAISE Program. The City’s RAISE application is for $17.213 million ($40.76% of the estimated project total of $42.625 million). This application is for $10 million (23.68%). The motion to authorize application for the Federal Local Bridge Program grant of $10 million passed unanimously.

Council was updated on the City’s participation in the Centennial Trail. That trail encompasses 40 miles of natural beauty, together with historic and archaeological features along the way, following the Spokane River from the Idaho state line to Nine Mile Falls. The trail’s most urban section is downtown Spokane with continuation both east and west. The eastern branch continues into Idaho for a total of more than 60 miles.

The City is one of five parties (Washington State Parks, City of Spokane, Spokane County, and the City of Liberty Lake comprise the other four) who participate in managing the trail. Spokane Valley’s annual contribution is $20,000. Total contributions are $160,000 to date.

The Spokane Regional Transportation Council (SRTC), on February10th, issued a call for projects. The funds are limited to highway preservation treatments only, which include grind/overlay or surface treatment projects such as chip seals or slurry seals. Project awards are capped at $1.5 million, and each applicant agency is capped at $3 million. A non-federal match of 13.5% is required but additional application scoring points can be earned with a higher match. The City, with Council consensus, will apply for the following projects in the order of ranking: 

Project                    Rank     Requested           City          Eligible

                                  Funds          Funds       Project Cost

Sullivan Road (River to Euclid)               1         $1.5 million       $1.3 million        $2.8 million

Fancher Road (Sprague-Trent)               2         $1.5 Million       $1.5 million        $3.0 million

Sprague @ Hwy 27 (Bowdish to McDonald)  3         $1.5 million       $1.8 million        $3.3 million

Staff presented an overview of the projects scheduled for construction in 2023 and an update on the Pines Road/BNSF Rail Crossing Project. There are in total, 17 projects all with sufficient funds from a mix of different sources including City funds, state grants, and federal grants.

The possibility of a regional coalition to address homelessness has been discussed at some length. A volunteer group has been coordinating those discussions regarding creation of such a group which would consist of elected and volunteer officials from the City of Spokane, Spokane County, and Spokane Valley as well as outside communities. A ‘due diligence’ group is proposed to try to discover a “unified comprehensive” approach to dealing with the region’s homeless problem. The group would be studying:

• What type of entity would be appropriate.
• Development of draft authorization documents such as ordinances and/or regulating enabling requirements.
• Identifying regional performance goals with associated strategies, timelines, and outcomes.
• Framework for participation, coordination, and communication between stakeholders,
• Identification of possible funding mechanisms and system-wide funding plan aligning public, private and other resources to meet the regional performance goals.
• Recommendations regarding a centralized homeless management information system.
• Development of a comprehensive system of analytics, data assessment and reporting.

Council’s discussion centered on participation in the “due diligence” process and whether to participate in any joint statement coming forth from the group. The consensus was that the City must be represented at such a gathering, but with both Spokane and Spokane County meeting to consider their strategies, the Valley City Council postponed action awaiting further information.

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