## Meeting Overview The Whatcom County Finance and Administrative Services Committee convened on June 24, 2025, for what would prove to be a consequential meeting addressing mounting financial pressures across county funds. Committee Chair Todd Donovan presided over the 1 hour 41 minute session that included all committee members — Barry Buchanan and Tyler Byrd — along with several other council members attending as observers. The morning began routinely with a substantial consent agenda of 19 items totaling millions in contracts and agreements. But the meeting's tenor shifted dramatically when discussion turned to systemic budget challenges threatening core county services. Two major issues dominated: a brewing crisis in the Behavioral Health Fund that required immediate intervention, and ongoing negotiations over emergency medical services at Galbraith Mountain. ## Scrutinizing Housing and Behavioral Health Contracts Council member Mark Stremler launched the meeting's most intensive discussion by questioning standardized "program outputs and outcomes reporting requirements" that had been added to three housing contracts with Lydia Place. What began as a technical inquiry about contract language evolved into a fundamental examination of whether the county's $15 million annual investment in homelessness services was working. "I guess I'd really like to see that happening, to see if these organizations are successful at what they say they're attempting to do," Stremler said, voicing frustration that resonated with colleagues about the effectiveness of long-standing programs. Ann Beck, Community Health and Human Services Manager, defended the investments while acknowledging the challenges. "We are constantly trying to figure out how to improve the system," she said. "We're definitely not status quo." She pointed to recent data showing 96% of clients exiting Opportunity Council's case management programs moved to permanent housing, and 90% of Lydia Place emergency motel clients found permanent housing. But Stremler pressed further, asking whether point-in-time homeless counts were declining despite massive expenditures. Ashley Geleynse, a Housing Program Specialist, explained the sobering reality: while people were successfully exiting homelessness, just as many were entering the system. "It's kind of this cycle that's happening with just more and more people struggling to meet ends meet," she said. Council member Tyler Byrd demanded greater transparency, requesting that future contracts include historical performance data in table format rather than requiring council members to hunt through separate quarterly reports. "It would be nice to have it in the contract," Byrd said, seeking trend information showing whether programs were improving, stagnating, or declining. ## The Galbraith Mountain Emergency Services Dilemma A unique governance gap at Galbraith Mountain presented committee members with a complex puzzle involving public safety, recreation economics, and jurisdictional boundaries. The popular mountain bike destination sits in unincorporated Whatcom County but outside any fire district's jurisdiction, creating what Deputy Executive Kayla Schott-Bresler called "essentially a hole in the EMS trauma zones." South Whatcom Fire Authority has been responding to an increasing number of emergencies — over 30 calls in recent years compared to just a few annually before the area's development. Fire Chief Mitch Nolze explained that while they historically handled a few calls per year, the volume has "significantly increased" as the recreation area gained popularity, especially during COVID-19 when outdoor activities surged. The proposed solution involved a two-year agreement where the City of Bellingham would pay $147,000 annually to the Fire Authority, with Whatcom County contributing one-third of the costs. The figure represented 2.7% of the Fire Authority's annual call volume applied to their operations budget. Byrd explored alternative funding mechanisms, suggesting everything from parking permits and trail passes to specialized sales taxes on mountain bike equipment. "It seems like that might be the most economical from their side is just to cover that entire cost through some sort of insurance plan or something," he said, referring to potential user fees. Council member Jon Scanlon noted the economic benefits the county receives from mountain bike tourism, citing businesses like Transition Bikes in unincorporated areas that generate significant sales tax revenue. He also mentioned that unlike other Washington volcanoes, Mount Baker requires no climbing permits that could help fund search and rescue operations. Under Sheriff Steve Harris highlighted a crucial limitation: even when Search and Rescue volunteers respond, "none of the volunteers are licensed to do any type of BLS or ALS transport," meaning fire department medical services remain essential. The committee provided informal direction to proceed with developing the interlocal agreement while continuing to explore long-term sustainable funding solutions. ## Human Resources Modernization Efforts HR Director Melissa Keeley provided an update on significant organizational changes within her small but crucial department. After adding a new HR representative position in the 2025-26 budget, the county now has six HR representatives serving departments — the highest number in Keeley's 25-year tenure, during which the county typically operated with just four. The expansion came alongside implementation of comprehensive NEOGOV technology platforms that have modernized county hiring and performance management. The new systems eliminated substantial paperwork for new hires and departments while providing consistent training platforms covering topics like workplace respect and sexual harassment prevention. Particularly significant was the launch of the PErforM system for performance evaluations, which automatically generates annual evaluations for every regular county employee and creates tracking systems for supervisors. A secure journal hub allows managers to document employee performance throughout the year, providing easy reference when completing formal evaluations. The upcoming NEOGOV Learn platform promises extensive professional development opportunities through both an extensive course library and custom content. While no direct pay incentives currently exist for training completion, employees can earn certifications and build official training records useful for career advancement. Workforce data revealed some concerning trends: while the county hired a record 146 