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Committee of the Whole

BEL-CTW-2025-03-24 March 24, 2025 Committee of the Whole City of Bellingham
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The Bellingham City Council's Committee of the Whole received critical updates on two major policy fronts during its March 24 session. First, contracted lobbyists Luke Esser and Nick Federici provided an update on the 2025 state legislative session, outlining significant transportation revenue proposals and public safety funding options that could affect the city. The House is proposing a $1 billion transportation revenue package including a nine-cent gas tax increase, while the Senate offers both no-new-revenue and new-revenue alternatives. The majority of the meeting focused on a comprehensive presentation of public engagement findings for proposed rental fee ordinances. Staff presented results from a 546-person survey and three focus groups facilitated by the Whatcom Dispute Resolution Center. The findings revealed near-universal support for fee transparency (97-99% across all groups) but significant division on fee limits and prohibitions, with tenants strongly supporting restrictions while landlords, particularly large ones, opposing them. Council members engaged in substantive discussion about the rental fee findings, with particular focus on the role of property management companies as a "third party" driving fee proliferation. The session concluded with Council Member Lilliquist successfully requesting staff research on building height minimums as a potential housing policy tool.

**Motion Passed - Height Minimum Research Request:** Council voted 6-0 (with Hammill abstaining) to direct Legislative Policy Analyst Iris Nott to research building height minimums, including what they are, where they've been used, why they've been used, and examples of different approaches. This research aims to address potential under-development issues where developers don't utilize full zoning density or height allowances. **Pres…

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**State Legislative Session Impact:** Lobbyists outlined critical pending legislation affecting Bellingham. Transportation revenue proposals include the House's $4.4 billion six-year package with significant tax increases versus the Senate's more modest approaches. On public safety funding, two bills remain viable: HB 2015 (includes state matching funds) and SB 5775 (local-only funding options). However, Whatcom County's existing 0.2% public safety sales tax likely caps Bellingham's additional revenue options under either proposal. Housing legislation received attention, with rent stabilization (HB 1217), condominium liability reform (HB 1403), public facility district extensions (HB 1109), and rent algorithm regulation (SB 5469) all progressing through committees. Property tax lid increases from 1% to 3% are under consideration in both chambers, though with different structures. **Rental Fee Ordinances Public Engagement:** The extensive public engagement revealed a community divided along predictable lines but with some surprising nuances. While 91% of survey respondents had read the p…
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**Luke Esser and Nick Federici (Contract Lobbyists):** Provided detailed updates on state legislation, emphasizing the compressed timeline with bills needing to pass committee by April 2nd, fiscal committees by April 8th, and opposite houses by April 16th. Esser noted transportation revenue proposals largely aim to maintain current service levels as gas tax revenues decline due to electric vehicles and fuel efficiency improvements. **David Braun and Iris Nott (City Staff):** Presented comprehensive public engagement findings, emphasizing the raw, unfiltered nature of community input. They highlighted the near-universal support for transparency while acknowledging the wide range of perspectives captured in over 100 survey questions and extensive focus group discussions. **Survey Respondents (546 total):** …
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**Luke Esser, on transportation funding challenges:** "That is largely to keep the state on a roughly break even course. There's some additional money for operations and maintenance there, but it's mostly just catching up with the fact that gas taxes are a declining revenue source both because of more electrical vehicles and also because of the increased fuel efficiency over the years." **Council Member Lilliquist, on property management company dynamics:** "What I'm seeing is that property ma…
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**April 14, 2025:** Council work session on rental fee ordinances, where members may consider revisions to the ordinances, fiscal impacts, and provide direction on how to proceed. Staff will prepare analysis comparing proposed local regulations with pending state legislation to avoid conflicts. **State Legislative Deadlines:** April 2nd for bills to pass jurisdictional committees, April 8th for fiscal committees, April 16th for opposite house passage. Key housing bills (HB 1217, HB 1403, HB 1109, SB 5469) are scheduled fo…

