### Meeting Overview The Whatcom County Council Committee of the Whole met on July 8, 2025, to discuss four agenda items including water utility franchises, the mid-biennium budget review, and updates on the county's five-year homeless housing plan. Council Chair Kaylee Galloway led the hybrid meeting with all seven councilmembers present. ### Key Terms and Concepts **Franchise Agreement:** Legal contract allowing water utilities to use county rights-of-way for service provision, typically lasting 25 years. **Mid-Biennium Review:** Mid-point assessment of the two-year budget cycle to incorporate new costs and adjust spending without increasing overall expense levels. **Point in Time Count:** Annual snapshot count of homeless individuals conducted nationwide in January, used to track homelessness trends. **GEMT (Ground Emergency Medical Transportation):** Federal reimbursement program for ambulance services that provides fluctuating revenue to the EMS fund. **Rapid Rehousing:** Housing assistance program that helps people exit homelessness quickly and return to permanent housing. **Performance Indicators:** Specific metrics used to measure success of programs, such as percentage of households exiting to permanent housing. **Inventory of Services:** Comprehensive listing of all county services categorizing them as mandatory (required by law) or discretionary. **AMI (Area Median Income):** Benchmark used to determine affordable housing eligibility, often expressed in percentages (30% AMI, 60% AMI, etc.). ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Kaylee Galloway | Council Chair | | Tyler Byrd | Council Member District 1 | | Barry Buchanan | Council Member | | Todd Donovan | Council Member | | Ben Elenbaas | Council Member | | Jon Scanlon | Council Member | | Mark Stremler | Council Member | | Aly Pennucci | Deputy County Executive | | Satpal Sidhu | County Executive | | Kayla Schott-Bresler | Deputy Executive | | Andrew Hester | Public Works Department | | Janie Oliphant | Health and Community Services | | Chris D'Onofrio | Health and Community Services | | Ann Beck | Health and Community Services | ### Background Context Whatcom County is implementing a new, more transparent budget process during a period of financial constraint. The county faces structural budget challenges where costs are outpacing revenue growth, requiring careful balancing of spending priorities. County Executive Satpal Sidhu emphasized that the county is in a "stagnant state" with little revenue growth, making budget decisions particularly challenging. Simultaneously, the county is updating its five-year homeless housing plan, which guides how approximately $18 million annually is spent on housing programs. This planning process involves extensive community engagement and performance measurement to determine effectiveness of interventions. The budget review revealed potential shortfalls requiring $6.7 million in offsetting reductions across all funds if all department requests were approved, with the general fund potentially needing $4.9 million in cuts. ### What Happened — The Short Version **Water Franchises:** Council briefly reviewed two franchise agreements for water associations to use county rights-of-way, both scheduled for public hearing in August. **Budget Review:** Deputy Executive Aly Pennucci presented the most comprehensive budget review process in years, requiring departments to inventory all services as mandatory or discretionary. The analysis shows potential need for significant reductions unless new revenue is found. Council members praised the transparency but expressed concerns about EMS funding uncertainty. **Housing Plan Update:** Housing staff presented progress on the five-year homeless housing plan, featuring 41 strategies across seven objectives. Community engagement showed strong support for maintaining current programs while adding new initiatives like tiny home villages and developer support services. Performance indicators will track success rather than relying solely on point-in-time counts. ### What to Watch Next - August 6 meeting: Council will review supplemental budget requests before submission deadline - August meeting: Public hearings on water franchise agreements - September: Public budget process open house planned - October 13-20: Executive's formal budget transmission to Council - November: Five-year housing plan returns for final approval ---

**Q:** How long do water utility franchise agreements last? **A:** 25 years, which is now the maximum term allowed under county code (previously 50 years). **Q:** What is the county's main budget challenge described by Executive Sidhu? **A:** Costs are outpacing annual revenue growth while the county is in a "stagnant state" with no significant revenue growth happening. **Q:** How much might the general fund need in reductions according to preliminary estimates? **A:** $4.9 million in reductions would be needed if all department cost increase requests are approved. **Q:** What was Council Member Donovan's main praise for this budget process? **A:** He called it "the most transparent budget process we've had since I've been on council." **Q:** How much does the county spend annually on homeless housing programs? **A:** Approximately $18 million per year across various intervention types. **Q:** How many strategies are included in the five-year homeless housing plan? **A:** About 41-42 strategies across seven different objectives. **Q:** What percentage of emergency shelter exits should result in permanent housing? **A:** The Department of Commerce sets a 50% benchmark, though the county system has never quite met that target. **Q:** What was the 2024 point-in-time count for homeless individuals? **A:** 671 individuals, down from 850 in 2023. **Q:** When will the 2025 point-in-time count report be published? **A:** At the end of July 2025. **Q:** What is the largest allocation in the housing program budget? **A:** Rapid Rehousing is the largest allocation by intervention type. **Q:** Which council member attended a housing stakeholder meeting in Lynden? **A:** Council Member Mark Stremler. **Q:** What does Council Member Elenbaas have to miss due to work? **A:** The EMS interview scheduled for the day after this meeting. **Q:** How many people overall provided input during housing plan community engagement? **A:** Community members identified all but 8 strategies for implementation in years one or two. **Q:** What are the county's budget guiding principles focused on? **A:** Economic resilience, transparency, and focusing on core services. **Q:** When is the deadline for supplemental budget requests (SBRs)? **A:** Mid to late August (moved back from the original August 1 target). **Q:** What type of performance indicator do they track for Rapid Rehousing? **A:** At least 80% of households should exit into permanent housing. **Q:** What concern did Council Member Bird raise about charter amendments? **A:** The potential budget impacts of Charter Review Commission amendments aren't factored into current projections. **Q:** What percentage of county expenses are related to public safety? **A:** More than 60%, including courts, judiciary, and sheriff's department. **Q:** What innovative housing idea did Council Member Elenbaas suggest? **A:** Using VRBO/Airbnb properties as temporary shelter during winter months when tourism is lower. **Q:** Why doesn't the housing program want to place people in housing without supports? **A:** They never want to put someone into housing without case management and people checking on their needs. ---