The district boundaries would include all of Southwest Bellingham west of I5 and south of Western Washington University.
Former Bellingham planning director Bill Geyer says the new park district would force part of Bellingham to pay back a loan that is city-wide.
Property owners in the new district would see their property taxes go up by 28 cents per $1000 of assessed value.
The money would be used to repay the $3.2 million loan from the city's Greenways Endowment Fund.
Voters will also be asked to elect commissioners that would lead the "Chuckanut Community Forest Park District" if it is approved.