Whatcom Transportation Authority has a pile of cash to spend in 2025. Part of its proposed spending spree may include purchasing the former Lighthouse Mission Base Camp property to build a new downtown bus station.
While the City of Bellingham and Whatcom County are scrambling to maintain and grow their reserves, WTA is looking to spend $16 million of its about $55 million cash reserves next year to buy the Cornwall Avenue property and expand service, according to the proposed budget.
In a Board of Directors meeting last week, Finance Director Shonda Shipman said WTA is proposing a “robust” budget to invest in the community.
“[This budget] supports our communities, it supports your communities,” Shipman said.
WTA spokesperson Maureen McCarthy said in an email that the healthy outlook is due to the authority budgeting conservatively for sales tax revenue over the last several years, which enabled it to build up reserves “in preparation for a planned service increase in June 2025.” The WTA also received $4.9 million in grants through the Climate Commitment Act for the past 2.5 years, for paratransit service and general operations. Last year, the WTA also spent millions from its reserves, which had been built up with federal COVID-19 relief money.
The proposed 2025 budget includes nine new positions for expanded service and one additional project manager. WTA is currently pursuing the purchase of the Base Camp property, budgeting $6.45 million for that. The transportation authority also plans to spend $1.6 million for paratransit bus replacements, and $1.2 million for the June 2025 service expansion — both mostly covered by grants as of now.
Shipman said there is risk in spending reserves, but also risk in not spending the money and potentially missing expansion opportunities.
“We’re proposing something that we think is responsible,” she said.
Still a gap between operating expenses and revenues
Despite hearty reserves, WTA will have a gap between operating expenses and revenues. The transit authority is projecting $47.8 million in total operating revenues for 2025, with total operating expenses of $55.4 million, plus nearly $9 million in net capital expenses. That’s a net operating loss of $7.6 million and a net loss of $16.5 million.
The reserves can cover that for now, but the WTA will be forming two committees to investigate ways to expand revenues and limit expenses, such as looking at insurance, and the schedule for vehicle replacement.
Ridership remains down from 2019. There were 3.5 million trips last year, compared to 4.5 million in 2019. From January to September 2024, there have been 2.7 million trips, according to numbers provided by McCarthy. The transit authority is projecting 4.3 million boardings in 2025.
If Initiative 2117, which would repeal the Climate Commitment Act, passes in the Nov. 5 election, WTA will cancel the public hearing on Nov. 7 and “rejig” the budget, Shipman said.
Members of the public can comment on the budget at the 8 a.m. Nov. 7 meeting at 4011 Bakerview Spur, or online on Zoom. People can also send comments by phone to 360-676-7433, email to customerservice@ridewta.com or by mail addressed to Shonda Shipman, Finance Director, WTA at 4011 Bakerview Spur, Bellingham, WA, 98226.
Charlotte Alden is CDN’s general assignment/enterprise reporter; reach her at charlottealden@cascadiadaily.com; 360-922-3090 ext. 123.
