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Home My WebLink AboutPacket Special COTW Sep 16 2025Whatcom County Council Special Committee of the Whole COUNTY COURTHOUSE 311 Grand Avenue, Ste #105 Bellingham, WA 98225-4038 (360) 778-5010 Meeting Agenda Tuesday, September 16, 2025 9AM Hybrid Meeting - Council Chambers HYBRID MEETING - ADJOURNS BY 9:55 A.M. (PARTICIPATE IN -PERSON, SEE REMOTE JOIN INSTRUCTIONS AT www.whatcomcounty.us/joinvirtualcouncil, OR CALL 360-778-5010) COUNCILMEMBERS Barry Buchanan Tyler Byrd Todd Donovan Ben Elenbaas Kaylee Galloway Jon Scanlon Mark Stremler CLERK OF THE COUNCIL Cathy Halka, AICP, CMC Council Special Committee of the Whole Meeting Agenda Call To Order Roll Call Announcements September 16, 2025 Individuals who require special assistance to participate in the Council's meetings are asked to contact the Council Office at 360.778.5010 at least 96 hours in advance. This committee meeting is also noticed as a meeting of the Whatcom County Council, with the agenda limited to committee business. Committee Discussion 1. AB2025-509 2025-2026 Mid -Biennium Budget Review Items Added by Revision Other Business Adiournment Whatcom County Page 2 Printed on 1211212025 • Whatcom County COUNTY COURTHOUSE 311 Grand Avenue, Ste #105 Bellingham, WA 98225-4038 (360) 778-5010 • Agenda Bill Master Report File Number: AB2025-509 File ID: AB2025-509 Version: 1 Status: Discussed File Created: 06/30/2025 Entered by: THelms@co.whatcom.wa.us Department: County Executive's File Type: Discussion Office Assigned to: Council Committee of the Whole Final Action: 10/07/2025 Agenda Date: 10/07/2025 Enactment #: Primary Contact Email: Apennucc@co.whatcom.wa.us TITLE FOR AGENDA ITEM: 2025-2026 Mid -Biennium Budget Review SUMMARY STATEMENT OR LEGAL NOTICE LANGUAGE: HISTORY OF LEGISLATIVE FILE Date: Acting Body: Action: Sent To: 07/08/2025 Council Committee of the Whole DISCUSSED 09/09/2025 Council Committee of the Whole NOT ACTED UPON 09/16/2025 Council Special Committee of the Whole DISCUSSED 09/23/2025 Council Committee of the Whole DISCUSSED 10/07/2025 Council Committee of the Whole DISCUSSED Attachments: Presentation 7.8.2025, Presentation 9.9.2025, Potential Adjustments 9.9.2025, Presentation 9.23.2025, EMS Memo - Galloway 10.7.25, Staff Memo 10.7.2025, Substitute Staff Memo 10.7.2025, Presentation 10.7.2025, Letter - IAFF Local 106 10.8.2025, Countywide EMS Fund Projections 10.8.2025, Letter - Whatcom Fire Chiefs Association 10.6.2025 Whatcom County Page 1 Printed on 1211212025 P�Gpm Z, s� 2025-2026 Mid -Biennium Budget Review Discussion 01 P% - �lNG PRESENTER: ALY PEN N UCCI, DEPUTY EXECUTIVE & AS DIRECTOR COMMITTEE OF THE WHOLE J U LY 81 2025 outi 1 Guiding Principles z The Challenge 3 Process Overview a Work to Date 0 Next Steps 6 Big Picture ine Building a bridge to an economically resilient future 2 tGOM CO P �1 3S� < �95HING�O� Guiding Principles ■ Budget are our values transformed into action ■ Every budget decision has real -world impacts ■ No flat across the board cuts - instead targeted service -based choices Our guiding principles for this budget Economic Resilience — building stability in fluctuating market conditions Core Services — staying true to the role of a County government Transparency — providing the public with a clear picture of where tax dollars are spent and services provided AGOM cO P e,1 3 `f•95MING�O� The Challenge ■ The county budget funds essential services Because that protect our community, enhances wellbeing, strengthens economic security, and supports future planning ■ Costs to provide these services are outpacing However the County's annual revenue growth ■ We must take both short- and long-term Therefore actions to stabilize our budget and secure our ability to serve the community 4 AGOM cO v �1 A �95HING�O� 2025-2026 MBR Process Ov ervie Short -Term Priority Address cost increases for 2026 that we were not aware of, or did not have enough information to fully budget for when preparing the 2025-2026 Biennial Budget Long -Term Priority Address the structural imbalance between our revenues and expenses Work to date DEPARTMENT REQUIREMENTS EXECUTIVE'S OFFICE/FINANCE ■ Update Inventory of Services Updated assumptions for countywide (IOS) 909 expenses and revenues compared to 0 the 2026 Adopted budget ■ Submit how they would 90% implement low and high LOADING... Reviewing and compiling initial reductions budget submissions from departments ■ Provide list of 2026 Budget PROGRESS Request Identify how to absorb 2026 cost increases LJ AGOM cO P Lti h'gSM-� get Dedisic DISTRICT COURT With two elected judges and one appointed commissioner, District Court processes Sheriff, State Patrol, Department of Fisheries, State Park and W WU traffic citations. It also handles criminal misdemeanor cases, small claims, civil claims, name changes, and protection orders. District Court also provides adult probation services for offenders charged with misdemeanors. A of FTE: 40 Court & Probation Administrator: Joke Wlebusch INVENTORY OF SERVICES 20!3 =t:a e.a.t a 1' yW Programs & Services 2026 Expense Budget Description User Mandated? Dma :Hurt 2,671,238 Process mminal and Foss msd/mlanw ases, uw eMoramem.. Yes Jury coor*raoon, awing and trials, collK prose -u . MW 3,9,10,26,46, as of fines/fees, pmoessing mmnal order for defenoii tu,int—ys, Pmtecbon and arrlst"mint, VKtimi."the al i< wobaUon 15.000 operation tion of Prose—ncluding UStrK V '-ir S. No morvt-% corny— nsth treatmrrt comrwan —ce Prosecutors 0 ASSESSOR The County Assessor determines property values (real and personal), calculates levy rates, and certifies tax rolls------11t to the Treasurer. The Assessor's Office maintains -- I I inventory, description, ownership, sales and mapping for a_ ° all real property parcels in Whatcom County. This office "— also administers and provides information regarding tax exemptions. p of FTE: 32 Assessor: Rebecca Xczar _ 1 INVENTORY OF SERVICES 010 Programs & 2026 Expense Description User Mandated? Services Budget vroprr..y valuation 4ssessa inspects and values new, construction. Taxing Dwxu, Y!s buunesses.aM Mat! r0!IN OPIN I, PMeslrs WAC 458-14-056, RCW aaIO, KW 34.43, RM 36.21, KW WoWty Database Myntin accurate rKords W property 0ltils, Gn wal public tmng areas. land use, and property values, davelopeM real estate 84.40.040, WAC 458-12-1112, irwuwy W AC 456-12-343 Tax Roa Prepare the official l,st for property tat billvlg, Tr!lAIaI Weparaoon collaction, and dutntM- for th! Trlaf Vn. VllWbpl Dtflns! RnpOndtorlouestsrocsales,nfp tionand Prppnty (hxners, s of valuation hoard d e laaoan 2026 BUDGET REQUESTS: P026 PROPOSED REDUCTIONS - - 2026 BUDGET REQUESTS: Reduction Scenarios & 2026 Cost Increases (Problem to solve) Fund 1000: General Fund 1240: Countywide Emerg Med Sr Fd 1350:Whatcom County Jail Fund 1900: County Road Fund 1908: Flood Control Zone District Fd 5500: Administrative Services Fund 5900: Equipment Rental & RevolvingFd High Reduction Low Reduction Scenario Scenario 3,040,000 51298,000 20,000 36,000 464,000 818,000 5701000 1/006/000 108,000 19( All Other Funds 581,000 961,000 Grand Total 4,783,000 8,309,000 *Initial estimates; this number will be adjusted as we refine the analysis and complete the initial budget exercise Preliminary 2026 Adjustments (estimates)* 4,900,000 340,000 440,000 20,000 265,000 6,661,000 Next Steps Date Step Mid -to -late July • Executive and Finance provide feedback to departments on budget adjustments to prepare for the Mid -biennium Review • Executive shares initial department budget submissions with Council Mid -to -late Aug • Department's submit budget adjustments to Finance August • Executive reviews budget adjustments and prepares initial recommendation September • Executive to host an open house where people can learn about the County budget and get their questions answered face-to-face • Executive presents initial recommendations to Council, gets input, modifies as necessary. This includes sharing all requests received Week of • Executive transmits proposed Mid -biennium budget adjustments to Council October 13t" or 20th AGOM cO P Lti h'gSM-� Big Picture This is more than a budget adjustment, it's a test flight. We are building the budget process for 2027-2028 We all have a vital role in making this a smooth trip. Our guiding principles for this budget Economic Resilience — building stability in fluctuating market conditions Core Services — staying true to the role of a County government Transparency — providing the public with a clear picture of where tax dollars are spent and services provided GOM CO P Lti 10 hgSM a 41CC'O M �,P s� 2025-2026 Mid -Biennium Budget Review— Preliminary Recommendations PRESENTER: ALY PENNUCCI, DEPUTY EXECUTIVE & AS DIRECTOR COMMITTEE OF THE WHOLE SEPTEMBER 9, 2025 Outline 1 Guiding Principles 2 The Challenge 3 Building an Accessible Budget 4 Executive Initial Deliberations 5 Next Steps 6 Big Picture Building a bridge to an economically resilient future /'4pOM CO4 Z �43M�NO-0 Guiding Principles ■ Budget are our values transformed into action ■ Every budget decision has real -world impacts ■ No flat across the board cuts - instead targeted service -based choices Our guiding principles for this budget Economic Resilience — building stability in fluctuating market conditions Core Services — staying true to the role of a County government Transparency — providing the public with a clear picture of where tax dollars are spent and services provided �GOM CO 3 �gSM-r The Challenge ■ The county budget funds essential services Becausc that protect our community, enhances wellbeing, strengthens economic security, and supports future planning ■ Costs to provide these services are outpacing However the County's annual revenue growth ■ We must take both short- and long-term Therefore actions to stabilize our budget and secure our ability to serve the community 4 �GOM CO c `1 $gSM-2 2025-26 Adopted Budget: Revenues v Expenses (All funds) County revenue growth 450,000,000 remains flat. Based on projections, 400,000,000 before any MBR adjustments, the County's 350,000,000 budget is projected to be structurally out of balance 300,000,000 in 2027 and beyond. 250,000,000 200,000,000 Revenues v Expenses (All Funds) moo dow moo 2022 Actual 2023 Actual 2024 Actual 2025 Adopted 2026 Adopted 2027 Projected 2028 Projected Budget Budget Total Revenues Total Expenditures ,GOM CO 5 L49S~-r 2025-26 Adopted Budget: Revenues v Expenses (General Fund) 160,000,000 140,000,000 120,000,000 100,000,000 2019 2020 2021 2022 2023 Actual Actual Actual Actual Actual Revenue 2024 2025 Actual Adopted Expense 2026 2027 2028 Adopted Projected Projected 2025-26 Adopted Budget: Projected Ending Fund Balance (General Fund) 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Projected Ending fund balance (after lapse) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Adopted Adopted Projected Projected 2025-26 Adopted Budget: Revenues v Expenses (Road Fund) $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Revenues Expenses 4GOM COc, 3r s 8 �95MING�O� 2025-26 Adopted Budget: Projected Ending Fund Balance (Road Fund) $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $_ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 A6 $(5,000,000) .,c°m co P t1 9 �zgs-r ONn:ll.7KIN [!I,<NIra] 1[:lil!1:1.TiiVL:lr1[! MVNORTHWEST NEWS Spokane County faces possible service cuts, hiring freezes because of anticipated budget shortfall Amid budget woes, Bellingham council denies long -planned Britton Road annexation New property tax base wouldn't cover costs of city services, infrastructure 'Surviving, not thriving': Most school districts facing trimmed budgets Ali overview of 2025-26 budgets in Whateom, Skagit WWU must reduce budget by additional $8M after state funding cuts Seattle braces for possible cuts amid $241M revenue shortfall projection Seattle leaders must grapple with a budget that will see hundreds of millions of fewer revenue dollars than previously expected. Snohomish County Council grapples with worse -than - expected budget woes Lower than expected sales tax revenue, along with overspending from some county departments, could lead to a $20M imbalance over 2 years By Taylor Scott Richmond Thursday, August 14, 2025 1:40pm FiUDGET FINANCE Inflation impacts & value erosion (GF) • Inflation means the money we collect is worth less • CPI adjusted value of property tax collections declined significantly from 2021 to 2024 (3.6 million). • Use of banked capacity in 2025 helped but the value of collections remains lower than during the pre -pandemic period. • True value of collections will continue to erode absent a construction boom. �COM CO c �1 11 �9ShINC+S O2 Inflation impacts & value erosion (RF) • CPI adjusted value of property and fuel tax collections declined si,Qnificantly from 2020 to 2024 (4.4 million). • Use of banked capacity in 2025 helped but the value of collections remains below historical levels and likely will continue to decline. �GOM CO c `1 12 �gSM-r 2025-2026 MBR Process Overview _. 4 Short -Term Priority Address cost increases for 2026 that we were not aware of, or did not information to fully budget for when preparing the 2025-2026 Biennia Long -Term Priority Address the structural imbalance between our revenues and expenses 04' Parks and Recreation Department the Parks antl ae[rea[ion cepartmm[arkances the qualhy of Ilh for our rommunity through [he tlevelopmmt and maincenance W counry parks arts trails, proterxing open space aM maw ral areas, antl supportlng recreational antl senior servi[es. Aof FTE: 32 Aorhs amctru: 8enneKXaaox Esprndkum't—A vsa.a , eY teolrt. n W ••� rrM� nyn�u b—' of seavkres 11 programsa 2R2b Ea�ase Rezvipuon Hser MarMaLetl? Service Budget edam uen raipeik mnraeem support espcam eepemm ueryemiunrinp,Ws ruedra ¢ olsss sen uiixgik e�eetons ens pciiry up n¢poernn6P rNeitn ens wr snKc Hw vegarenioren¢ osv enem >mmnp,>,e ,ema� d6iry �nr�eeneer rn,...yo.�m sg v. aav au neesgm e�rt �m ya.. mramnge. nerarem�v 04 20266udget Requests: 13.]t%1 Reclassibcation Request requires further review a ntl tliscussign with HR antl EceCs ofbcej 88p0a East Whax m Recurs femer Maintenarux [To Tultill new lease requirements where some of the maincenance responsihiliryforihe huiltlingwill he transfemetl frwn Oppo rtunfty Louncil to the courxy) ZOx6 aedueuon Options {Low/Higb]r 38,186-Reduction in Estra Help [Redurtion in Extra Help stall by 1,437 hours; this would not have a vial impart on staffing since the affectetl poshions have not been fll letl In recemYears. P— h sed these funtlsm oflse[unamicipaietl lmernaf atlminimative se antl moving forward had plannedm use Tvnds to improve cemmunity engagement activities Reductions in Ehiz area would impact Parks ability to do soj 18l,986j181,]55 - Reduce Labor (osss Low reegetinn gam,la gkminam lA FlE trot -time vast atrgnaaml ana rgtlpeq [he gatra help budget by5%. The low reduction scenario —.Id impact dairy operations, shifting 25% of maintenanre stales repairand maintenance activity resufring in delayed responze times, increased deferred maincenance, and a growing backlog of work. Daily operations will be mmprornisetl antl mukl lean m cutbacks In revenue -generating services such as boa[ rentals ana concessions at Lake Samisb (elimination oT servkej antl silver lake Park {retlucetl e ra-help season]_ The Inns uF rite Park Andill role will further stretch [he departments aapaci[ym manage daily opentioru, wsmmer service, and evening staff ng—aHec[ing " tl safety rt highalse ovantle lomtions like Hr Homestead antl Silver Sake parks" o Huse anuctio tln vaaWtl elkrknam]A FTE[TUE-time Leas Rrtgcr aposiConlantl reduce Me enra help budget by 281E"This would require rezteurnering the departments service delivery model, consolidating three park r�ions—Ease, West, and South—irna just two; signifua ntly increasing the area each must corer whi le retlucing staff rapacey. Care mairrtenance stag, inclutl ing skilled iratlespeople, will be aivermatp routine tasks like landscaping and fa dli[y upkeep, limning thei aGli[yuo espond to urgers needs and increasing tleferretl maintenance antl urvice hazWogs. r Altogether, these reductions wi[I lower service quality, increase wmmvnity dim[isfaction, and —I.—asset deieriwation across the park system. d,349j2,R8a: Redwx wnn-actual sauces for the Ease ['nunry Ilesarrre Curter. (Reduction is focumtl in wntracwal services by retl ucingthe value of the gentling mmrsct amentlmentwhich pmvitle an increase in paymenK m the Opportunity Council for sendces" The effect of [he reduction is a nknown a[ this nme —he effects on services will be managed by the Opportunity Council] 04 20266udget Requests: 13.]t%1 Reclassibcation Request requires further review a ntl tliscussign with HR antl EceCs ofbcej 88p0a East Whax m Recurs femer Maintenarux [To Tultill new lease requirements where some of the maincenance responsihiliryforihe huiltlingwill he transfemetl frwn Oppo rtunfty Louncil to the courxy) ZOx6 aedueuon Options {Low/Higb]r 38,186-Reduction in Estra Help [Redurtion in Extra Help stall by 1,437 hours; this would not have a vial impart on staffing since the affectetl poshions have not been fll letl In recemYears. P— h sed these funtlsm oflse[unamicipaietl lmernaf atlminimative se antl moving forward had plannedm use Tvnds to improve cemmunity engagement activities Reductions in Ehiz area would impact Parks ability to do soj 18l,986j181,]55 - Reduce Labor (osss Low reegetinn gam,la gkminam lA FlE trot -time vast atrgnaaml ana rgtlpeq [he gatra help budget by5%. The low reduction scenario —.Id impact dairy operations, shifting 25% of maintenanre stales repairand maintenance activity resufring in delayed responze times, increased deferred maincenance, and a growing backlog of work. Daily operations will be mmprornisetl antl mukl lean m cutbacks In revenue -generating services such as boa[ rentals ana concessions at Lake Samisb (elimination oT servkej antl silver lake Park {retlucetl e ra-help season]_ The Inns uF rite Park Andill role will further stretch [he departments aapaci[ym manage daily opentioru, wsmmer service, and evening staff ng—aHec[ing " tl safety rt highalse ovantle lomtions like Hr Homestead antl Silver Sake parks" o Huse anuctio tln vaaWtl elkrknam]A FTE[TUE-time Leas Rrtgcr aposiConlantl reduce Me enra help budget by 281E"This would require rezteurnering the departments service delivery model, consolidating three park r�ions—Ease, West, and South—irna just two; signifua ntly increasing the area each must corer whi le retlucing staff rapacey. Care mairrtenance stag, inclutl ing skilled iratlespeople, will be aivermatp routine tasks like landscaping and fa dli[y upkeep, limning thei aGli[yuo espond to urgers needs and increasing tleferretl maintenance antl urvice hazWogs. r Altogether, these reductions wi[I lower service quality, increase wmmvnity dim[isfaction, and —I.—asset deieriwation across the park system. d,349j2,R8a: Redwx wnn-actual sauces for the Ease ['nunry Ilesarrre Curter. (Reduction is focumtl in wntracwal services by retl ucingthe value of the gentling mmrsct amentlmentwhich pmvitle an increase in paymenK m the Opportunity Council for sendces" The effect of [he reduction is a nknown a[ this nme —he effects on services will be managed by the Opportunity Council] Community Engagement Public provided an opportunity to learn about County operations and ask budget questions face-to-face at the County Government Open House ter, Takeaways for Budget Process So Far There are few areas of the County spending that can be easily cut or reduced without significant impacts. No low hanging fruit, no easy decisions. Sorry. Some cuts cost more over time • Deferred maintenance = bigger infrastructure cost • Mental health cuts = first responder overtime • Cut long-time employees = lose institutional knowledge, more training required 16 Continuous Improvement Required ■ This is not a one-time course correction ■ Action will be required every year unless external factors change ■ Focus on building efficiencies to better deliver the services that are core to our mission 1A MwA q �pOM COG 17 2026 U n budgeted Mandatory Expense Increases ® 2026 COLAs 4D Jail Health Services D Jail Food Services 4 Other Unfunded Facility _ Software and Mandates (e.g., web Maintenance computer ® accessibility replacement costs requirements, water adjudication...) What-Com Dispatch Fees 2026 �vJ Potential Charter Amendments 18 Executive's Policy Approach hort-term (Mid -biennium adjustments initial recommendations) 1. Use one-time savings from reduced Department of Retirement Services rates to help balance mandatory and maintain GF Fund balance 2. Reduce expenses by eliminating or temporarily freezing vacancies 3. Applying restricted funds toward core services first (e.g. Foundational Pub. Health Svcs) 4. Consider using portion of one-time funds in the Community Priorities Fund for one-time 2026 expenses 5. Begin work to implement new Public Safety sales tax in mid-2026 6. Using the banked capacity in the EMS Levy 7. Reducing other expenses (Road Fund capital program, Parks extra help...) ��OM % P L.