Whatcom County creates taxing agency to help fund a new Lummi Island ferry
Whatcom County Council members approved a measure 5-2 on Tuesday night that creates a new ferry district with countywide taxing authority.
Tuesday’s measure creates the ferry district with the power to raise funds for a new Lummi Island ferry and its ongoing upkeep. The ordinance establishes the ferry district and its governing board but does not immediately levy a tax.
Council members Ben Elenbaas and Mark Stremler voted against the plan.
Stremler said he had “bounced back and forth on this issue many times” but voted against it because he thinks that any new tax should require a vote of the people.
Elenbaas said that was his thinking, too.
“I don’t know that I can support adding another tax without asking the people for their permission,” he said.
A public hearing on the ordinance Tuesday night lasted more than an hour and included several island residents who voiced their support, including Michael Byers, who’s lived on Lummi Island for nearly half a century.
“During these 46 years I’ve gladly and responsibly paid taxes on things that I don’t use, such as flood zone taxes and school taxes. I have no children. The proposed tax is a similar way to spread taxes across a larger community,” Byers told the council.
Judy Bush raised a family and worked in Bellingham while living on the island, where the ferry is a critical link for its 900 year-round residents.
“We’re all Whatcom County residents. We rely on an essential part of a road system that includes the Whatcom County ferry. Rejecting this opportunity is fiscally irresponsible. It leaves us with an aging ferry that doesn’t meet Coast Guard requirements, breaks down frequently and is very costly to repair and maintain. There’s no Plan B here, and it’s only going to get more expensive in the future,” Bush said.
According to the ordinance, the new ferry board will be composed of the Whatcom County Council and the county executive. The Public Works Department director will prepare a budget and serve as the ferry fund administrator.
Tuesday’s ordinance allows the ferry board to levy a property tax of not more than 10 cents per $1,000 of assessed value to be used only for ferry services. That would cost the owner of a $500,000 home $50 annually. Any higher tax rate would require a popular vote.
Under state law, Whatcom County must provide “multimodal” connections between public roads, including access to Lummi Island from the mainland.
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.
Currently, ferry-related costs come from the “road fund,” a property tax that only residents of rural Whatcom County pay into — 41% of the total population. Under the ferry district funding model, all property owners will pay for ferry-related costs, freeing the road fund for rural road repair, maintenance and snow removal, according to previous Bellingham Herald reporting.
Lummi Island is about 10 miles long with about 9 square miles and 1,400 buildings. 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 an April 28 presentation, Public Works Director Elizabeth Kosa said rising ferry costs are siphoning funds away from road maintenance, and that $35 million in state and federal grant funds could be lost if a new ferry isn’t ordered.
