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…