� 19 95NING<OS M Pohcv Anna Medium to Longer -Term ■ Implement new public safety tax ■ Continue to lobby funding from the State for unfunded mandates (e.g., water adjudication, public defense caseload standards) ■ Consider increasing some or all fees to achieve full cost recovery ■ Seed high priority County facility projects using community priorities fund ■ Consider other revenue options (e.g., countywide ferry district, parks district...) ■ Continue to look for efficiencies / new cost-effective ways of doing business Executive's Potential Budget Steps Focus on vacant positions - ■ Considering cutting 13 vacant FTE and freezing 9 FTE* +other reductions for a total savings of $2.8M* • Originally, the Executive planned to cut 22 vacant FTE countywide but accepted the Sheriff proposal to freeze the SO positions (9) instead of cutting permanently. • This does not include reductions to funding for seasonal extra help cut from Parks & Recreation C GOM CO` *This summary does not include potential frozen positions in Public Works' 2026 Budget — that work is ongoing to address. More details 3 "� will be presented at a meeting later in September=z 21 95hIN00 Executive's Potential Budget Steps ■ Reductions under consideration from the following departments: Council Office, Executive: Non -Departmental, Health &Community Services (HCS), Parks, PDS, Sheriff's Office (SO), Superior Court. • $2.25M of the $2.8 from HCS and SO • Biggest impact on current LOS will be in the Department of Parks and Recreation primarily due to the reductions in the extra help budget that will constrain seasonal capacity, shorten employment windows, and may reduce revenues. C Gom Cc)` *This summary does not include proposed reductions in the Road Fund in Public Works' 2026 Budget — work is ongoing to address the 3 "� road fund and Public Works -budget overall. More details will be presented at a meeting later in September =z 22 95NINGO Executive's initial d Department Requests $9.9M* New Revenue $786K Proposed Reductions $2.8M $830K under review $2.6M Denied $6.6M Recommended Recording & Licensing Therapeutic Courts Office of Public Defense $11VI (WCHCS) $1.25M (Sheriff) $600k (other depts) *This summary does not include yet to be negotiated 2026 COLAs or the cost to implement proposed charter amendments. In addition, this summary does not include changes to Public Works' 2026 Budget — work is ongoing to address the road fund and Public Works' budget overall. More details will be presented at a meeting later in September 23 2025-26 MBR Review: Revenues v Expenses (All funds) 450,000,000 Recommend increases offset by $2.8M of recommended 400,000,000 reductions and $786k of new revenue resulting in a net 350,000,000 increase of $3 - $3.8 million of expenses. 300,000,000 Without additional 250,000,000 adjustments, structural 200,000,000 imbalance worsens before COLAs. woo 2022 Actual 2023 Actual 2024 Actual 2025 2026 Budget 2027 2028 Adopted with Initital Projected Projected Budget MBR Adj. (Adds/Cuts) Total Revenues Total Expenditures "OM CO 24 L49S~-r 2025-26 MBR Review: Revenues v Expenses (All funds) 450,000,000 With use of $1M of Community Priorities Funds in 400,000,000 2026, and assumed implementation of new public 350,000,000 safety sa I es tax in 4t" quarter of 300,000,000 2026, structural imbalance i m p roves. 250,000,000 - Note that as the Executive refines the 200,000,000 analysis the amount requested from the 2022 Actual 2023 Actual 2024 2025 2026 Budget 2027 CPFmay change. Amended Adopted with Initital Projected Budget Budget MBR Adj —Total Revenues —Total Expenditures 2028 Projected 25 aC.OM cot hg5-r Next Steps ■ Continue discussion and feedback from the Council on Executive's Policy Approach ■ Focused discussions on Road Fund, EMS Fund, new Public Safety Sales Tax ■ Tentative Schedule: • 9/16 Special Committee of the Whole (COW): Continued discussion on information in this presentation • 9/23 COW: Road Fund and EMS focused discussion, details on HCS reductions • 10/7 COW: Public Safety Sales Tax discussion and Present follow-up information, any changes or refinement to Executive's recommendations • Week of 10/13 Or 10/20: Transmit Executive's Final Recommendations �GOM CO 26 95hING�Or Big Picture This is more than a budget adjustment, it's a test flight. We are building the budget process for 2027-2028 And there are difficult decisions ahead. We all have a vital role in building a process that works. Our guiding principles for this budget Economic Resilience — building stability in fluctuating market conditions Core Services — staying true to the role of a County government Transparency — providing the public with a clear picture of where tax dollars are spent and services provided GOM CO P L., 27 9SNINGOS AS - Facilities ADA Improvements to ADA Improvements to courtroom 2 30,000 Courtroom 2, Dist Court AS - Facilities Fuel Interfund Additional fleet vehicles and increased driving with additional buildings 1,298 AS - Facilities Public Defense - Tenant Tenant improvement to improve space and better accommodate private offices 350,000 Improvements necessary for the public defenders AS - Facilities Repairs & Maintenance Rep & Maint for additional buildings / maintenance for EWRRC 68,740 AS - Facilities Software Additional software licenses 3,000 AS - Finance Extra Help Staffing Extra Help funding for 2026 to maintain critical financial operations during a 195,000 significant workforce transition. The 2025 budget strategically included overlap capacity in the Finance Director position, which has been essential in managing concurrent challenges including software conversion complexities, workforce transitions, and process modernization efforts. This overlap has enabled the department to maintain operations while rebuilding workflows for greater efficiency. The department faces the loss of decades of institutional knowledge with two additional key employees retiring by the end of 2025, following a 2023 retirement. These departures create critical gaps in Financial Reporting and Auditing, Budget Development, and Contract Management. The requested funding would retain experienced employees at 40% FTE (maximum allowable for retirees) to provide knowledge transfer, training support for new hires, and quality assurance during the transition period. AS - Finance Financial System Additional funding to continue to support the Enterprise Resource and Planning 350,000 Project Budget Addition (ERP) project. This effort includes the continued upgrade of JDE to E1, new budget software and new time entry software. Page 1 of 17 AS - IT GIS Annual Increase the budget authority of the GIS cost center's Software Maintenance Maintenance Budget Contracts line item so County IT can pay the consolidated ESRI annual maintenance Authority Increase and then interfund the following departments for their ESRI software: Public Works, Health, Planning, Sheriff, Emergency Medical Services. (Cost neutral / IT needs budget authority that will be AS - IT Re -appropriate: Re -appropriate approved unused 2025 funding to 2026 from 2025-2026 Biennial Computer Equip for Budget ASR# 2025-7178 for computer equipment required for the Administrative State CMS for DC Office of Courts (AOC) new statewide case management system (Tyler Odyssey) for District Court. AOC has delayed the system implementation for Whatcom County District Court to the Fall of 2026. No overall increase to expense budget over the biennium as it simply moving spending authority from 2025 to 2026. AS - IT Re -appropriate: Re -appropriate approved unused 2025 funding to 2026 from 2025-2026 Biennial Network Firewall Budget ASR 2025-7527 for lifecycle replacement of our county data network high Replacement availability firewalls. County IT was unable to start this project as planned in 2025 due to other large projects in progress. No overall increase to expense budget over the biennium as it AS - IT Re -appropriate: Re -appropriate approved unused 2025 funding to 2026 from 2025-2026 Biennial Network Switch Budget ASR 2025-7526 for lifecycle replacement of approximately 91 Cisco data Replacement network switches. County IT was unable to start this project as planned in 2025 due to other large projects in progress. No overall increase to expense budget over the biennium as it simply moving spending authority from 2025 to 2026. AS - IT TR&R Fund Addition Additional funding to support the continued lifecycle replacement of computers in 2026. Due to the age of computers and the end of life for Windows 10 (11/11/25), IT needs the funding to accelerate the replacement of computers. AS - IT Wage Adjustment - GIS Adjust wages in 2026 for a GIS Administrator position hired in September of 2025. Administrator 12,252 Page 2 of 17 AS - IT Web ADA Compliance Consulting services to help the county comply with newly updated federal web and Services social media accessibility standards prior to April 2026. On April 24, 2024, the Federal Register published the Department of Justice's (Department) final rule updating its regulations for Title II of the Americans with Disabilities Act (ADA). The final rule has specific requirements about how to ensure that web content and mobile applications (apps) are accessible to people with disabilities. The updated rule requires that state and local governments with a population > 50,000 meet the Web Content Accessibility Guidelines (WCAG) Assessor Senior exemption Council approved an ongoing ASR as part of the 2023-2024 budget amendment, for portal 2024, for a senior exemption online portal. In the 2025-2026 budget no previously approved ongoing ASRs were continued unless resubmitted. A contract was approved by council, 202412018, with vendor Just Appraised. A senior exemption online portal has been developed and will be launched for public use in 2025. This Auditor Increase maintenance Laserfiche, Helion, Mentis Technology, and Silent Cube maintenance cost increases fees each year. In 2025, the budget did not reflect increase in ALL maintenance costs. This is offset by new revenue Council Office ADA Compliance costs, On April 24, 2024 , the Federal Register published the DOJ's final rule updating its new 2026 Rule regulations for Title II of the ADA. State and local governments are required to make improvements to website content and provide captioning for all live recorded meetings. The deadline to meet these guidelines is April 24, 2026. This supplemental budget request is to provide Council Office Incarceration This is a reduction in funding for advertising costs for social media boosts for the Prevention and IPRTF. Funding is intended to be used to implement enhanced public engagement. Reduction Task Force - Advertising Council Office Council internship The Council's internship program engages up to two interns each year to assist program with councilmember projects, which may range from adminstrative to legislative policy research. This would reduce program funding from two to just one intern. 50,000 37,595 10,000 50,000 5,000 15,000 Page 3 of 17 Council Office Courthouse security When the Council meets in the evening, contracted security services must continue afterhours through the duration of the after-hours Council meeting. The cost of contracted security services is reimbursed to Facilities by the department using the facility after business hours. This increase is the project costs for 2026 for after hours Council Office Contractor Support for The Incarceration Prevention & Reduction Task Force (IPRTF) will extend its JPOP contract with the meeting facilitator for the Justice Project Oversight and Planning (,JPOP) Committee. The JPOP Committee is the arm of the IPRTF that monitors the work of the Justice Project Implementation Plan. This contract extension is limited to only JPOP Committee facilitation to continue the committee's work aimed at: 1. Monitoring and reporting on the progress of the Justice Project Implementation Plan, and 2. Engaging the community in planning for the Implementation Plan's 15 projects. Council Office Temp Leg Coord. This budget action removes funding from the Council Office Budget and eliminates budget authority for one additional temporary staff member to proivde additional adminstrative support for the Board of Equalization (BOE) and generalized adminstrative support to councilmembers. A Council motion made on November 6, 2025 to amend the 2025-2026 Biennium Budget to add a two-year tempoary position (in the Council Office) with benefits. The position is not needed and not County Clerk Miscellaneous Office The conflict office failed to budget for specific handbooks and sentencing Supplies and Tools guidebooks, CLE licensing requirements, and a Westlaw license to meet the criteria for adequately representing their clients. There are sufficient savings, which were budgeted for in wages and benefits, to cover the difference in the necessary tools County Clerk Funding for temporary The proposed changes involve moving the Senior Deputy in the Conflict Position to out -of -class to move a tempoary Director position in the conflict office. The purpose is to create a Senior Deputy to dedicated leadership position responsible for managing all aspects of Whatcom Director County's Conflict Public Defense Office, ensuring compliance with Washington State indigent defense standards, improving operational efficiency, and 15,000 39,900 2,805 12,693 106,054 Page 4 of 17 District Court District Court Prob- Additional funding by AOC to support needs of the Mental Health Court. Current Therapeutic Court State $121,750 in the budget only to cover personnel. Added amount covers substance Funded Expenses testing, training and recovery supports for MHC members. 25/26FY contracted amount (additional funding) is under review by AOC. THis is offset by new revenue. EMS What -Corn Dispatch The Whatcom County Emergency Medical Services Levy Fund supports EMS (non - Fees 2026 fire) dispatch fees for all of the Whatcom County Fire Departments and Districts in 2024 $2.7 mil per year (2024 Actual) with annual increases related to inflation and call volume. Whatcom determines the annual dispatch fees by averaging the previous three years of call data to project the following years. In July 2024, as the County prepared for the 2025-2026 biennium budget, the What Comm AdministrativE board had yet to approve the 2026 Medic 1 billing for 2026. These are the anticipated fees as of August 15th, the What -Comm Administrative board is scheduled to meet on September 25th where revisions to this amount may occur. Executive Update wage budget to In 2025 a supplemental budget request (SBR #4887) was approved to reflect the reflect adjustment actual personnel costs in the Executive's Office. This same change is needed for made through a 2025 2026 until the base budget can be updated in the next biennium. SBR #4887 Executive - Non Boundary Review Board Whatcom Council of Governments (WCOG) has agreed to continue the Departmental Increase administration of the Boundary Review Board on behalf of Whatcom County. This small contract has proven to be a bit of a challenge for the WCOG as they have a team of transportation planners and not enough clerical staff to provide this service. Although they have agreed to continue this service through 2026 they have asked the county to look for and consider alternative sources for this service Executive - Non EDI Capital Projects SBRs will be added to reflect Council decisions on 2026 EDI Funding (scheduled for Departmental consideration at the 9/9 Council meeting. 87,000 305,524 54,000 2,000 TBD Page 5 of 17 Executive - Non Galbraith Mountain In December 2024, South Whatcom Fire Authority (SWFA) notified Whatcom 50,000 Departmental emergency response County and the City of Bellingham that it would be building new response plans that exclude popular recreational areas that fall outside of its jurisdictional boundaries. After well over a year of negotiations, the City of Bellingham proposed a two-year agreement of $147,287 per year to fund these services, requesting Whatcom County pay 1/3 of the costs ($49,000 per year for two years) to maintain continuity of EMS service. Council approved this funding for 2025 through a supplemental budget action (SBR#5006); this SBR would provide the funding for 2026. Executive - Non Indigent Burial Indigent burial is an expense that should be administered through the Medical - Departmental Examiner office. Although budgeted for $25,000 in 2026 it is suggested that this line be reduced by $5,000. In 2023, the county spend $16,000 on indigent burial and in 2024 the county spent $18,000. There will be a companion supplemental entered by the Medical Examiner Office to add this expense to their budget. Executive - Non Leave Payout The funding is primarily used to pay out accrued sick time leave when an employee - Departmental Reduction leaves the County. The budget for this cost center was reduced in 2025 from $400k to $240k; in 2024 only $100k of $400k budgeted was spent. Reducing this may require that departments absorb some costs when an employee separates, but a $90k reduction should not have much of an impact given past spending patterns Executive - Non LEOFF Board Meeting This is budgeted for LEOFF board meeting refreshments but is not being used. No - Departmental Refreshments funds were expended in 2023 or 2024. No impact. Executive - Non What -Comm fee What -Comm 2026 budget reflects higher fees for Sheriff's Office dispatch in the 88,558 Departmental increase amount of $101,168. What -Comm 2026 budget reflects lower fees for Fire Districts in the amount of-$12,610. 25,000 100 Page 6 of 17 Executive - Non Whatcom Racial Equity Departmental Commission Health and GF Reduction to Health Community Services Dept Budget Medical Examiner Parks Parks Indigent Burial MBR Reduction - Administration The Whatcom Racial Equity Commission was founded through Whatcom County Code 2.107. This commission is tasked with addressing racial inequity and assisting local governments with their commitment to ensure a welcome, inclusive and safe community for everyone. The County committed to $100,000 of funding per year for the first three years (2023-2025); no funding was included for 2026 in the adopted biennium budget. This SBR would provide $50,000 to WREC to provide partial year funding to provide time as the commission works to identify other funds to support the work of the WREC. Health and Community services was given a $1M GF reduction in the 2025-2026 biennium but the reductions were not realized in the adopted budget. HCS, Finance and the Executive are working to finalize a set of recommended reductions that will be achieved through a combination of eliminating vacant positions, shifting GF expenses to restricted funds for core services, and reducing discretionary funding. See above This supplemental reflects the high reduction scenario, reducing the administrative budget extra help by 61% (1,437 hours). This reduction preserves the existing filled administrative extra help position but reduces the budget by unfilled GIS and accounting positions. As part of the 2025 Mid -Biennium Review process to address the County's structural budget imbalance, staffing reductions were identified within Parks Administration. These include a 61% reduction in Extra Help funding. MBR Reduction - Parks This request reflects the reduction of Extra Help hours and the proposed use of Facilities Parks Special Revenue funds as offsetting revenue to maintain one Lead Ranger FTE. As part of the 2025 Mid -Biennium Review process to address the County's structural budget imbalance, staffing reductions were identified within Parks facilities. These include a 5% reduction in Extra Help and the proposed elimination of one Lead Ranger FTE. The use of Parks Special Revenue funds offsets this reduction, allowing the department to maintain the Lead Ranger position. 100,000 20,000 1,000,000 30,188 155,986 Page 7 of 17 Parks Parks PDS MBR Reduction - This supplemental reflects the high reduction scenario, including a 43% reduction Plantation Rifle Range in Extra Help hours and a 12% reduction in items for resale. As part of the 2025 extra help Mid -Biennium Review process to address the County's structural budget imbalance, reductions in Extra Help staffing and the concessions budget were identified for Plantation Range. Extra help reductions should not have a effect as only the indoor range is scheduled for operations in 2026. Parks holiday pay This request increases Parks Facilities overtime budget by $8,000, adjusting the adjustment total budget from $14,000 to $22,000 annually. In 2023, Parks, HR, and the Union renegotiated holiday pay provisions for employees who work a flexible work week, resulting in significant structural changes to compensation practices. These changes introduced new overtime obligations, particularly following the reclassification of Regional Parks Supervisors to non-exempt Lead Rangers, and were codified in Section 3.02 of the MCBA. Initial cost impacts emerged mid-2023 but were absorbed through salary savings. To address recurring needs, Parks secured $14,000 in ongoing budget authority. By 2024, it became clear that the revised holiday pay structure generated higher and more sustained labor costs than originally projected. Employees working holidays now receive both holiday and overtime pay, while employees not scheduled receive holiday pay and a day off to maintain 40 compensated hours. Overall, the holiday pay changes have created ongoing fiscal impacts that must be incorporated into future budget planning. Comprehensive Fee Planning and Development Services (PDS) would engage the services of a Study professional consultant to do a comprehensive fee study. This would encompass fee structure and rate basis and provide guidance on levels required to more fully fund services. The consultant would conduct a comprehensive review of the existing unified fee schedule (UFS) for PDS, review the applicable annual operating budget, determine the true cost of permit review and recommend a methodology to allow PDS to collect reasonable and sufficient fee charges to cover the cost of M 150,000 11,754 Page 8 of 17 PDS Land Use Code Funding to engage a consultant to conduct a thorough examination of the current 150,000 modernization development codes to identify areas to streamline code language and ensure the WC code is not more restrictive than what is required by state law, make it clearer, more flexible and easier to use, continue to identify opportunities to improve operations and customer service, align the code with community priorities identified in the Comprehensive Plan, and provide clear and objective pathways, resulting in quicker, easier permitting while allowing for more discretionary options for those who desire them. This is a large project that may require additional funding and span more than one year. PDS Reduction of 1 FTE GIS Reduction of 1 FTE GIS Specialist. Full salary is $140,580. However the person - Specialist vacating this position is continuing as a Temp/extra help without benefits to assist with the mapping work for the Comprehensive Plan Update. The loss of a dedicated GIS person requires that work be absorbed / assigned to other staff with GIS training. Some GIS work done by this position will have to be completed by IT/GIS staff. This position has provided support for multiple departments and they will have to be responsible fo their own GIS needs. Some of our mapping work and Prosecuting Axon Justice Axon is the online platform that law enforcement uses to store body worn camera 27,000 Attorney recordings and other media. The basic prosecutor version, which is free, only permits us to access that media and to provide a link to that media as discovery to defense. Axon Justice, which is the version the Public Defender's office has, provides the ability to store other, third party, media, to redact portions of the media and to provide an AI -generated transcript of the recordings. While the cost for 2026 would be the $44,650, the cost for 2027 and 2028 would jump to $79,110, and to $112,376 for 2029 and 2030. Axon has been providing us with some of the features of Axon Justice free until now, but has notified us that as of 2026, we Public Defender Appeals/Transcripts Add $32,000.00 in funding for transcripts. Transcript costs have risen 32,000 dramatically over the past few years because we have had more cases going to trial and therefore more requirements to provide transcripts. This is offset by new revenue. 