Finance and Administrative Services Committee

**Ferry District Establishment:** Director Cosa presented the case for a countywide ferry taxing district to address the Lummi Island Ferry's financial crisis. The 64-year-old vessel operates 15 years beyond its intended lifespan, with emergency repairs now costing $500,000 each. The current funding model—45% road fund, 55% user fees—cannot sustain the $25 million needed for vessel replacement and terminal improvements. The proposed district would spread costs countywide rather than limiting them to unincorporated areas. Under state law (Senate Bill 2558), the council can approve up to 10 cents per $1,000 assessed value. The two-phase process first establishes the governing structure, then sets rates through work sessions. Without action, the county risks losing $35 million in federal and state grants. Council Member Ben Elenbaas questioned governance structure and potential city opposition, while Mark Stremler sought clarification on grant requiremen…

**Elizabeth Cosa, Public Works Director:** Strongly advocated for ferry district, emphasizing legal obligations to maintain service and risk of losing federal grants. "We are afforded two options: take it from the road fund even further, or bring a ferry district option for council." **Mark Stremler, Council Member:** Opposed EDI funding for senior housing based on EDI board recommendation, but supported project concept. On ferry district: sought clarification on grant requirements and timing pressures. **Ben Elenbaas, Council Member:…

**Elizabeth Cosa, on ferry district urgency:** "We need to decide if we're going to actually do that. If we delay a funding solution, then we will lose out on that opportunity." **Ben Elenbaas, on CREP response:** "It's impressive to me that this rolled out so fast because that was a huge problem that happened. So nice work." **Randy Rydell, on fiscal stability:** "This really shows the departments' hard work of try…

The committee moved from discussion to formal introduction of the ferry district concept, setting up potential approval within two weeks. The two-phase approach separates governance establishment from rate-setting, addressing concerns about rushing into specific tax levels. Ferry funding shifted from theoretical problem to immediate crisis requiring 2026 action to secure federal grants. The county's fi…

### Meeting Overview The Whatcom County Finance and Administrative Services Committee met on Tuesday, April 28, 2026, to address 12 consent agenda items and receive quarterly reports from county departments. The committee's major focus was discussing establishment of a countywide ferry district to fund and manage the Lummi Island Ferry System, which faces $25 million in critical infrastructure needs. ### Key Terms and Concepts **Consent Agenda:** Items that are routine or non-controversial, grouped together for a single vote to streamline the meeting process. **CREP (Conservation Reserve Enhancement Program):** A federal-state partnership that pays farmers to voluntarily set aside environmentally sensitive land, particularly riparian buffers along waterways. **EDI (Economic Development Investment) Program:** Whatcom County's funding mechanism to support housing and economic development projects. **Community Land Trust:** A nonprofit organization that owns land and leases it to homeowners to maintain long-term affordability while allowing homeowners to build equity in the house structure. **Ferry District:** A special taxing district that can be established countywide to fund ferry operations and capital improvements through property taxes. **RAISE Grant:** A federal transportation grant (Rebuilding American Infrastructure with Sustainability and Equity) that provides funding for major infrastructure projects. **Road Fund:** County funding mechanism supported by property taxes from unincorporated areas to maintain and improve county roads. **Board of Supervisors:** The governing body of a special district, which in this case would be the county council acting in that capacity for the ferry district. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Elizabeth Boyle | Council Chair (Committee Chair) | | Barry Buchanan | Council Member | | Ben Elenbaas | Council Member | | Kaylee Galloway | Council Member | | Jessica Reenstra | Council Member | | John Scanlon | Council Member | | Mark Stremler | Council Member | | Cathy Halka | Clerk of the Council | | Randy Rydell | County Finance Director | | Rob | Facilities Division Director | | Elizabeth Cosa | Public Works Director | | Alex Harris | Planning and Development Services Staff | | Eric Chambers | Health and Community Services Staff | | Roland | County Legal Counsel | ### Background Context Whatcom County faces a critical funding crisis for the Lummi Island Ferry System, which has operated for over 100 years as the only public access to serve 1,400 properties on the island. The c…