The Whatcom County Council voted 5-2 Tuesday night, July 28, to approve a $5.7 million initial operating budget for the newly created Lummi Island ferry district, instituting a property tax levy that will affect every property owner in the county. The council chose the highest of three tax rate options presented, setting the levy at 8.7 cents per thousand dollars of assessed property value, which translates to approximately $52 per year for the owner of a home assessed at $600,000.
Why the Ferry District Was Created
The Lummi Island ferry district was established by the Whatcom County Council in May 2026 to restructure how the county pays for the Whatcom Chief, the ferry that connects Lummi Island to the mainland via the Lummi Peninsula terminal. Before the district was created, 45 percent of the ferry's operating costs were being covered by the county road fund, which is financed exclusively by property owners in unincorporated parts of the county. That arrangement placed a disproportionate financial burden on rural property owners for a service that benefits the broader community.
By creating a separate ferry district with its own dedicated levy, the county spreads the cost across all property owners countywide, relieving pressure on the road fund and freeing up those dollars for road maintenance and infrastructure projects that have been deferred. Council member Kaylee Galloway, who voted for the highest levy rate despite acknowledging it was a difficult choice, framed it as a long-term investment. "Alleviating the road fund will allow us to unlock infrastructure projects that are long overdue," Galloway said at the meeting. "Infrastructure is economic development. Creating infrastructure is a job creator and enables people to get to work, to recreate, and other things that drive economic development in our county."
Council members Ben Elenbaas and Mark Stremler cast the two dissenting votes, citing concerns about adding another significant tax increase to residents who are already navigating rising costs. The vote followed nearly half an hour of public comment from community members, indicating the level of interest and scrutiny this decision received before the council acted.
The $25 Million Federal Grant
The ferry district levy does not stand alone as a funding source for the Lummi Island route. Whatcom County has secured a $25 million grant from the U.S. Department of Transportation to replace the aging Whatcom Chief ferry with a new 20-car hybrid vessel and to modernize the existing Lummi Island ferry terminal. County officials describe this as the largest federal grant Whatcom County has ever received, a milestone that reflects the route's importance to island residents and to the county's overall transportation network.
The hybrid ferry replacement represents a significant upgrade in capacity, environmental performance, and reliability compared to the current vessel. The Whatcom Chief has served the Lummi Island route for decades, and its age has been a recurring maintenance concern. A 20-car hybrid replacement would also allow the route to handle peak demand periods more effectively, particularly during summer months when island visitors add to the baseline ridership of the roughly 900 residents who live on Lummi Island year-round.
Planning and procurement for the new vessel and terminal modernization will take several years. The $5.7 million operating budget approved this week funds current ferry operations while the longer-term capital project moves through its development timeline. The county is also working to fill two vacant seats on the Ferry Advisory Committee, which requires representation from residents living in unincorporated parts of the county. Residents interested in serving on that committee should contact the county for information on the application process.
What This Means for Property Owners
The new levy applies to all property owners in Whatcom County, not just those who live near Lummi Island or use the ferry. At 8.7 cents per thousand dollars of assessed value, the annual cost for most residential property owners will range from roughly $35 for a home assessed at $400,000 to around $87 for a home assessed at $1 million. The $52 estimate for a $600,000 home reflects the county median property value range in recent assessment cycles.
Whatcom County property owners have seen multiple levy changes in recent years as the county has worked to address budget gaps driven by inflation, staffing costs, and infrastructure backlogs. The ferry district levy adds to that cumulative picture, though the amount per individual taxpayer is modest relative to the overall property tax bill most owners carry. For the full breakdown of assessed values and tax calculations in Whatcom County, the county assessor's office maintains public records available through the Whatcom County website.
For Lummi Island residents, the ferry district represents a more stable and dedicated funding structure for the service that connects their community to the mainland. The island has no bridge and no alternative water crossing. The Whatcom Chief is essential infrastructure for island residents going to work, school, medical appointments, and grocery stores. Ensuring that the ferry has a reliable, dedicated funding source rather than competing with road maintenance for dollars from a shared fund is a meaningful improvement in how the route is sustained. More information on the ferry district and the county's transportation planning is available through the Whatcom County Council. Related coverage of the lead-up to this vote, including the public hearing on the ferry tax rate, was reported earlier this month.
