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Bellingham City Council

BEL-CON-2025-09-29 September 29, 2025 City Council Regular Meeting City of Bellingham
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The Bellingham City Council confronted its most significant budget crisis in years during its September 29th meeting, with Mayor Kim Lund presenting a 2026 budget proposal that seeks to address a $10 million General Fund shortfall through dramatic cuts and a controversial 0.1% public safety sales tax increase. The mayor's budget eliminates over 40 positions, most currently vacant, and proposes deep service reductions while leveraging dedicated fund resources to maintain essential city operations. Council unanimously approved several routine items including utility easement relinquishment, planning documents adoption, and committee recommendations for Post Point wastewater treatment upgrades and severe weather shelter agreements. However, the evening's focus remained squarely on the budget presentation and its implications for city services. The proposed public safety sales tax, if enacted, would generate nearly $4 million annually to fund existing safety services including downtown bike patrol, the GRACE alternative response program, public defenders, domestic violence services, community court operations, and regional drug task force participation. Without this revenue source, Mayor Lund warned of additional $4 million in program eliminations beyond the cuts already proposed. Council members engaged in substantive discussion about long-range planning documents, with particular attention to the Capital Facilities Plan and Multimodal Transportation Plan that will be incorporated by reference into the comprehensive plan. The meeting also featured reports on community addiction response efforts and requests for policy analysis work on tenant protection issues.

**AB 24667 - Iowa Street Utility Easement Relinquishment (PASSED 6-0):** Council approved first and second reading of an ordinance relinquishing a surplus utility easement and covenant on vacated Iowa Street behind Aaron's Bakery at 427 Ohio Street. Staff recommendation supported. Easement determined unnecessary after consultation with city and private utilities. **AB 24669 - Design Review Board Reappointment (PASSED 6-0):** Council approved Mayor Lund's reappointment of Ryan Van Straten to a second term on the Design Review Board, term expiring October 14, 2029. Staff recommendation supported. **AB 24670 - Post Point GCCM Authorization (PASSED 6-0):** Council authorized application to State Project Review Committee to use General Contractor/Construction Manager delivery method for Post Point emission control upgrades and retain Michael Loulakis for legal services. Staff recommendation supported. October 15th application deadline required immediate action. **AB 24671 - Severe …

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**2026 Budget Crisis and Public Safety Tax:** Mayor Lund's budget presentation dominated policy discussion, outlining a $543 million total budget ($388.2 million operating, $154.8 million capital) built on three principles: financial sustainability, focusing on uniquely municipal work, and leveraging dedicated resources. The proposed 0.1% public safety sales tax represents the only tool provided by state legislature for local revenue generation. The tax would add approximately $1 to cell phone purchases and $15 to used car purchases while generating $4 million annually. Council members acknowledged the difficult choices ahead, with detailed budget work sessions planned before final adoption. The mayor emphasized that without the sales tax, an additional $4 million in cuts beyond the 40+ position eliminations would be necessary. **Post Point Wastewater Treatment Alternatives:** Council Member Lilliquist outlined six criteria for evaluating compelling information about alternative approaches to Post Point emission control upgrades: completeness of pollution control, sustainability risks, implementation timeline (current proposal operational by 2031), viability of alternatives, cost comparisons over 8-10 years, and ease of implementation. Several community members have submitted detailed concerns about the current ap…
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**Mayor Kim Lund:** Presented the budget as both "responsive and responsible," emphasizing that cuts were necessary to address structural revenue challenges. Stressed that the public safety sales tax funds existing services, not new programs, and warned of deeper cuts without this revenue source. Highlighted the city's commitment to transparency with new budget tools and community engagement resources. **Council Member Hannah Stone:** Supported Post Point authorization while emphasizing the October 15th deadline necessity and compliance requirements with state pollution control regulations. Noted that alternative proposals contradict state law and current proposal best meets city needs. Requested staff assistance for community resource navigation document. **Council Member Michael Lilliquist:** Expressed detailed concerns about Post Point alternatives, outlining specific criteria for evaluating competing proposals. Emphasized importance of stakeholder engagement and requested participation in future discussions despite not serving …
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**Mayor Kim Lund, on budget priorities:** "At its core, a budget is a values document, a reflection of the city's legal requirements, community priorities, and the core services that we provide." **Mayor Kim Lund, on revenue constraints:** "Like other municipalities throughout the state, we are coming to terms with years of increased demand for government services, increasing costs to deliver those essential services, and flat or declining revenues." **Council Member Michael Lilliquist, on c…
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**October 6, 2025:** City Council will hold first public hearing on 2026 proposed budget, with detailed community input opportunity and council discussion of public safety sales tax proposal. **October 15, 2025:** Deadline for Post Point GCCM application submission to State Project Review Committee, following council authorization. **November 3, 2025:** Second public hearing scheduled on 2026 budget with detailed information available at meetings.cob.org five days prior. **End of 2025:** Final budget adoption deadline with multiple work sessions planned between now and year-end for refinement and community i…

