The May 19, 2025 Committee of the Whole meeting provided a comprehensive view of Bellingham's legislative priorities and regulatory challenges, with discussions spanning state lobbying efforts, regional diplomacy, and local housing policy debates that revealed deep tensions about the city's role in enforcement and regulation. ## Legislative Session Victories and Disappointments The meeting opened with city lobbyists Nick Federici and Luke Esser providing their inaugural report on the 2025 state legislative session — the first under Bellingham's new dedicated lobbying contract. The presentation painted a picture of a challenging year in Olympia, where a $16 billion state budget deficit forced difficult choices and limited opportunities for new investments. "This legislative session was particularly challenging for, I think, everyone out there," Federici explained, noting unprecedented turnover in the legislature and Washington's new governor. The state ultimately balanced its deficit with $7 billion in cuts and $9 billion in new revenues, creating a constrained environment for local priorities. The city experienced both triumph and disappointment in the capital budget process. The Bellingham Public Library emerged as a clear winner, securing $3 million in funding — $2 million from the dedicated Library Capital Improvement Program plus an additional $1.03 million through direct intervention by the local legislative delegation. Representative Alex Timmons played a particularly supportive role in advocating for the library project. However, the R.G. Haley remedial action project faced a significant setback. Despite ranking 13th out of 23 projects recommended by the Department of Ecology, the site cleanup fell just outside the funding cutoff when the legislature chose to fund only the top 11 projects. The disappointment was compounded by the Port of Bellingham's project ranking 12th, meaning two Bellingham Bay cleanup projects missed funding by narrow margins. The conversation took a dramatic turn when City Attorney Amy Cram delivered breaking news that had just emerged in ongoing negotiations. In an "unusual agreement," the Port of Bellingham and Department of Ecology had agreed to reallocate funding from port projects not currently under construction to fully fund the $3 million R.G. Haley cleanup. "This is hot off the presses," Mayor Kim Lund explained, crediting the "strength of our relationships and building trust with our partners" for making the unprecedented funding shift possible. Council Member Dan Hammill reflected on the symbolic importance of the R.G. Haley site, recalling his first visit there 11 years ago with former City Attorney Amy Cram. "I stood on that site and looked out at the water and kind of envisioned, you know, what would this look like for families accessing this site during community music events, 4th of July, what have you?" The site represents new public access to Bellingham's waterfront that has been denied for generations. The lobbyists also addressed House Bill 2015, which provides $100 million in state funding for law enforcement officers and criminal justice programs generally. The legislation creates both state grant opportunities and a new local 0.1% sales tax option specifically for criminal justice purposes. Unlike previous programs that gave counties priority, both cities and counties can pursue the new sales tax authority simultaneously. A technical discussion emerged about the Recovery Navigator program, which supports law enforcement assisted diversion (LEAD) and reentry services. Council Member Lilliquist inquired about funding cuts, learning that while the Senate had initially eliminated the program entirely, advocacy efforts reduced the final cut to 20% rather than the catastrophic elimination once feared. Looking ahead, the lobbyists expressed serious concerns about potential federal funding cuts that could force a state special session by October 2026. Areas of particular vulnerability include Medicaid, human services, and income assistance programs. "I would be very surprised if we make it to next year without a special session," Federici warned, noting that Washington state maintains some of the lowest Medicaid reimbursement rates in the country. ## A Letter of Friendship Across the Border The meeting's tone shifted dramatically as Council Member Michael Lilliquist presented his proposal for a diplomatic outreach to Canadian municipalities. The initiative emerged from concerns about deteriorating cross-border relations affecting both economic activity and cultural exchange in the region. The draft letter, crafted by Communications Director David Brown with input from the Border Policy Research Institute and Bellingham Whatcom County Tourism, struck a careful balance. "It does not get political. It does not get economic. It's not trying to tell people in Canada what they don't already know," Lilliquist explained. Instead, the letter emphasized shared values, historical connections, and mutual respect. Council members shared personal observations about the border situation's impact on community life. Council Member Hammill noted that representatives from local businesses reported