# Bellingham City Council Tackles Budget Crisis, Environmental Projects in Brisk September Meeting ## Meeting Overview The Bellingham City Council convened for what Council President Hollie Huthman jokingly noted was an unexpectedly swift meeting on the evening of September 15, 2025. With all seven council members present and Mayor Kim Lund delivering opening remarks, the session at City Hall addressed pressing budget challenges while advancing major environmental restoration projects. The meeting's most significant item was the first reading of an ordinance imposing a new 0.1% sales tax for criminal justice purposes — a measure the mayor positioned as essential to maintaining public safety services amid a projected $10 million general fund shortfall in 2026. The council also approved a massive $48.7 million contract for contaminated site cleanup that will eventually become Salish Landing Park, demonstrating the city's commitment to environmental remediation even while grappling with fiscal constraints. Despite the weighty matters on the agenda, the meeting concluded in under 28 minutes of regular business, with Huthman remarking she "really was not trying to set any records with this meeting." The efficiency reflected the council's unified approach to most items, with nearly every vote passing 7-0, suggesting broad consensus on the evening's priorities. ## The Public Safety Tax Debate The council's consideration of a new sales tax to fund criminal justice services dominated the policy discussion, both in the afternoon's Committee of the Whole session and during the evening's formal vote on first reading. The proposed tax would generate approximately $3.9 million annually, helping to address nearly 40% of the city's projected budget deficit. Mayor Lund framed the tax as a necessity rather than a preference during her opening remarks. "We are in our second year of seeking to address the structural imbalance," she explained, describing how municipalities across Washington are "coming to terms with years of increased demand for public services, for increased costs to deliver those services, and a coupling of flat or even declining revenues." The mayor emphasized that without the new revenue source, the city would face difficult service cuts. "Examples of services potentially at risk without using this new funding mechanism includes our popular and effective downtown bicycle patrols and the officers that we have dedicated to rejoining the drug task force," she warned. Council Member Michael Lilliquist used the discussion to contextualize the tax proposal within the broader fiscal challenges ahead. "There was some discussion about delaying this first vote until the next meeting," he noted, explaining that when the mayor presents her full budget proposal on September 29th, "that's when we're going to see what presumably will be some serious hard choices that we're facing that the mayor and departments had been facing." Lilliquist stressed that the tax represents a last resort rather than a first impulse: "This is not the first place that the city is reaching as a matter of fact the administration has already reached more than once for cost-saving measures." The ordinance, which adds a new Chapter 4.79 to the Bellingham Municipal Code, requires the city to deliver the final version to the state Department of Revenue by October 17, 2025, to implement the tax by January 1, 2026. The council amended the legislation to ensure that annual reports on the tax's use would be submitted to both the Association of Washington Cities and to the council itself, providing local oversight of the new revenue stream. ## Environmental Restoration Moves Forward In a striking contrast to the budget concerns, the council unanimously approved what represents one of the largest environmental restoration contracts in recent city history. The $48,779,160 award to IMCO General Construction for the R.G. Haley site cleanup, Cornwall Landfill cleanup, and initial phase of Salish Landing Park demonstrates the city's commitment to addressing legacy contamination while creating new public amenities. Council Member Hannah Stone, who chairs the Public Works and Natural Resources Committee, described the ambitious scope of the project during her committee report. "The RG Haley Cornwall Landfill Salish Landing Park phase 1 project will remediate the contamination at the RG Haley and Cornwall landfill cleanup sites. Once cleanup work is complete, the first phase of the Salish Landing Park, including a small parking area and trails, will be constructed." The project's funding comes from multiple sources, reflecting the complexity of financing major infrastructure work: a Remedial Action Grant, the Environmental Remediation Fund, Public Works Trust Fund loans, the Greenways Fund, and potential bonding. Notably, IMCO's winning bid came in at $48.7 million — significantly below the engineer's estimate of $60.7 million, providing substantial savings on the project. Stone emphasized the timeline ahead: "This is estimated to be a three-year project just for phase one of the park, but excited to have this work moving forward." The project is subject to apprenticeship program requirements under city code, ensuring local workforce development benefits alongside environmental restoration. ## Fish Passage Project Gets Emergency Authorization The council also addressed an urgent environmental project with tighter deadlines, approving a noise variance for the Padden Creek Fish Passage Improvement Project at 12th and 14th Streets. The project, which will remove barriers at two Interurban Trail creek crossings, faces a September 30th deadline due to regulatory "fish windows" — periods when in-water work is permitted to protect spawning fish. The need for the noise variance arose from an unexpected delay caused by a recent diesel spill, compressing the project timeline. As Stone explained during her committee report, "The project envisions allowing the contractor to work 24 hours a day if needed" to meet environmental compliance deadlines. Public Works Director Joel Pfundt and his team emphasized that the variance serves as a precautionary measure. "At this time the contractor is not expecting to need the noise variance. The expectation is that the work will be able to be completed within the normal workday," Stone reported. However, if round-the-clock work becomes necessary, the city committed to extensive community notification through neighborhood associations, business groups, online platforms, and door hangers for nearby residents. The project exemplifies the complex regulatory environment surrounding environmental restoration, where multiple agency requirements and seasonal restrictions can create challenging logistical puzzles for municipal governments. ## Housing Policy and Administrative Efficiency Among the evening's final ordinances, the council unanimously approved significant changes to the city's temporary shelter regulations. The amendments to Chapter 20.15 of the municipal code remove guest maximums for shelters, extend permit durations for all shelter types, and streamline permit renewal requirements. While