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Real Briefings

City Council

BEL-CON-2024-10-21 October 21, 2024 City Council Regular Meeting City of Bellingham 9 min
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The Bellingham City Council faced significant financial challenges at their October 21 meeting, with Deputy Administrator Forrest Longman presenting concerning revenue shortfalls that could force the city to dip into emergency reserves by the end of 2025. The administration proposed a 1% property tax increase for 2025, while simultaneously requesting $10.8 million in additional funding for police and fire departments to cover unexpected cost overruns in 2024, including $3 million in increased jail costs and $6 million in fire department salaries and overtime. The evening's second major policy discussion centered on extending the city's controversial landmark tree ordinance for another six months. The interim ordinance, originally passed as an emergency measure in May, has created what developer Ali Taishi described as "absolute chaos" in the development community, with property owners walking away from projects due to uncertainty and increased costs. However, environmental advocates pushed for the extension to allow proper legislative review of tree preservation policies. Council also advanced draft ordinances to regulate "junk fees" in residential and manufactured home rentals, following concerns about proliferating application fees, pet fees, and administrative charges that exceed actual service costs. These measures will undergo further staff review and public engagement before returning to council.

**Property Tax Levy (AB 24281):** Information hearing only on proposed 1% increase for 2025, no vote required. Staff recommendation supported, will require formal action by end of November. **Landmark Tree Ordinance Extension (AB 24282):** PASSED 7-0. Extends interim development regulations for landmark tree preservation for six months through May 2025. Staff recommended extension, Council approved to allow proper legislative process. **Budget Amendment No. 15 (AB 24289):** PASSED 7-0. Adds $10.8 million to General Fund for fire and police departments to cover 2024 cost overruns. Staff recommendation approved unanimously. **Transportation Commission Appointments (AB 24283):** P…

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**Budget Crisis Deepens:** Deputy Administrator Longman revealed that 2024 revenues are falling $2-3 million short of projections, with sales tax showing negative growth in five of the last nine reporting periods. The shortfall stems primarily from high interest rates suppressing construction activity and vehicle sales. A $10.8 million budget amendment, larger than anticipated, will reduce the city's financial cushion and could force emergency reserve spending by end of 2025 rather than 2026 as previously projected. **Tree Ordinance Creates Development Tensions:** Planning Director Blake Lyon acknowledged the landmark tree ordinance has placed "a pretty heavy burden" on development activity, requiring extensive upfront studies to determine project viability. The city has p…
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**Doug Gravel Yoshi** (public speaker on multiple items): Argued money and property are "delusions" and "traps," calling for focus on healthy versus unhealthy choices rather than financial considerations. Supported tree preservation as protecting "living beings" that communicate with each other. **Jonah Runde** (revenue hearing): Supported the property tax increase while opposing hiring additional police officers during budget deficits, arguing it's "better never to hire people than to be forced to fire people." **Carrie Burnside** (Silver Beach Neighborhood Association): Strongly supported landmark tree ordinance extension, emphasizing trees' role in stormwater management, air quality, and reducing phosphorus runoff into Lake Whatcom drinking water. **Amy Burger** (resident): Supported tree ordinance extension, noting community members notice orange survey tape on trees and worry about…
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**Forrest Longman**, on budget challenges: "We now anticipate that if the budget is fully expended, we could be dipping into our ending emergency reserves at the end of 2025 instead of 2026, as we had predicted when we built the budget." **Council Member Lilliquist**, on property taxes: "Property values may go up, but that doesn't mean property taxes go up. If it worked that way, the city would be rolling in money because we all know what happened to property values. It doesn't work …
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**November 4, 2024:** Second public hearing on 2025 budget and public hearing on utility easement relinquishment at 701-705 N. State Street. **November 2024:** Property tax levy ordinance must be passed by end of November to take effect for 2025. **October 24, 2024:** Joint meeting between City Council and Planning Commission at 6 PM, Pacific Street Operations Center. **October 28, 2024:** Next budget work session sch…