100,000 Page 9 of 17 Public Defender Interpreter Services Over the past few years we have had a large increase inclientele who do not speak 36,000 English and need interpreters. In addition, the costs to hire interpreters has also increased and our office has been handling more serious matters that take more resources and time to resolve and this adds to the cost. This is offset by new revenue. Sheriff's Office GF Reduction achieved $1.25 million GF reduction to SO budget ($250k is in the Jail Fund that results in by freezing vacancies $250k of GF savings as it reduces the required amount of GF transferred annually to the Jail Fund). To achieve these cuts 9 vacant SO positions will be frozen (5 patrol deputies, 2 corrections deputies, and 2 support staff positions). To avoid permanent elimination of these positions the budget actions submitted will show reductions in non -personnel areas of the SO's 2026 Budget. After January 12026 the expected lapse from having 9 positions frozen will be transferred back to those Sheriff's Office 2026 WUECC expenses In 2025, a new janitorial contract for the WUECC was signed, wcc#202504036. The 3,000 agreement increased annual expenses by approximately $6,110 In 2024, a lease forth WUECC was signed for a'10-year term, wcc#211312007-1. The agreement includes a provision for a share of the replacement generator, the cost of which would be split evenly between the County, the Port of Bellingham, and the City of Bellingham. The County's share was to be paid in quarterly installments during the! term of the lease The estimated overall cost for the generator was 11,023, which would have been an annual expense of just over $3,700 for the County. The actual cost of the generator was $15,229. It was installed and functioning during the second quarter. Because of the acquisition delays, the quarterly payments will be made in 34 installments rather Sheriff's Office Food Service Cost increase to provide food services to the inmate population. The cost has 294,960 increased dramatically over the past year and the new contract will be an increase no matter who the selected proposer is. Sheriff's Office Jail Health Estimated increase in contract for Jail Health Services 3,139,000 Sheriff's Office Software Increase cost for software licenses 25,000 1,250,000 Page 10 of 17 Superior Court Detention Nursing Ensure every youth in the facility has adequate medical care. This would equate to two nursing hours per day, 7 days per week. The cost is estimated as we are currently working on determining the path forward that is the most cost effective for the County, while it also ensures appropriate medical care. Superior Court Interpreter Services The court is required to provide interpreters for individuals with limited English proficiency for all court hearings. So far this year, there has been a 10% increase in requests. There are also significantly more requests for specialty languages which are more costly. In 2024 Council approved the addition of a FTE for interpreters. Superior Court JAVS AV Systems in Part of this request is already approved in the multi year AV plan put forth by IT Department 1 & 3 and approved Nov 2024. Department 1 has $65,000 allocated for sound improvements and Wi-Fi connectivity currently budgeted. Department 3 has $50,000 for sound improvements (Wi-Fi need was addressed and completed in 2024). Neither Department 1, nor Department 3 contain a JAVS system (Department 2 does not either, but that is not part of this request). This hinders the courts (further impacted by courtroom space we have while 3rd floor is being built) ability to hear cases if a Court Reporter is not available. Essentially, we end up leaving a courtroom open and continuing a case (which is costly) because we do not have a way to record proceedings. Superior Court Reduce Professional Reduce family recovery court professional services budget by $20,000. The Services Budget - FRC reduction would address larger behavioral health fund/county budget challenges without significant impacts on the program. Superior Court Reduction in Reduce pretrial services budget by $30,000. The reduction helps address larger Professional Services county budget needs without significant impact to the pretrial program. The Budget - Pre-trial funding was included for validation of the risk assessment. Pretrial services was able to obtain funding through the Administrative Office of the Courts for validation (currently in progress) 75,000 25,000 350,000 30,000 Page 11 of 17 Superior Court Universal Guardianship The Uniform Guardianship Act (RCW 11.130) covers adult and minor guardianship. 40,000 Act The RCW outlines requirements for court appointment of Court Visistors, Minor Guardianship Guardian Ad Litems, and attorneys. All minor guardianship costs are at public expense. The majority of adult guardianship costs are at public expense as well. These services are provided by individuals appointed by the court. The court is projects exceeding the currently Uniform Guardianship budget. As these are required appointments, we are seeking to increase the 2026 budget to be in line with actual 2025 costs. The delay or absence in appointment of court visitors, guardians ad litem or attorneys are costly both as it relates to the cost of continuing a matter and for the impact continuances have on the individuals/families seeking resolution from the court. Superior Court Water Adjudication The legislature did not fund the Courts financial request during the last legislative 77,000 Staff Wages session. AOC has informed the court we should "keep our receipts." The budget ask included all the cost of living increases and the wage disparity for currently hired staff (they were not budgeted appropriately in the initial ask given our ranges, steps and contract agreements). It also included the installation of the 3rd floor JAVS system. There were additional requests for things such as traveling court costs, interpreter equipment, security, IT coordinator, Water Program Manager etc. that were also included but not funded. In order to maintain the status quo of staffing and ensure use of the 3rd floor courtroom when it is constructed, this additional request is needed. It is anticipated the County should be able to recoup these costs. MBR Adjustments - Preliminary Executive Recommended Subtotal 6,567,325 2,839,082 AS - Facilities Air Filters Cost of air filters has significantly risen and the addition of new spaces 10,000 AS - Facilities Contractual Pest Needed to fully cover cost of pest control services at all buildings. 3,000 Control AS - Facilities Equipment Rental Increase in rental charges. 2,500 AS - Facilities Fuel Increased cost of propane fuel at Point Roberts sheriff's office & fuel for increased 2,000 number of County generators Page 12 of 17 AS - Facilities AS - Facilities AS - Facilities AS - Facilities AS - IT AS - IT County Clerk County Clerk Gas Projected to need an additional $100k - using the variance of other utilities to help balance cost overage Janitorial Supplies Janitorial Products for additional buildings Paper Products Paper Products for additional buildings Software Maint Increase cost of security software, AutoCAD, Adobe & Fiix (Work order system) Contracts Permit System Maintenance Addition Public Records Staff Addition Protection Order Facilitator Reclassification of Coordinator to Unrepresented Manager Funding to cover a forecasted shortfall in the 5% Technology Fee revenue used to pay for the Tyler Technologies Enterprise Permitting & Licensing Cloud Hosting and Annual Maintenance fees. An additional staff to help the Public Records Officer and departments keep up with the increased volume and complexity of public records requests. Full time clerk position dedicated to facilitate protection orders There are currently only two Supervisor Roles in Clerk's Office and is a need to have a third person to cover leaves/illness/conferences. This position would assist in budgeting as well as supervising cashiering and accounting roles in clerk's office. This position could also assist in accounts payable for the conflict office. Will leave current 130 - Coordinator II Position vacant, will be increase of $27,000 to Admin Manager Position. 50,000 4,400 7,000 22,000 175,000 170,000 102,910 11,540 Page 13 of 17 Prosecuting Additional Civil Division The proposal is to expand civil legal services within Whatcom County government 154,538 Attorney DPA by hiring an additional attorney to the civil division of the PA's Office. This new legal counsel position will provide dedicated support to elected officials /department heads and their growing offices and staff. This position will also provide for around a .3 FTE for our Child Support Services Division (CSS), to handle the Skagit/San Juan County caseload our office has agreed to handle starting September of this year, which work will be reimbursed by the State Division of Child Support (DCS). (This is in addition to the Domestic Relations Coordinator position we requested in our Supplemental Budget Request for 2025, submitted in August) The primary focus will be on timely legal research, risk management, contract review, and advisory services to improve efficiency and ensure compliance with state and federal law. This would be partial offset by new revenue. Superior Court Financial Supervisor The financial supervisor would be responsible for supporting the Court 116,004 Administration/Court with all aspects of finance to include supporting budget development, monitoring, overseeing staff who process payroll and accounts payable/receivable and contract billing. They would be responsible for developing Court Administration financial procedures and training staff. They will be a point of contact for the Administrative Services finance office. MBR Adjustments - Still Under Review Subtotal 830,892 AS - Facilities Extra Help Extra Help is very affordable; extra set of hands that covers vacations 12,384 AS - Facilities Repairs & Maintenance Unanticipated maintenance or equipment emergency fund 150,000 AS - IT Pictometry Aerial Spring 2027 flight with Pictometry International Corporation (Pictometry) for 200,000 Imagery - Spring 2027 orthogonal and oblique imagery to add to the existing 2004, 2008, 2010, 2013, 2016, 2019, 2022, 2024 datasets. Whatcom County will partner with cities, tribes and other local jurisdictions to offset over 50% of the total costs. Cost sharing agreements will be entered into with interested regional partners. This will be revisited in the 2027/28 Biennial Budget Page 14 of 17 AS - IT Telecommunications Replace the Mitel (ShoreTel) telecommunications system used by all county 1,380,000 System Replacement departments. Our Mitel system is end -of -life and needs to be replaced. Mitel has provided the following key dates in their sunsetting of this system: * 07/06/2024: End of New System Sales * 12/31/2024: End of Add -On Sales * 12/31/2028: End of Hardware Repair * 12/31/2029: End of Technical Support Our telecommunications system continues to be a primary communications channel for citizens to access county government services. County government provides critical public safety services that rely on our telecommunications system. County Clerk Law Library Remodel The current law library has adequate space, which could be converted into a self- 20,000 help center to accommodate e-filing stations and work areas for courthouse facilitators in the future. This will be revisited in the 2027/28 Biennial Budget County Clerk Librarian The law library is only staffed part-time and has limited hours to the public, which 60,000 is a concern for access to justice. We temporarily filled the vacancy with extra help as our long-time librarian recently retired. We are actively looking for alternative solutions to having the library hours open to the public for the entire week during regular business hours. The proposed solution is to make the law librarian position Executive -Non Ferry System - We are working to develop an estimate of the costs to implement an electronic TBD Departmental Electronic Ticketing ticketing system for the ferry. To date the analysis revelas that there would be System Initial Funding signficant costs to implement and would not result in savings for ferry users in the (Exec/Council shared short-term. goal) Executive -Non Lake Whatcom Code The 2025-2029 Lake Whatcom Management Program Work Plan has tasks 100,000 Departmental Development (Council associated with having consistent regulations between the two jurisdictions, and Request) also assessing their effectiveness and revisiting them when appropriate. This would provide funding for a stakeholder process, policy review and code drafting. Page 15 of 17 Executive -Non Sustainable The Executive is proposing to fund a code modernization project that will in part be 68,000 - Departmental Connections intended to identify code efficiencies to streamline development review to increase housing development. Parks EWRRC Maintenance A portion of building maintenance responsibility is transferring from the 80,000 - Funds Enhancement Opportunity Council to the County. This request is a duplicate with a request from AS -Facilities that is recommended for a MBR adjustment. PDS Computers and Work Computers and workstations for the 2 additional staff for the STR program. 10,000 - Stations for STR Staff PDS Short -Term Rental Staff position to assist with the set up and administration of the STR program 100,000 - Admin--Coordinator II (130/5) PDS Short -Term Rental Staff Enforcement Position to Assist with STR Compliance 100,000 - Code Enforcement (160/1) PDS Short -Term Rental Software Cost: Annual Fees—$150,000, 50,000-$75,000 scoping and set up (the 250,000 - Software Project annual fee would be ongoing) Prosecuting Extradition Costs The additional funds would permit our office to collaborate with law enforcement 5,000 - Attorney to pay for the cost of returning certain serious crime defendants to Washington State to bring them to justice Page 16 of 17 Prosecuting PBK Victim Engagement The PBK Victim Engagement Platform (VEP) aims to significantly enhance victims' Attorney Platform access to court case information, victim support resources, and communication with Victim Witness Coordinators. Currently, victims face limited access to case updates, especially outside business hours, and existing public portals offer minimal detail, leading to frequent reliance on Coordinators who are often stretched thin. The VEP would allow victims to securely access information about case status, hearing types, and resources such as legal advocacy and compensation programs at their convenience. Safety features like a quick exit and non -traceable browsing would benefit those in dangerous situations, such as domestic violence survivors. The portal would also streamline support services, allow restitution submissions, and improve staff efficiency, ultimately enhancing victims' engagement, safety, and experience with the criminal justice process. Prosecuting Replacement of VWU Davie, our VWU service dog, is nearing the end of his service life. He has 2-3 years Attorney service dog left. Brigadoon Service Dogs, who trained Davie, has quoted us $10,000 to obtain a trained service dog/puppy. It takes about 2.5-3.5 years to have the puppy/dog trained before they can be used as a service dog. In order to ensure that we have 15,000 10,000 a service dog by the time Davey's service life is at its end, we need to pay for the option on a dog 2-3 years beforehand. MBR Adjustments - Preliminary Executive NOT Recommended Subtotal 2,560,384 Page 17 of 17 �pOM CO4 P " 3r < September 23, 2025 Whatcom County Public Works Mid Biennium Road Fund Whatcom County Public Works Budget County Guiding Principles Road Fund Overview* Review the evolution of corrective actions • 2025/2026 Biennial Bi 2025 Road Fund Cash • 2025 Road Fund Balan • 2025 Corrective Actioi • 2026 Proposed Strategies: No c • Impacts • Council Options -Budgets are our values transformed into action -Every budget decision has real -world impacts -No flat across-the-board cuts — instead, targeted service -based choices Our guiding principles for this budget: • Economic ResiliencF —building stability in fluctuating market conditions L • Core 3ervices —staying true to the role of County government • i ransparency —providing the public with a clear picture of where tax dollars are spent and services provided �00 • 2025-2026 Road Fund budget, as adopted, is structurally imbalanced • Following 2024 actuals, additional analysis on cash flow, and updated expense projections, immediate action was needed in 2025 to remain in balance and address cash flow issues • Without further intervention, the 2026 expense budget for the Road Fund would result in the fund being legally out of balance —action is necessary to correct this and address the structural imbalance 19 W Public Works proposed an 18% reduction in the Biennial Maintenance and Operating Program and an 18% reduction in the Annual Capital Program. Council Action: • Approved: 18% reduction in the operation Banked capacity and the annual 1% revenue Fully restored Capital Program • Declined: Public Works proposed 18% reduction in CaK $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 M $(2,000,000) $(4,000,000) $(6,000,000) $(8,000,000) 2025 Road Fund Cash Flow TOTAL ROAD FUND CASH FLOW (1/2025) TOTAL ROAD FUND CASH FLOW (projected after cuts 5/2025) - TOTAL ROAD FUND CASH FLOW REALIZED (actual and projected) 0 i zuz5a, strategi-E •lviv■ loll •t:l r: Ah :l rTi 'srTos U19_ 0 T-: r rr: • Removal/delays on Capital Projects • N. Lake Samish cash flow loan • Interfund Loans Ordinance 2025-026 up to $4M (council approved) ➢ Implemented once for Everson Goshen paver (100% state -funded) • Operating cuts • Project -based budget returns • Selective vacancy freezes • Delayed ER&R chip seal material payments Road Fund: Projected Year End Fund Balance $35,000,000.00 $30,000,000.00 $25,000,000.00 $20,000,000.00 $15,000,000.00 $10,000,000.00 $5,000,000.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2V26 $(5,000,000.00) 9 � • W I 9% reduction in the Operating budget 63% reduction in the Capital budget 2026, 2027, 2028 Utilized realized 2025 lapse Use of restricted funding (REET, ferry capital surcharge) • Reduce discretionary spending (i.e., travel, membership dues, etc.) A& Is f • Eliminate or freeze vacant positions o Permanently remove 8 FTEs: 3 Admin, 4 Engineering, 1 Noxious weed o Freeze 13 FTEs: 11 M&O, 1 Admin, 1 Engineering • 1% annual property tax o 2025-2026 Adopted Biennial Budget already includes this assumption • Continued/ongoing review of the business practices for reduction opportunities 15,000,000 W, 00c,c00 S,CQC),CoC) $0 ($5,DOD,000) Road Fund: Projected bear -End Fund Balance 2016 2017 2019 2019 2020 2021 2022 2023 2024 2025 20� 2027 2028 (2,097,661) Ending Fund Balance — — Projected Ending Fund Balance after2026 Proposed Adjustments • Roads may deteriorate to a point where a rough ride is experienced by citizens. • Roads may be closed if damaged beyond a condition safe to traverse. • Bridges may be closed if capital repairs or load ratings cannot be completed. • Less populated areas of the County will receive less attention due to a need to prioritize high traffic roads (ditching, mowing, drainage, response time, etc.). 2026 Optil • Increase use of other County funds to restore services funded by the Road Fund o This would require identifying reductions in other departments o One-time use of other funds will not have a meaningful impact on restoring services 2027 and Beyond: • Consider new dedicated revenues for Public Works o Countywide Ferry District— alleviate burden on RF ($5M in 2025, $3M 2026) (Requires change to State law) o Impact fees o Transportation Benefit District (Countywide) o Road Fund Levy Lid Lift (requires voter approval) 4COM CO` P . 3r < ��sEll NG-0 Whatcom County Public Works Questions.? 