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BEL-CTW-2024-11-04 November 04, 2024 Committee of the Whole City of Bellingham
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Executive Summary

On the first Monday of November 2024, the City of Bellingham's Committee of the Whole convened for what would prove to be a substantive budget work session and discussion of municipal justice reforms. All seven council members were present as they gathered first in the mayor's boardroom at 10:30 a.m., then moved to council chambers for the afternoon session. The meeting addressed final budget adjustments, heard an annual report from the Hearing Examiner about systemic issues in the vehicle impound appeal process, and tackled questions about public defense funding mandates that could dramatically impact city finances.

What's Next

- **November 18, 2024**: Final budget ordinance adoption at regular council meeting - **November 15, 2024**: Status update required on North Coast Credit Union appeals of tiny house encampment permits - **November 30, 2024**: Deadline for transmitting property tax levy ordinance to Whatcom County Council - **January 2025**: Community court launch (delayed from fall 2024) - **Early 2025**: Keep Washington Working Advisory Group work expected to begin - **End of 2024**: Supreme Court decision expected on indigent defense mandate requirements - **January 2025**: Public comment resumption planned after security evaluation completion **Ongoing Follow-ups:** - Administration to develop public works variance extension ordinance - Legal department to continue evaluation of vehicle impound appeal code changes - Staff to develop council testimony materials for indigent defense hearings - Consideration of longer work session on impound fees and ability-to-pay assessments #