significantly fewer Canadian license plates in parking lots, affecting both sales tax revenue and the community's welcoming spirit. "It's not just about the sales tax revenue," he emphasized. "It's about the spirit of being welcoming as a community." Council Member Lisa Anderson painted a more intimate picture of the cultural loss. She described vintage trailer rallies and Fourth of July events where "half the people who come down are from Canada, and they're just fun." Without Canadian participation, she said, "it's kind of like losing your favorite cousins from family events. Without it, it's just not the same party anymore." Council President Hollie Huthman added a musician's perspective, noting how border restrictions have made it "nearly impossible" for touring bands to cross between countries. "We've got lots of great bands right across the border, not that far away that aren't able to get down here, and we can't have that cultural exchange in that way as easily as maybe we have in the past." Council Member Hannah Stone provided historical context, reading from a 1997 city resolution regarding federal immigration legislation. That earlier resolution had celebrated "cultural, social and economic exchanges between the citizens, organizations and businesses of the region" and the "historically close and constant ties between the two countries of Canada and the United States." The letter proposal passed unanimously, with Mayor Lund agreeing to sign on behalf of the city. She noted her personal connection to the issue as someone with dual citizenship and family still in Canada. ## The Great Enforcement Debate: Rental Fee Ordinances The meeting's longest and most contentious discussion centered on two proposed ordinances designed to limit "junk fees" in residential rentals and manufactured home parks. What began as a technical discussion about fee structures evolved into a fundamental debate about city government's proper role in private contract disputes. City Attorney Alan Marriner opened with a stark warning about the enforcement provisions council members had added back into the ordinances during previous deliberations. "Those provisions fundamentally change the role of the city in that we will be... become involved in financial disputes, contract disputes over money between two private parties," he explained. "That's simply just not a role that the city has had up until this point in time." Marriner distinguished this from the city's existing landlord-tenant enforcement activities, which focus on life safety issues. "We do get involved in landlord tenant enforcement actions, but it always, up until this point is related to life safety, to ensuring that our tenants are safe in their rental units." Planning Director Blake Lyon presented sobering budget projections for enforcement. Using conservative assumptions — 2% of the city's nearly 22,000 rental units generating complaints, with six hours of staff time per case — the department would need 1.4 additional full-time employees at a cost of roughly $250,000 annually. More realistic scenarios involving 10% complaint rates or ten hours per case could require up to 12 additional staff members at a cost of $2 million annually. "We want to be realistic about what that is and how we meet that expectation," Lyon explained, noting the complexity of reviewing 20-30 page leases and mediating disputes between parties with different perspectives. The concern was that with existing workloads, resolution could take "on the order of a month or two months or potentially longer," potentially exceeding the duration of many tenancies. The enforcement discussion revealed sharp philosophical divisions among council members. Council Member Anderson questioned whether the city should create "false expectations" by promising enforcement it couldn't deliver effectively. She worried about perceptions of arbitrary enforcement: "I had people asking me, well, is it because I'm poor? Is it because I'm a renter? Is it because I'm a person of color that you're choosing not to do the work?" Council Member Hammill supported aligning city ordinances with newly enacted state House Bill 1217, arguing for regulatory consistency. "I think that it would provide consistency in alignment with state law. So there's not like two sets of rules that a tenant or a landlord would have to consider." However, Council Member Stone pushed back against abandoning enforcement entirely, arguing that civil action remedies are insufficient for the most vulnerable populations. "Unfortunately, the vast majority of the time, the individuals right, who are needing to exercise that civil action remedy are those who are the most disadvantaged and don't have either the financial means or just the bandwidth... to maybe exercise that civil action." Council Member Lilliquist offered a nuanced perspective, acknowledging competing concerns about false hope. "There's an equal or a similar kind of false hope if we say, oh, you can always take your landlord to court, that's also somewhat unrealistic. And that also doesn't happen." He advocated for strategic enforcement targeting the most egregious cases: "Can we please get to some of the most