Mayor Lunn presents 2027 budget timeline, cites regional fire authority as funding option

Mayor Kim Lunn told the Bellingham City Council Budget & Finance Committee that the city faces persistent revenue shortfalls for 2027 and will prepare budget plans both with and without a proposed regional fire authority.

Lunn said departments have until mid‑July to submit proposed budgets and that she intends to present a proposed 2027 budget to council in late September. “How the city spends its money is the purest representation of our priorities,” Lunn said, arguing the city must make choices now to maintain core services.

The mayor described a public safety level‑of‑service needs assessment that identified additional resources required to maintain fire, emergency medical services and law enforcement. The assessment prompted administration, with council confirmation, to recommend exploring a regional fire authority as a durable funding solution that could provide dedicated revenue for fire and EMS while allowing the city to sustain services across departments.

Council member Hammel said the scope of the funding gap makes passage of an RFA urgent if the city wants to preserve current service levels, and urged clear public education on the issue. “For me, it creates a sense of urgency on getting the RFA passed and for it to be fully understood by the public who’ll be voting on it,” Hammel said.

Housing was a second focus during the committee. Council member Liliquest asked whether the mayor’s housing initiative includes funding for a third tiny‑home project and what programs would continue in the face of tight finances. A staff member said some dollars have been set aside for a tiny‑home project this year and that Jason Cornelison in the mayor’s office is leading site searches, but that site identification remains a challenge.

Lunn warned that if an RFA does not succeed, the city may confront scenarios that require trade‑offs, including potential staffing reductions. She described a position‑review process the administration is using to limit layoffs by assessing whether vacancies must be filled and by leaning on careful vacancy management as a cost‑reduction tool.

Council member Stone urged council members to articulate priorities early so administration can consider them while developing the proposal and suggested identifying potential cuts in advance so employees can prepare. Council member Anderson encouraged continued council engagement through September and suggested involving unions and employees in exploring options such as furloughs to preserve positions.

The committee did not take any formal votes on policy at the meeting. The mayor’s office, along with deputy Longman and other staff, will continue to refine department budgets for council consideration ahead of the mayor’s planned late‑September presentation. The committee adjourned for lunch and will reconvene at 1 p.m. for the next committee meeting.