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Full Meeting Narrative

# Committee Deliberations on Budget, Justice, and Community Needs ## Meeting Overview On the first Monday of November 2024, the City of Bellingham's Committee of the Whole convened for what would prove to be a substantive budget work session and discussion of municipal justice reforms. All seven council members were present as they gathered first in the mayor's boardroom at 10:30 a.m., then moved to council chambers for the afternoon session. The meeting addressed final budget adjustments, heard an annual report from the Hearing Examiner about systemic issues in the vehicle impound appeal process, and tackled questions about public defense funding mandates that could dramatically impact city finances. The meeting reflected a city government wrestling with fiscal constraints while maintaining its commitment to core services and social needs. From approving a $100,000 increase for food bank funding to debating potential $6 million impacts from state-mandated public defense standards, council members navigated competing priorities against the backdrop of a challenging budget year. The tone was workmanlike but engaged, with council members asking detailed questions about everything from skate park feasibility studies to constitutional protections for people living in their vehicles. ## Final Budget Adjustments and Municipal Priorities Deputy Administrator Forrest Longman walked council through a comprehensive memo containing mostly minor budget corrections and several new proposals that had emerged during the budget process. The adjustments fell into three categories: simple errors that needed fixing, new operational proposals, and new or modified capital projects totaling several million dollars. The corrections were straightforward—fixing position tables for Human Resources and Library departments, adding fleet fund revenue for new vehicle purchases, and recognizing medic training costs and revenue from Whatcom County. "These are items that either got dropped somehow in the process by mistake, or have come up through discussions as we've gone along," Longman explained. More substantial were the new operational proposals. The city requested $100,000 in professional services for the Public Facilities District, which is "ramping back up to look at extending the term of its revenue for another period of time." Security services were being centralized, moving security information attendants from the library to the facilities department and adding half-time positions to cover City Hall. The fire department would receive $30,000 from the police budget for mental health services, creating independent capacity rather than shared resources. Perhaps most significant was the addition of environmental staff to manage Lake Whatcom watershed properties—one environmental coordinator and four crew members at a cost of $732,000. This reflected the city's growing property holdings in the watershed and the need for professional management of these environmentally critical lands. On the capital side, two projects captured attention. The first was $100,000 for feasibility planning and design for a proposed skate park under the Bay Street Bridge. "We've seen some community activity and excitement about this concept, and it seemed like a good opportunity to activate that area," Longman said. Council President Dan Hammill noted this was exactly what high school students had requested when he spoke to civics classes about local government. The second major capital item was $250,000 for feasibility planning to remodel the Federal Building. As Public Works builds its second phase at the operations center, the engineering department will vacate the Federal Building's first floor. "We have a failing building in the municipal court, and we have other staff in there, and we have growing needs in different parts of City Hall," Longman explained. The city sees potential to reorganize space without needing additional facilities, though as Councilmember Lilliquist observed, "It's a lovely building. If you can get it to work." Council approved all adjustments unanimously, 7-0, after minimal discussion. The items represented the kind of technical budget work that happens as departments refine their needs and identify missed items. ## Municipal Court's Evolution and Public Defense Crisis Court Director Tami Bennett, making her first budget presentation in her new role, outlined a straightforward budget request focused on covering actual costs for probation services and launching the long-anticipated community court in January 2025. The court had received a $132,082 grant from the Administrative Office of the Courts for community court, though the launch was delayed from fall 2024. "We successfully collaborated with multiple departments within the city to convert the existing parking ticket system into a new system that allows more advances with the way that the city processes those," Bennett reported. The court was also working with the AOC to reevaluate judicial needs, noting the city has maintained one judge and one commissioner for 23 years despite population growth. The community court discussion revealed the evolution toward therapeutic justice models. When asked about caseload capacity, Bennett explained that community court would have a more flexible schedule than mental health court, potentially allowing more participants. Mental health court currently serves 15 people but was running far below capacity with only five active participants. But the conversation quickly shifted to a looming financial crisis. Council President Hammill asked about the public defense mandate being considered by the state Supreme Court. The potential impact was staggering: the city currently spends just over $1 million annually on public defense, but full implementation of bar association recommendations could increase costs to $3-6 million per year. "It's definitely disconcerting," said Mayor Kim Lund, noting the city had submitted comments voicing concerns, as had the police chief and county. The Supreme Court was