Whatcom County Council Finance and Administrative Services Committee

Whatcom County's Finance and Administrative Services Committee concluded its 2025 work with an end-of-year marathon session, processing 42 consent items totaling millions in contracts and agreements while receiving detailed presentations on county finances and election operations. The December 9th meeting showcased both the routine administrative machinery of county government and emerging fiscal challenges that will shape 2026 decision-making. The committee approved the overwhelming majority of items on a massive 40-item consent agenda covering everything from body camera subscriptions to collective bargaining agreements. However, several items generated debate that revealed philosophical differences among committee members, particularly around flood control zone district spending priorities and racial equity funding. Council Member Tyler Byrd consistently opposed items he viewed as straying from core flood control purposes, voting against contracts totaling over $800,000 for stormwater utility programs and groundwater studies that he argued should focus more directly on flood mitigation. Two substantial presentations provided critical context for the county's fiscal position heading into 2026. County Auditor Stacy Henthorn reported that Whatcom County now has 169,350 registered voters — an increase of 10,500 since 2020 — while maintaining the same staffing levels since 2015 through cross-training and efficiency improvements. More concerning, Finance Director Randy Rydel delivered sobering news about sales tax collections, which are trending 1.8 percent below 2024 levels despite budget assumptions of 2.5 percent growth. This revenue shortfall is prompting the county to hold back discretionary spending while awaiting clarity on new revenue sources from updated security and IT contracts. The committee also grappled with surplus property disposal procedures after Council Member Byrd suggested providing equipment to cash-strapped Search and Rescue operations rather than selling it. This sparked a complex discussion about gifting of public funds rules and alternative approaches to supporting volunteer emergency services that rely on just $900 annually in donations. The item was ultimately discussed but not resolved, highlighting ongoing challenges in balancing fiscal responsibility with community support needs. Chair Todd Donovan kept the meeting moving efficiently through 47 agenda items in under 90 minutes, with most receiving only brief discussion before unanimous approval. The committee held only one item — a contract amendment eliminating three paramedic positions with the City of Bellingham — at the executive's request for January reconsideration.

**Major Contract Approvals (All Passed 3-0 unless noted):** - AB2025-832: $648,568 to Opportunity Council for 22 North supportive housing services (2-1, Byrd opposed) - AB2025-868: $150,000 to Whatcom Community Foundation for Racial Equity Commission administration (2-1, Byrd opposed) - AB2025-860: Collective bargaining agreement with Washington State Nurses Association for 2026-2028 - AB2025-869: Collective bargaining agreement with AFSCME for 2026-2027 - AB2025-815: $302,588 five-year contract with Axon Enterprise for body camera storage **Flood Control Zone District Items (Council acting as Board of Supervisors):** - AB2025-845: $90,000 for Lake Whatcom stormwater utility programs (2-1, Byrd opposed) - AB2025-848: $147,532 for groundwater pumping impact study final phase (2-1, Byrd opposed) - AB2025-850: $128,531 for agricultural tile drain investigation Phase 2 (2-1, Byrd opposed) - AB2025-882: $449,544 for Hazard Mitigation Grant Program cost increases (3-0) **Budget and Administrative Actions:** - AB2025-859: Salary schedule for unrepresented employees effective 2026-2027 (3-0) - AB2025-794: $12.1 million budget amendment with $282,933 net change (3-0) - AB2025-796: Sheriff's Office Leasehold Improvements Project Fund (3-0) - AB2025-798: Birch Bay Beach Park Project Fund (2-1, Byrd opposed) - AB2025-816: $3.6 million 2025 budget amendment (3-0) **Item Held:** - AB2025-854: Contract amendment eliminating three Bellingham paramedic positions (held for January reconsideration)

**Randy Rydel, on sales tax performance:** "We're just really not seeing that we're starting below below that line now and I don't I don't know what to expect obviously I can't can't predict these things with much accuracy." **Council Member Tyler Byrd, on flood control priorities:** "I'd like to see more of our funds that are in the flood control zone district board going towards actually flood control projects. Water quality in the PIC projects is, I think, is important. So that's why I didn't pull any of those out. But a bunch of these others, I think this money would be better spent, better utilised if we were spending it on actually mitigating flood damage." **Gary Stoyka, on flood control zone district scope:** "The flood control zone district legislation, you know, back from the 80s or 90s was originally all about flood control, which is why the district has the name of flood control zone district. But in the ensuing years, they expanded it... to allow it to be used for all of our watershed planning activities." **Council Member Byrd, on Search and Rescue support:** "They get by on nine hundred dollars a year in donations and some of this stuff might be useful for them um even though it's end of life for us." **Stacy Henthorn, on election administration staffing:** "A few years ago and it was right after COVID with the Healthy Children's Initiative all of that stuff going on we did lose three election administrators just because of the political pressure from the government." **Deputy Executive Aly Pennucci, on fiscal caution:** "It is one of the factors of proceeding with caution going into 2026 and holding back some discretionary spending in the short term while we see what happens."

