Whatcom County taxpayers across the entire county, not just those living near Lummi Island, are about to find out exactly how much more they will pay to keep the island ferry running and to eventually replace its aging vessel. The Whatcom County Council will hold a public hearing and make a final decision on the ferry district levy amount on July 28.
The maximum levy under consideration would amount to 8.7 cents per $1,000 of assessed property value. For the median home in Whatcom County, that translates to roughly $46 more per year. The tax would appear as a new line item on property tax statements starting in 2027 if approved.
Why a New Ferry Taxing District Exists
The Lummi Island ferry is the only public transportation link between the island and the Whatcom County mainland. The Whatcom Chief, the vessel that has run that route for decades, is aging and in need of replacement. Whatcom County has secured more than $30 million in state and federal grants to fund a larger, hybrid electric-diesel ferry, but needs to come up with an additional $20 million to cover the full cost of the new vessel and terminal improvements. Without that local match, the grants fall through.
Until now, the county road fund has been covering 45% of the operating costs for the Lummi Island ferry, in addition to its primary job of maintaining approximately 900 miles of county roads and bridges. Only property owners in unincorporated Whatcom County pay into the road fund, meaning the cost of the ferry has fallen disproportionately on rural landowners rather than being shared broadly across the county's tax base.
That arrangement has put serious strain on the road fund. To keep it solvent in recent years, the Public Works department has been forced to cut staff and delay or cancel road projects across the county. The chip seal programs, bridge inspections, and ditch maintenance that keep rural roads passable have all been subject to cuts driven in part by ferry costs.
On May 12, the Whatcom County Council voted to create a ferry taxing district, similar in structure to the county's existing flood control district. The district is overseen by a board composed of the seven county council members. Pending council approval of the levy rate later this month, the tax would go into effect in 2027.
What the Money Would Do
The new ferry levy would accomplish two things simultaneously. First, it would provide a dedicated funding stream for the vessel replacement and terminal improvements, unlocking the $30 million-plus in grants that are contingent on local matching funds. Second, it would redirect approximately $3 million per year in savings from the road fund, money previously spent on ferry operations, back toward road maintenance across the county.
The county has been clear that it does not plan to reduce the road fund levy. The $3 million in annual savings will go directly to road work, including chip sealing, ditch maintenance, bridge repair, and other deferred projects that have piled up as the road fund has been stretched thin. For residents in areas where road conditions have deteriorated, that redirection of funds could have a meaningful and visible impact in the coming years.
Unincorporated county residents will pay into both the road fund and the new ferry fund. Residents of incorporated cities like Bellingham, Ferndale, Lynden, and Blaine will pay into the ferry fund only, as they do not contribute to the county road fund.
The July 28 Public Hearing
The Whatcom County Council will take public comment on the levy amount at its July 28 meeting. This is the formal opportunity for residents to weigh in before the council sets the rate. Community members who want to speak should check the Whatcom County government website for meeting details, including location, start time, and public comment procedures.
The council has already voted to create the district. The July 28 decision is about how much the levy will be, up to the 8.7 cents per $1,000 maximum. The council could set a lower rate, though doing so would reduce the local match available for the grant-funded vessel replacement.
For Lummi Island's roughly 900 permanent residents, the ferry is not an amenity but a necessity. The island has no bridge connection to the mainland; all vehicle and pedestrian traffic moves through the ferry terminal at Gooseberry Point. Reliable, well-funded ferry service is a basic infrastructure need for the island community in a way that has few parallels elsewhere in the county.
The Port of Bellingham and county transportation planners have been working on the vessel replacement planning for several years. The new hybrid electric-diesel ferry would be significantly more fuel-efficient and would carry more vehicles per crossing than the current Whatcom Chief, reducing wait times during peak travel periods. For more on how county finance decisions are being made this year, including the council's new transparency requirements for tax increases, see the related coverage of the county governance and election developments happening in July 2026.
