### Meeting Overview
The Budget and Finance Committee of the City of Bellingham met on April 13, 2026, with Council Member Lilliquist chairing in place of Chair Anderson who participated remotely. The committee reviewed the city's 2025 year-end financial results, showing a city that narrowly avoided deficit spending by making strategic revenue adjustments, but faces ongoing fiscal challenges ahead.
### Key Terms and Concepts
**General Fund:** The city's main operating account that funds basic services like police, fire, and parks. Contains about 13 departments and is funded by sales tax, property tax, utility taxes, and other revenues.
**Alligator Graph:** Bellingham's nickname for their general fund reserve projections chart that shows how reserves are being "eaten away" over time if current spending trends continue.
**Emergency Reserve:** A required fund balance equal to 18% of the general fund budget, designed to cover unexpected expenses or revenue shortfalls.
**BNO Tax:** Business and Occupation tax levied on gross receipts of businesses operating in Bellingham.
**REIT:** Real Estate Excise Tax collected when properties are sold, providing revenue to the city.
**Self-Insurance Program:** The city's approach to handling workers compensation and medical claims internally rather than purchasing traditional insurance.
**Enterprise Funds:** City operations that function like businesses, funding themselves through user fees (water, sewer, stormwater, Medic One).
**Yield Curve Inversion:** An economic indicator where short-term investment returns exceed long-term returns, historically predicting recessions.
### Key People at This Meeting
| Name | Role / Affiliation |
|---|---|
| Michael Lilliquist | Council Member, Acting Committee Chair |
| Lisa Anderson | Council Member, Committee Chair (remote) |
| Dan Hammill | Council Member, Committee Member |
| Andy Asbroen | Finance Director, City of Bellingham |
| Hannah Stone | Council President |
### Background Context
Bellingham concluded 2025 in a precarious financial position, avoiding deficit spending only through three strate…