**Meeting ID:** WHA-CON-FAS-2025-12-09 # Whatcom County Finance Committee: A Year-End Reckoning ## Meeting Overview The December 9, 2025 meeting of the Whatcom County Finance and Administrative Services Committee represented a classic end-of-year legislative sprint, with Committee Chair Todd Donovan announcing at the outset: "We have 40 items. It's the end of the year." The 87-minute hybrid meeting in Council Chambers brought together committee members Tyler Byrd, Barry Buchanan, and Donovan, along with attending council members Ben Elenbaas, Kaylee Galloway, Jon Scanlon, and Mark Stremler. This wasn't just administrative housekeeping—the meeting tackled significant policy questions around federal immigration enforcement, flood control funding priorities, property disposal policies, and the county's financial trajectory heading into 2026. Two major presentations from the Auditor's Office and Finance Department provided transparency into county operations, while dozens of contracts and budget amendments revealed the machinery of local government in action. ## The Great Consent Agenda Navigation What followed was a carefully choreographed dance through 40 consent agenda items, with several council members pulling specific contracts for separate consideration. Byrd requested separate votes on items involving the controversial 22 North housing facility, multiple flood control zone district contracts, and the Racial Equity Commission funding. The discussion revealed philosophical differences about spending priorities and the proper scope of government programs. The 22 North contract with Opportunity Council for $648,568 in supportive housing services drew Byrd's opposition. "This is 22 North and so everyone knows how I feel, yeah, about that," he stated succinctly. The item passed 2-1, with Donovan and Buchanan supporting the permanent supportive housing services. Byrd's pattern of opposition extended to several flood control zone district contracts, where he articulated a clear position: "I'd like to see more of our funds that are in the flood control zone district board going towards actually flood control projects. Water quality in the PIC projects is, I think, is important. So that's why I didn't pull any of those out. But a bunch of these others, I think this money would be better spent, better utilised if we were spending it on actually mitigating flood damage. Well, flooding and flood prevention." This philosophical stance played out across multiple votes. The Lake Whatcom Stormwater Utility contract for $90,000 passed 2-1 against Byrd's opposition. A $147,532 groundwater study contract also passed 2-1, despite Byrd's concerns about spending flood funds on what he saw as non-flood-related research. ## The Operation Stonegarden Debate One of the meeting's most substantive policy discussions centered on Operation Stonegarden—a federal program that provides funding for enhanced border security activities. Council Member Scanlon raised pointed questions about the five interlocal agreements with cities for this program, totaling over $100,000. "I've been hearing a lot from constituents concerned about federal law enforcement operations in the county," Scanlon explained. "And one of the questions I've gotten from some folks in the county is, we know that the Sheriff has made a clear statement around the Keep Washington Working Act. Have the cities that we're working with made similar statements that they are operating in alignment with the Keep Washington Working Act?" Undersheriff Steve Harris, joining by video, acknowledged he hadn't heard official statements from participating mayors or police chiefs but presumed they were compliant with state law. "I would only presume that they're compliant with the Washington state laws, the same as the Sheriff's office are, and they're not doing anything that would put them in jeopardy of violating those laws," he said. Scanlon pressed further, asking whether language could be added to the contracts requiring compliance with the Keep Washington Working Act. Harris responded positively: "Yeah, I would say that it probably is possible to put some sort of language in there that very clearly articulates that we're not going to be dealing with any immigration-related enforcement activities." Harris explained that Stonegarden activities typically involve "standard patrols that we as local law enforcement would be doing anyway. We're just focussing those patrols on critical infrastructure needs and the border, but it's more about what would also be violations of Washington state law, smuggling, drug operations, those sorts of things." The geographic scope of the program also drew questions, with Harris noting that the 60-mile border zone extends as far south as Mount Vernon, which explains why some cities participate while others, like Bellingham, do not. ## Fire and EMS Funding Complexities The committee addressed ongoing challenges in emergency medical services