9/23/2025 13 CLERK OF THE COUNCIL Cathy Halka, AICP, CIVIC GOni c�0 COUNCILMEMBER Kaylee Galloway WHATCOM COUNTY COUNCIL OFFICE 3 -` COUNTY COURTHOUSE 311 Grand Avenue, Suite #105 Bellingham, WA 98225-4038 (360) 778-5010 gsH�fBGV WHATCOM COUNTY COUNCIL MEMORANDUM TO: Whatcom County Council CC: Whatcom County Executive Satpal Sidhu FROM: Councilmember Kaylee Galloway DATE: October 7, 2025 RE: EMS Levy and Banked Capacity BACKGROUND In July 2022, Council adopted the 2023-2028 EMS Levy Plan and placed the EMS levy on the November 2022 ballot for voter consideration. Voters agreed by 63.95% to renew the property tax levy at a rate of $0.295 or less per thousand dollars of assessed valuation for each of the six consecutive years. Based on assessed values at the time of the Levy Plan adoption, a levy rate of $0.295 would have raised approximately $13.2 million. However, when the Assessor published the new assessed values in October 2022, the proposed $0.295 rate would actually generate about $15.5 million (the highest lawful levy amount). A district's highest lawful levy is equal to the highest amount the district could have lawfully levied since 1985. That highest lawful levy can be increased by 1% a year plus the assessed value of new construction. After the successful ballot measure, the County was faced with the question of how much to levy —the amount budgeted in the Levy Plan or the highest lawful levy amount approved by voters. The County Executive's Office proposed to the Council a levy amount of $13,235,000, which matched both the Levy Plan and the budget adopted by the Council. On November 22, 2022, the County Council approved Ordinance 2022-075, authorizing the levy of taxes for Countywide Emergency Medical purposes for 2023 in the amount of $13,235,000, or about $0.252 per thousand dollars of assessed valuation, which was a rate lower than what was authorized by the voters. The approved Levy Plan's budget included $13.2 million in revenues from the property tax levy in 2023 and slightly higher amounts each year with $13.9 million anticipated for 2028. The 2022 decision to proceed with a lower rate left the County with approximately $2.3 million in unused annual taxing authority associated with the EMS levy (also referred to as banked capacity, which is calculated by taking the difference between a district's highest lawful levy and the actual levy in any given year). On November 21, 2023, the County Council approved Ordinance 2023-066, authorizing the levy of taxes for Countywide Emergency Medical Purposes for 2024 with no increases. On November 18, 2024, the County Council approved Ordinance 2024-059, authorizing the levy of taxes for Countywide Emergency Medical Purposes for 2025 with an increase of $133,949, which was a 1% increase from the previous year. As of the 2025 tax year, the banked capacity was $2,503,105. According to preliminary estimations by the County Assessor's office, taking the 2025 highest lawful levy and increasing that figure by 1%, Whatcom County EMS has a preliminary highest lawful levy for the 2026 tax year of $16,282,100.57. This amount is exclusive of any add-ons due to new construction value or increases to state -assessed utility valuation, which have yet to be calculated. Banked capacity can be carried over for future collection per RCW 84.55.092 and WAC 458-19-065. CHANGED CIRCUMSTANCES Unfortunately, some of the assumptions made during development of the 2023-2028 Levy Plan differ from reality, leaving a discrepancy between the budgeted vs. actual cost of providing planned levels of service and revenue generation. Inflation -driven cost escalations and stagnant or unpredictable revenues have created significant challenges for the EMS fund, resulting in a structural imbalance (expenses exceeding revenues) and a rapidly depleting fund balance inconsistent with the County's target reserve policy. It is currently projected that without intervention the fund's reserves will be about $1.4 million by the end of 2028. Whatcom EMS Levy Fund Balance NEW CONSTRUCTION ONLY (Revenue) 30,000,000 2023-2028 Levy 25,000,000 20,000,000 16,304,935 15,000,000 13,516,660 10,646,485 10,000,000 6,603,675 5,000,000 1,390,239 2024 2025 2026 2027 2028 Ending Fund Balance Revenue Reserve Fund at (see % above) Expenses Contractual obligations make it difficult to significantly reduce costs and expenditures without also reducing levels of service. For example, 75% of operating funds are personnel and the remainder is equipment, training, fuel, fleet, and other operations costs. Given the previously negotiated personnel contracts based on CPI-W + 1%, increased costs for providing critical AILS services has outpaced revenue collections. Based on current assumptions that contracted costs will accelerate at 5.6% annually, expenditures in 2028 may reach $28.2 million, well above the $25.1 million anticipated in the Levy Plan. This threatens the fund's reserve and could create cash flow issues in 2028 and beyond. Furthermore, the Countywide Emergency Medical Services Fund is dependent on billing client health insurance, including Medicare and Medicaid, as well as Ground Emergency Medical Transportation (GEMT), which provides supplemental Medicaid payments to public, government -owned ambulance providers to cover the gap between their actual costs and lower state Medicaid reimbursement rates. While the County EMS has received around $2 million in billing revenue and $2.3 million in GEMT in the past, passage of H.R. 1, the "One Big Beautiful Bill Act," combined with other federal level uncertainties make the future of Medicaid reimbursement and GEMT unclear. On September 25, 2025, the What -Comm Administrative Board approved its budget for 2026, including $310,000 in additional dispatch fees that were not contemplated in the adopted 2025-2026 biennium budget. These higher costs are also anticipated in 2027 and 2028, adding approximately $900,000 in expenses through the end of the levy cycle. Additionally, Bellingham announced that it plans to issue bonds to fund the construction of the new What -Comm building. The cost of debt service for the bonds will be spread across the agencies served by What -Comm, and the EMS system's share of these additional costs is estimated at $300,000 annually, beginning in 2027. Combined, these expenses will result in an additional $1.5 million in anticipated EMS expenses. PATH FORWARD In order to avoid service reductions and unsustainable depletion of the EMS Levy fund balance by 2028, it is necessary to intervene. There are three main levers that the County Executive and Council can consider as we determine the best path forward: 1. Amend the County's EMS Levy Reserve Policy to more accurately reflect the maturation of the EMS levy. 2. Review the current budget and identify cost savings and expense reductions. 3. Increase revenues to offset rising costs, maintain a healthier fund balance, and ensure levels of service throughout Whatcom County as outlined in the Levy Plan are minimally disrupted. EMS Levy Fund Reserve Policy Found on page 46 the 2023-2028 EMS Levy Plan: Policy Overview Reserves are a proactive management tool to protect EMS's ability to provide emergency medical service when there are unexpected events or changes in revenue or expenditures. EMS reserves ensure the system can withstand revenue and economic disruptions, unanticipated expenditure demands including capital requirements, and meet other necessary non -recurring expenses. Reserves are a key factor in external agencies measurement of EMS's financial strength. Reserve Policy Principles Purpose To ensure adequate resources for cash flow and mitigate short-term effects of unforeseen events. Reserve funds are necessary to enable the EMS system to deal with unforeseen emergencies, changes in economic conditions, or revenue loss. Approval The County Executive shall approve this policy and: • The creation or deletion of any reserve amounts • Changes in reserve amount funding formulas • Reserve balances, as part of the annual budget process • Reserve replenishment plans Target Balance The EMS fund balance should be approximately 70% of the current year's budgeted operating expenditures and shall be budgeted at no less than 50% of these expenditures. With other revenue sources, this would allow funding for one year if a levy fails to be renewed. The year needed to hold a new election for a levy would provide time to create a plan moving forward. Reserve Minimum Target Balance Should a reserve fall below its minimum target balance, The EMS Administrator, in consultation with the EMS Finance Advisory Committee shall create a plan to bring the Reserve to the balance described in this policy. The plan shall be approved by the TAB and EOB Committee before presenting to the County Executive and adopted for replenishing the reserve balance to the target. Policy administered by the EMS Administrator Updating the policy to more accurately reflect the maturation of the EMS levy would involve a more refined approach that aligns with an anticipated levy renewal and treats emergency reserves as contingency funds, which is consistent with the practices of more mature EMS levies and remains responsive to evolving operational needs. 2023-2028 EMS Levy Planned Levels of Service: Expense reductions will likely result in reduced levels of service and thus Council may need to consider a recalibration of the priorities established in the 2023-2028 EMS Levy Plan. The EMS levy pays for five Paramedic Units (Advanced Life Support), operation costs, training (including paramedic school), equipment, technology, vehicles, and the community paramedic program. The 2023-28 EMS Levy Plan provides recommendations for the continued support of Whatcom County's Emergency Medical Services (WCEMS) Advanced Life Support (ALS) system and to better support Basic Life Support (BLS) systems. Funds from the levy were intended to support, and where appropriate, expand Fire System Based Emergency Medicine to meet increasing and expanding community needs. The Levy Plan called for: • The addition of a fifth Advanced Life Support unit based in Lynden — resulting in reduction in average response times in the northern and eastern foothill areas of the county and only rare occurrences of "no medic units available" status. 4 o As a result of this new unit, EMS system will be able to more equally distribute travel times and call loads among units by: ■ Moving Medic Unit 10 to North Whatcom Fire & Rescue Station 12 ■ Moving Medic 45 to FD7 Station 46 • Increased funding for Basic Life Support • Increased funding for the Community Paramedic Program, which focuses on substance abuse and mental health -related calls. ALS recommendations All recommendations refer to supporting ongoing practices or programs: • Using Standard Unit Allocation model to fund each unit • Supporting Medical Service Officer position at District 7 and Bellingham Fire • Supporting EMS 1 Field Supervisor Position for Bellingham. Consider expansion. • Continuing new ALS360 gurney program ($523,000/year) • Continuing Centralized Electronic Patient Care Records system - Image Trend ($185,000/year) BLS recommendations BLS agencies face increased call volume and transports, decreased volunteer/part-time workforce, and increased costs related to staffing, supplies, training, durable medical equipment, and recruitment. • BLS cost allocation of $1.5 million per year to offset impacts on agencies • TAB to develop 6-year stability plan for BLS programs Continue current programs: o Equipment exchange ($20,000/year) o ALS360 gurneys ($523,000/year) o Centralized Electronic Patient Care Records system - Image Trend ($185,000/year) EMS Svstem Data Recommendations • Expand the integration of systems like Image Trend and the JULOTA platform. Continue to develop integrated platforms that favor bi-directional community health information sharing. • Continue the development and deployment of secure dashboards for applicable community partners. Provide information sharing and increased continuous quality improvement data support to the various EMS sectors. BLS Education and Training Recommendations • Continue to fund and support the county -wide BLS training, tracking, and compliance software Rescue Hub for EMT initial and recertification compliance. Further develop BLS Training Programs throughout the county that enhance and improve the quality of training through the Education Committee and Training Officers. • Develop and fund BLS/Emergency Services Evaluator workshops/conference that supports the EMS systems requirements for the certification process. (quarterly workshops/conference). • Build more capacity for EMT training with an emphasis on flexibility and availability. Monitor future capacity and cost as the levy budget develops in the next cycle. ALS Education and Training Recommendations • Fully fund the current model of Paramedic Apprenticeship over the life of the Levy and continue to develop the admissions of outside agencies to offset costs to the Whatcom County EMS Levy as well as strengthen the program for the future. • Support existing Peer Support programs within the Fire Agencies for the mental health of emergency responders. Develop additional training for Community Paramedics, Paramedics, and EMTs in the areas of trauma -informed care, PEER support, mental health responses, health equities in EMS, Pandemic training, Mental First Aid for First Responders, and other specialized training for the changing Fire -Based EMS environment. Diversion, Prevention, and Community Outreach Recommendations • Fund an additional two Community Paramedic Units to serve the larger and growing county. Planning for all future units should include a Community Paramedic Unit paired with every ALS Ambulance. ($500,000/year) • Further the Community CPR/AED and First Aid programs with a goal of becoming a citizen CPR "Heart Safe" community defined by numbers of people trained in CPR that supports increased survival rates from Sudden Cardiac Arrest. ($5,000/year) • Create public awareness/prevention programs aimed at reducing morbidity and mortality related to sudden traumatic injuries as part of the County's trauma prevention outreach. Prospect Medical Dispatch Recommendations • Continue to support the Fire Agencies Prospect Dispatch Center annual fees at approximately $2 million with a projection of up to $2.3 million per year that supports the day-to-day operations along with supporting technology upgrades necessary to continue to orient and adapt to a dynamic and evolving needs of the community. • Continue to have the TAB integrate with the Fire Chiefs Operations Committee to make recommendations to the EOB regarding future recommendations regarding the Prospect Dispatch Center. • Ask the EOB to investigate/determine an alternate method for invoicing/paying for dispatch fees to move the remaining portion of the Fire Fees (BFD, LFD, WC) from those general funds. In this scenario, all dispatch fees would be invoiced directly to the Fire Districts/Departments from What - Comm. Administration Recommendations • Continue support for the current configuration of the WCEMS Administrative office employing an EMS Manager, EMS Training Specialist, EMS Data Analyst, and the EMS Administrative Office Coordinator for the six -year levy period. In addition, this budget supports the Medical Program Director as a contracted position where the EMS office administratively supports the MPD. • Continue to support the Whatcom County Medical Program Director's contract with a negotiated stipend for the six -year levy period. This agreed amount will include CPI-W inflators using the Seattle/King County CPI-W index in June of each year with a minimum of 3.0%. This would include a $5,000 training and continuing education budget. Potential Cost Savings and Expense Reductions: The Technical Advisory Board (TAB) was tasked with identifying budget reductions and potential savings. In July 2025, the TAB met and made the following recommendations: 1. Banked Capacity Collection. Take action to immediately collect the full banked capacity to align with the voter -approved EMS levy's original rate. Note: While this action will not fully restore the levy to its original rate, it will bring us significantly closer, helping to stabilize funding in the near term. 2. Reserve Policy Adjustments. Revise the reserve policy to reflect the maturation of the EMS levy. This includes transitioning from the original position of maintaining emergency operating reserves toward a more refined approach -one that aligns with a renewed levy and treats emergency reserves as contingency funds, consistent with the practices of more mature EMS levies. Additionally, we recommend considering a tiering -down concept over the life of multiple levy cycles. This would allow for a gradual and strategic reduction in reserve levels as the system stabilizes and matures, ensuring that reserve policies remain responsive to evolving operational realities. Note: The subcommittee is currently researching reserve fund policies from three other counties in Western Washington to inform our approach and ensure alignment with best practices. 3. MIH Unit Implementation Delay. Continue the delay of implementing the two additional CPM/MIH units that were originally recommended to be phased in over the life of the current levy cycle. 4. Evaluation of CPM Units and EMS Office Staffing. Consider shutting down the currently operating CPM units. Note: The subcommittee did not conduct a cost analysis to determine whether any financial incentives or savings may be realized from reducing or eliminating CPM operations. If cost savings are being prioritized, we recommend evaluating EMS Office expenditures before considering reductions to ALS services, including CPM units, which provide direct patient care and system -wide value. Furthermore, we suggest developing a prioritized list of EMS Office roles deemed essential to operations. Should a recommendation regarding EMS Office staffing be pursued, it would be appropriate for that to precede any consideration of reductions to CP positions. Here is a breakdown of estimated cost savings/expense reductions and the impacts to levels of service: Delaying implementation of expanding the Community Paramedic Program would save future costs. Each community paramedic unit costs about $250,000 per year so delaying expansion of two more would save an estimated $500,000. Please note, these costs are not currently reflected in the fund balance projections so delaying implementation will not impact the current projections, but if the program became budgeted it would have an impact on the fund balance and future projections. Shutting down the Community Paramedic Program would save about $750,000 per year. There are three current community paramedics, two serving Bellingham and one based out of District 7 serving the rest of the County. An analysis of a variety of Community Paramedic programs in other jurisdictions showed the benefits and cost savings these programs can deliver in the long run. As Whatcom County continues to grow, so do our needs and demands on the EMS system. Community Paramedics help reduce call volume by responding to frequent utilizers of the system. They often respond to people who are vulnerable, such as from falling or overdosing, and can help with prevention by making connections in the community. This program meets growing/evolving needs and can help delay growing the EMS system in more expensive ways. Evaluate reducing Whatcom County EMS Office staffing levels. In total, the office budget is approximately $500,000. The County is responsible for administering the EMS Levy funds and working with all the stakeholders. The WCEMS Administration is tasked with supporting the EMS system in the areas of strategic initiatives, contract administration, system performance, monitoring financial stability, supporting training and education systems, data development, and communications. In addition, the WCEMS Administration supports the Whatcom County Medical Program Director in the areas of EMT and Paramedic certifications and licensure, operational and medical practices as well as developing treatments and future technologies for better patient outcomes. The current EMS Administration staff positions were formally approved in the EMS Levy Plan, but there would be benefit in evaluating the positions to determine if there are any possible cost savings by eliminating duplication of resources. For example, some of the WCEMS office responsibilities like training could be absorbed by Bellingham Fire Department staff at no increased cost. Mission Critical Partners (MCP) considered WCEMS office structure in the Fire and EMS Study, and "MCP does not believe the office is rife with waste." Other major expenditures Council could consider reducing or eliminating include: • Reduce or eliminate the BLS allocations, which currently are $1.5 million per year. BLS allocations are already modest, and arguably there are needs for increased investments. Reducing or eliminating the BLS allocation would have disproportionate impacts on rural fire districts that rely on these funds to support minimal staffing levels and their volunteer EMTs and firefighters. Furthermore, BLS units have seen increased demand for transport services, so further reductions would challenge their current levels of service. • Eliminate the newest medic unit (M75) based in Lynden, which serves the northern and eastern foothill areas of the county. Return back to four medic units. Cost savings are estimated to be around $2.5 million per year. This would result in reduced levels of ALS services, especially to more rural but growing communities. It would increase demand on the other four ALS units, including having to cover a larger territory which will increase response times. The Mission Critical Partners Fire and EMS Study identifies several other potential cost savings that would need to be further analyzed. The report did not go into full depth on how these areas would save money and perhaps some of these strategies are already a work in progress. The Executive, WCEMS Office, and Council should work collaboratively with stakeholders to identify opportunities to innovate that could result in further cost savings. Based on the report, ideas to explore include: • Regional coordination, and in some cases consolidation, to enhance opportunities to share fleet management, facilities management, purchasing and procurement programs, and chiefs and command staff. Co -location of What -Comm and Prospect dispatch. While there is discussion of possible quicker communications times and more efficiency, the study does not quantify what if any cost savings would occur. • There are five ALS Units in Whatcom County at a cost of about $13.8 million per year. Each Medic Unit is staffed with two paramedics, which ensures a high level of clinical expertise on every call. MCP recommends the County explore transitioning to a single -tier system, which would staff each medic unit with one paramedic and one EMT. This could reduce staff costs, but would require the medical director to approve alternative response configurations. • Paramedic training being provided through local academic institutions to increase the availability of qualified personnel within the region. Paramedic training accounts for $1.6 million in the EMS Levy budget. Bellingham Fire District leads the paramedic training efforts in the county, with instructional staff drawn directly from within the department. These instructors bring significant operational experience and are deeply committed to the training process. However, this model presents cost challenges, as utilizing department personnel —particularly at current wages and benefit levels —results in higher instructional costs compared to those at traditional academic institutions. Much