### Meeting Overview The Whatcom County Finance and Administrative Services Committee met on April 29, 2025, to review budget amendments, discuss future budget planning for the mid-biennium review, and receive financial reports. The committee addressed multiple flood-related contracts for the Nooksack River and set funding allocation targets for economic development investments. ### Key Terms and Concepts **Mid-Biennium Review:** A budget adjustment process that occurs midway through a two-year budget cycle, allowing counties to modify spending without creating an entirely new budget. **Economic Development Investment (EDI) Fund:** A county fund that receives rural sales tax revenue and provides grants and loans for public facilities, housing, and economic development projects. **Flood Control Zone District:** A special district that manages flood control projects and levies taxes specifically for flood management infrastructure. **Fund Balance:** The amount of money remaining in a government fund after revenues and expenditures, often used as a reserve for emergencies or future projects. **Consent Agenda:** A group of routine items that are voted on together without individual discussion, unless a member requests separate consideration. **General Fund:** The primary operating fund for county government that pays for basic services like administration, public safety, and general operations. **ARPA Funds:** American Rescue Plan Act federal funding provided during the COVID-19 pandemic for local government relief and recovery projects. **Hiring Freeze:** A temporary policy stopping most new employee hiring to control personnel costs during budget constraints. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Todd Donovan | Committee Chair, County Council Member | | Barry Buchanan | Committee Member, County Council Member | | Tyler Byrd | Committee Member, County Council Member | | Mark Stremler | County Council Member (observer) | | Kaylee Galloway | County Council Member (observer) | | Jon Scanlon | County Council Member (observer) | | Ben Elenbaas | County Council Member (observer) | | Aly Pennucci | Deputy County Executive | | Jill Boudreau | Executive's Office Staff | | Randy Rydell | Finance Director | | Elizabeth Kosa | Public Works Director | ### Background Context Whatcom County is facing significant budget challenges as the costs of providing services continue to outpace revenue growth. This meeting occurred during preparation for the mid-biennium budget review, where the county must address rising personnel costs from upcoming labor contract negotiations and mandatory expenses not yet budgeted for 2026. The county has been dealing with ongoing flooding issues along the Nooksack River, leading to multiple studies and infrastructure projects over many years. Council members are increasingly asking for updates on actual flood mitigation work completed, not just additional studies. Sales tax revenue, a key funding source for many county programs, has been flat rather than growing as historically expected. This impacts multiple special funds that rely on sales tax, including affordable housing and public safety funds. ### What Happened — The Short Version The committee approved 11 consent agenda items, mostly contracts related to flood control and other infrastructure projects. They voted to adjust the allocation targets for the Economic Development Investment fund, setting aside 15% for reserves and dedicating 30% specifically for housing projects. Deputy Executive Pennucci presented the framework for the upcoming mid-biennium budget review, explaining that departments will need to identify potential service reductions while the county addresses mandatory cost increases. The process will require detailed analysis of all county services to determine which are legally required versus discretionary. Finance Director Rydell presented the 2024 financial report, showing that while the county maintained stable finances, they faced challenges from declining sales tax revenue and relied on one-time revenue sources. The county ended 2024 with a $2.7 million deficit, better than the projected $16 million deficit. ### What to Watch Next - EDI Board meeting on May 8th to review new application structure - Public Works presentation on Nooksack River flood mitigation progress scheduled for June - Budget work sessions to be scheduled before July for council priority-setting - Department submissions due June 9th for mid-biennium budget analysis - Updated revenue forecasts expected in late June or July ---