funding, particularly for Galbraith Mountain area coverage. A contract with the City of Bellingham for $49,000 in 2025 and $49,191 in 2026 prompted questions from Council Member Stremler about a 2018 plan that apparently never materialized. Deputy Executive Kayla Schott-Bresler explained the current arrangement: "The City of Bellingham is partnering with South Whatcom Fire Authority to provide those services on Galbraith Mountain and that they are compensating South Whatcom Fire Authority for those services and have requested the county be a contributor." She noted that while the county is committing to a two-year deal, longer-term solutions remain elusive. "We haven't found a lot of good sort of case studies to look to on this," she acknowledged, describing it as "not an easy issue." The committee also dealt with related EMS funding changes, including holding an item that would eliminate funding for three lateral paramedic positions with Bellingham, a decision that will return to the committee in January. ## County Auditor's Transparency Report County Auditor Stacy Henthorn delivered a comprehensive presentation showcasing the diverse functions of her office—elections, recording, and licensing—while highlighting impressive efficiency gains. Despite handling increasing workloads, the office has maintained the same staffing levels since 2015 through cross-training, technology improvements, and all-hands-on-deck approaches during busy election periods. The 2025 election year saw three elections with 114 offices on various ballots, plus verification of 6,100 signatures on initiative petitions. Voter registration continues growing, with 169,350 registered voters—an increase of 10,500 since 2020. However, voter turnout in the general election was a disappointing 45 percent. Henthorn's presentation revealed the hidden complexities of election administration. The cost per ballot varies significantly based on how many districts participate—when more jurisdictions share an election, the per-ballot cost decreases. The office plans to publish historical election costs by district online in 2026 to help with planning and budgeting. Council Member Donovan inquired about staff retention challenges that have plagued election offices nationally. "There was a time period where we did lose three election administrators just because of the political pressure from the government," Henthorn acknowledged, referencing post-COVID challenges. "It's been a challenge all over the country." However, she reported current stability: "Right now we are stable with the staff that we have." The recording division faces different pressures, with document filings declining due to higher interest rates and fewer refinancing transactions. Recording fees have increased dramatically—from $72 ten years ago to $300-350 today—though the auditor's office only retains $5 per document for the general fund. The bulk of recording fees fund various state and county programs, including $1.2 million in 2024 for affordable and homeless housing programs. A new property recording alert system launched in September allows the public to monitor documents recorded on specific properties or individuals—a transparency tool that has received positive feedback. Council Member Byrd praised the auditor's staff while suggesting operational improvements for simpler transactions like purchasing maps, noting the complex checkout process that currently requires multiple staff interactions. ## Finance Department's Sobering Assessment Finance Director Randy Rydel's quarterly report painted a picture of cautious fiscal management amid concerning revenue trends. The county collected 65% of budgeted revenues through Q3, down from 71% at the same point in 2024—though Rydel attributed this partly to improved revenue recognition practices that eliminate year-end corrections. "Last year we were accepting revenue and recording revenue right when it was received not necessarily when we had earned it and then we were backing it off at the end of the year when we hadn't spent it," Rydel explained. This corrected approach makes current revenues "more in line with what we expect to see towards the end of the year without a Q4 correction." More concerning are sales tax trends. Rydel displayed charts showing sales tax collections consistently trailing 2024 levels, with September numbers coming in about $50,000 below projections—roughly 2.5% down. "I've been really hoping... that we were going to see some some good positive ahead of the over the line of last year numbers and you know we're just really not seeing that," he said with visible frustration. The county had budgeted for 2.5% sales tax growth in 2026, but Deputy Executive Aly Pennucci noted they've adopted a cautious stance: "It is one of the factors of proceeding with caution going into 2026 and holding back some discretionary spending in the short term while we see what happens with this." Budget supplemental requests