Whatcom County Council taking first steps toward a broad-based ferry tax
Whatcom County Council members took the first steps this week toward a countywide property tax to pay for a new Lummi Island ferry and its ongoing upkeep.
Council members unanimously approved a measure Tuesday night calling for a public hearing to create a new public agency, called a ferry district, that would have taxing authority over all Whatcom County residents. It could be considered as early as the council’s next meeting, on May 12.
A new state law allows a local ferry district to create a property tax for ferry replacement and operations by majority vote without a ballot measure. Current members of the County Council would be the voting members of such a new ferry district.
Currently, ferry-related costs come from the “road fund,” a property tax that only residents of rural Whatcom County pay into. The measure under consideration would charge all property owners for ferry-related costs and free the road fund for rural repair, maintenance and snow removal.
Without the new tax, Whatcom County is facing continued and growing budget deficits related to ferry costs, Public Works Director Elizabeth Kosa told the council in a committee meeting Tuesday morning.
“The road fund is neglecting necessary improvements to afford this ferry system right now,” Kosa said.
The ordinance under consideration does not establish a tax. It creates a ferry district, and its governing board will decide on a tax levy rate.
Lummi Island is about 10 miles long with about 9 square miles and 1,400 buildings. It has about 900 year-round residents, according to the most recent U.S. Census data.
It is separated from the mainland by the half-mile-wide Hale Passage, where the M/V Whatcom Chief carries cars and people.
That vessel is 64 years old and is costing more and more money to repair each year. Further, repair and maintenance of the dock pilings, called ‘dolphins,’ is costing about $500,000 annually.
In a presentation Tuesday, Kosa explained how rising ferry costs are limiting road maintenance, and how $35 million in state and federal grant funds could be lost if a new ferry isn’t ordered.
“It’s extremely expensive for this marine infrastructure,” Kosa said.
