Whatcom County Council Finance and Administrative Services Committee

**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

# 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.

### Meeting Overview The Whatcom County Finance and Administrative Services Committee met on December 9, 2025, to process 40 consent agenda items, receive presentations from the Auditor's Office and Finance Division, and consider several budget ordinances and resolutions. ### Key Terms and Concepts **Consent Agenda:** A group of routine agenda items voted on together to expedite meetings. Items can be pulled out for separate discussion and voting if council members have questions. **Flood Control Zone District Board:** A special governing role where the county council acts to oversee flood control, stormwater management, and watershed planning activities funded by special district taxes. **Operation Stonegarden:** Federal grant program providing funding to local law enforcement agencies in border areas to enhance security infrastructure and operations. **Keep Washington Working Act:** State legislation that limits local law enforcement cooperation with federal immigration enforcement activities. **Budget Supplemental:** Mid-year budget adjustments that add spending authority for departments, often including both revenue and expenditure components. **22 North:** A permanent supportive housing facility in Whatcom County that provides housing and services for individuals transitioning from homelessness. **Self-Insured Workers' Compensation:** The county pays workers' compensation claims directly rather than purchasing insurance, then buys excess coverage for large claims. **Lake Whatcom Stormwater Utility (LWSU):** Special program managing stormwater systems around Lake Whatcom to protect the drinking water source. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Todd Donovan | Committee Chair | | Tyler Byrd | Committee Member | | Barry Buchanan | Committee Member | | Ben Elenbaas | Council Member (non-committee) | | Kaylee Galloway | Council Member (non-committee) | | Jon Scanlon | Council Member (non-committee) | | Mark Stremler | Council Member (non-committee) | | Kayla Schott-Bresler | Deputy Executive | | Steve Harris | Undersheriff | | Bea Acland | Human Resources Manager | | Stacy Henthorn | County Auditor | | Randy Rydel | Finance Director | | Aly Pennucci | Deputy Executive | | Gary Stoyka | Public Works Department | ### Background Context This meeting occurred at the end of 2025, when many annual contracts and budget adjustments are processed. The county was managing financial challenges including declining sales tax revenue (down 1.8% from the previous year) and increased scrutiny on budget supplementals to control spending. Key ongoing issues included funding for emergency medical services on Galbraith Mountain, federal immigration enforcement concerns around Operation Stonegarden agreements with local cities, and the annual disposal of surplus county property. ### What Happened — The Short Version The committee approved most of the 40 consent agenda items, which included contracts for housing services, law enforcement equipment, stormwater management, and collective bargaining agreements. Council Member Byrd voted "no" on several flood control zone items, preferring those funds go toward actual flood control rather than studies. The committee held one item related to eliminating paramedic positions for further consideration in January. They received reports from the Auditor's Office showing stable election operations and declining property recording activity, and from Finance showing reduced budget supplementals but concerning sales tax trends. Finally, they approved budget amendments totaling over $15 million and discussed procedures for disposing of surplus county equipment. ### What to Watch Next - Item AB2025-854 regarding elimination of paramedic positions will return to committee in January 2026 - Sales tax revenue monitoring as the county evaluates whether to proceed with discretionary 2026 spending - Fourth quarter financial results to see if revenue projections hold ---

**Q:** How many consent agenda items did the committee consider? **A:** 40 items, noting it was "the end of the year" when many contracts come due. **Q:** Which council member consistently voted "no" on flood control zone district items? **A:** Tyler Byrd, who wanted more flood control funds going toward actual flood control projects rather than studies. **Q:** What is the dollar amount for the contract with Opportunity Council for 22 North services? **A:** $648,568 for on-site supportive services at the permanent supportive housing facility. **Q:** What federal grant program was discussed regarding border security? **A:** Operation Stonegarden, which provides funding to law enforcement in border communities for security operations. **Q:** How much is sales tax revenue down compared to the previous year? **A:** 1.8 percent, which is causing the county to proceed with caution on 2026 discretionary spending. **Q:** What happened to the City of Bellingham paramedic contract item? **A:** AB2025-854 was held in committee and will return in January 2026. **Q:** How many registered voters does Whatcom County currently have? **A:** 169,350 registered voters as of the auditor's presentation. **Q:** What was voter turnout in the 2025 general election? **A:** 45 percent, which the auditor described as "low." **Q:** What percentage of budget supplementals has the county reduced compared to last year? **A:** Net decrease dropped from $65 million last year to $44 million this year. **Q:** What major equipment replacement was mentioned in the surplus property discussion? **A:** Various county equipment including trucks, mowers, laser levels, and IT equipment for disposal through public sale. **Q:** What new service did the Auditor's Office launch in September? **A:** Property recording alert system that emails subscribers when documents are recorded for monitored properties. **Q:** What are recording fees now compared to 10 years ago? **A:** $300-350 today compared to $72 ten years ago, contributing to fewer document recordings. **Q:** What budget software implementation is underway? **A:** New budget transparency software with weekly implementation meetings and an on-site manager visit in January. **Q:** How much funding goes to affordable housing from recording fees? **A:** $1.2 million was collected in 2024 for Whatcom County's affordable and homeless housing programs. **Q:** What two Associated Earth Sciences contracts were approved for flood control studies? **A:** $147,532 for groundwater pumping impact study and $128,531 for agricultural tile drain impact study. **Q:** What concern did Council Member Scanlon raise about Operation Stonegarden? **A:** Whether cities participating have made statements aligning with the Keep Washington Working Act regarding immigration enforcement. **Q:** What was the net change amount for the $12.1 million budget ordinance? **A:** Only $282,933 net change, as most was moving existing budget authority around. **Q:** What issue did Council Member Byrd raise about surplus property disposal? **A:** Whether equipment could be offered to Search and Rescue, which operates on limited donations. **Q:** What percentage of budget authority had been spent through Q3? **A:** 68.1 percent of expenditures, tracking closely with the previous year's 68.2 percent. **Q:** What major audit delay was mentioned? **A:** The county audit typically concludes in September but is expected to finish in January due to software conversion challenges. ---