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**Budget Framework Established:** City now has formal 2026 budget proposal addressing $10 million General Fund shortfall through position eliminations and proposed public safety sales tax, setting parameters for upcoming public hearings and final adoption process. **Planning Document Structure Formalized:** Capital Facilities Plan and Multimodal Transportation Plan now adopted as standalone documents for incorporation by reference into comprehensive plan, establishing new framework for technical document updates separate from comprehensive plan amendments. **Post Point Process Advanced:** Council authorization enables state application for GCCM delivery method while preserving oppor…
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# Bellingham City Council Wrestles with Budget Challenges and Municipal Priorities On a grey September evening, the Bellingham City Council convened for what would prove to be a pivotal meeting in the city's 2026 budget cycle. With Council President Hollie Huthman excused, Council President Pro Tempore Skip Williams called the meeting to order at 7 PM in Council Chambers, where six council members and a modest public audience gathered to tackle an agenda heavy with financial realities and long-term planning decisions. ## Meeting Overview The September 29, 2025 regular council meeting unfolded as a study in municipal governance under fiscal pressure. While the formal agenda included routine items like an easement relinquishment and board appointments, the meeting's true significance lay in Mayor Kim Lund's presentation of her proposed 2026 budget—a document that seeks to close a projected $10 million General Fund shortfall through difficult choices including the elimination of over 40 positions and a proposed 0.1% public safety sales tax increase. The meeting ran just over two hours, concluding at 9:06 PM after addressing seven committee reports, executive session items involving potential litigation and property acquisitions, and a robust public comment period featuring 21 speakers. The tone throughout remained professional but carried an undercurrent of concern about the city's financial trajectory and the hard decisions ahead. ## Relinquishing the Past on Iowa Street The evening began with a straightforward public hearing on an ordinance to relinquish a surplus utility easement on vacated Iowa Street behind Aaron's Bakery at 427 Ohio Street. Mike Wilson, Assistant Director of Public Works and city engineer, explained that the easement had been reserved when the street was vacated in 1977, but both city and private utilities confirmed they no longer needed it. Council Member Lisa Anderson, who had visited the site over the weekend, noted it was "really not something usable for a through fair, especially with Bellingham High School having their sports field there." She examined whether it could serve as an alley or trail but concluded it was "just not conducive for cre…
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### Meeting Overview Bellingham City Council held its regular meeting on September 29, 2025, with 6 members present and Council President Huthman excused. The meeting focused heavily on the 2026 budget introduction, which proposes addressing a $10 million general fund shortfall through staff reductions and a proposed 0.1% public safety sales tax. ### Key Terms and Concepts **General Fund:** The city's most flexible budget account that pays for basic services like library workers, firefighters, and police. Unlike dedicated funds, it can support all city operations but faces the biggest budget challenges. **GCCM (General Contractor/Construction Manager):** A collaborative construction delivery method where the contractor works with the city during design phase, rather than traditional bidding after design is complete. **Type Six Process:** A lengthy planning procedure required to amend certain comprehensive plan documents, which can take months or years to complete. **Capital Facilities Plan:** A 20-year planning document that outlines the city's infrastructure investment priorities and becomes part of the comprehensive plan by reference. **Executive Session:** A closed meeting session where council discusses confidential matters like property acquisitions, litigation, and personnel issues, with public reporting afterward. **Interlocal Agreement:** A contract between different government entities (like city and county) to share services or costs, such as the severe weather shelter. **Utility Easement Relinquishment:** The formal process of giving up the city's legal right to use private property for utilities when that right is no longer needed. **Public Safety Sales Tax:** A 0.1% sales tax increase that state law allows cities to implement specifically for police, fire, and other safety services, requiring voter or council approval. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Edwin "Skip" Williams | Council President Pro Tempore, Fourth Ward | | Kim Lund | Mayor | | Hannah Stone | Council Member, First Ward | | Daniel Hammill | Council Member, Third Ward | | Lisa Anderson | Council Member,…
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Budget & Finance Transportation & Infrastructure Public Safety Government Operations AB 24667 AB 24668 AB 24669 AB 24670 AB 24671 AB 24672 AB 24673 AB 24674 AB 24678 Bellingham Fire Department Bellingham Whatcom County Commission Domestic Violence Design Review Board Grace Program King County State Project Review Committee Whatcom County Daniel Hammill Edwin Skip Williams Hannah Stone Jace Cotton Joel Pfundt Katie Chandler Kim Lund Lisa Anderson Michael Lilliquist Mike Wilson Ryan Van Straten Behavioral Health Budget Finance Business Licenses Capital Facilities Plan Comprehensive Plan Fema Litigation Lake Whatcom Watershed Mode Shift Goals Multimodal Transportation Planned Parenthood Litigation Post Point Public Safety Severe Weather Shelter Utility Easement