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The city's financial outlook deteriorated significantly with 2024 revenues falling $2-3 million below projections and requiring an unexpected $10.8 million budget amendment. This acceleration of budget pressures moves potential emergency reserve depletion from 2026 to 2025. The landmark tree ordinance received a six-month extension through May 2025, maintaining development regulations that have created uncertainty in the construction community but preserving tree protection advocates' priorities. Council advanced…
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A cold October evening in Bellingham brought the city council together for a meeting that would touch on some of the community's most pressing challenges — from budget strains and housing development to the preservation of the city's tree canopy. As council members gathered in the familiar chambers at City Hall on October 21st, 2024, an undercurrent of fiscal concern ran through the agenda, with Deputy Administrator Forrest Longman set to deliver sobering news about revenue shortfalls and the city's financial outlook. The meeting began with the traditional land acknowledgment, recognizing the Lummi, Nooksack, Samish and Semiahmoo peoples, followed by announcements in both English and Spanish reflecting the city's commitment to language accessibility. Council President Dan Hammill called roll at 7:00 PM with all seven members present: Hannah Stone, Hollie Huthman, Skip Williams, Lisa Anderson, Michael Lilliquist, and Jace Cotton joining Hammill for what would prove to be a consequential evening. ## Revenue Reality Check: The Budget Squeeze The evening's first substantive business was a required public hearing on the city's 2025 revenue projections, including a proposed 1% increase to the property tax levy — the maximum allowed by state law. What unfolded was a detailed presentation by Deputy Administrator Longman that painted a picture of economic uncertainty and budgetary pressure that would set the tone for much of the evening's discussion. "Our 2024 revenues are not meeting expectations," Longman told the council, his charts showing sales tax revenues in decline for five of the past nine reporting periods. The numbers told a stark story: revenues were missing targets by $2-3 million, largely tied to rising interest rates that had cooled construction activity and vehicle sales — two key drivers of Bellingham's tax base. Longman walked through the mechanics of Washington state's unique budget-based property tax system, using the example of an imaginary town with just two houses to illustrate how property tax bills are calculated. In Washington, unlike many states, local governments set a dollar amount they need to collect, and that amount is then distributed across the entire assessed valuation of the taxing district. This means that even as property values rise dramatically — as they have across Bellingham — individual tax bills don't necessarily increase at the same rate. "As you see your assessed values go up, the tax is not necessarily going up a…
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### Meeting Overview Bellingham City Council met on October 21, 2024, addressing critical budget challenges and tree preservation policies. The major focus was on a proposed 1% property tax increase for 2025 amid declining revenues and an emergency $10.8 million budget amendment for police and fire departments to complete the year. ### Key Terms and Concepts **Property Tax Levy:** The total dollar amount the city can collect through property taxes, limited by state law to increase only 1% annually plus new construction. **Budget-Based Property Tax:** Washington's unique system where the council sets a dollar amount rather than a tax rate, which is then divided among all properties based on their assessed value. **Interim Development Regulations:** Temporary rules that allow the city to control development while permanent policies are being created through the full legislative process. **Landmark Tree Committee:** A three-member city staff committee that evaluates tree removal requests and preservation options under the emergency tree ordinance. **Job Order Contracting (JOC):** A procurement method allowing the city to hire contractors for multiple small projects under preset pricing terms. **Point in Time Count:** An annual snapshot count of people experiencing homelessness in the community, required for federal funding. **General Fund:** The city's main operating budget that pays for basic services like police, fire, parks, and administration. **Executive Session:** Closed meetings where council discusses confidential matters like litigation, property acquisitions, and labor negotiations. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Dan Hammill | Council President | | Kim Lund | Mayor | | Forrest Longman | Deputy City Administrator | | Blake Lyon | Planning and Community Development Director | | Ali Taishi | Development community representative/speaker | | Doug Gravel Yoshi | Community activist/frequent speaker | | Hannah Stone | Council Member, Public Works Committee Chair | | Michael Lil…
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Budget & Finance Land Use & Planning Housing Government Operations Bellingham City Council City Of Bellingham Landmark Tree Committee Opportunity Council Silver Beach Neighborhood Association Whatcom County Whatcom Million Trees Ywca Ali Taishi Amy Burger Andy Asbjornsen Blake Lyon Carrie Burnside Daniel Hammill Doug Gravel Yoshi Edwin Skip Williams Forrest Longman Hannah Stone Hollie Huthman Jace Cotton Kim Lund Laura Weiss Lisa Anderson Michael Furer Michael Lilliquist Nicole Oliver Annexation Budget Finance Climate Action Homelessness Housing Policy Infrastructure Investment Lake Whatcom Watershed Land Use Policy Parks Recreation Public Safety Rental Housing Transportation Policy Tree Ordinance