of this program is taught using overtime pay, which further increases costs. The intent of identifying potential cost savings is to spur cooperative innovation. However, it is also important to consider that many of these expense reductions and cost savings could impact levels of service and hinder or prevent necessary expansion into the future. This needs to be a longer -term conversation because the County's growing population and evolving community needs will eventually necessitate an expansion in the system rather than a contraction. How the system grows and evolves needs to be strategic, innovative, and cooperative among all the stakeholders. There are some interventions like community paramedics that may cost upfront, but meet a growing community need and delay the need to expand the system in more costly ways such as adding another ALS Medic Unit. Options for Increasing Revenue: Regardless of method, increased funding is necessary to maintain existing levels of services and may allow for modest expansions of critical programs like the Community Paramedics Program, which is consistent with: • The 2023-2029 EMS Levy Plan (which called for 5 community paramedics) • Council's priorities established in Ordinance 2023-039, Exhibit A • The Justice Protect Implementation Plan • Resolution 2024-017, recognizing the fentanyl crisis, and the subsequent Executive Order 2024- 02 and Fentanyl Operations Plan. There are a few options for Council to consider that would help increase revenues for the EMS system: Banked Capacity The Mission Critical Partners Fire and EMS Study "recommends that the County consider utilizing its banked capacity and the 1% levy lift in the future to maintain financial stability'. The report states "The 'banked capacity' and levy lift should be enacted for the remaining years of the current levy term to offset rising costs and potential funding reductions, including those related to Medicare and the Ground Emergency Medical Transportation (GEMT) program." The County currently has approximately $2.5 million in banked capacity/unused property taxing authority. This is the difference between the highest lawful levy amount set by voter approval of $0.295 per thousand dollars of assessed valuation and the current rate of collection. Using the banked capacity would close the gap on the structural imbalance, minimize the impacts to levels of service, and restore the fund balance to a healthier level. Here is a graph that shows projections if the full banked capacity plus 1% was used: 30,000,000 Whatcom EMS Levy Fund Balance BANKED CAPACITY+1% (Revenue) 2023-2028 Levy 25,000,000 20,000,000 16,304,935 15,000,000 13,516,660 13,244,091 11,960,790 9,671,585 10,000,000 5,000,000 2024 2025 2026 2027 2028 M Ending Fund Balance Revenue Reserve Fund at (see % above) Expenses Grant Opportunities The MCP Fire and EMS study notes that state and federal grant opportunities have varied and dwindled over the years, but that regional or statewide applications have a higher chance at success compared to single entity applications. Whatcom EMS and Fire Districts should consider applying to every applicable state or federal grant opportunity. Examples of federal programs include Assistance to Firefighters Grants, Staffing for Adequate Fire and Emergency Response, and Fire Prevention and Safety grants. EMS Billing As noted in the MCP Fire and EMS study, EMS billing has long been used as a revenue source to help offset operational costs, though billing alone does not fully recover the expense of running the EMS system. There are many complicating factors associated with billing, making it hard to grasp whether collections are fully realized. Currently, BLS billing is done by each fire district and it is not clear if all fire districts bill. This may be an underrealized opportunity for increased revenues for BLS and in the long run could alleviate the EMS Levy's BLS allocation. ALS providers manage the billing for ALS services, and the reimbursements are returned to the EMS levy budget. Since the EMS Administration does not coordinate billing and does not have access to billing information, MCP was unable to determine whether Whatcom County uses soft billing or hard billing practices. This should be further investigated. Soft billing does not aggressively follow up on nonpayment where hard billing is more 10 assertive and continual action is taken to recover the cost. If Whatcom County ALS and BLS providers are not using a hard billing approach, this again could be a missed opportunity to recover costs and increase revenues to both the Districts and EMS Levy Fund. Paramedic Training Tuition Another potential, though modest, revenue generating option is further increasing the paramedic training tuition for out of area students who are affiliated with other agencies. There could also be benefit to expanding the paramedic training slots to allow for more out of area students and possibly unaffiliated candidates willing to pay out of pocket. There is a nationwide workforce shortage for paramedics and a regional shortage for paramedic training programs. Bellingham Fire District offers a high caliber training program that is often highly sought after by neighboring cities and counties to train their aspiring paramedics. Expanding paramedic training would necessitate hiring additional instructors, which could help reduce costs in the long run such as in overtime wages, and could reduce potential burnout/turnover rates of instructors carrying a more than full time workload. Sales and use tax for emergency communication systems and facilities Another option is authorizing a ballot measure that would collect a sales and use tax for emergency communication systems and facilities. In Washington, the 911 sales and use tax measures are a local option, requiring voter approval in each county or city that wishes to impose or increase the tax (RCW 82.14.420). This is separate from the statewide 911 excise tax levied on phone lines. Funds can be used for costs associated with financing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, reequipping, and improvement of emergency communication systems and facilities. Several counties and cities have considered or passed a 911 tax. A 911 tax could help fund both Prospect and What -Comm Dispatch services. Currently, the EMS levy funds about $2.6- 3 million for dispatch, and that is expected to rise. Whatcom County, along with the cities of Bellingham and Lynden, also use some General Fund funding for dispatch not covered by the EMS Levy, which is about $740,000 per year in total from the three agencies. The County's share is about $307,000 in 2024 and an expected $275,000 in 2025. The County's EMS Administration recently had a meeting with the Fire Chiefs and the Chiefs suggested considering authorization of a 911 tax through a vote of the public. CONCLUSION: Solving this issue and getting back on track will likely require striking a balance between changing the target fund balance policy, reducing expenditures with the lowest impact to level of services, innovating to realize further cost savings, and increasing revenue. Fortunately, with strategic intervention now, it is not too late to correct the course. It is important that we make careful decisions to avoid jeopardizing the health of the system and the welfare of the public. This is also a rural equity issue in that every community member no matter their income status or where they live deserves access to excellent levels of service from our emergency response agencies. And last, but definitely not least, we must support our first responders, who are out there every day saving lives. 11 WHATCOM COUNTY Satpal Singh Sidhu EXECUTIVE'S OFFICE 2`P�G0M CO& County Executive County Courthouse A 311 Grand Ave. Suite # 108 Bellingham, WA 98225 MEMORANDUM TO: County Council THROUGH: Satpal Sidhu, County Executive FROM: Aly Pennucci, Deputy Executive & Director of Administrative Services and Kayla Schott-Bresler, Deputy Executive CC: Randy Rydel, Finance Director; Andrew Tan, Associate Finance Manager RE: AB2025-509 2025-2026 Mid -biennium Review (MBR) — Update on Executive Proposed Adjustments DATE: October 3, 2025 This memo outlines the Mid -biennium Review (MBR) budget adjustments the Executive is planning to transmit on or before October 201n Our guiding principles for this budget process are: • Economic Resilience — ensuring stability in fluctuating market conditions • Core Services — staying true to the role of a County government • Transparency — providing the public a clear picture of where tax dollars are spent and what services are provided Our County budget funds essential services that protect our community, enhance wellbeing, strengthen economic security, and support future planning. As we see the costs to provide these services outpacing the County's annual revenue growth, we must take both short- and long-term actions to stabilize the budget and ultimately the County's ability to serve the community. Problem Summary & Work to Prepare for the MBR Process The County faces a structural budget imbalance with a revenue -expenditure gap driven by inflation, rising personnel costs, and expanding community needs. This is a challenge facing most jurisdictions across Washington and nationally. The impact of high rates of inflation means the revenues the County receives are worth less making it increasingly difficult to deliver County services absent new revenues. For over a decade, inflation quietly undermined property tax purchasing power while the County banked its annually allowed one percent increase, until it reached crisis levels. Using the banked capacity in the General Fund (GF) and Road Fund in the 2025-2026 Biennial Budget represents a policy acknowledgment of this problem and a significant step toward fiscal stability. This was a necessary correction to restore purchasing power that had been eroded by 15 years of inflation. However, it is not sufficient to fully address the structural imbalance in the County's budget and to keep up with cost increases and expanding community needs. For 2026 and beyond, the County faces significant mandatory cost increases, including $3.9 million for jail health and food services alone, plus pending wage negotiations. Projected revenues cannot absort these cost increases. Work Done to Prepare for the MBR Adjustments We asked departments to model reduction scenarios and identify the impacts at the program level. Responses are available at: https://www.whatcomcountV.us/4428/2025-2026-Biennial-Budget. We reviewed these to find reductions with minimal service impact —focusing on discretionary spending, holding long -vacant positions, and finding alternative funding sources. For new spending requests, we prioritized unavoidable cost increases, critical operational needs, or investments that prevent future cost escalation. The exercise and ongoing budget analysis revealed only a few areas of spending to cut without impacting the community (and some of the proposed reductions do come with significant impacts — particularly in the road fund). Nearly all county spending supports mandatory services or is addressing a community need that cannot be eliminated without impacts. Moreover, cuts often cost more over time. Deferred facility maintenance leads to costlier repairs. Cutting public health programs shift costs to healthcare systems. Reduced mental health services increase emergency response calls. Staff layoffs undermine institutional knowledge, reducing efficiency and increasing future training costs. Cuts often don't eliminate costs —they shift them elsewhere or multiply them over time (i.e. through deferred maintenance). It is our assessment that the 2026 MBR adjustments reflect some of the last pieces of "low hanging fruit" in the County's base budget, and we anticipate that more impactful reductions will be necessary in the 2027-2028 budget process, even assuming the County Council explores new revenue options. Efforts to Ensure Transparency Since April of this year, the Executive's Office and Finance Division have regularly briefed the Council on the budget development process, revenue forecasts, fund -specific challenges, department requests and reduction scenarios. In parallel, significant steps were taken to keep the public informed. Department - level budget documents were published online and shared through social media, and engagement with local press resulted in extensive reporting about the budget decisions facing County leadership. The County also hosted an Open House to provide an opportunity for the public to ask their questions directly to Country representatives. Internally, County staff have been provided regular updates from the Executive's Office on the budget process to ensure a shared understanding of the structural challenges facing the County. Initial recommendations Our main takeaway is that the County is at an inflection point — both spending cuts and strategic revenue increases will be necessary to stabilize the budget and continue to serve the community. The Executive aims to maintain Whatcom County as a place where people want to live and businesses want to locate. With new unfunded state mandates, compounding labor costs, and a regressive tax structure, there are no easy answers. The proposed MBR adjustments combines new spending proposals, spending reductions, new revenues, and strategic reallocation of one-time funds to create reserves and support one-time expenses. Below we summarize adjustments identified to date. A full list of the spending increases and reductions summarized below are provided in Appendix 1. Please note that we are still doing technical reviews and triple checking numbers so the summary below may not be an exact match with the Executive's final transmittal. 2026 Cost Increases Before considering COLAs that are still under negotiations, the Executive is recommending about $9 million in new 2026 expenses across all funds': • Jail healthcare & food services: $3.9 million • What -Comm Dispatch Fee Increase: $312,000 • Personnel costs (excluding yet to be negotiated COLAs): $390,000 • Technology Investments & Maintenance: $750,000 • Facilities Maintenance or Capital Expense: $1.65 million • Other/Miscellaneous: $675,0002 • Risk Reserve: $1.2 million. This does not include the following anticipated 2026 cost increases: • Yet to be negotiated 2026 wage increases Cost of implementing proposed charter amendments that will be on the 2025 November ballot (see appendix 2) Proposed Reductions ($6.1 million total) • State retirement rate savings ($700,000) —The state's lower -than -anticipated employer contribution rate creates savings that will seed a risk reserve.3 • Sheriff's Office ($1 million GF, $250,000 Jail Fund) — Freeze 9 current vacancies (5 patrol deputies, 2 corrections deputies, 2 support staff). • Health & Community Services ($1.05 million GF) — Eliminate 12 vacant positions, reduce non - personnel expenses, and apply restricted funds to core services first (shifting some expenses currently funded by the GF to other restricted funds). • Public Works ($3.2 million Road Fund) — Freeze 13 positions, permanently eliminate 8 positions, plus other expense reductions. Roads will deteriorate faster, safety improvements will be delayed, and emergency response capacity will be reduced. Without sustainable revenue, the County will fall further behind on infrastructure maintenance. • Other departments ($591,000 GF) — Reductions in the GF across Superior Court, Planning and Development Services (PDS), Council Office, Executive Non -Departmental, and Parks. This includes eliminating 1 FTE in PDS and reducing Parks' funding for extra help/seasonal workers. Reallocating Existing Resources • Community Priorities Fund ($5 million) — Reallocate funds with no specific commitments to one- time GF expenses, capital facility needs, and reserves. See Appendix 3 for additional details. 'This excludes $6.3 million in funding that will be transmitted for projects approved by the Council funded by the Economic Development Investment Program and funds that were budget in 2025 that are proposed to be re - appropriate to 2026 because the work was not started in 2025. 2This includes increased costs such as: interpreter services for public defense and superior court coordinator, PDS code modernization study, contractor support for the JPOP, etc. 3 While this provides some budget relief in the short-term, it does come with some future risks. The rate reductions are tied to a change in the assumed investment rate of return for the pension systems. If investment returns underperform the County could face higher pension costs in the future. Health & Community Services fund shifts — Move $400,000 in GF-supported positions to restricted state funds (County Public Health Assistance and Foundational Public Health Services), plus realign several positions to appropriate restricted funding sources. This shift is part of the strategy to reduce the department's GF funding. Revenue The 2026 MBR Adjustments recognizes $1.7 million in revenue increases from: • Auditor's Office: Licensing Fees Revenue Increase ($387,000) • Superior Court Clerk: Water Adjudication Budget Passthrough Funds ($155,000) • District Court: Therapeutic Court State Funded Expenses ($72,000) • Prosecuting Attorney's Office: Skagit/San Juan County Child Support Services ($15,000) • Public Defender: Office of Public Defense 10.101 Funds ($223,000) • Public Works: Ferry Fare -box Revenue Increase (648,000) In addition, the Executive is considering using banked capacity in EMS levy (see the separate memo and presentation transmitted to the Council on October 3 and posted to AB2025-509). Note the Executive is still waiting for a final recommendation from the EOB on the use of banked capacity, but has prepared the budget with this assumption in place. The proposed MBR adjustment also assume approval of the 1% annual property Tax increase for most property tax levies (GF, Road Fund, EMS, Conservation Futures Fund). This was assumed last fall when Council adopted the 2025-2026 Biennial Budget. While not included in this MBR adjustments, the Executive is considering other revenue options for Council consideration in 2026 to help stabilize the budget going in to the next biennium. The County is limited in what it can do in terms of increasing revenues. Options available to the Executive and Council include: • Implement new criminal justice Sales Tax, 1/10 of 1% for criminal justice, (HB 2015 - 2025-26). The Executive is preparing a resolution to bring forward for the Council's consideration before the end of the year that would indicate intent to pursue this sales tax for criminal justice (for implementation in mid-2026 or in January of 2027. This new revenue source would raise about $7 million annually. The increases in jail health costs combined with the generally escalating costs across the criminal justice system at the County is the main factor requiring deficit spending in the GF in 2026. This new revenue is critical to avoid significant cuts to staff and services in the next biennium. • Increasing County fees to achieve cost recovery in fee support services The Executive's proposed MBR changes include funding for a fee study. Countywide Ferry District, Levy lid lift on Road Fund, Transportation Impact Fees The Executive will pursue revenue options to present to the Council, such as a countywide ferry district, impact fees, and a levy lid lift, to help restore services funded by the Road Fund that are proposed for reductions in 2026. • Various options for parks funding and conservation work (Parks District, REET 3, increase in Conservation Futures Levy) An inter -departmental team is convening to begin to explore options for future consideration. 