Birch Bay would face some major hurdles if it were to become a city of its own.

Consulting firm Community Attributes Inc., or CAI, released the final report of its Birch Bay Incorporation Feasibility Study update on Monday, Dec. 22.

It found that incorporation would not be feasible given its financial projections.

Birch Bay was estimated to have a more than $2 million annual deficit if the area were to become its own city while offering the same level of service to its residents.

Establishing a dedicated police force would represent the largest cost for incorporation, coming in at an estimated $3 million by 2032.

A community engagement study also found that the majority of Birch Bay residents are generally happy with the current services in the community.

My Bellingham Now previously reported that the Whatcom County Council helped fund the project to update Birch Bay’s first incorporation study in 2008.

Birch Bay is home to just under 9,000 residents as of the most recent estimate in 2024, which would make it the fourth largest city in Whatcom County.

The study was issued only to explore the possibility of incorporation and did not make any recommendations or decisions.