Budget and Finance Committee

**Daniel Hammill, on facility conditions:** "The former Deputy Director at one point reported during a board meeting that they were trying to plug in some equipment to the wall, and sparks and fire would shoot out." **Daniel Hammill, on the project necessity:** "The current facility that houses the workers that take your 911 calls when you're having the worst day of your life are crammed in there." **Andy Asbjornsen, on fiscal responsibility:** "Our desire is not to go up to 19 million and would be to keep it as low as possible." **Michael Lilliquist, on the PFD benefit:** "This is sales tax that is due to the city's portion. The state's portion, But it is it is an ascend returned and retained locally and to go specifically into the PFD's Account here at the city." **Andy Asbjornsen, on PFD revenue significance:** "This is a pretty significant amount of funds that can continue to be collected out for another 20 years with this adjustment to the refunding." **Daniel Hammill, on con

# Bond Authorization for 911 Dispatch Facility and PFD Debt Refinancing ## Meeting Overview The Bellingham City Council's Budget and Finance Committee convened on December 15, 2025, for a brief but significant 12-minute meeting. Committee Chair Lisa Anderson was joined by Council Members Daniel Hammill and Michael Lilliquist to review a single agenda item: a $19 million bond authorization that would address two distinct municipal financing needs. The meeting focused on Ordinance Bill 24787, which would authorize the city to issue general obligation bonds to construct a new What-Comm 911 dispatch facility and refinance existing Public Facilities District (PFD) debt. Finance Director Andy Asbjornsen presented the technical details of what he acknowledged was a complex financial instrument with "a long title" required by legal standards for bond ordinances. ## The $19 Million Bond Authorization Finance Director Andy Asbjornsen opened his presentation with an apology for the lengthy legal title, explaining that "this is written by a specific a law group as are legalese to make sure that everything is covered within this bond ordinance." The ordinance's comprehensive nature requires extensive legal language to cover all elements necessary for a proper bond issuance. The bond authorization encompasses two primary purposes: funding a new What-Comm building projected at approximately $12 million and refinancing $3.3 million in remaining debt from the 2016 Public Facilities District limited obligation bonds. Asbjornsen detailed the city's financial preparation for the What-Comm project: "We created the WACOM capital projects fund and seeded that with $1.5 million in general fund money and so that through this bond issuance will refund the general fund and then also place the bond proceeds in there for the walk-on facility." The inclusion of the PFD debt refinancing serves a strategic purpose beyond simple debt management. As Asbjornsen explained, "That allows us to take advantage of a larger amount of money going out to issuance on the bond for market ability." The larger bond issuance improves the city's position in the municipal bond market. ## State-Shared Sales Tax Extension A significant component of the bond authorization relates to changes in state legislation affecting public facilities districts. The state legislature has "adjusted how long the PFT can collect the state shared revenues and so that pushes it all the way out for another well not it pushes it out until 2057 now," Asbjornsen reported. This legislative change creates substantial financial opportunity for the city. The PFD currently collects approximately $2.3 million annually in state-shared sales tax revenue, with potential increases of 2-3% as sales tax collections grow. "So this is a pretty significant amount of funds that can continue to be collected out for another 20 years with this adjustment to the refunding," Asbjornsen noted. Council Member Lilliquist sought clarification on the nature of this revenue stream, asking whether it represented additional taxation on residents. Asbjornsen clarified that "it's not additional tax upon the residents of the community This is tax already collected that would be remained at this retained at the state But we are able to get this rebate from the state." ## The Critical Need for 911 Facility Improvements Council Member Hammill, who serves on the What-Comm board alongside the mayor and other regional officials, provided compelling testimony about the urgent need for facility improvements. His description painted a picture of deteriorating conditions that pose risks to public safety operations. "The current facility that houses the workers that take your 911 calls when you're having the worst day of your life are crammed in there," Hammill stated. He reported that staff attrition was partially attributed to poor working conditions in the outdated building, which "incidentally used to be a fire station way, way back in the day." The safety concerns extend beyond cramped