4 In addition to these revenue options, the Executive will continue to explore and pursue opportunities to promote economic development. Growth of the County's current tax base is an often -overlooked opportunity to address revenue concerns over the long term. Economic growth is important not only for our organization's fiscal sustainability but also for the wellbeing of our community at large. Critical Positions Not Recommended After reviewing the information provided as well as our financial constraints, the Executive has made the difficult decision to add no new FTE in this MBR process unless the department is willing to make a cut to another vacancy. In our analysis, the three positions that represent the most critical denied needs are: • Protection Order Facilitator (Superior Court Clerk) • Public Records (Information Services) • Civil Deputy Prosecuting Attorney (Prosecuting Attorney) At this time, the Executive is not planning to recommend any of these positions. These positions will likely be necessary in the 2027-2028 budget and will require the further reallocation of County resources and/or new revenue to accommodate. Next Steps The Executive will formally transmit his recommended MBR budget adjustments on or before October 20th. This will include legislation to amend the proposed 2026 budget and associated legislation (e.g., project -based budgets for capital projects, legislation to adopted 2026 property tax levies). Appendix 1: 2026 Proposed MBR Budget Adjustments (New Expenses, Expense Reductions, and New Revenues New Expenses across all funds Department /Title of Request 2026 Request $ Amount Administrative Services 852,452 2026 Finance Extra Help 195,000 ADA Improvements to Courtroom 2, Dist Ct 30,000 Addit'I Funding Pt Robert -SO -Propane Costs 2,000 Addt'I Funding -Vehicle Fuel, Facilities Fleet 1,300 Addt'I Natural Gas Utility Funding -Cover Actual 50,000 Central Plaza/Public Defender 1st Floor Improvement 380,000 Contracted Pest Management Services 3,000 Increase in Equip Rental Budget for FM 2,500 Increase in Filter Costs 10,000 Increase in Janitorial Supply Costs 4,400 Increase in Paper Product Supply Costs 7,000 Increase Rep & Maint budget to cover EWRRC 80,000 Lifecycle Replacement of Computers (TR&R) - Software Maintenance Costs 22,000 Software Purchase Costs 3,000 Technology Fee Revenue - General Fund Transfer - Wage Adjustment - GIS Administrator 12,252 Web ADA Compliance Services - Phase II 50,000 Assessor 37,595 Senior Exemption Online Portal 37,595 Council 104,900 Accessibility compliance (ADA Title 11) 50,000 Contractor support for the JPOP 39,900 Courthouse After-hours Security 15,000 Administrative Services 852,452 Additional Office Supplies and Software 8,405 Reclass of Coordinator to Office Administrator 12,693 Office of Assigned Counsel - Temp Director 11,555 Executive 52,527 2025 approved reclassed vacancies continue in 2026 52,527 Juvenile 40,000 Detention Nursing Services 40,000 HCA Reentry - Non -Departmental 2,065,035 Boundary Review Board Increase 2,000 Establishing a new Risk Reserve Cost Center 700,000 Facilities Coordinator I - GF Transfer Out Comp 49,435 Department /Title of Request 2026 Request $ Amount Galbraith Mountain Emergency Response 50,000 General Fund Companion -Technology Fee Revenue 175,000 General Fund Companion -TR&R 200,000 GF Transfer Out - Companion for GIS Cost Increases 6,600 Indigent Burial - Medical Examiner 20,000 Transfer Out Community Priorities to Risk Reserve 500,000 Whatcom Racial Equity Commission support funding 50,000 What -Comm Dispatch Fees 2026 312,000 Parks & Recreation IN M773,081 EWRRC Building and Site Improvements 250,000 Maple Falls Roof Replacement - Direct Billing 8,500 Parks Holiday Pay Adjustment 9,081 Samish Park Pedestrian Bridge Replacement 150,000 Semiahmoo Sewer System Repair 348,000 Van Zandt Hall Renovation - Direct Billing 7,500 Planning & Development Services 300,000 Development Code Review and Update/Streamline 150,000 PDS Fee Study 150,000 Prosecuting Attorney 26,345 Axon Justice 26,345 Public Defender 68,000 Appeals (Transcript Costs) 32,000 Interpreter Costs 36,000 Public Works 369,471 Emulsion Tank Replacement 300,000 Ferry Tidelands Lease CPI-U adjustment 8,428 Lab analyses for SW monitoring in Lake Whatcom 17,000 Lake Whatcom NN Landscaping HOA Pilot Program 15,250 Lake Whatcom NNL Program contract w/ WCD 25,000 Road Companion- Ferry Tidelands Lease CPI-U adj 3,793 Sheriff 3,849,318 2026 WUECC expenses - Jail Food Services Increase 294,960 Jail Healthcare Services 3,554,358 Superior Court 291,922 Interpreter Services 25,000 JAVS Systems for Dept 3 183,000 Uniform Guardianship Act 40,000 Water Adjudication Staff Wages Grand Total 43,922 8,863,299 Proposed Reductions Department / Title of Request 2026 ProposedReduction $ Council (126,054) Council Internship Program (15,000) IPRTF - Advertising (5,000) Temp Leg Coord. (106,054) Health (1,052,913) Health & Com Svcs reductions to budget target (1,052,913) Non -Departmental (95,100) Indigent Burial - Non -Departmental (5,000) Leave Payout reduction (90,000) LEOFF Board meeting refreshments (100) Parks & Recreation (197,920) Mid Biennium Reduction - Administration (30,190) Mid Biennium Reduction - Park Facilities (155,974) Mid Biennium Reduction - Plantation Rifle Range (11,756) Planning & Development Services (102,505) Mid -Biennium Budget Reduction--FTE (102,505) Public Works (3,196,662) Eng Admin- Admin Secretary & Clerk IV FTE cuts (195,235) Eng Bridge & Hydraulics- Eng Tech I FTE cut (90,585) Eng Design/Const- Engineering Tech IV FTE cut (115,891) Eng Design/Const- Sr Survey Technician FTE cut (136,638) Eng Monitoring & Mitigation cost maintenance cuts (110,000) Eng Traffic- Engineering Tech IV FTE cut (115,891) Engineering B&H- Fish Passage Engineer FTE Freeze (123,888) Engineering Admin cost maintenance cuts Engineering B&H cost maintenance cuts Engineering Design/Const cost maintenance cuts (6,500) (25,000) (22,000) Engineering Development cost maintenance cuts (1,800) Engineering Traffic cost maintenance cuts (5,930) Extra Help cuts- Capital Program (16,796) Extra Help cuts- Eng Bridge & Hydraulics (7,500) Extra Help cuts- Eng Design/Construction (10,000) Extra Help cuts- EngTraffic (12,000) Extra Help cuts- Maintenance & Operations (91,702) Extra Help cuts- Maintenance & Operations NPDES (7,169) Extra Help cuts- Maintenance & Operations-Reimb (7,947) Ferry Van reduction (25,000) Financial Services Manager wage adjustment (31,261) M&O service reductions (722,377) Noxious Weed- 1 FTE cut (116,537) Department / Title of Request 2026 ProposedReduction $ Op Transfer Out Comp to 5202-Ferry Van reduction (7,457) Public Works Admin- Grand Administrator FTE cut (121,670) PW Admin Clerk/Receptionist FTE Freeze (77,474) PW Admin Real Estate Mgmt cost maintenance cuts (500) Road fund companion to SBR 5149- GIS Annual Maint 2,160 Ten M&O RMW & 1 ClerklV FTE Freezes (994,074) Sheriff (1,249,000) 2026 - Admin Budget Reduction (294,147) 2026 Drug Task Force Budget Reduction (26,070) 2026 FTO Program Budget Reduction (13,709) 2026 Investigations Budget Reduction (104,896) 2026 K-9 Program Budget Reduction (4,275) 2026 Patrol Budget Reduction (368,102) 2026 Pt Roberts Budget Reduction (13,364) 2026 Records Budget Reduction (40,829) 2026 Substations Budget Reduction (6,500) 2026 SWAT Budget Reduction (8,800) 2026 Traffic Budget Reduction (17,363) 2026 Training Budget Reduction (96,645) 2026 Volunteer Program Budget Reduction (5,300) Reduction in Jail Cost Center (210,000) Reduction in Minimum Security Jail Cost Center (22,300) Reduction in Staff Training Cost Center (16,700) Superior Court (50,000) Reduce Professional Services Budget- FRC (20,000) Reduction in Professional Services Budget- Pretrial (30,000) Grand Total (6,070,154) Appendix 2 — Pr000sed Charter Amendments — Fiscal Impacts The following 12 amendments were proposed and approved by the Charter Review commission for consideration by the voters on the 2025 General Election ballot. Below is an initial exploration of what the fiscal impact of each amendment will be. It is by no means exhaustive — there can be several incidental costs or costs -savings not directly attributable to one specific decision, but this gives decision makers a starting point for discussion on the potential fiscal impacts and how to plan for them. For position specific costs, no consideration has been given to office space or equipment required to staff the position — only payroll impacts. There will be additional costs associated with an FTE increases. In total, this initial exploration reveals that the fiscal impact of these amendments could range from about $990,000 to $1.86 million (noting again that this is just a preliminary analysis) — or put another way, annual expenses in the county budget could increase by that amount. Approved Amendments 1. Authorizing Councilmembers to Hire Dedicated Aides The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to add language authorizing councilmembers to hire aides. This measure would amend Section 2.22 of the Whatcom County Charter to allow each councilmember to hire a dedicated legislative aide. It also allows multiple councilmembers to hire one joint aide if they choose. Fiscal Note: The cost of these positions could vary depending on the size and scope of their responsibilities. Assuming that this would provide for seven full-time legislative clerks, at the lower end of the wage range, this would be an estimated impact of $853,000. Assuming that this would provide for seven half-time legislative clerks, at the lower end of the wage range, this would be an estimated impact of $500,000. Potential cost -savings would include combining these roles/responsibilities with current positions within the office which may be able to off -set some of those costs. 2. Establishine a Whatcom Countv Office of the Ombuds The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to create the office of the Whatcom County Ombuds. This measure would amend Article 2 of the Whatcom County Charter to require the County Council to establish an Office of the Ombuds. The Ombuds would receive and investigate complaints and inquiries about county government. The Council would be required to provide the office necessary funding and power to fulfill its duties. The office would start work no later than January V, 2027. In 2030, the Whatcom County Council would have the ability to eliminate this office. Fiscal Note: The cost of this position could vary depending on the skills and experience of the person hired. Using the Snohomish Office of Public Advocate as a model, and assuming a staff of one person, this would be an estimated impact of $193,000 3. Establishing Performance Audits The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to establish a process for performance audits. This measure would amend Article 2 of the Whatcom County Charter to require the County Council establish a County Performance Auditing 10 Process to review, evaluate, and report on various aspects of County Government. This process would be conducted by an independent contractor. The process would commence no later than January 1, 2027 and be performed afterwards as needed. The County Executive would be required to make a report to Council about the implementation of recommendations from the performance audit. Fiscal Note: The cost of an independent contractor conducting the audit could vary widely based on size and scope of that audit. Often performance audits are department or program specific, rather than County wide. Comparable contracts were difficult to locate, ranging from a Snohomish County audit that included the Executive and Council offices, to a system -wide audit of Multnomah County. Estimated impact $200,000-$565,000. 4. Clarifying the Power and Duties of Elected Officials The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to clarify the powers and duties of county elected officials. This measure would amend Article 3 of the Whatcom County Charter to clarify the independence of the County Elected Offices from the office of the County Executive and to make more consistent the terminology used to describe those offices. This amendment clarifies the powers and duties of each elected office without changing those powers or duties. Fiscal Note: No direct anticipated costs relating to this amendment. 5. Modifying the Redistricting Process The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to modify the process of adjusting the boundaries of each district in the county as is required once every ten years. This measure would amend Article 4 of the Whatcom County Charter to clarify the powers and appointment process for the Chair of the Districting Committee, require the Committee to comply with State law on Redistricting, and adjust timelines to align with the availability of census data. The measure would also require that the Districting Committee hold a public hearing before adopting a redistricting plan. Fiscal Note: While there may be some incidental costs with holding an additional public hearing and changing timelines, those would have a minimal impact on budget and could be accommodated. No direct fiscal impact anticipated. 6. Adiusting the Calculation of Signatures Required for a Referendum The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to adjust the number of signatures required for the public to place a Referendum on the ballot. This measure would amend Charter Section 5.60 to require a proponent of a referendum to collect the signatures of registered voters in the County in an amount equal to fourteen percent of the most recent County Executive election. The current requirement is eight percent of the last gubernatorial election. Currently, based on the 2024 gubernatorial election and the 2023 county executive election, this would increase the required number of signatures from 10,917 to 11,187. Fiscal Note: The increased number of signatures may require additional staff time from the County Auditor to check and verify that initiatives have qualified for the ballot, however the change could be accommodated with current staffing levels. No direct fiscal impact anticipated. 7. Prohibitine Countv Government from Interferine with Initiatives and Charter Amendments 11 The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to prohibit the County Government from taking official action in relation to an Initiative or a Charter Amendment. This measure would amend Articles 5 and 8 of the Whatcom County Charter to prohibit the County Council from acting to impede, alter, or prevent an initiative or Charter Amendment from being placed on the ballot and prohibit any County Official from expending county resources in support of or opposition to an Initiative or Charter Amendment. It would also prohibit the Council from delaying implementation of an initiative or Charter Amendment approved by voters. Fiscal Note: The only potential impact of this measure may be reducing the need for legal review by the Prosecutor's office of initiatives or charter amendments for potential council action. As this situation is exceedingly rare, no direct fiscal impact anticipated. 8. Modifying the Budget Process The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to modify the budget amendment process. This measure would amend Article 6 of the Whatcom County Charter to require the County Executive to publish budget preparation instructions via website 180 days before the end of the budget cycle, would require County Departments and the County Executive to submit budget related information earlier in the budget cycle, would require the Executive to provide budget information to the Council and would require the Executive to post other budget related information to a public website. Fiscal Note: While this may incur additional overtime expenses to meet these deadlines, it is within the job responsibilities of the current staff, no direct fiscal impact anticipated. 9. Adding Accountability to Financial Reporting Requirements The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to modify the financial reporting requirements of the County Executive. This measure would amend Section 6.41 of the Whatcom County Charter to prohibit supplemental appropriations if the Executive has not complied with mandatory financial reporting requirements. Currently, the County Executive is required to submit a quarterly report to Council showing the relation between estimated income and expenses and actual income expenses. This amendment would prohibit the Council from approving supplemental appropriations, with certain exceptions, if that report is not made. Fiscal Note: No direct fiscal impact anticipated. 10. Determining Initial Rules for the Charter Review Commission Meetings The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to set the rules of procedure for the first Charter Review Commission Meeting. This measure would amend Charter Section 8.11 to require the commissioner who received the greatest number of votes in the Charter Review Commission election to set the procedural rules that will govern the first meeting of the commission until a permanent set of rules is adopted by the commission. Fiscal Note: No direct fiscal impact anticipated. 11. Adjusting the Calculation of Signatures Required for a Charter Amendment The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to adjust the number of signatures required for the public to place a Charter Amendment on the ballot. This measure would amend Charter Section 8.22 to require a proponent of a charter amendment to register with the Auditor an Initiative bearing the signatures of registered voters equal to twenty percent of the most recent County Executive election. The current requirement is 12 fifteen percent of the last gubernatorial election. Currently, based on the 2024 gubernatorial election and the 2023 county executive election, this would reduce the required number of signatures from 20,468 to 15,981. Fiscal Note: Since this is a reduction in the amount of signatures that the County auditor would be required to verify, this could result in some potential cost savings on overtime labor costs, however for this change, those savings would be nominal at best. No direct fiscal impact anticipated. 12. Requiring Land Supply and Construction Cost Analysis The Whatcom County Charter Review Commission has proposed an amendment to the Whatcom County Charter to require the Executive to publish an analysis of how land supply and constructions costs could be affected by new legislation. This measure would amend Article 9 of the Charter to require the Executive to publish a credible analysis of how land supply and constructions costs could be affected before the County amends any land use or construction section of the County Code. Fiscal Note: The impact of this measure depends on the level of analysis desired. Considering that the Council amends land use code at more than half their meetings each year, this could be as minimal as a one -page staff review included in the legislative packet or may require more detailed analysis provided by an independent consultant(s). For a staff review, an additional 0.5 to 1 FTE would be required with a fiscal impact of 96,000 to 182,000. For an independent consultant, fiscal impact could range from $100,000 to $250,000 depending on experience and amount of detail the analysis requires. 13 Appendix 3: Community Priorities Fund — Background and 2026 Proposal The Community Priorities Fund was created in 2023 to account for the revenues and expenditures related to general fund savings during the pandemic period. The Executive's 2026 MBR Budget includes three proposals related to Community Priorities Fund expenditures: • $500,000 to an emergency risk reserve • $1,000,000 to accommodate one-time strategic priorities that would otherwise be unaffordable in the proposed budget (e.g. code modernization, fee study, etc.) • $3,500,000 to the Capital Reserve Fund Background The American Rescue Plan Act (ARPA) of 2021 provided $350 billion to state, local, and Tribal governments as part of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The United States Department of the Treasury provided federal funds to jurisdictions through a non- competitive grant process. Whatcom County received $44.5M as a result of this program. During the pandemic era, the County invested in a range of priorities using ARPA and the Community Priorities Fund including: • Childcare — over $11M obligated for 32 childcare stabilization grants and the creation or preservation of over 1,000 childcare slots. • Housing & Homeless Services — nearly $12M obligated for winter shelter services and equipment, Way Station construction, eviction prevention, and capital construction. Preserved 145 apartments and created 185 new affordable homes. • Food Security - over $3M obligated • Lummi Island Farebox - $358,000 • Whatcom PUD's Point Roberts Broadband Project - $350,000 obligated • Birch Bay Library - $315,000 obligated • Addressing the court backlog & public health pandemic response and infrastructure — over $10M obligated The Council set the goal of spending $253M or 58% of ARPA funding on childcare and housing. The Executive successfully obligated $23.8M of this funding over three years. Community Priorities Fund When the Fund was created in 2023 the Council developed a high-level spending plan allocating this funding toward a range of activities. Most of that funding has been spent, with $5M still available that was originally set aside for pandemic response, climate, and behavioral health with no specific commitments or contracts identified. This funding can be spent on any general fund eligible expenditure. The Executive's Office recommends this funding be applied to one-time expenditures to accommodate strategic priorities in the 2026 budget, to create a risk reserve, and to set -aside the residual for upcoming critical capital facilities projects, such as the Sheriff's Office, Planning and Development Services Office, or morgue. The Executive's 2026 MBR Budget includes three proposals related to Community Priorities Fund expenditures: 14 $500,000 to an emergency risk reserve , and to create a risk reserve to respond to unanticipated events, such as a major snow event or natural disaster, and could help mitigate the impact of potential wage increases in 2026 that are currently unknown $1,000,000 to accommodate one-time strategic priorities that would otherwise be unaffordable in the proposed budget (e.g. code modernization, fee study, etc.) $3,500,000 to the Capital Reserve Fund If these transfers are approved, $1.5M will remain in the Community Priorities Fund, which is currently reserved for a Search and Rescue lease. Additional Detail on One -Time Priorities $1M of the Community Priorities Fund would be used to support proposed one-time MBR budget adjustments. This one-time funding would help cover the following expenses that would otherwise necessitate further budget cuts in 2026 to fund: • Computer Replacements - $200,000 • Permitting Software Maintenance - $175,000 • JAVS System for Superior Court Department 3 - $183,000 • Development Code Review and Modernization - $150,000 • Planning & Development Services Fee Study - $150,000 • Countywide Accessibility Compliance (ADA Title II) - $50,000 • Galbraith Mountain Emergency Response - $50,000 • Whatcom Racial Equity Commission- $50,000 • Justice Project Oversight and Planning Committee Facilitator - $39,900 Next Steps The Executive will bring forward the above outlined adjustments in the proposed budget. If Councilmembers have questions regarding pandemic -era revenues and expenditures or this proposed budget action, please contact Kayla Schott-Bresler, Deputy Executive. 