expected to decide by year's end on new caseload standards that would dramatically increase costs for local governments. Hammill moved for council to prepare a statement on the issue, then withdrew the motion when it became clear written comments were no longer being accepted. However, public hearings were still scheduled, and council agreed to develop talking points for potential testimony. "If you're going down there to be part of this public testimony, it would be good to at least have those thoughts mapped out so that you're speaking for all of us," Councilmember Lilliquist suggested. The discussion highlighted how state mandates can fundamentally alter local budgets. While council members supported the principle of adequate public defense, the practical question of funding loomed large. As Hammill noted, while he understood "the tension between the need for defense, this is, I think, carrying it just a little bit too far." ## Vehicle Impound Appeals and Justice System Fairness Hearing Examiner Sharon Rice delivered her annual report to council, but her focus on vehicle impound appeals revealed deeper questions about fairness and equity in municipal justice. Rice had heard 15 vehicle impound appeals in the past year—all were denied, creating what she called "a zero success rate that brings concern to my attention." Rice described cases where she felt compelled to act despite lacking explicit authority. One involved a person living in his vehicle who was in danger of losing his substance abuse treatment program without transportation. She waived his $2,790.33 impound fee based on a Seattle court case finding such enforcement unconstitutional when applied to someone's residence. Another case involved a woman with dyslexia who transposed license plate digits when buying a parking permit online, leading to impoundment months later without warning. "I have heard from many participants—I'm going to say 1 in 3 over the course of my vehicle impound appeal career in Bellingham—1 in 3 of them has commented that it seems like a revenue generating scheme for the city," Rice said. While she corrected this misperception at hearings, explaining fees go to tow operators, the pattern troubled her. Rice highlighted how parking enforcement particularly impacts people using alternative transportation—exactly what the city encourages. "People who live in residences that do not provide off-street parking and must park on street... often park their vehicles on the street and don't use them for durations longer than 72 hours because they walk, bike, or bus to their daily destinations. All such alternative transport users are at increased risk of incurring the costs of vehicle impound." Her recommendations included public education campaigns, especially targeting Western Washington University students, and clearer warning systems. She suggested QR codes on parking signs linking to regulations, automatic license plate readers to cross-reference permit holders, and consideration of whether vehicle impound appeals should go to municipal court where judges have more equity jurisdiction. Legal Department attorney Matt Stamps provided context, explaining that the low success rate "is really a testament to the professionalism of the parking enforcement officers and the tow operators that are doing this work." He noted the appeals process is governed by narrow state law criteria focused on whether impounds were proper and fees calculated correctly. The city was already considering codifying recent Supreme Court precedent allowing consideration of the Homestead Act and excessive fines analysis based on ability to pay. This could provide relief in extreme hardship cases, though it would mean the city paying tow operators when fees are reduced. Council moved unanimously to request an ordinance amendment allowing one-year extensions for public works variances, matching existing provisions for planning variances. Several members expressed interest in a future work session on broader impound fee issues and ability-to-pay assessments. ## Property Tax Levy and County Coordination The council approved the city's 2025 property tax levy ordinance, increasing the levy by the statutorily allowed 1 percent. Deputy Administrator Forrest Longman explained the technical details: the regular levy increase was actually 0.9565 percent because the affordable housing levy portion is capped at $4 million and doesn't inflate. The ordinance also included administrative refunds for previous year collections that were lost when individual property assessments were successfully challenged. "When individuals challenge their assessed valuation, those dollars have already been applied to their assessed valuation," Longman explained. "If their valuation comes down and their charge comes down, that dollar amount that we had levied... doesn't come to us." Councilmember Stone raised an intriguing question about intergovernmental coordination. She noted the city consistently takes its allowed 1 percent increase while Whatcom County "continually has not adopted what they're allowed." She wondered about discussions with the county regarding potential revenue sharing, especially "when we are direct recipients or potentially beneficiaries of that increased revenue source, and considering the large gaps that we're facing." The question highlighted the complex relationship between overlapping jurisdictions and their taxing authority. While Stone didn't pursue it further, the issue reflects broader questions about how local governments coordinate fiscal policies in times of constraint. ## Food Security as Municipal Responsibility Council President Hammill sponsored a resolution supporting Mayor Lund's proposal to increase Bellingham Food Bank funding by $100,000 to $250,000 total. While unusual—council doesn't typically pass resolutions supporting specific budget items—Hammill felt strongly about highlighting this issue. Drawing on his volunteer experience at the food bank, Hammill painted a picture of increasing need. "When I got there last week... I got there at 2:30, we opened at 3, there were 50 plus cars