Updated Frequently Asked Questions

The following frequently asked questions have come up during ongoing fare discussions. These have been added since the original proposal was released. 

Fares

Why do fares need to be increased?

This fare adjustment is necessary because operational expenses continue to exceed farebox revenue. With increased operating costs and declines in ridership levels, the current fares don't cover the farebox requirements.  

As a result, we are out of compliance with the Whatcom County Code, which mandates that user feeds fund 55% of operational expenses. We cannot continue to operate out of compliance.  

When will the fare increase take effect?

The proposed ordinance language states that the new fares are effective 60 calendar days after the ordinance is adopted. Therefore, it is anticipated that the fare increase will take effect in late June 2023, subject to Whatcom County Council approval.  

Will there be a second increase in 2024?

The increases in 2023's updated fare proposal won't satisfy the total farebox recovery rate (55%) outlined in Whatcom County Code. Community feedback indicated that a staggered approach to fare increases was easier to absorb. Because the 2023 adjustment does not fully fund expected expenses, if ridership patterns remain the same, an additional boost will likely be needed in 2024. There may be opportunities at that time for peak season pricing and other strategies to leverage ridership and farebox recovery. 

Punch Cards & Discounts

Will there still be multi-ride punch cards?

Yes. We will still offer multi-ride punch card discounts. 

Under the updated proposal, most denominations would change to 10-rides and 20-rides versus the current 10-ride and 25-ride punch cards. 

In addition, the discount structure would be uniformly applied to the most commonly used punch cards.

Will I get a refund for punch cards purchased before the rate change?

The proposed ordinance states, 'multi-ride punch cards purchased prior to the most current fare change are valid for three months after the rate change takes effect.' However, we don't want you to lose your investment should you still have valid punch cards after this time. 

While you will not receive money back for punch cards, multi-ride punch cards purchased at the previous rate can be used as credit towards buying the newly-adopted fare multi-ride punch card. Remember that only multi-ride punch cards valid during this three-month window are allowed to be used as credit. 

Previously, there were no accommodations made when fare rates changed. 

Will there still be needs-based fares? 

Yes, there will still be needs-based fares. The proposed code changes reinforce that this discount will always be the most significant discount applied. 

Operating vs. Capital Expenses

Wasn't the recent dolphin repair a capital expense, not an operating expense?

No. This was a maintenance expense required to operate the ferry safely. It was not new construction but a repair of an existing structure to make it whole. 

Are you raising fares because of the repairs to the ferry dolphins?

No. We must adjust the fares to reflect the rising costs of operating the ferry system. Increases in fuel expenditures, wages, dry dock, and routine maintenance all factor into the decision. 

Were the dolphins repaired to accommodate the new ferry?

No. The current dolphins were repaired to maintain the integrity of the structures and the safety of the passengers and crew. 

What makes up the 'operating costs' for the ferry system?

"Operating cost" means all actual daily running expenses (which include fuel & wages) and all maintenance and administrative expenses associated with using and operating all physical elements of the ferry system.

*This definition is further clarified in the updated ordinance proposal. 

Will the ferry system be moved to operate under WTA? (Whatcom Transit Authority)

No. Whatcom County has no plans to transfer the operation of the ferry to WTA. 

ARPA Funding

What are 'ARPA Funds,' and how do they factor into this discussion?

'ARPA Funds' are funds received through the American Rescue Plan Act (ARPA) of 2011. The Federal Government approved this emergency funding to assist state, local and tribal governments in their response and recovery from the COVID pandemic.

The Whatcom County Council is considering using ARPA funds to cover losses to the Lummi Island Ferry system experienced during the pandemic. 

If ARPA Funds are approved, would a fare adjustment still need to be made?

Yes. Using ARPA funds would help cover the backlog of ferry deficits incurred during the pandemic. However, it does nothing to address the disparity between operating expenses and farebox revenue this year and on an annual basis moving forward. If fares are not adjusted accordingly, we would still be operating at a loss and growing the yearly deficit. 