quarters. Hammill relayed an alarming incident reported during a board meeting: "The former Deputy Director at one point reported during a board meeting that they were trying to plug in some equipment to the wall, and sparks and fire would shoot out." This electrical hazard represents a "public, there's a safety concern for the folks out work there." The new facility will be constructed on the same property, eliminating the need to purchase additional land. "We're actually consolidating that area which I think is very smart," Hammill observed, emphasizing the efficient use of existing city resources. ## Financial Oversight and Project Timeline Council Member Lilliquist pressed for details about financial oversight, noting that the $12 million project cost plus $3.3 million PFD refinancing totals $15.3 million, well below the $19 million authorization ceiling. Asbjornsen confirmed that current projections suggest the actual issuance would be "under 16 million," with the higher authorization providing necessary flexibility. The project timeline creates some procedural complexity. The construction project is currently out for bid, with "bids will be open on January 6th." This timing creates a tight schedule for council oversight, as "the bond is scheduled currently to go to market at January 21st" with council meetings on January 5th and 26th. Lilliquist expressed concern about spending oversight, asking "what if you get wild and decide to go out for extra? I mean, what kind of check do we have in oversight?" Asbjornsen assured the committee that "our desire is not to go up to 19 million and would be to keep it as low as possible." ## Equipment and Technology Considerations Council Member Anderson raised practical questions about whether the bond proceeds could cover the comprehensive costs of making the facility operational. Her experience at the college had shown that "the state will help fund a building but then it's often up to us to fund everything else that goes in it and that could be very difficult when we're in a situation of cutting back." Anderson specifically asked about funding for "the equipment that's going to be needed that needs to be upgraded, the software, the technology aspect, even just the furniture and the building that's going to be needed." Asbjornsen confirmed that the bond authorization is comprehensive: "this bond includes all aspects of what could go into the building and equipment and technology and all of the pieces necessary for this to be operational." This broad coverage addresses Anderson's concerns about unexpected costs that could strain city resources during budget constraints. ## Public Facilities District Revenue Applications The discussion revealed ongoing questions about how the extended state-shared sales tax revenue would be utilized. Asbjornsen noted that "there's a lot still to determine by the board to know what those funds will be used for, but there's a lot of need in that area for that public facilities." Historically, PFD funds have supported "the Mount Baker theater and the light catcher museum," but the revenue can be applied to "any similar facility in the district." This flexibility provides the PFD board with options for addressing various infrastructure needs throughout the district. Asbjornsen acknowledged that "there are there is still some large maintenance needs within the Mount Baker Theatre and the Lightcatcher Museum and the PFD board will be evaluating other potential eligible uses of those funds within the district." ## Committee Action and Next Steps Following the discussion, Council Member Hammill moved to approve the ordinance, stating his strong support based on his board service and direct knowledge of the facility's critical needs. The motion carried unanimously among the committee members present. The successful committee vote means the ordinance will advance to the full city council for final consideration at the evening meeting. Chair Anderson announced she would "bring it forward tonight for Council vote," following the standard committee-to-council process. ## Procedural Efficiency and Future Meetings The meeting concluded efficiently, having used only a portion of the allocated time slot. Anderson noted that "we didn't use all of our time" and announced that the subsequent Parks and Recreation Committee meeting would begin at 1:45 PM rather than its originally scheduled time. This brief but substantive meeting exemplified the Budget and Finance Committee's role in providing detailed review and recommendation on significant financial matters before they reach the full council for final action. The technical nature of municipal bond financing received thorough examination, while the human dimension of public safety operations provided compelling context for the expenditure. The ordinance represents a strategic approach to municipal finance, addressing immediate infrastructure needs while taking advantage of favorable state legislation to extend revenue streams that support broader community facilities and services.

