The Port of Bellingham is asking for a 1% property tax increase in the 2025 proposed budget to help counter the fallout from losing Southwest Airlines at Bellingham’s airport and decreased revenue from the shipping terminal due to ongoing construction.
Whatcom County residents will have two chances to comment about the proposed budget at two Port of Bellingham Commission meetings in November, the first scheduled for Nov. 5. However, port commissioners will have the final say over the tax levy.
Overall, the port budget is forecasting decreases in operational revenues in 2025, compared to 2024, with an anticipated $28.7 million coming in. Operational expenses are projected to remain stagnant.
Aside from relying on grant funding and revenue from tenants, the port is proposing the 1% property tax hike for Whatcom County property owners. That means if passed, the tax would be levied at an estimated rate of 12 cents per $1,000 of assessed value. In the last 10 years, the port has requested a 1% property tax increase five times.
The tax increase would provide about $8.2 million for the port to use. Of that number, $5 million would go toward the port’s operating costs, capital spending and debt payments while the remaining $3.2 million goes toward the development of the waterfront district.
Because Southwest’s departure in August represented 40% of Bellingham International Airport’s revenue, the Aviation Division is expected to bring in just under $6 million in revenue in 2025, about a 35% drop from 2024. Aviation makes up just over 20% of the port’s revenue. Southwest said the primary reason for its departure was a lack of aircraft due to slow Boeing deliveries.
Mike Hogan, the public affairs administrator for the Port of Bellingham, said in an email the port’s tax revenue will be continued to be used for public priorities. This includes economic development, infrastructure, the cleanup of environmental contamination sites and parks and open spaces. The tax revenue will not subsidize airport operations.
Additionally, rehabilitation of the pier at the shipping terminal in Bellingham will reduce the marine terminal’s budget revenue. The port is anticipating the marine terminal division will bring an estimated $3.3 million.
The shipping terminal improvements are part of an overall batch of capital projects. Stormwater system upgrades at the Fairhaven Marine Industrial Park ($3.5 million), designing the new international arrivals building at BLI, with construction anticipated to start in 2026; and replacing the observation tank at the Marine Life Center ($358,660) are included in next year’s projects.
Funding for those projects will come through a variety of federal and state grants, as well as expenditures from the port’s pocket. The port has already received millions from grants for the shipping terminal improvements, electrification projects and a rail line extension.
The port could also receive more federal funding next year for runway rehabilitation at BLI and stormwater improvements in Fairhaven, according to David Hodges, a federal lobbyist at CFM Advocates who lobbies on behalf of the Port of Bellingham in Washington, D.C.
Hodges spoke about the port’s federal priorities on Oct. 18 during the port commission’s regular meeting.
In the past, the port’s property tax accounted for 2% of somebody’s total property tax bill. Property owners tend to pay more in taxes for school and City of Bellingham costs.
The public is invited to comment in person again on Nov. 19 and the port will accept written comments through Nov. 18. Port commissioners will adopt the budget on Nov. 19.
Annie Todd is CDN’s criminal justice/enterprise reporter; reach her at annietodd@cascadiadaily.com; 360-922-3090 ext. 130.
