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Whatcom County establishes ferry tax district to fund Lummi Island service

WHATCOM COUNTY, Wash. — The Whatcom County Council (Council) voted 5-2 on May 12, 2026, to adopt Ordinance 2026-024, establishing the Whatcom County Ferry District. Councilmembers Ben Elenbaas and Mike Stremler voted in opposition. The Council will serve as the district’s Board of Supervisors.

The aging condition of the Whatcom Chief served as the catalyst for the structural reform. Built in 1962, the vessel has exceeded its 60-year engineered service life by 4 years. Public Works officials stated the existing funding model required a $3 million annual subsidy from the Whatcom County Road Fund. This diversion led to the permanent elimination of 9 road maintenance positions and the freezing of 13 others.

The formation of the district allows the county to fulfill requirements for a $25 million federal RAISE grant and $10 million in state capital grants. The Maritime Administration requires the county to submit a fiscal plan by August 5, 2026. A grant contract to obligate the $25 million must be signed by September 15, 2026. Vessel construction is scheduled to begin in November 2026, with terminal modifications projected to start in August 2027.

Public testimony regarding the district included the following statements:

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  • a county taxing district is essential for ferry funding
  • it was alleged the county failed to transfer $2.7 million in Motor Vehicle Fuel Tax revenue to the Ferry Fund between 2006 and 2022 and an independent audit was needed
  • recent fare increases impacted island economic viability and health care provider access
  • the cost of fares impacted residents traveling to the mainland for medical therapy

The ability to create a tax district was enabled by House Bill 2588, which updated state law to include vehicular ferries in the definition of ferry districts. The district has authority to levy a property tax of up to $0.10 per $1,000 of assessed value with Council approval. A property valued at $500,000 would pay an annual tax of $50.

Future administrative requirements include the following.

  • conduct work sessions in June 2026 to analyze system expenses and evaluate levy rate scenarios
  • update Whatcom County Code sections regarding ferry rates and the Whatcom County Ferry Advisory Committee
  • set the property tax levy rate in July 2026


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One Comment

  1. John R. May 15, 2026

    This is a misleading headline. The official name of the ferry system is the WHATCOM COUNTY ferry. NOT Lummi island ferry. It is a public ferry system and anyone can use it.
    You don’t call the Nooksack bridge the Ferndale bridge. Ferndale is its own governmental authority and still does not regulate funding for county roads. BTW Lummi Island is not governmental authority other than the County.

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