### Meeting Overview The Bellingham City Council Budget and Finance Committee met on December 15, 2025, to review a bond ordinance for up to $19 million in general obligation bonds. The primary focus was financing a new Whatcom 911 dispatch facility and refunding existing Public Facilities District debt. ### Key Terms and Concepts **General Obligation Bonds:** Municipal bonds backed by the full faith and credit of the issuing government, meaning the city pledges to use tax revenue and all available resources to repay bondholders. **Public Facilities District (PFD):** A special government entity established to fund public facilities like theaters and museums, funded through state-shared sales tax revenue. **Refunding Bonds:** New bonds issued to pay off existing debt, typically to take advantage of lower interest rates or extend payment terms. **State-Shared Sales Tax:** A portion of state sales tax revenue that is returned to local public facilities districts, currently generating about $2.3 million annually for Bellingham's PFD. **Whatcom (What-Comm):** The 911 dispatch center serving Bellingham and surrounding jurisdictions, currently housed in an aging former fire station. **Bond Ordinance:** The legal document that authorizes a city to issue bonds, specifying the maximum amount, purpose, and terms of the debt. **True Interest Cost:** The actual interest rate the city will pay on bonds over their lifetime, accounting for all costs and fees. **Debt Service:** The scheduled payments of principal and interest that the city must make to bondholders over the life of the bonds. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Lisa Anderson | Budget and Finance Committee Chair | | Daniel Hammill | Committee Member | | Michael Lilliquist | Committee Member | | Andy Asbjornsen | Finance Director | ### Background Context The current Whatcom 911 dispatch facility is housed in a converted former fire station that has become dangerously inadequate. The building suffers from electrical problems so severe that plugging in equipment causes sparks and fire, creating safety concerns for dispatchers handling emergency calls. Staff attrition has been partly attributed to poor working conditions in the cramped, outdated facility. The city had already allocated $1.5 million from its general fund to begin project design, with the total project estimated at $12 million. The new facility will be built on the same property, consolidating operations without requiring additional land purchase. Simultaneously, changes in state law have extended the duration that Public Facilities Districts can collect state-shared sales tax revenue from 40 to 55 years. This creates an opportunity to refund the remaining $3.3 million in 2016 PFD bonds and extend the collection period until 2046, securing approximately $2.3 million annually in ongoing revenue for facilities like the Mount Baker Theatre and Lightcatcher Museum. ### What Happened — The Short Version Finance Director Andy Asbjornsen presented Bill 24787, which authorizes up to $19 million in bonds. The money would fund two things: building a new 911 dispatch center (about $12 million) and refinancing old debt from 2016 ($3.3 million). Committee members asked detailed questions about the refinancing benefits and project costs. Councilmember Hammill, who serves on the Whatcom board, emphasized the urgent need for a new facility due to dangerous conditions in the current building. The committee unanimously approved the ordinance, sending it to the full council for a vote. ### What to Watch Next • Full City Council vote on the evening of December 15, 2025 • Bond bid opening scheduled for January 6, 2026 • Bond sale scheduled for January 21, 2026 • Future PFD board decisions on how to use the extended sales tax revenue ---

**Q:** What is the maximum amount of bonds authorized by Bill 24787? **A:** Up to $19 million in general obligation bonds. **Q:** How much of the bond proceeds will go toward the Whatcom 911 facility? **A:** Approximately $12 million, including $1.5 million to reimburse the general fund for design work already completed. **Q:** How much will be used to refund the 2016 PFD bonds? **A:** About $3.3 million to refund the remaining debt on the 2016 Public Facilities District bonds. **Q:** Who is Andy Asbjornsen? **A:** The City of Bellingham Finance Director who presented the bond ordinance to the committee. **Q:** What are the current problems with the existing 911 dispatch facility? **A:** It's housed in a cramped former fire station with dangerous electrical problems that cause sparks and fire when equipment is plugged in. **Q:** How much annual revenue does the PFD collect from state-shared sales tax? **A:** About $2.3 million annually, with potential 2-3% yearly increases. **Q:** Until what year can the PFD now collect state-shared sales tax revenue? **A:** Until 2057, but this refunding extends collection only until 2046. **Q:** When are the bond bids scheduled to open? **A:** January 6, 2026. **Q:** When is the bond scheduled to go to market? **A:** January 21, 2026. **Q:** What facilities have historically been funded by PFD revenues? **A:** The Mount Baker Theatre and the Lightcatcher Museum. **Q:** Who serves on the Whatcom board besides city officials? **A:** The mayor, Councilmember Hammill, and representatives from the county and other entities. **Q:** Why is the city refunding the 2016 PFD bonds? **A:** To extend the collection of state-shared sales tax revenue, taking advantage of new state legislation. **Q:** What is the estimated true interest cost ceiling for the bonds? **A:** The bonds cannot exceed 5.25% true interest cost. **Q:** What is the latest maturity date allowed for these bonds? **A:** December 1, 2046. **Q:** How much likely issuance does the Finance Director expect? **A:** Under $16 million, well below the $19 million authorization. **Q:** What vote was taken by the committee? **A:** Unanimous approval to move the ordinance forward to the full council. **Q:** What will happen to remaining bond proceeds after project costs? **A:** They may be used for other city capital projects or transferred to the debt service fund. **Q:** What state law change enabled this refunding opportunity? **A:** House Bill 1109, effective July 27, 2025, extended PFD sales tax collection from 40 to 55 years. ---