in line already and then just kept adding to it." He identified two key factors: increasing ALICE (Asset Limited, Income Constrained, Employed) customers whose benefits don't last through the month, and rising poverty rates in Bellingham. The resolution connected food security to housing costs and other economic pressures. "More than half of all renter-occupied households are cost-burdened, meaning they pay more than 30% of their income for housing, which limits the money available to purchase food," the resolution noted. Council members grappled with municipal government's expanding role. "Historically municipal governments haven't really funded food banks," observed Councilmember Hollie Huthman. "But as society's needs keep growing, city governments are asked more and more to provide funding to take care of those needs... We're not just sewers and sidewalks anymore." Councilmember Lilliquist voiced concern about the structural nature of food insecurity. "What worries me is this appears to be something structural and permanent that's going on with regard to people's ability to pay for food, and it's not temporary or passing." He noted the 22 percent poverty rate seemed high but found similar rates nationally, suggesting this isn't unique to Bellingham. Councilmember Stone emphasized the regional nature of these challenges and the need for advocacy beyond city borders. Councilmember Anderson thanked the mayor for finding additional funding during a tight budget year and encouraged county partners to provide similar support. Mayor Lund connected food security to economic development, noting council's approval of a strategic initiatives manager position that would restore capacity for economic development work. "We have resumed for the first time in five years, our tri-funders meeting with the port and the county... those kinds of conversations and focus are another way that we can help people who are here have more opportunity." The resolution passed unanimously, reflecting council's recognition that basic needs like food security have become part of municipal responsibility, even if historically they weren't. ## Setting the 2025 Council Calendar and Future Planning The routine matter of setting the 2025 council meeting calendar sparked discussion about annual retreats and council operations. The proposed calendar maintained the traditional twice-monthly meeting schedule, but Councilmember Anderson raised whether council should institutionalize annual retreats. "I'm just wondering, is that going to be something we do annually?" Anderson asked, noting council had one planned for this year. "I know we don't have a retreat every year, but I'm thinking maybe we should." Several council members supported annual retreats, but Councilmember Cotton suggested holding the calendar resolution until after the scheduled retreat to "have some more fundamental conversations about how we want to conduct our business together." City Attorney Alan Marriner explained that the calendar resolution serves to provide advance notice for regular meetings, avoiding the need to notice each meeting individually. The discussion revealed different approaches to council operations and planning. Some saw value in establishing regular retreat schedules, while others preferred flexibility. Ultimately, council approved the 2025 calendar 6-1, with Cotton dissenting, choosing to address retreat planning separately. City Attorney Marriner noted the calendar covers meetings council knows will occur at specific dates, times, and locations, while special meetings like retreats can be noticed separately as needed. ## Administrative Notes and Public Access The meeting included brief administrative items that reflected ongoing operational considerations. Councilmember Stone announced continued acceptance of applications for the Keep Washington Working Advisory Group, with materials available in English and Spanish. More significantly, Council President Hammill announced "a temporary suspension of public comment until the end of the year. This is due to the need for an evaluation of security for the Council chambers, and also the broader City Hall, and the intention is to resume public comment beginning of next year." This suspension reflected broader concerns about public safety and security in government facilities. The decision to evaluate and potentially modify security procedures showed councils balancing public access with safety considerations. ## Closing Reflections The November 4th Committee of the Whole meeting captured municipal government's evolving role and mounting challenges. From budget adjustments reflecting everything from skate parks to watershed management, to grappling with state mandates that could multiply public defense costs, council members navigated complex decisions with limited resources. The vehicle impound appeal discussion particularly highlighted tensions between enforcement and equity, efficiency and fairness. Hearing Examiner Rice's recommendations for public education and procedural changes reflected awareness that effective governance requires not just rules but public understanding and trust in their application. The food bank resolution symbolized how municipalities increasingly address issues traditionally handled by other levels of government or private charity. Whether housing, mental health, or food security, city councils find themselves responding to basic human needs as other systems prove inadequate. Throughout the meeting, council members demonstrated both fiscal responsibility and social awareness, approving necessary expenditures while questioning long-term sustainability. Their discussions about regional coordination, state mandates, and evolving municipal roles suggested recognition that Bellingham's challenges reflect broader structural changes requiring collaborative solutions. As the meeting concluded after 3.5 hours of detailed deliberation, council had advanced budget preparations, addressed systemic justice issues, and reaffirmed community commitments—the essential work of local democratic governance in challenging times.