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**Research Authorization:** Council formally approved new policy research on height minimums, expanding the city's exploration of housing development tools beyond current density and zoning approaches. **Rental Fee Policy Intelligence:** The city now has comprehensive data on community perspectives and current fee practices, providing an evidence base for future ordinance revisions. The 500-page report establishes baseline understanding of fee variations and stakeholder positions. **State Legislative Positioning:** Council received updated intelligence on pending…
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# Charting Legislative Priorities and Housing Realities *A Committee of the Whole Meeting* The afternoon light filtered through the windows of Bellingham's Council Chambers as Council President Hollie Huthman called the Committee of the Whole meeting to order at 2:25 PM on March 24, 2025. While most council members were present in person, Councilmember Jace Cotton joined remotely, his connection occasionally crackling as technology briefly intruded on what would prove to be a substantive 90-minute discussion about state politics and local housing dynamics. ## The Legislative Sprint: Olympia in High Gear Janice Keller, the city's Deputy Administrator, introduced what had become a ritual of sorts — the monthly check-in with Bellingham's contracted lobbyists as the state legislative session moved into its final, most intense phase. Luke Esser appeared on the large screen, his voice carrying the energy of someone deeply embedded in the Capitol's corridors during what he called "a busy day here in Olympia." With just over a month remaining in the legislative session, Esser painted a picture of accelerating activity. Budget proposals were being released by both chambers, transportation packages were competing for attention, and the familiar dance of end-session politics was reaching fever pitch. The transportation discussion revealed the stark fiscal realities facing Washington state. Declining gas tax revenues — a consequence of both increasing electric vehicle adoption and improved fuel efficiency — were forcing difficult choices. The House had proposed an aggressive revenue package: nine cents per gallon gas tax increase, additional diesel fuel taxes, new weight fees, increased registration costs, and a complex highway use fee borrowed from Virginia's model that would charge more efficient vehicles higher fees since they contribute less in gas taxes. "In all, this package in the House is expected to generate $1 billion in transportation revenues for the 2025-27 biennium and $4.4 billion over the six-year period from 2025 to 2031," Esser explained. "And that is largely to keep the state on a roughly break-even course." The Senate offered its own alternatives — both a no-new-revenue option that wou…
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### Meeting Overview The City of Bellingham Committee of the Whole met on March 24, 2025, to receive updates on state legislative lobbying efforts and an extensive public engagement report on proposed rental fee ordinances. Council Member Cotton attended remotely while all other members were present in person. ### Key Terms and Concepts **Committee of the Whole:** A meeting format where all council members participate but operate as a committee rather than the full Council, allowing for more informal discussion and information gathering. **Public Safety Sales Tax:** A local option tax that counties and cities can impose (with voter approval) to fund law enforcement and public safety services, currently capped at 0.3% combined. **Property Tax Lid Lift:** A proposal to increase the annual property tax growth limit from 1% to 3%, giving local governments more revenue flexibility. **Rental Fee Ordinances:** Proposed city regulations that would require transparency in rental fees, limit certain fee amounts, and prohibit specific types of charges like appliance fees. **Engage Bellingham:** The city's public engagement platform where residents can participate in surveys and provide input on policy proposals. **Height Minimums:** A zoning tool being researched to ensure developers actually build to the density levels intended by zoning, preventing underutilization of land. **Public Facility Districts (PFDs):** Special districts that can impose sales taxes to fund public facilities, with proposed legislation extending their authorization period from 40 to 65 years. **Condo Liability:** Legislation addressing implied warranty provisions to make condominium development more viable by reducing legal risks for developers. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Hollie Huthman | Council President, Committee …
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Housing Government Operations Land Use & Planning HB 1109 HB 1217 HB 1403 HB 1590 HB 2015 HB 2027 HB 2049 SB 5469 SB 5775 House Appropriations Committee House Transportation Committee Senate Housing Committee Senate Ways And Means Committee Whatcom County Whatcom Dispute Resolution Center Daniel Hammill David Braun Hannah Stone Hollie Huthman Iris Nott Jace Cotton Janice Keller Lisa Anderson Luke Esser Michael Lilliquist Nick Federici Affordable Housing Building Heights Fee Transparency Food Security Housing Policy Middle Housing Property Management Public Safety Funding Rent Stabilization Rental Housing Policy State Legislature Transportation Policy