egregious outlying cases? I hopefully there will be less than one of those cases a year." The discussion revealed broader tensions about housing policy amid the city's affordability crisis. Staff noted that more than 20,000 Bellingham renters are cost-burdened, including at least 6,450 who are severely cost-burdened according to HUD data. The proposed ordinances aimed to address "junk fees" that the National Consumer Law Center found make "quality and habitable rental housing harder to access and afford." Council Member Jace Cotton attempted to bridge the enforcement divide by suggesting strategic prioritization similar to agencies like OSHA. "How can we do what Council Member Williams is saying is make sure there's some resources for education, right, to be preventative. And then what would resourcing need to look like so we could enforce, you know, taking enforcement action once a year?" The discussion also highlighted potential conflicts with state law. House Bill 1217 creates several inconsistencies with the city's draft ordinances, including different standards for month-to-month versus fixed-term lease pricing and varying late fee structures for manufactured home parks. Council Member Williams emphasized the need for comprehensive tenant education and support beyond enforcement. Drawing from his decades as a renter, he noted how the rental landscape has changed: "Times obviously have changed, but when I looked into the Landlord Tenant Act and all of these things before, there is not enough support, I believe, for tenants to educate them about their rights." Mayor Lund provided a reality check about staff time investments, noting that even the morning's Canadian letter had required an estimated ten hours of staff time despite being "simple" and having "shared agreement and consensus." The example illustrated how seemingly straightforward initiatives create significant behind-the-scenes work demands. The ordinance discussion concluded without resolution, with Council President Huthman scheduling a dedicated work session for June 2nd to continue detailed deliberations. ## Housing Development Adjustments In a comparatively brief discussion, Planning Director Lyon presented technical amendments to the city's interim middle housing ordinance. The primary change reduced the maximum floor area ratio (FAR) for single-unit properties from 0.6 to 0.4, addressing concerns about excessive building mass on smaller lots. Lyon explained that the 0.4 FAR would still represent an increase from the current 0.35 allowance for small lots while accounting for state-mandated accessory dwelling unit provisions. On a standard 5,000 square foot lot, the revision would allow a 2,000 square foot primary residence plus two 1,000 square foot ADUs, totaling 4,000 square feet of building coverage. The adjustment responded to accelerated state deadlines under Senate Bill 5558, which requires completion of infill housing, middle housing, design review, and ADU regulations by December 2025 — eliminating the six-month cushion staff had anticipated. Council Member Anderson praised staff for "doing the math" to find the optimal balance between maximizing housing development and preserving necessary open space. "I don't think anyone wants small lots to be the envelope 100% contained with building structure, you need to have some little bit of open space." The technical amendments passed unanimously with minimal debate. ## Student Worker Solidarity In old/new business, Council Member Cotton presented a draft letter supporting Western Washington University operational student employees seeking union recognition. The letter addressed workers who had petitioned twice with supermajorities for recognition through legislative bills that ultimately failed to advance. Cotton framed the issue in terms of community impact and equity. "You probably have heard there's significant budget challenges and more pressure being put on students through tuition. And so I think this would be a timely way to recognize the impact of university policy on our community." He noted existing wage parity policies between different categories of student employees, arguing that union recognition wouldn't significantly impact the university's budget. Council Member Hammill praised the letter's "tone and tenor" and moved approval. The letter passed unanimously with minimal discussion, demonstrating the council's comfort with labor advocacy issues compared to the contentious enforcement debates that had dominated the meeting. ## Looking Forward The May 19th Committee of the Whole meeting captured Bellingham city government grappling with fundamental questions about its role and capacity. The legislative update demonstrated successful advocacy work paying dividends, particularly the creative R.G. Haley funding solution that emerged from collaborative relationships with regional partners. The Canadian letter initiative reflected the community's desire to maintain connections despite broader political tensions, with council members sharing personal stories about cross-border relationships that transcend policy disputes. However, the rental fee ordinance discussion revealed the most significant