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Ferndale City Council

FER-CON-2026-05-04 May 04, 2026 Committee Meeting City of Ferndale 11 min
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The May 4, 2026 Ferndale City Council meeting featured a comprehensive presentation on property tax and multifamily tax exemption (MFTE) policy by Whatcom County Assessor Rebecca Czar, clarifying longstanding confusion about how these tax incentives actually work. The presentation settled an ongoing political "ping-pong ball" debate about whether MFTE programs burden existing taxpayers, with Czar definitively explaining that the programs are revenue-neutral for taxing districts in budget-based systems. The council also received updates on Cascade Connections' organizational grant and reviewed the Capital Facilities Element of the Comprehensive Plan update. Public comment included a pointed critique from a speaker who challenged Mayor Hansen's language during public comment periods, arguing for more inclusive phrasing. The evening demonstrated Council's commitment to understanding complex policy before making decisions, with multiple council members praising the clarity of information provided.

**Consent Agenda Approval (AB #26-05-001):** Passed unanimously. Included approval of April 20, 2026 meeting minutes, payroll authorization, SW Stormwater Management Facility Connection Fee Amendment ordinance, and Biosolids Removal Contract with Fire Mountain Farms for $234,227.77. **Motion to Excuse Absent Member:** Council unanimously approved excusing Coun…

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**Multifamily Tax Exemption (MFTE) Policy Education:** The most substantial policy discussion centered on Assessor Czar's comprehensive explanation of how MFTE programs work within Washington's budget-based property tax system. Czar clarified that MFTE properties receive an eight-year exemption on new construction value (not land value), but this doesn't automatically burden other taxpayers because taxing districts only collect what they budget for, not a percentage of total assessed value. For school districts specifically, the impact is different because they operate under voter-approved levy amounts rather than percentage-based levies, meaning they wouldn't benefit from new construction anyway. Councilmember Mutchler characterized this as resolving a "political ping-pong ball" debate that has caused confusion since the program's 2018 adoption, with the understanding shifting between whether existing taxpayers bear the burden of exemptions. **Growth Management and Downtown Development:** Discussion revea…
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**Speaker 4 (Unidentified Public Commenter):** Criticized Mayor Hansen's use of "their city council" during public comment introductions, arguing this language makes non-residents feel unwelcome. The speaker, who identified as being from Blaine and involved in a misconduct investigation that brought them to Ferndale meetings, requested more inclusive language acknowledging that non-residents may have legitimate interests before the council. **Allison Hill, Executive Director of Cascade Connections:** Expressed gratitude for the city's organizational grant supporting their training center, which provides essential education for home care aides. Highlighted partnerships with Lummi Nation and local businesses, and growing services within Ferndale including supported living programs, home care services, and employment opportunities. **Rebecca Czar, Whatcom County Assessor:** Provided comprehensive, neutral explanation of property tax systems and MFTE mechanics. Clarified misconceptions a…
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**Councilmember Mutchler, on the ongoing MFTE debate:** "This for me has felt like a political ping pong ball or a yo-yo and you sat there and I think I sat there when we discussed this in 2018 and in the minutes of the discussion was what do we do about the fire department and what do we do about the school district... somehow that got flipped and I have numerous emails coming at me... It's much easier for us to make good decisions as a council when we are certain of the facts." **Assessor Re…
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**Ferndale Terrace Ribbon Cutting:** May 12th at 11 a.m. near the intersection of Ferndale Terrace and Legoe, with road closures planned for the ceremony celebrating completion of a 30-year infrastructure project. **Senior Center Pancake Breakfast:** Fundraiser scheduled for Saturday, May 16th from 8:00 to 10:30 a.m. **Community Game Night:** This Friday at Pioneer Pavilion from 5 to 8 p.m. **Comprehensive Plan Process:** Capital Facilities Element will be finalized and sent to Olympia for state review, with a public hearing to be schedul…

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**Policy Understanding:** The council and public now have a clear, authoritative explanation of how MFTE programs work, resolving years of conflicting information about tax burden impacts. This represents a significant shift from confusion to clarity on a contentious policy issue. **Educational Framework:** Establishment of a new model for complex policy education, with multiple council members praising the thorough presentation format as superior to previous attempts at understanding property tax mechanics. **Interagency Relations:** Recognition of the need for better ongoing communication between the city and…
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