15 WHATCOM COUNTY EXECUTIVE'S OFFICE County Courthouse 311 Grand Avenue, Suite #1o8 Bellingham, WA 98225-4o82 Memorandum To: Executive Satpal Sidhu Whatcom County Council Emergency Medical Services (EMS) Oversight Board Members From: Jed Holmes, Public Affairs & Strategy Manager Kayla Schott-Bresler, Deputy Executive Date: October 6, 2025 RE: Updated EMS Budget and Levy Scenarios Summary Satpal Singh Sidhu County Executive Analysis of the Whatcom County Emergency Medical Services (EMS) fund has identified a structural budget imbalance. Revenues are not keeping pace with expenses, as inflationary pressures, as well as unbudgeted and unplanned costs, have caused a significant deviation from the initial budget included in the 6-year Levy Plan. The structural deficit for the current year is estimated at $2.9 million and, without additional revenue, may grow to as much as $5.9 million by 2028, fully depleting reserves and causing significant cashflow challenges. Through the EMS Levy renewal process in 2022, voters authorized the County to levy an amount that exceeded the initial revenue budget by more than $2.2 million a year. For the past three years, the County has not levied the full amount available. The Technical Advisory Board (TAB) and EOB Finance Sub -Committee have discussed the EMS budget situation at length and jointly recommend that the EMS Oversight Board request that the County Executive and County Council use the full taxing authority approved earlier by voters for the final three years of the levy (2026-2028). Levying at the highest lawful levy amount would generate a total of approximately $7.5 million in additional revenue over the final three years of the levy. If the highest lawful levy is taken over the next three years, current projections show a 2028 ending fund balance of $7.9 million or approximately 27% of current year expenses. Background In July 2022, following the EOB's recommendation, the County Council adopted the 2023-2028 EMS Levy Plan and placed the EMS levy on the ballot for voter consideration in November 2022. The approved Levy Plan's budget included $13.2 million in revenues from the property tax levy in 2023 and slightly higher amounts each year with $13.9 million anticipated for 2028 thanks to value added by new construction. Based on assessed values at the time of the Levy Plan adoption, a levy rate of 29.5 cents per $1000 AV would raise approximately $13.2 million. However, when the Assessor published the new assessed values in October 2022, the proposed rate would have generated $15.5 million, significantly more than included in the Levy Plan budget. After the ballot measure was approved, the County administration was faced with the question of how much to levy — the amount budgeted in the Levy Plan or the maximum amount approved by voters. The County Executive's Office proposed to the Council a levy amount of $13,235,000, which matched both the Levy Plan and the budget adopted by the Council. The Council approved the proposed levy ordinance and collections began the following year. However, the voter -approved ballot proposition established the highest lawful levy amount at approximately $15.5 million in 2023. This is important in two respects: 1) The authority to levy any authorized but unused amount (but not rate) is carried forward into future years (sometimes referred to as "banked capacity"). 2) The highest lawful levy amount is used to calculate the 1% growth factor in future years. As a result, the taxing authority for the EMS Fund has gradually increased from the baseline set for the 2023 tax year due to the 1% growth factor as well as new construction. Per the Assessor's Office's calculations, for tax year 2025 the EMS levy fund had authority to levy $16,120,891, $2,503,105 of which was not used. The highest lawful levy amount is calculated each year based on the 1% growth factor, new construction values as well as updated state utility assessments. The exact amount authorized for the upcoming 2026 tax year will only be known after those numbers are finalized this fall. Origins of Structural Imbalance The EMS Levy Plan budget was based primarily on fixed revenue streams and variable expenditures. An extended period of high inflation from 2021 to 2023 undermined expenditure expectations that were incorporated in the initial Levy Plan budget. When comparing the original Levy Plan budget with the current EMS budget for 2025, we see deviations across the entire expense budget but most prominently in ALS reimbursements, dispatch costs, County indirect, and paramedic school. Total expenditures for 2025 are expected to be $25.4 million, which entails approximately $2.9 million in deficit spending. Broadly speaking, the cost escalations observed for this fund are not unique. As a fund that is substantially dedicated to supporting personnel costs, sustained high inflation has driven up expenses. In particular, ALS contracts, which account for two-thirds of the fund's expenditures, are inflated by a factor of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) plus 1% 1 The levy rate of 29.5 cents per $1000 AV is only relevant to the establishment of the levy amount in the first year of the levy. Going forward, the highest lawful levy amount along with the 1 % growth factor and assessed value added through new construction are used to determine future levy limits. 2 each year. As a result, the cost per ALS unit has grown from $2.08 million in 2021 to $2.85 million in 2025, an increase of 37% over the five-year period. EMS Fund Reserve Policy The EMS Levy Plan indicates that the EMS fund balance should be approximately 70% of the current year's budgeted operating expenditures and shall be budgeted at no less than 50% of these expenditures. This reserve policy was created as a contingency for levy renewal uncertainty. Should a reserve fall below its minimum target balance, the EMS Administrator in coordination with the EMS Finance Advisory Committee is charged with developing a plan to achieve compliance with the policy. The plan must be approved by the TAB and EOB Committee before presenting to the County Executive and adopted for replenishing the reserve balance to the target. During recent EOB meetings, there has been discussion about the need to revisit the reserve policy in light of current circumstances, but no specific policy recommendation has been provided yet by the board. Fund Balance Projection At the past two EOB meetings (June 11 and September 10) revenue scenarios2 were presented to show the effect of three levy options for the remaining years of the levy cycle: 1) maintaining current levy amount plus new construction; 2) increasing current levy amount by 1 % annually plus new construction; 3) levying the highest lawful levy amount for each year. The first two options do not significantly differ in their impact on 2028 ending fund balance — the first is projected to result in a fund balance of-$408,000 while the second would achieve a fund balance of $411,000. Levying the highest lawful levy amount would add approximately $7.5 million over the three-year period and substantially slow the depletion of the fund's reserves. At the end of 2028, the fund would have a balance of approximately $7.9 million. (See Appendix A for graphical comparison of projections.) With respect to the fund reserve policy, the projections for all levy options show reserves slipping below the 70% target, and below the 50% adjusted target, by the end of this year and remaining out of compliance for the remainder of the levy cycle. Recommendations From a strictly fund administration and cashflow perspective, it is ill-advised to allow fund reserves to drop below three months of operating expenses. For 2028, when expenditures are projected to reach approximately $29 million, this reserve minimum would be $7.25 million. 2 The revenue scenarios were updated on September 30, 2025, to reflect significantly higher than expected dispatch costs, which result in more rapid depletion of fund balance than previously shown. 3 The expense structure of the EMS Fund is primarily predicated on long-term agreements with ALS and BLS agencies and What -Comm (City of Bellingham). Any path toward meaningful reductions in expenses would require the County to revisit these agreements and the level of service stipulated. Doing so outside the established EMS levy planning process could be highly disruptive. We expect the planning process for the next levy cycle to begin in late 2026 and believe that process would provide an appropriate avenue for consideration of cost -saving measures. With that in mind, the most practical path currently available to maintain a reserve above $7.25 million through the end of levy cycle would be to levy a portion of or all voter -approved levy capacity for the EMS Fund. Given the budget realities described above as well as uncertainty regarding sales tax and GEMT payments, the staff recommendation would be to levy additional capacity beginning in 2026. Waiting until 2027 to utilize the unused authority begins to create risk related to existing contractual commitments and service expectations. Additionally, given that even with use of the banked capacity the fund balance will not meet the established fund reserve policy, it is recommended that the Finance Committee and EOB revisit this policy and update that guidance. Taxpayer Impact The EMS Levy's unused taxing authority currently equates to approximately 4.1 cents per $1000 in assessed value. If levied in full, the owner of a home valued at $635,000 (the estimated average sales price in 2025) would see a $26 increase in their property tax. rd Appendix A: Levy Option Projections and Fund Balances Whatcom EMS Levy Fund Balance New Construction Only 30,000,000 (30,000,000) 25,000,000 _ (25,000,000) 20,000,000 16,304,935 13,338,907 (20,000,000) 15,000,000 10,157,645 (15,000,000) 10,000,000 5,469,327 5,000,000 . (10,000,000) (408,014) (5,000,000) (5,000,000) 2024 2025 2026 2027 2028 � Ending Fund Balance Revenue Expenses Whatcom EMS Levy Fund Balance New Construction +1% 30,000,000 (30,000,000) 25,000,000 (25,000,000) 20,000,000 16,304,935 (20,000,000) 15,000,000 13, 338,907 (15,000,000) 10,292,374 10,000,000 5,876,059 (10,000,000) 5,000,000 ■ (5,000,000) 410,567 2024 2025 2026 2027 2028 � Ending Fund Balance Revenue Expenses Whatcom EMS Levy Fund Balance New Constructioin +1% +Banked Capacity 30,000,000 (30,000,000) 25,000,000 (25,000,000) 20,000,000 16,304,935 (20,000,000) 15,000,000 13,338, 907 12, 755,251 (15,000,000) 10,826,442 10,000,000 7,873,332 (10,000,000) 5,000,000 . (5,000,000) 2024 2025 2026 2027 2028 � Ending Fund Balance Revenue Expenses 5 �Gpm V *t 4�Am EMS Budget and Levy Scenarios PRESENTER: KAYLA SCHOTT-BRESLER, DEPUTY EXECUTIVE lY 1 N G I 2 3 0 0 Outline The Challenge Background Structural Imbalance & Reserves Fund Balance Projections Analysis Next Steps �.7 Y:4 4GOM co" r � 3 i 2 �,ahiNoc°r The Challenge There is a structural imbalance in the Whatcom County Emergency Medical Services (EMS) Fund • Revenues are not keeping pace with expenses due to inflationary pressures and unplanned costs. • Structural deficit estimated at $2.9 million for 2025 and may grow to $5.5 million by 2028. Background • In July 2022, following the EMS Oversight Board (EOB)'s recommendation, the Council adopted the 2023-2028 EMS Levy Plan — and put the levy on the ballot. • The Levy Plan's budget included $13.2 million in property tax revenue in 2023, slowly increasing to $13.9 million in 2028 thanks to new construction. • In Oct 2022, after the Council put the measure on the ballot but before the voters approved the measure, the Assessor published new assessed values that showed the rate proposed could generate $15.5 million. SOUTH WHATCOM FIRE AUTHORITY Bacl<ground_ �^ '1� THE BEIIINGHAM HERAID • After the levy passed, the question remained —should the county levy the smaller amount in the levy plan ($13.2 million) or the larger amount authorized by voters ($15.5 million)? • Executive proposed, and council approved, the smaller amount ($13.2 million), which was aligned with the Levy Plan & the county budget already adopted by council. • The difference between what was approved by the voters and what was implemented is carried forward to future years and is often referred to as "banked capacity". • For the tax year 2025, the EMS Levy had the authority to collect $16.1 million, but only levied for $13.6 million, leaving $2.5 million in banked capacity. LOCAL BUSINESS OPINION RESTAURANTS NORTHWEST GAMES OBITUARIES FINANCE ClASSIFlEUS CASCADE'S BEST watersic E�x 5 tom ��6 r`� a V I ft'Ij-'�'lll Nl' ? Structural Imbalance & Fund Reserve ■ EMS Levy plan has fixed revenue (property tax) and variable expenditures. ■ Significant inflation from 2021 to 2023. ALS reimbursements, dispatch costs, County indirect costs, and paramedic school costs all were more expensive than budgeted. ■ Total expenditures for 2025: $25.3 million, approx. $2.8 million more than budgeted. ■ The EMS Levy Plan stipulates that the EMS fund balance should be at least 70% and no less than 50% of current year's operating expenditures. ■ If the reserves fall below minimum target balance, the EMS Administrator along with appropriate bodies, shall develop a plan to achieve compliance. P ro -1 P ct -1 C Whatcom EMS Levy Fund Balance New Construction Only 30,000,000 (30,000,000) 25,000,000 (25,000,000) 20,000,000 16,304,935 (20,000,000) 15,000,000 13,338,907 10,157,645 (15,000,000) 10,000,000 5,469,327 (10,000,000) 5,000,000 m (408,014) _ (5,000,000) 2024 2025 2026 (5,000,000) 2027 2028 - Ending Fund Balance Revenue Expenses 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 16,304,935 P ro -1 P ct -1 C Whatcom EMS Levy Fund Balance New Construction +1% 13,338,907 10,292,374 5,876,059 2024 2025 2026 2027 MEnding Fund Balance Revenue Expenses 410,567 2028 (30,000,000) (25,000,000) (20,000,000) (15,000,000) (10,000,000) (5,000,000) 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 Pro-lectic Whatcom EMS Levy Fund Balance New Constructioin +1% + Banked Capacity 16,304,935 13,338,907 12,755,251 2024 2025 =Ending Fund Balance (30,000,000) (25,000,000) (20,000,000) (15,000,000) 10,826,442 7,873,332 (10,000,000) (5,000,000) 2026 2027 2028 Revenue Expenses Analysis ■ Minimum fund reserve should be maintained — at least 3 months of operating costs, or $7.25 million in 2028. ■ Most practical path to maintain reserves is to levy full voter -approved capacity for the EMS Fund beginning in 2026. ■ This would result in an impact of an additional $26 a year on a $635k home. 10 Next Steps ■ EMS Oversight Board will meet on Friday, October 10, to discuss and consider a recommendation regarding banked capacity. ■ The County Executive will include a proposal on the EMS Fund budget in the MBR adjustments. Kaylee Galloway From: Scott Farrell <sjfarrell297@hotmail.com> Sent: Wednesday, October 8, 2025 3:43 PM Subject: Levy Rates/Funding by County - IAFF Local 106 Response Attachments: County Levy Rates.xlsx Hello everyone, As mentioned last night at the County Council meeting, attached is the 2024 Levy rates (the latest data) for Whatcom, Skagit, Snohomish, King, Pierce, Thurston, Kitsap, Yakima and Spokane County. The source is MSRC.org, they pull data from the WA Dept of Revenue. In addition, keep in mind dispatch fees in Whatcom County are also paid by the EMS Levy, in many of these other jurisdictions the public pays an additional 2/10ths of 1%to cover dispatch fees. You will see that only three jurisdictions in the 2024 Table (click on 2024 Table Tab at bottom of page) that have a lower levy rate than Whatcom County. This includes Medical Lake in Spokane County (We assume the Levy no longer exists based on the 0) Thurston County Medic One that shows both a levy and a Levy Lid lift which when added together is higher than Whatcom County. Outside of those two the only service (out of 66 jurisdictions) that has a lower levy rate than Whatcom County is Snohomish Fire District #10. We understand there are other variables like population size and assessed valuation of an area, however the fact that the Whatcom County EMS Levy rate is virtually second last out of 66 existing jurisdictions is also a strong indicator of a funding issue. Even at the full Levy Rate voted and approved by the voters the Whatcom County Levy rate would be lower than 48 other jurisdictions and sixteenth from the bottom of the list. In addition, during the EMS Levy Planning process it was articulated from operations level personnel hat the 29-cent levy rate would not be enough to fund the system and maintain the reserve. Keep in mind these are the professionals in the fire service with a unique understanding of the day-to-day operations and costs. Their suggestions and professional advice were ignored, resulting in putting all of us in the position we are in today, fighting to get the funding the voters approved. Forward planning, budgeting, resistance to fund the system adequately and timely contract execution and explanations should take responsibility. IAFF Local 106 will continue to encourage the EOB, the TAB the County Council and County Executive in the following areas: *Follow the Voters intent, take the banked capacity and maintain all current services in the approved Fire Based Levy Plan and as voted on by the public. These are directed and designated funds for only EMS Levy use. *We ask the EOB, TAB and the County Executive review their designated roles in the EMS Levy processes in regard to financial decisions and then operational decisions. We appreciate all the hard work that has been done by all of you, our intentions are the same, work hard and provide a good service to the public. To work properly all these individuals and groups should only fulfill the intent of their positions. *We continue to encourage all parties to rely on our fire service professionals (Fire Chiefs and Division Chiefs/MSO's) when making operational decisions and in regard to long term planning. This is their profession and should be relied on, the impacts of not doing this in regard to funding is already being seen. The fire community as a whole has never been so in line with each other. *We request a formal review of the Citizen at Large positions on the EOB. One current member has a personal interest at some level with a business that he has to some extent referenced in EOB meetings, the other is an employee of the EMS office. Considering there are an estimated 235,000 people in Whatcom County we find it hard to believe with all things being equal these members were chosen through an objective appointment process. *We request a review of how the Chair of the EOB is appointed, who has general supervision and oversight of the EOB and what the term limits are for all EOB members? *We request that Executive Sidhu refrain from incendiary comments in regard to our members' wages, paramedic class and the system being too expensive without providing any documented facts. With all due respect the Executive does not have a deep understanding at any level of our work. In addition, the easy and simplistic tag line of being too expensive is both inaccurate and is rarely followed by any data or facts. Our members' wages are based on RCW 45.56 and the collective bargaining laws in Washington State between employees and employers. We bargain with our employer with comparable jurisdiction across Washington State. Out of our 10 comparable jurisdictions we are in the middle of them in regard to pay, not at the top. Any of our members that "Made more than the Mayor" fulfilled their 47.4-hour workweek, their 2472 annual contracted hours as well as additional hundreds and in some cases thousands of additional annual hours. Lobbing out incendiary comments without the facts is divisive and in no way is working to correct the problem at hand. In addition, statements like this are unnecessary and alienate our members that are out doing great work every day in the community on and off duty. The paramedic class has been run with a skeleton staff for decades only recently getting additional administrative staff and another part time instructor. Most importantly it has a formula based on decades to produce medics that can work in Whatcom County. The Whatcom County medic class is proven and respected, bringing firefighters from multiple other jurisdictions to the class. The idea that you can parachute medics in that have a paramedic card from a random school elsewhere and that they would first pass the entry level firefighter qualifications and then pass our Whatcom County evaluations is flawed. These medics rarely make it through our process, only 1-5 medics that have worked in an 1-5 system have a consistent chance of making it through our process. In addition, there is no time savings or money savings with a model of lateral medics and 1-5 medics are not lining up to come to Whatcom County due to proximity and in a lot of cases lower wages. The other model of sending medics out of town to be trained is another flawed system that is both costly and a major impact on members wishing to be paramedics. The pay for members while away training, travel, food and housing results in a cost prohibitive program. The time away from home will severely impact paramedic student application numbers. The above -mentioned two models have also been talked about in the past and been found to be cost prohibitive and unworkable. Again, please engage the fire service professionals, they already have seen this and have these answers. In the most simplistic of explanations If we needed to know how to farm, we would talk to a farmer, not a paramedic, if we needed to wire a house we would talk to an electrician, not a fire chief. We are asking all of you to consider doing the same things. Sorry for the lengthy email, we have spent years standing by listening to comments about our members and the system, we are no longer willing to do that. We work in a cost-effective system that just needs to be funded at the appropriate level. We have also looked at the EMS Levy budget and as you know most of it is fixed costs. Thank you to everyone for all the hard work you are putting in, it is appreciated. We are asking once again to focus on the issues at hand and not our members' bargained wages, the paramedic class or baseless claims lobbed out about the system in general, especially without an educated or experienced based reference point. I am happy to talk with anyone at your convenience about the work we do on a daily basis, we are also willing to be part of discussions and solutions based on data and facts. Thanks, Scott Farrell President Bellingham/Whatcom County Firefighters IAFF Local 106 (425) 212-8329 Spokane EMS City of Medical Lake 518899373 0 0 151464 3625600 Thurston EMS - Medic One Non Sr LL 59364453734 0.11061 6566147 0 0 Thurston EMS - Medic One 59970587483 0.21462 12871029 12376158 909835286 Snohomish EMS FD #10 2639750054 0.22 580745 0 10463900 Whatcom EMS Countywide 60840837172 0.22016 13394873 13259616 677807181 King EMS County wide 8.27132E+11 0.22678 187577189 182815207 11237463770 Snohomish EMS FD #22 1411733734 0.24788 349942 342125 18625100 Yakima EMS 31953707823 0.25 7988427 4690065 357394834 Snohomish EMS Bothell 7876354008 0.265 2087234 0 123583379 Spokane EMS FD #8 5912698185 0.2715 1605269 1562782 97704166 Pierce EMS FD #26 297801933 0.27263 81190 79546 2946300 Snohomish EMS Mukilteo 7410005099 0.2753 2039955 2013820 13931976 Pierce EMS Wilkeson 76433131 0.27747 21208 20859 311000 Snohomish EMS Edmonds 