Real Briefings
On a September afternoon marked by both financial reckoning and legislative ambition, Bellingham's City Council Committee of the Whole grappled with fundamental questions about the city's future. How does a community maintain essential services when revenues are declining? How far should local government go to protect renters from exploitative fees? And how can a city balance growth with housing affordability?
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**Budget Process:** Work sessions scheduled every Monday in October plus first Monday in November. Revenue forecast public hearing October 21st. Budget public hearings October 7th and November 4th. Budget ordinance introduction planned for second November meeting with passage targeted for first December meeting. **Junk Fees Ordinances:** Staff developing public engagement plan including Engage Bellingham platform and stakeholder meetings. Cotton working on amendments addressing council concerns. Return to Committee of the Whole when ready, potentially with public hearing before final consideration. **MFTE Program:** Staff cond…
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# Hard Choices and Housing Policy: Committee of the Whole Tackles Budget Crisis and Rental Reforms
On a September afternoon marked by both financial reckoning and legislative ambition, Bellingham's City Council Committee of the Whole grappled with fundamental questions about the city's future. How does a community maintain essential services when revenues are declining? How far should local government go to protect renters from exploitative fees? And how can a city balance growth with housing affordability?
The September 30, 2024 meeting stretched from 1:00 PM to 5:22 PM, though council had met earlier for an executive session. Council President Daniel Hammill presided over most of the session, though left early and was succeeded by Council President Pro Tem Holly Huffman. All seven council members were present for the bulk of the deliberations.
## The Mayor's Sobering Budget Reality
Mayor Kim Lund opened the afternoon with what she called "hard decisions" reflected in her proposed 2025 budget. Standing before council, she painted a stark picture: Bellingham faced a multi-million dollar ongoing general fund deficit, flattening revenues, and what she termed "a legacy of debt now coming due."
"Excellence in government means being responsible stewards of our constrained public dollars while making progress on key community priorities," Lund declared, framing the budget as "a temporary bridge to a more financially stable future."
The mayor's proposed $543 million citywide budget represented a dramatic shift from recent practices. While maintaining critical services, it employed what Deputy Administrator Forrest Longman called "creative uses of existing resources" and "targeted reductions." The general fund alone faced a $1.5 million deficit, though when accounting for one-time revenues and temporary measures, the ongoing structural deficit reached $6 million.
Longman's presentation included sobering charts showing five of nine sales tax periods in 2024 had performed worse than the comparable 2023 periods. "We are likely to miss our revenue targets by 2 to $3 million for 2024," he reported, add…
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### Meeting Overview
The City Council Committee of the Whole met on September 30, 2024 to discuss major budget and policy proposals. The primary focus was Mayor Lund's presentation of the 2025 proposed budget, which includes a $1.5 million general fund deficit requiring significant revenue adjustments and spending reductions to maintain city services.
### Key Terms and Concepts
**Committee of the Whole:** A meeting format where all council members participate but operate under more informal rules to allow detailed discussion of complex issues before formal voting.
**General Fund Deficit:** The shortfall when a government's basic operating expenses exceed its primary revenues, requiring either spending cuts or new revenue sources.
**Sales Tax Allocation:** The distribution of sales tax revenue between different city funds - currently being shifted from 37% to 32% going to the street fund, with more going to the general fund.
**Junk Fees:** Unfair or excessive charges in rental housing such as administrative fees, pet rent, or appliance usage fees that exceed actual costs or are not clearly disclosed.
**Multifamily Tax Exemption (MFTE):** A state program allowing property tax exemptions on residential improvements for 8 or 12 years to incentivize housing development and affordability.
**Keep Washington Working Act:** State law protecting immigrant workers from discrimination and limiting cooperation between local agencies and federal immigration enforcement.
**Area Median Income (AMI):** The midpoint household income for a region, used to determine affordable housing eligibility - 60% AMI for individuals in Bellingham is approximately $45,600.
**12-year MFT Program:** A longer tax exemption requiring 20% of units to be affordable, but currently unused in Bellingham because the 60% AMI requirement makes projects financially infeasible.
### Key People at This Meeting
| Name | Role / Affiliation |
|---|---|
| Kim Lund | Mayor of Bellingham |
| Daniel Hammill | Council President |
| Jac…
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