Regardless of the COVID losses, accounting errors, and money for large maintenance items like the dolphin repairs, the bottom line is that the ferry's annual operating expenses exceed the farebox revenue.  

Getting Involved

How do I follow the discussion and voice my opinion on the updated fare proposal? 

The updated 2023 ferry fare proposal and ordinance language are tentatively scheduled for a public hearing at the Whatcom County Council meeting on April 25, 2023. This is a chance for citizens to voice their opinion on the proposal.

• Click here for information on how to participate in a Whatcom County Council meeting public hearing.
• The agenda is usually on the website by the end of the day on the Wednesday before the County Council meeting (in this case, Wednesday, April 19). Check the meeting agenda to confirm.
• There is a virtual option for most Whatcom County Council meetings. Click here for information on how to participate virtually. 
• Before or during the hearing, you may also submit written testimony to the County Council. You may email the Councilmembers individually or submit your written testimony to: [email protected]

How do I keep up with ongoing discussions about ferry operations? 

The Lummi Island Ferry Advisory Committee provides a forum for those who depend upon the Lummi Island ferry service to voice their ideas and concerns about the ferry service. In-person-only meetings are generally held on the second Wednesday of each month at 6:00 p.m. at the Lummi Island Grange. 

Click here to sign up for email or text messages announcing meetings, agendas, and other information. 

Ferry Fund

What is the Ferry Fund? 

The Ferry Fund holds all of the ferry operating expenses. Whatcom County's Ferry Fund is fund number 444. 

The Ferry Fund also holds fare box revenue and excess road fund payments. These excess road fund payments are the result of the road fund contributing exactly 45% of the annual expenses, year over year, and not offsetting that contribution with other revenue sources (Ferry Deficit Reimbursement, Interest, and misc.). This results in an excess. 

When did the Road Fund contribute the $3m of excess contribution? 

The Road Fund started 2006 with $1.5m of excess contribution. From there, the excess contributions continued to accumulate, as shown in the graph above. The table below shows similar data in table form for those who are interested in a different style. 

The data shows each year (aside from 2007 and 2012), the road fund contributed more than was required. These contributions are not part of the fare calculation and have led to the belief that there are plenty of fare box reserves to cover expenses. The table shows how 2014-2019 did have positive reserves from fare box collections, but those reserves were used up and were $986k in deficit by the end of 2022. 

This data also shows that the often mentioned $2m+ surplus at the end of any of the recent years is a surplus of excess Road Fund contributions, not fare collections.

Can't we just use the $3m Road Fund excess loan to cover the deficit? 

First, the Cumulative Fare Box Deficit (spending exceeding annual fare box revenue) has already drawn down this $3m loan to $2m.  

So, it is now a $2m loan sitting as cash in the Ferry Fund. While it technically could be spent, this would cause the Cumulative Fare Box Deficit to dip even further and the payback to be tougher. 

In 2023, without a fare update, we are eating through the remaining $2m of loaned cash at an estimated rate of $43k per month.

Why keep the excess in the fund?

Historically, the decision has been made to keep the excess in the fund for precisely the situation we are in now, where fare box expense exceeds fare box revenue. It is a common best business practice to keep at least 3-6 months of expenses on hand.

How is the Cumulative Fare Box deficit determined?

To summarize, Cumulative Fare Box Deficit is the dollar amount of Fare Box Covered Expenses that exceed fare box revenue on a cumulative basis. The full definition can be found in Whatcom County Code 10.34. 

How are Fare Box Covered Expenses determined? 

Fare Box Covered Expenses are the Total Operating Expenses, minus the following: Ferry Deficit Reimbursement, Interest, Motor Vehicle Fuel Tax attributable to Ferry Operations, and County employee trips.   All of this is then multiplied by 55% to come up with the total expenses that need to be covered by Fare Box Revenue.