the council did not engage in extended discussion of these changes during the evening session, the unanimous approval suggests broad support for policies that reduce barriers to temporary housing operations. The modifications reflect ongoing efforts to address homelessness through regulatory flexibility rather than increased restrictions. ## Property Acquisition and Administrative Matters Following a brief executive session, the council approved the acquisition of a five-acre property from Vernon Hartle for $256,000. Located in the Lake Whatcom watershed, the property will be preserved through the city's watershed land acquisition program, funded by customer surcharges on water utility bills. Council Member Williams moved to authorize the purchase, which must close by September 26, 2025. The acquisition demonstrates the city's commitment to watershed protection even amid budget pressures, using dedicated utility funds rather than general fund resources. In routine administrative matters, the council designated Cascadia Daily News as the city's new official newspaper of record, replacing the Bellingham Herald. Council Member Stone highlighted this change during consent agenda discussion, noting that while "people receive their city news in different ways," she requested public notification of the transition, particularly in the Herald since it had served as the paper of record for many years. The change resulted from a competitive process rather than administrative preference. As one council member explained, "an RFP was put out and the Cascade Daily was the only one that responded to it," ensuring due process in the selection. ## Annexation Reversal and Labor Relations The council revisited a contentious annexation decision from August, voting 5-2 to reconsider their previous denial of the Britton Road/Northern Heights annexation proposal. Council Members Stone and Anderson opposed both the reconsideration motion and a subsequent amendment directing staff to bring the proposal back for consideration in late 2026 or early 2027, after completion of the city's annexation plan. While the specific reasons for opposition were not detailed in the evening discussion, the split votes highlight ongoing disagreements about growth management and annexation policy within the council. On a more unified note, the council unanimously approved sending letters to both Evergreen Supported Living leadership and SEIU 775 members working at the facility. Council Member Cotton, who brought forward the letters, explained their purpose: "to encourage reaching a fair and equitable agreement that prioritizes the health and safety of Evergreen supported living's clients and employees and addresses the rising cost of living in Bellingham and Whatcom County." The letters reflect the council's willingness to engage in local labor disputes affecting vulnerable populations, using their platform to encourage fair contract negotiations. ## Closing and What's Ahead The efficient meeting concluded with Council President Huthman directing attendees to continue watching public comment via Zoom or phone, as the broadcast portion ended with regular business. Six community members provided public comment, though their specific topics were not detailed in the meeting materials. Looking ahead, Mayor Lund's proposed 2026 budget will be presented at the September 29th council meeting, followed by extensive work sessions throughout October and November. The budget process will provide crucial context for the public safety tax and other fiscal decisions facing the city. The council will also hold a public hearing on September 29th regarding a proposed ordinance to relinquish a surplus utility easement on Ohio Street, representing ongoing efforts to optimize city property management. As the meeting adjourned at 7:47 p.m., the council demonstrated its ability to address complex policy challenges efficiently while maintaining transparency and public engagement. The evening's combination of fiscal pragmatism, environmental stewardship, and administrative competence reflected a governing body working to balance competing priorities in an increasingly challenging municipal landscape. The unanimous or near-unanimous votes on most items suggested broad consensus on the city's direction, even as specific disagreements emerged on annexation policy. With major budget decisions looming and significant infrastructure projects moving forward, the September 15th meeting established important groundwork for the challenging fiscal and policy discussions ahead.

**Q:** How much money would the proposed public safety tax generate annually? **A:** $3.9 million per year, which would reduce the city's projected $10 million general fund deficit. **Q:** What is the rate of the proposed public safety tax? **A:** One-tenth of 1% (0.1%) sales and use tax for criminal justice purposes. **Q:** How much did the city pay for the RG Haley cleanup contract? **A:** $48,779,160.34 to IMCO General Construction, which was lower than the engineer's estimate of $60.7 million. **Q:** When must the city submit the tax ordinance to the state? **A:** By October 17, 2025, to implement the tax by January 1, 2026. **Q:** Who chairs the Public Works and Natural Resources Committee? **A:** Hannah Stone, with members Lisa Anderson and Jace Cotton. **Q:** What services could be cut without the public safety tax? **A:** Downtown bicycle patrols and officers dedicated to the drug task force. **Q:** How long will the RG Haley environmental cleanup take? **A:** An estimated three years just for phase one of the project. **Q:** How much will the city pay Vernon Hartle for watershed property? **A:** $256,000 for a 5-acre property in the Lake Whatcom watershed. **Q:** What was the vote count on the annexation reconsideration? **A:** 5-2, with Hannah Stone and Lisa Anderson opposed. **Q:** When will the mayor present her 2026 budget? **A:** September 29, 2025, at the next council meeting. **Q:** What does BMC stand for in city documents? **A:** Bellingham Municipal Code, the city's collection of local laws and regulations. **Q:** Which newspaper is now the city's official paper of record? **A:** Cascadia Daily News, replacing the Bellingham Herald after responding to an RFP. **Q:** What is the fish window deadline for the Padden Creek project? **A:** September 30, 2025, though it may be extended to mid-October by state ecology. **Q:** Who is Scott Pratschner? **A:** A reappointed member of the Parks and Recreation Advisory Board serving through August 2028. **Q:** How many bids did the city receive for the RG Haley cleanup? **A:** Five bids, publicly opened on August 20, 2025. **Q:** What happens after the environmental cleanup is complete? **A:** Construction of Salish Landing Park Phase 1, including parking area and trails. **Q:** What time did the meeting adjourn? **A:** 7:47 p.m., making it a relatively quick meeting as the council president noted. **Q:** What amendment did Jace Cotton propose to the tax ordinance? **A:** Adding a requirement that tax revenue reports also be submitted to City Council, not just the Association of Washington Cities. ---