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Study Guide

### Meeting Overview The Bellingham City Council's Committee of the Whole met on November 4, 2024, for a budget work session focused on making final adjustments to the 2025 budget before council's final vote. Key agenda items included approving last-minute budget corrections, hearing the annual report from the Hearing Examiner, setting property tax rates, and discussing increased funding for the Bellingham Food Bank. ### Key Terms and Concepts **Committee of the Whole:** A meeting format where all seven city council members participate together to discuss and vote on items before they go to the full council meeting for final approval. **Property Tax Levy:** The annual amount the city is authorized to collect from property owners, calculated as a percentage of assessed property values. State law limits increases to 1% plus new construction. **Municipal Court:** The city's court system that handles local violations like traffic tickets, parking infractions, and minor municipal code violations. **Hearing Examiner:** An independent quasi-judicial official who conducts hearings on land use applications, appeals, and other regulatory matters, operating separately from city staff. **Vehicle Impound Appeals:** Legal proceedings where people can challenge the validity of their car being towed or the fees charged by towing companies. **REET Funds:** Real Estate Excise Tax funds collected when properties are sold, which can only be used for capital projects like buildings and infrastructure. **Public Facilities District (PFD):** A special government entity that operates the Bellingham Civic Field ballpark, funded through taxes and considering extending its tax authority. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Daniel Hammill | Council President, Third Ward | | Kim Lund | Mayor | | Hannah Stone | Council Member, First Ward | | Hollie Huthman | Council Member, Second Ward | | Edwin "Skip" Williams | Council Member, Fourth Ward | | Lisa Anderson | Council Member, Fifth Ward | | Michael Lilliquist | Council Member, Sixth Ward | | Jace Cotton | Council Member, At-Large | | Forrest Longman | Deputy Administrator | | Tami Bennett | Court Director | | Sharon Rice | Hearing Examiner | ### Background Context This meeting occurred during Bellingham's annual budget adoption process, with the final 2025 budget scheduled for approval on November 18th. The city is facing financial constraints requiring a 5% reduction in most departments, making every budget decision significant. The meeting addressed several ongoing issues: rising costs for indigent legal defense mandated by the state, growing demand for food bank services due to increased poverty, and concerns about fairness in vehicle impound procedures that disproportionately affect low-income residents and those without housing. ### What Happened — The Short Version Council unanimously approved a series of budget adjustments totaling several million dollars, including corrections for staffing errors, new capital projects like a skate park feasibility study, and operational changes like moving security staff to a centralized department. They heard from Court Director Tami Bennett about launching community court in January 2025 and discussed the financial impact of potential state mandates requiring more public defense funding. Hearing Examiner Sharon Rice presented her annual report highlighting concerns about vehicle impound appeals, where no one has successfully won their case, leading to a unanimous vote directing staff to create fairer appeal procedures. Council also approved the annual 1% property tax increase and a resolution supporting increased food bank funding, recognizing that poverty rates in Bellingham have reached 22%. ### What to Watch Next - November 18th: Final 2025 budget adoption by city council - January 2025: Launch of community court as alternative to traditional criminal proceedings - End of 2024: Supreme Court decision on indigent defense requirements that could cost the city $3-6 million annually - December: Potential hearing examiner work session on vehicle impound appeal procedures ---

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Flash Cards

**Q:** What percentage can the city increase property taxes annually under state law? **A:** 1% plus the value of new construction and annexations. **Q:** How much is the city proposing to spend on the Bellingham Food Bank in 2025? **A:** $250,000 total, representing a $100,000 increase from 2024. **Q:** What is the success rate for vehicle impound appeals in Bellingham? **A:** Zero percent - no appellant has successfully won their case to date. **Q:** When will community court launch in Bellingham? **A:** January 2025, after being delayed from its original fall 2024 launch date. **Q:** How many people attended the mental health court as of November 2024? **A:** Only 5 people, well below the maximum capacity of 15. **Q:** What could new state indigent defense requirements cost Bellingham annually? **A:** Between $3-6 million per year, compared to current spending of just over $1 million. **Q:** How much does it typically cost to retrieve an impounded passenger vehicle? **A:** $342 for towing plus $89 per day storage, with a minimum half-day storage fee of $44.50. **Q:** What percentage of Bellingham's population was below the federal poverty level in 2023? **A:** 22% according to American Community Survey data. **Q:** How long can a vehicle be parked in the same location before being subject to impound? **A:** 72 hours, and moving it within the same block does not restart the clock. **Q:** How much funding is proposed for feasibility studies of a skate park under Bay Street Bridge? **A:** $100,000 from Real Estate Excise Tax funds. **Q:** What happened to the Bellingham Food Bank's usage since 2021? **A:** Client visits have tripled over that period. **Q:** How many council members opposed the 2025 meeting calendar resolution? **A:** One - Jace Cotton voted against it. **Q:** What is the total preliminary assessed valuation for Bellingham in 2025? **A:** $22,839,409,833 according to the Whatcom County Assessor. **Q:** Why is public comment temporarily suspended at city council meetings? **A:** Due to security evaluations needed for Council chambers and City Hall. **Q:** When was the 72-hour parking rule implemented in Bellingham? **A:** About eight years ago, changed from a previous 24-hour rule to be less punitive. ---

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