15352931155 0.28328 4349145 4283046 42333508 Snohomish EMS Snohomish RFA #7/8 41743518558 0.28514 11902910 11559720 360876181 Snohomish EMS FD #25 219345574 0.28613 62761 61722 744600 Kitsap EMS North Mason RFA 108175722 0.28617 30957 1088804 42802636 Pierce EMS FD #10 4537028767 0.28666 1300577 1279862 18623000 Spokane EMS FD #11 137314253 0.29077 39927 38590 2504100 Pierce EMS South Prairie 79144297 0.2927 23166 22690 429300 Kitsap EMS FD #2 Bainbridge Islar 13460238119 0.29578 3981296 3896938 115050150 Pierce EMS Buckley 1113794358 0.30059 334793 318389 42035140 Skagit Medic 1 EMS 31983479182 0.30267 9680453 9481826 328518536 Spokane EMS City of Cheney 1206232878 0.30895 372670 365397 7694990 Spokane EMS FD #13 697570132 0.32642 227702 223679 4601900 Pierce EMS FD #16 4779912853 0.34399 1644243 1609433 42525211 Snohomish EMS South County RFA 59968804950 0.34768 20850000 18085577 469217903 Snohomish EMS FD #19 889371314 0.35441 315203 309822 4991900 Spokane EMS FD #10 1559265990 0.36017 561594 545222 28160300 Pierce EMS FD #22 27367475425 0.36423 9968056 11733028 655821636 Pierce EMS Carbonado 112243074 0.36742 41240 40008 2176000 Snohomish EMS FD #4 7845927663 0.36898 2894978 2828693 57421259 Kitsap EMS Bremerton 6211981987 0.3702 2299694 2230894 73617054 Kitsap EMS FD Dist #10 North Kits 5655768319 0.37396 2115042 2041098 49535010 Snohomish EMS Everett 26907976118 0.37418 10068304 9848758 280851978 Kitsap EMS FD Dist #18 No Kitsap 7084091003 0.37956 2688859 2545077 151571581 Pierce EMS FD #23 342797612 0.38452 131813 128677 4326700 Pierce EMS Fircrest 1466669294 0.38726 567987 561281 984100 Snohomish EMS FD #21 2021108550 0.39399 796299 767859 9272683 Pierce EMS FD #14 299551119 0.40244 120550 118683 646500 Spokane EMS FD #12 81283208 0.410991 33407 32791 560270 Kitsap EMS FD Dist #7 South Kits 15185346051 0.42373 6434411 6175431 340811089 Kitsap EMS FD Dist #1 Silverdale 15391631892 0.424161 6528561 6323911 247583452 Spokane EMS FD #2 99613293 0.43081 42915 41957 1243000 Pierce EMS FD #18 2813885883 0.43266 1217466 1140175 17080500 Pierce EMS FD #13 825747004 0.43419 358532 336749 3890865 Pierce EMS Steilacoom 1523826747 0.43702 665947 655813 7195493 Pierce EMS FD #3 18489641063 0.43992 8133888 7602156 134810985 Snohomish EMS FD #17 3037181752 0.44419 1349097 1583174 51305300 Spokane EMS City of Rockford 67893321 0.46083 31287 29746 2348600 Snohomish EMS FD #15 700326328 0.46097 322828 298898 2031940 Spokane EMS FD #4 7212294486 0.4876 3516702 3411377 133371274 Spokane EMS City ofSpokane 35011799812 0.49464 17318372 16866797 332234025 Snohomish EMS FD #5 2082306333 0.5 1041153 1059490 69467883 Snohomish EMS FD #24 597430720 0.5 298715 182669 4034400 Snohomish EMS FD #26 1006277670 0.5 503139 517958 5151500 Snohomish EMS Marysville 17195681450 0.5 8597841 3376849 363156620 Snohomish EMS North County RFA #14 10681449341 0.5 5340725 2979335 283840079 Pierce EMS FD #5 19290553767 0.5 9645277 9542796 141728815 Pierce EMS FD #6 41636571364 0.5 20818286 20935860 594765495 Pierce EMS FD #17 3957512387 0.5 1978756 2039852 37632574 Pierce EMS FD #21 12648834173 0.5 6324417 5058573 287138351 Pierce EMS FD #27 612046701 0.5 306023 200174 9458700 Pierce 1 EMS Tacoma 424612274461 0.51 212306141 122082091 505638191 Pierce I EMS Eatonville 4380240801 0.51 2190121 2253891 2414000 Pierce I EMS Dupont 25705931271 0.51 12852971 8773791 4211000 COUNTYWIDE EMERGENCY MEDICAL SERVICES FUND as of 6/30/25 # of units 4 5 5 Actual Actual Actual 2022 2023 2024 Beginning Fund Balance 22,471,945 15,158,524 14,463,349 5 Actual Budgeted Progress 6/30/2025 2025 as Percentage 16, 304,935 16,304,935 Property Tax 8,572,772 13,154,220 13,428,891 7,459,121 13,472,462 Sales Tax Revenue 4,052,561 4,433,598 4,366,895 1,990,362 4,413,297 Misc Income (319,717) 1,256,828 736,404 84,907 430,000 Emergency Medical Service Fees 1,728,126 1,941,804 2,059,640 383,011 2,300,000 GEMT Payment 1,903,460 775,807 4,383,232 229,792 1,900,000 SAMHSA Grant - 82,656 52,307 - - Total Revenues 15,937,200 21,644,914 25,027,370 10,147,194 22,515,759 5 5 5 Budgeted Projected Projected 2026 2027 2028 Notes 13,371,843 10,429,726 6,013,411 Property taxes are collected in April and October. The County approved an increase of 1% to the levy in 2025. This reflects the first 1/2 of 2025 property 55% 13,726,701 13,984,590 14,244,316 taxes. Sales taxes collected through June are reflected in 2025. Sales tax includes all goods and services provided within the County municipality. A large portion of these revenues are driven by contstruction related spending. We have seen a downtick in sales tax when compared to the same periods last year for the last 45% 4,589,829 4,534,906 4,662,337 two months. 20% 330,000 330,000 330,000 2024 includes interest earning windfall of $508k. 17% 2,300,000 2,300,000 2,300,000 12% 1,900,000 1,900,000 1,900,000 0% - - - 45% 22,846,530 23,049,496 23,436,653 Payments EMS Administration Services (341,601) (436,110) (469,775) (231,533) (518,915) 45% (515,007) (543,847) (574,303) Software maintenance contracts are usually paid at the beginning of the year in SW maintenance (182,794) (214,324) (237,581) (207,668) (260,900) 80% (273,900) (289,238) (305,436)full. MPD & Pymnts for Other Services (92,835) (120,032) (142,618) (76,354) (215,000) 36% (220,000) (232,320) (245,330) Payments to COB Units (7,585,669) (11,270,148) (10,885,474) (5,699,282) (11,398,563) 50% (11,968,491) (12,638,726) (13,346,495) $949,880.26 per month as of 1/1/25. Payments to COB EMS 1 (1,054,869) (554,861) (1,109,722) 50% (1,165,208) (1,230,460) (1,299,365) $92,476.85 per month as of 1/1/25. Payments to FD7 Units (2,219,428) (2,573,723) (2,708,784) (1,424,820) (2,864,641) 50% (3,007,123) (3,175,522) (3,353,351) $237,470.06 per month as of 1/1/25. Payments to FD7 Captain (296,654) (277,430) (554,861) 50% (582,604) (615,230) (649,683) $46,238.38 per month as of 1/1/25. What -Comm expenditures will exceed what we had projected the increase to be in 2025. The administration is working on drafting a supplemental budget request for presentation to the Council for the difference before the end of the What -Comm Dispatch (2,155,075) (2,635,146) (2,775,734) (1,510,876) (3,021,751) 50% (3,297,285) (3,798,933) (3,993,921) year. Admin & Current Expense Allocations (119,338) (221,796) (230,668) (229,484) (458,972) 50% (465,847) (491,934) (519,483) Other Costs: Training Coordinator & Costs (186,228) (180,165) (162,943) (68,380) (191,796) 36% (192,057) (202,812) (214,170) Paramedic Class Training and Laterals - COB/FD7 (1,862,392) (1,642,218) (1,232,698) (785,634) (1,502,350) 52% (1,212,174) (1,280,056) (1,351,739) Community Paramedic - COB (455,180) (239,425) (478,849) 50% (502,792) (530,948) (560,681) Community Paramedic - FD7 (514,435) (624,235) (217,253) (95,229) (228,550) 42% (239,978) (253,417) (267,608) $19,045.85 per month as of 1/1/25. Due to a miscalculation of Stryker lease amortization payments, we will owe the vendor a back payment of approximately $327,800 in 2025. A County budget Gurneys, Equipment 10 yr lease (523,636) (524,127) (525,878) (328,534) (973,981) 34% (646,181) (682,367) (720,580) supplemental has been approved by Council. BLS Distribution (4,969,129) (1,537,875) (1,478,131) (993,689) (1,500,000) 66% (1,500,000) (1,500,000) (1,500,000) Gurney Lift Kits (932,060) (265,314) 0% 5th Unit Implementation (1,566,000) (12,720) (259,263) 0% SAMHSA Grant (82,156) (52,281) 0% PPE for COB/FD7 (170,000) 0% Total Expenditures (23,250,621) (22,340,089) (23,185,783) (12,723,199) (25,448,851) (25,788,647) (27,465,811) (28,902,145) Net Revenues/(Expenditures) (7,313,420) (695,175) 1,841,587 (2,576,005) (2,933,092) (2,942,117) (4,416,315) (5,465,492) Ending Fund Balance (EMS) 15,158,524 14,463,349 16,304,935 13,371,843 10,429,726 6,013,411 547,919 Ending cash in 2024 was slightly higher at $16,517,218 due to accruals. Reserve Target - 70% of Expenditures: 15,638,062 16,230,048 17,814,196 18,052,053 19,226,068 20,231,501 Difference Between Ending FIB and Target (1,174,714) 74,887 (4,442,353) (7,622,327) (13,212,657) (19,683,582) Notes: Misc. Income includes: Interest Income, Timber Sales and Excise Taxes, payments from municipalities for paramedic training MPD & other services/pymts includes MPD & $20,000 set aside for medical supplies/R&M for system partners 2022 $5.9M for one time subsidy for BLS distribution and lift kits. C:\Users\CHalka\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\LZOB5WRF\Updated Projections for October 10 EOB Meeting DRAFT 10/9/2025 Reserve 70 % <== Can be changed to see new targets below New Construction Only - 2024 2025 2026 2027 2028 Beginning Fund Balance 14,463,349 16,304,935 13,338,907 10,157,645 5,469,327 Revenue 25,027,370 22,482,823 22,607,385 22,777,493 23,024,804 Expenses (23,185,783) (25,448,851) (25,788,647) (27,465,811) (28,902,145) Ending Fund Balance 16,304,935 13,338,907 10,157,645 5,469,327 (408,014) Reserve Fund at (see % above) - - 16,230,048 17,814,196 18,052,053 19,226,068 20,231,501 Whatcom EMS Levy Fund Balance New Construction Only 30,000,000 25,000,000 20,000,000 16,304,935 15,000,000 13,338,907 _ , 10,157,645 10,000,000 5,469,327 5,000,000 (408,014) 2024 2025 2026 2027 2028 (5,000,000) — Ending Fund Balance Revenue Expenses ' Data through 6/30/2025 - Banked Capacity + 1 2024 2025 2026 2027 2028 2024 2025 2026 2027 2028 Beginning Fund Balance 14,463,349 16,304,935 13,338,907 10,292,374 5,876,059 Beginning Fund Balance 14,463,349 16,304,935 13,338,907 12,755,251 10,826,442 Revenue 25,027,370 22,482,823 22,742,114 23,049,496 23,436,653 Revenue 25,027,370 22,482,823 25,204,991 25,537,002 25,949,035 Expenses (23,185,783) (25,448,851) (25,788,647) (27,465,811) (28,902,145) Expenses (23,185,783) (25,448,851) (25,788,647) (27,465,811) (28,902,145) Ending Fund Balance 16,304,935 13,338,907 10,292,374 5,876,059 410,567 Ending Fund Balance 16,304,935 13,338,907 12,755,251 10,826,442 7,873,332 Reserve Fund at(see % above) 16,230,048 17,814,196 18,052,053 19,226,068 20,231,501 Reserve Fund at(see % above) 16,230,048 17,814,196 18,052,053 19,226,068 20,231,501 Whatcom EMS Levy Fund Balance Whatcom EMS Levy Fund Balance New Construction +1% New Constructioin +1% +Banked Capacity 30,000,000 30,000,000 — 25,000,000 25,000,000 — 20,000,000 20,000,000 — 16,304,935 16,304,935 15,000,000 13,338,907 15,000,000 13,338,907 12,755,251 10,292,374 10,826,442 76,059 10,000,000 10,000,000 7,873,332 5,000,000 _ ■ 5,8■ 430,%7 5,000,000 2024 2025 2026 2027 2028 2024 2025 2026 2027 2028 Ending Fund Balance Revenue Expenses Endi ng Fund Balance Revenue Expenses Expenditures are estimated at a 5.6% inflation rate Projection 208 -Revenue Scenarios Categories Beginning Fund Balance Revenues Property Tax Sales Tax Misc Income (Interest Income, Forest Excise, Training Revenues, etc.) Emergency Medical Service Fees GEMT Payments SAMHSA Grant Total Revenues Expeditures Payments EMS Administration Services SW maintenance MPD & Pymnts for Other Services Payments to COB Units Payments to COB EMS 1 Payments to FD7 Units Payments to FD7 Captain What -Comm Dispatch Admin & Current Expense Allocations Other Costs Training Coordinator & Costs Paramedic Class Training and Laterals - COB/FD7 Community Paramedic - COB Community Paramedic - FD7 Gurneys, Equipment 10 yr lease BLS Distribution Gurney Lift Kits 5th Unit Implementation SAMHSA Grant PPE for COB/FD7 Total Expenditures Ending Fund Balance Reserve Target - 70% of Prior Year Expenditure Difference New Construction Only Increa Banked Capacity +l% 2026 202 2025 2026 $ 14,463,349 $ 16,304,935 $ 13,338,907 $ 10,157,645 $ 5,469,327 $ 14,463,349 $ 16,304,935 $ 13,338,907 $ 10,292,374 $ 5,876,059 $ 14,463,349 $ 16,304,935 $ 13,338,907 $ 12,755,251 $ 10,826,442 $ 13,428,891 $ 13,472,827 $ 13,592,707 $ 13,712,587 $ 13,832,467 $ 13,428,891 $ 13,472,827 $ 13,727,436 $ 13,984,590 $ 14,244,316 $ 13,428,891 $ 13,472,827 $ 16,190,313 $ 16,472,096 $ 16,756,698 $ 4,366,895 $ 4,379,996 $ 4,484,678 $ 4,534,906 $ 4,662,337 $ 4,366,895 $ 4,379,996 $ 4,484,678 $ 4,534,906 $ 4,662,337 $ 4,366,895 $ 4,379,996 $ 4,484,678 $ 4,534,906 $ 4,662,337 $ 736,404 $ 430,000 $ 330,000 $ 330,000 $ 330,000 $ 736,404 $ 430,000 $ 330,000 $ 330,000 $ 330,000 $ 736,404 $ 430,000 $ 330,000 $ 330,000 $ 330,000 $ 2,059,640 $ 2,300,000 $ 2,300,000 $ 2,300,000 $ 2,300,000 $ 2,059,640 $ 2,300,000 $ 2,300,000 $ 2,300,000 $ 2,300,000 $ 2,059,640 $ 2,300,000 $ 2,300,000 $ 2,300,000 $ 2,300,000 $ 4,383,232 $ 1,900,000 $ 1,900,000 $ 1,900,000 $ 1,900,000 $ 4,383,232 $ 1,900,000 $ 1,900,000 $ 1,900,000 $ 1,900,000 $ 4,383,232 $ 1,900,000 $ 1,900,000 $ 1,900,000 $ 1,900,000 $ 52,307 $ $ $ $ $ 52,307 $ $ $ $ $ 52,307 $ $ $ $ $ 25,027,370 $ 22,482,823 $ 22,607,385 $ 22,777,493 $ 23,024,804 $ 25,027,370 $ 22,482,823 $ 22,742,114 $ 23,049,496 $ 23,436,653 $ 25,027,370 $ 22,482,823 $ 25,204,991 $ 25,537,002 $ 25,949,035 $ (469,775) $ (518,915) $ (515,007) $ (543,847) $ (574,303) $ (469,775) $ (518,915) $ (515,007) $ (543,847) $ (574,303) $ (469,775) $ (518,915) $ (515,007) $ (543,847) $ (574,303) $ (237,581) $ (260,900) $ (273,900) $ (289,238) $ (305,436) $ (237,581) $ (260,900) $ (273,900) $ (289,238) $ (305,436) $ (237,581) $ (260,900) $ (273,900) $ (289,238) $ (305,436) $ (142,618) $ (215,000) $ (220,000) $ (232,320) $ (245,330) $ (142,618) $ (215,000) $ (220,000) $ (232,320) $ (245,330) $ (142,618) $ (215,000) $ (220,000) $ (232,320) $ (245,330) $ (10,885,474) $ (11,398,563) $ (11,968,491) $ (12,638,726) $ (13,346,495) $ (10,885,474) $ (11,398,563) $ (11,968,491) $ (12,638,726) $ (13,346,495) $ (10,885,474) $ (11,398,563) $ (11,968,491) $ (12,638,726) $ (13,346,495) $ (1,054,869) $ (1,109,722) $ (1,165,208) $ (1,230,460) $ (1,299,365) $ (1,054,869) $ (1,109,722) $ (1,165,208) $ (1,230,460) $ (1,299,365) $ (1,054,869) $ (1,109,722) $ (1,165,208) $ (1,230,460) $ (1,299,365) $ (2,708,784) $ (2,864,641) $ (3,007,123) $ (3,175,522) $ (3,353,351) $ (2,708,784) $ (2,864,641) $ (3,007,123) $ (3,175,522) $ (3,353,351) $ (2,708,784) $ (2,864,641) $ (3,007,123) $ (3,175,522) $ (3,353,351) $ (296,654) $ (554,861) $ (582,604) $ (615,230) $ (649,683) $ (296,654) $ (554,861) $ (582,604) $ (615,230) $ (649,683) $ (296,654) $ (554,861) $ (582,604) $ (615,230) $ (649,683) $ (2,775,734) $ (3,021,751) $ (3,297,285) $ (3,798,933) $ (3,993,921) $ (2,775,734) $ (3,021,751) $ (3,297,285) $ (3,798,933) $ (3,993,921) $ (2,775,734) $ (3,021,751) $ (3,297,285) $ (3,798,933) $ (3,993,921) $ (230,668) $ (458,972) $ (465,847) $ (491,934) $ (519,483) $ (230,668) $ (458,972) $ (465,847) $ (491,934) $ (519,483) $ (230,668) $ (458,972) $ (465,847) $ (491,934) $ (519,483) $ (162,943) $ (191,796) $ (192,057) $ (202,812) $ (214,170) $ (162,943) $ (191,796) $ (192,057) $ (202,812) $ (214,170) $ (162,943) $ (191,796) $ (192,057) $ (202,812) $ (214,170) $ (1,232,698) $ (1,502,350) $ (1,212,174) $ (1,280,056) $ (1,351,739) $ (1,232,698) $ (1,502,350) $ (1,212,174) $ (1,280,056) $ (1,351,739) $ (1,232,698) $ (1,502,350) $ (1,212,174) $ (1,280,056) $ (1,351,739) $ (455,180) $ (478,849) $ (502,792) $ (530,948) $ (560,681) $ (455,180) $ (478,849) $ (502,792) $ (530,948) $ (560,681) $ (455,180) $ (478,849) $ (502,792) $ (530,948) $ (560,681) $ (217,253) $ (228,550) $ (239,978) $ (253,417) $ (267,608) $ (217,253) $ (228,550) $ (239,978) $ (253,417) $ (267,608) $ (217,253) $ (228,550) $ (239,978) $ (253,417) $ (267,608) $ (525,878) $ (973,981) $ (646,181) $ (682,367) $ (720,580) $ (525,878) $ (973,981) $ (646,181) $ (682,367) $ (720,580) $ (525,878) $ (973,981) $ (646,181) $ (682,367) $ (720,580) $ (1,478,131) $ (1,500,000) $ (1,500,000) $ (1,500,000) $ (1,500,000) $ (1,478,131) $ (1,500,000) $ (1,500,000) $ (1,500,000) $ (1,500,000) $ (1,478,131) $ (1,500,000) $ (1,500,000) $ (1,500,000) $ (1,500,000) $ (259,263) $ - $ - $ - $ - $ (259,263) $ - $ - $ - $ - $ (259,263) $ - $ - $ - $ - $ (52,281) $ - $ - $ - $ - $ (52,281) $ - $ - $ - $ - $ (52,281) $ - $ - $ - $ - $ $ (170,000) $ $ $ $ $ (170,000) $ $ $ $ $ (170,000) $ $ $ $ (23,185,783) $ (25,448,851) $ (25,788,647) $ (27,465,811) $ (28,902,145) $ (23,185,783) $ (25,448,851) $ (25,788,647) $ (27,465,811) $ (28,902,145) $ (23,185,783) $ (25,448,851) $ (25,788,647) $ (27,465,811) $ (28,902,145) $ 16,304,935 $ 13,338,907 $ 10,157,645 $ 5,469,327 $ (408,014) $ 16,304,935 $ 13,338,907 $ 10,292,374 $ 5,876,059 $ 16,304,935 $ 13,338,907 $ 12,755,251 $ 10,826,442 MMOU73,332 $ 16,230,048.23 $ 17,814,195.82 $ 18,052,052.90 $ 19,226,067.86 $ 20,231,501.26 $ 16,230,048.23 $ 17,814,195.82 $ 18,052,052.90 $ 19,226,067.86 $ 20,231,501.26 $ 16,230,048.23 $ 17,814,195.82 $ 18,052,052.90 $ 19,226,067.86 $ 20,231,501.26 $ 74,887.20 $ (4,475,288.56) $ (7,894,407.64) $ (13,756,740.83) $ (20,639,514.90) $ 74,887.20 $ (4,475,288.56) $ (7,759,678.64) $ (13,350,008.83) $ (19,820,933.90) $ 74,887.20 $ (4,475,288.56) $ (5,296,801.64) $ (8,399,625.83) $ (12,358,168.90) EMS +1% 2024 2025 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 13,394,873 550,000,000 0.2208348495 121,459 133,949 13,650,281 98.70% 13,472,827 Est'd 2026 2026 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 13,650,281 550,000,000 0.2208348495 121,459 136,503 13,908,243 98.70% 13,727,436 Est'd 2027 2027 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 13,908,243 550,000,000 0.2208348495 121,459 139,082 14,168,784 98.70% 13,984,590 EMS w/ Only New Contsruction 2024 2025 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 13,394,873 550,000,000 0.2208348495 121,459 133,949 13,650,281 98.70% 13,472,827 Est'd 2026 2026 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 13,650,281 550,000,000 0.2208348495 121,459 - 13,771,740 98.70% 13,592,707 Est'd 2027 2027 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 13,771,740 550,000,000 0.2208348495 121,459 - 13,893,199 98.70% 13,712,587 EMS + 1%+ Banked Capacity 2024 2025 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 13,394,873 550,000,000 0.2208348495 121,459 133,949 13,650,281 98.70% 13,472,827 Est'd 2026 2026 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 16,282,100 550,000,000 0.2208348495 121,459 - 16,403,559 98.70% 16,190,313 Est'd 2027 2027 New Average Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 16,403,559 550,000,000 0.2208348495 121,459 164,036 16,689,054 98.70% 16,472,096 Est'd 2028 2028 Est'd 2028 2028 Est'd 2028 2028 New Average New Average New Average Tax Construction Additional Tax Estimated Collection Estimated Tax Construction Additional Tax Estimated Collection Estimated Tax Construction Additional Tax Estimated Collection Estimated Assessment Estimate Levy Rate Tax in increase Rate Revenues Assessment Estimate Levy Rate Tax crease Assessment Rate Revenues Assessment Estimate Levy Rate Tax increase Assessment Rate Revenues 14,168,784 550,000,000 0.2208348495 121,459 141,688 14,431,931 98.70% 14,244,316 13,893,199 550,000,000 0.2208348495 121,459 - 14,014,658 98.70% 13,832,467 16,689,054 550,000,000 0.2208348495 121,459 166,891 16,977,404 98.70% 16,756,698 Sales Tax Projection Inflator Projected Sales Tax 2024 $ 4,366,895.35 100.00% -I $ 4,366,895.00 2025 $ 4,366,895.00 100.30% $ 4,379,996.00 2026 $ 4,379,996.00 102.39% $ 4,484,678.00 2027 $ 4,484,678.00 101.12% $ 4,534,906.00 2028 $ 4,534,906.00 102.81% $ 4,662,337.00 PO Box 1599 Ferndale, WA 98248 Hank Malang, President Racheal Carlson, Vice President Bill Hewett, Secretary Josh Evans, Treasurer Whatcom County Association of Fire Chiefs Whatcom County Council 311 Grand Avenue, Suite 105 Bellingham, WA 98225 Dear Councilmembers, On behalf of the Whatcom County Fire Chiefs Association, we write to express our strong support for the unanimous action taken our Boards of Fire Commissioners urging the County Council to utilize the full banked capacity for the county -wide Emergency Medical Services (EMS) levy. As fire chiefs serving jurisdictions throughout Whatcom County, we stand with our elected Commissioners in recognizing the critical importance of this action for the sustainability of our regional EMS system. As you know, EMS funding in Whatcom County is primarily supported by the voter -approved county -wide EMS levy. The current levy rate of approximately $0.220 per $1,000 of assessed valuation is significantly below the maximum authorized rate of $0.295 per $1,000 as approved by the voters in November of 2022 at a majority of 63.95%. This gap undermines the ability of EMS providers to meet rising service demands, absorb increasing operational costs, support essential staffing, and replace critical equipment. Restoring levy collections through the full use of banked capacity is necessary to ensure reliable staffing levels, training, readiness, and response times for residents across the county. Without this action, the long-term sustainability of our county- wide EMS system is at risk, placing undue strain on local fire districts and diminishing the quality of emergency medical care available to the public. Predictable and equitable EMS funding is vital for both urban and rural communities in Whatcom County, especially as our EMS professionals continue to manage rising call volumes and expanding service responsibilities. For these reasons, the Whatcom County Fire Chiefs Association respectfully urges the County Council to exercise the authority provided under RCW 84.52.105 and RCW 84.55.092 and take the full banked capacity available under the EMS levy during the 2026 budget cycle (or the current applicable levy year). By doing so, you will help preserve the effectiveness, equity, and sustainability of a Whatcom CountyAssociation of Eire Chiefs of a regional EMS model that ensures every resident and visitor receives timely, professional, and life-saving medical care. We deeply value our partnership with the County Council in ensuring strong and resilient emergency medical services for the people of Whatcom County and stand ready to collaborate in supporting this vital funding decision. Respec fully submitted d�� Hank Maleng — President Whatcom County Fire Chief's Association From: Hank Maleng <hank.maleng@wcfd16.org> Sent: Monday, October 6, 2025 2:06:50 PM (UTC-08:00) Pacific Time (US & Canada) To: Council <Council@co.whatcom.wa.us> Subject: EMS Levy Banked Capacity Council Member's Here is a letter to the Whatcom Co. Council, from the Whatcom Co. Fire Chief's Association. Thank You, Chief Hank Maleng Whatcom County Fire District 16 (360)739-1368 My incoming and outgoing email messages are subject to public disclosure requirements per RCW 42.56