new employees in 2024, separations ran higher than typical at 9% compared to the usual 7% rate. Current vacancy rates hover around 9%, with some departments beginning to slow hiring as they consider budget constraints. ## The Behavioral Health Fund Crisis The meeting's most sobering moment came when Deputy Executive Schott-Bresler presented a comprehensive analysis of the Behavioral Health Fund's structural crisis. What had been a stable funding mechanism collecting and spending $5-6 million annually between 2018 and 2022 had spiraled into a projected $2 million annual deficit by 2026. The crisis stemmed from multiple converging factors. School-based mental health expansion contracts initiated in 2023 to address post-pandemic youth mental health needs had intentionally spent down reserves. But additional pressures emerged: labor costs increased through cola adjustments and new positions, vendor contracts received overdue inflationary adjustments, and indirect costs grew with expanding programs. Most critically, revenues from the one-tenth of one percent sales tax that funds the system haven't kept pace with expenditures. "We saw sort of these one time revenues during this period," Schott-Bresler explained, "but the revenues didn't continue on and the expenses did." County consultant Doug Merryman's analysis projected the fund would go negative by late 2026 without intervention, creating both operational problems and potential legal audit risks. The executive had already pulled anticipated budget increases to prevent the fund from being budgeted into deficit territory. Ann Beck, whose department manages the fund, emphasized the human stakes involved. "We've had six youth that have either experienced suicide death by, you know, attempted suicide or overdoses in recent months," she told the committee. Community partners, including tribal governments, had identified school-based programming as the crucial investment point for opioid response efforts. The proposed immediate solution involved eliminating vacant positions in the fund, negotiating modest reductions with school districts, and most controversially, transferring $1 million from the Mental Health and Developmental Disabilities Fund to help cover school contracts. Byrd strenuously objected to the fund transfer approach. "I am not a fan of nor would I vote to start moving the money from that fund over," he declared, arguing that such temporary solutions merely spread problems across multiple funds without addressing root causes. "If we were tracking this stuff the way we should be, we wouldn't have been in this place with the Road Fund or the behavioral health fund," he said. He advocated for immediately ending the school contracts rather than prolonging commitments the county couldn't sustain. "We over committed on this. We need to go to the schools and back that up and just say, Hey, we apologize, but we over committed to you," Byrd argued. Beck countered that abruptly ending the three-year contracts would break faith with school districts that had been told to plan for the full commitment period. She noted the expansion contracts were scheduled to end in June 2026 regardless, meaning the county wasn't committing to indefinite funding. Council member Scanlon saw merit in continuing youth-focused investments given their long-term preventative value, while acknowledging the need for sustainable funding solutions going forward. ## Financial Decisions Under Pressure The committee ultimately approved both budget supplementals despite the philosophical divisions. The $1.5 million Behavioral Health Fund supplemental passed 2-1 with Byrd dissenting, while the larger $16.7 million omnibus supplemental passed unanimously. Schott-Bresler acknowledged that county government faces a fundamental structural challenge: "Revenue sources cannot keep up with the expenses we experience as an organization. We have revenue sources that are constrained and volatile, and we have expenses that escalate over time, primarily because our biggest expenses labor, which escalates each year with colas and step increases." The broader context was sobering. In the past six and a half years, county staffing had increased by over 25% while expenses had grown by 57%. Multiple funds were experiencing structural imbalances as the county struggled to maintain services with revenue sources that couldn't match escalating costs. Deputy Executive Aly Pennucci characterized the approach as "a bridge solution that is moving towards reform," acknowledging that more fundamental changes would be needed while trying to avoid abrupt service cuts that could harm vulnerable populations. ## Consent Agenda and Routine Business The meeting's 19-item consent agenda, totaling nearly $25 million in contracts and agreements, passed unanimously after focused questioning. Notable items included $7.3 million for rental assistance through Opportunity Council, $6.1 million for developmental disabilities services, and $3.4 million for housing and essential needs programs. A humorous moment arose when Byrd noted that the frequently mentioned "aquatic mammal activity" causing road damage in a federal wildlife services contract was actually referring to beavers. "That's exactly how that is defined," staff confirmed, though Byrd suggested clearer contract language might help future readers. Questions about a $1.3 million Long Term Recovery Group contract from 2024 revealed gaps in council oversight, with Byrd pointing out that some emergency-authorized contracts had never returned for required council approval within 90 days. ## Closing and What's Ahead The meeting concluded with committee members clearly wrestling with fundamental questions about county government's fiscal sustainability. While immediate crises in the Behavioral Health Fund and emergency services funding received temporary solutions, larger structural challenges remained unresolved. Future discussions will need to address what services the county can realistically sustain, how to improve financial oversight and transparency, and whether new revenue sources or significant service reductions are necessary to achieve long-term stability. The evening's continuation would address remaining technical items, but the morning's discussions had already established that Whatcom County government faces difficult choices ahead as it seeks to balance community needs with fiscal reality. The tension between maintaining critical services for vulnerable populations and ensuring long-term financial sustainability would clearly continue to challenge county leaders in the months ahead.