tensions. Council members found themselves debating not just policy details but philosophical questions about government's proper scope, enforcement capacity, and responsibility to vulnerable populations. The debate highlighted the challenge of crafting effective local policy in an era of state preemption, budget constraints, and rising expectations for municipal intervention in housing affordability. The technical housing ordinance amendments passed smoothly, suggesting council comfort with development regulation adjustments that clearly advance housing production goals. The student worker letter demonstrated similar consensus on labor issues with clear moral dimensions. The meeting concluded with an executive session addressing potential property acquisitions and collective bargaining strategy, underscoring the range of complex issues demanding council attention in a growing city facing affordability pressures and evolving expectations for local government action. As the council prepared for their June 2nd special session on rental fee enforcement, the fundamental questions raised during this meeting remained unresolved: How can local government effectively protect vulnerable residents without creating false expectations? What enforcement mechanisms can work within realistic budget constraints? And how should cities balance regulatory ambition with practical implementation capacity? These debates reflect broader challenges facing municipal governments nationwide as communities demand stronger local action on issues like housing affordability while facing state preemption, federal uncertainty, and resource constraints that limit effective implementation. Bellingham's experience offers a case study in how even well-intentioned local officials struggle to translate policy goals into effective governance when the scope of problems exceeds available tools and resources.

**Q:** What was the state budget deficit that made the 2025 legislative session particularly challenging? **A:** $16 billion over the four-year budget cycle, balanced through $7 billion in cuts and $9 billion in new revenues. **Q:** How much funding did Bellingham's library receive in the capital budget? **A:** $3 million total — $2 million from the library capital improvement program plus $1.03 million from Local and Community Projects. **Q:** What was the R.G. Haley site's ranking on the Department of Ecology's cleanup priority list? **A:** Number 13 out of 23 projects, initially placing it below the funding cutoff at number 11. **Q:** Who agreed to reallocate funds to fully fund the R.G. Haley cleanup project? **A:** The Port of Bellingham and the Department of Ecology, moving money from port projects not under construction. **Q:** What percentage was the Recovery Navigator program cut in the final state budget? **A:** 20% statewide, down to $9.8 million, though this was much less severe than initially proposed cuts. **Q:** What is the success rate of Bellingham's LEAD program in reducing recidivism? **A:** Over 90%, with about 140 people having accessed the program over 4-5 years. **Q:** How many Canadian cities will receive Bellingham's goodwill letter? **A:** Nine cities: Delta, Richmond, White Rock, Abbotsford, Langley, Vancouver, Surrey, Coquitlam, and Burnaby. **Q:** What amendment did Council Member Lilliquist successfully propose for the manufactured home ordinance? **A:** Adding the word "reasonable" before "opportunity to cure" in the enforcement section. **Q:** What Floor Area Ratio reduction did the council approve for single-unit lots in the interim housing ordinance? **A:** From 0.6 to 0.4, allowing up to 2,000 square feet of building on a 5,000 square foot lot. **Q:** When is the special work session scheduled to discuss rental fee ordinances? **A:** June 2, 2025, at 10:00am in the Mayor's Boardroom. **Q:** How many rental units are currently in Bellingham's rental registration program? **A:** Just under 22,000 units. **Q:** What could city enforcement of rental fee ordinances cost annually in a worst-case scenario? **A:** Up to $2 million annually for 12 FTE staff, or roughly $100 per rental unit. **Q:** What new criminal justice sales tax option did House Bill 2015 create? **A:** A 0.1% local sales tax that both cities and counties can adopt, initially requiring only council approval for the first three years. **Q:** What deadline did Senate Bill 5558 create for implementing housing regulations? **A:** December of 2025 for completing infill housing, middle housing, design review, and ADU regulations. **Q:** What was the estimated staff time for creating the Canadian letter? **A:** About 10 hours, used by the Mayor as an example of how seemingly simple tasks require significant behind-the-scenes work. **Q:** Who will sign the letter to Canadian municipalities on behalf of the city? **A:** Mayor Kim Lund, who has dual citizenship and personal connections to Canada. **Q:** What percentage of Bellingham's land zoned residential is currently single-family housing? **A:** Approximately 75 percent. **Q:** How long will the interim housing ordinance remain in effect? **A:** Twelve months, from April 29, 2025 to April 29, 2026, unless extended or replaced. ---