show improved discipline, dropping from $65 million in net decreases last year to $44 million this year. The county has processed 12 budget supplementals affecting the general fund, with amounts generally decreasing as the year progressed—evidence of tighter budget controls. Council Member Donovan pressed about whether declining supplementals indicate reduced state or federal funding. Rydel clarified this reflects "continued increased scrutiny on those requests" rather than external revenue losses, with the finance department working more closely with departments to identify internal funding sources before requesting additional budget authority. ## The Property Disposal Debate What should have been a routine authorization to sell surplus property—old trucks, mowers, and equipment—sparked an extended debate about supporting Search and Rescue operations. Council Member Byrd noted that Search and Rescue operates on just $900 annually in donations and suggested sending the surplus list to them first. "They get by on nine hundred dollars a year in donations and some of this stuff might be useful for them even though it's end of life for us," Byrd argued, proposing a system similar to how the sheriff's office handles donated vehicles for Search and Rescue use. Deputy Executive Pennucci and County Attorney Kimberly Thulin cautioned about legal requirements around property disposal and gift of public funds restrictions. "There are strict standards statutory standards that we are required to follow," Thulin explained, noting that while anyone can receive notice of surplus sales, directing items to specific organizations raises legal concerns. Public Works Director Elizabeth Kosa noted the list includes more than just equipment—servers, laser levels, and IT items—broadening the potential usefulness. However, Brett Piepel from Public Works raised budget concerns: "If we donate this equipment we don't get revenue back that revenue won't go back into the equity accounts for the department's divisions... it could have a budget impact for future equipment rates." The discussion revealed tension between supporting a critical volunteer service and maintaining proper fiscal controls. Schott-Bresler urged committee approval, noting "a tremendous amount of staff work has gone into putting together this proposal" and that "several non-profit organisations in our community would benefit from the donation of assets." Byrd remained hesitant to approve without exploring options for Search and Rescue, but time constraints forced the committee to move forward with the existing process. ## Budget Amendments and Project Funds The committee recommended several significant budget amendments, including a $12.1 million amendment to the 2026 budget that initially confused members due to its large gross amount versus small net impact. Deputy Executive Pennucci explained this represents mostly budget authority transfers with only $282,933 in net new spending. "The title has to show the total expenditure authority it doesn't show the net change so that the number in every budget ordinance always looks bigger than the actual net effect," she clarified, noting this is typical for annual construction programs. The committee also established project-based budget funds for Sheriff's Office leasehold improvements and Birch Bay Beach Park development. Byrd opposed the Birch Bay project fund 2-1, consistent with his general skepticism of new spending initiatives. ## Looking Forward: Challenges and Opportunities As the meeting concluded precisely on time at 10:18 a.m., several themes emerged that will likely shape county governance in 2026. Sales tax revenue concerns will force difficult choices about service levels and discretionary spending. The debate over flood control zone district spending priorities reflects broader questions about government scope and effectiveness. The Operation Stonegarden discussion highlighted ongoing tensions around federal immigration enforcement and local compliance with state sanctuary policies. The property disposal debate revealed the challenges of supporting volunteer organizations while maintaining proper fiscal controls. Perhaps most significantly, the presentations from the Auditor and Finance Director demonstrated both the county's commitment to transparency and the complex realities of managing a $200+ million local government operation. From election integrity to revenue forecasting to equipment disposal, the meeting showcased the intricate decisions that shape community life—often invisible to residents but crucial to effective governance. The committee's businesslike efficiency in processing 40 agenda items while still engaging in substantive policy debate reflected experienced legislators comfortable with their roles. Yet underlying challenges around revenue sustainability, service delivery, and balancing competing priorities suggest that 2026 will test that experience in significant ways.