City Council Recap: A $1.3 Billion Capital Plan, and One Tax Question Left for October 6

Bellevue Chamber of Commerce  |  September 22, 2026

At its September 22 meeting, the Bellevue City Council held its second study session on the preliminary 2027-2028 operating budget and the 2027-2032 Capital Improvement Program, this time on revenues and the capital plan. The session was informational only, and no budget or tax vote was taken. 

Revenue assumptions & the cost of standing still

City staff named four risks to its revenue forecast: Recent state changes to B&O and sales tax, inflation, geopolitical instability, and interest rates. 

Staff said the forecast rebased revenue at its lowest level after 2023 and does not assume faster recovery, as real growth is not expected before 2029.

The total 2027-2028 revenue was estimated to be about $2.2 billion, and budget staff said the proposed 1 percent property tax increase would raise about $900,000 and cost the median homeowner, with a home valued at $1.63 million, about $15.70 a year. 

Staff also compared Bellevue with Kirkland, Redmond, Renton, Seattle, and Tacoma, and ultimately placed the city on the lower side for B&O and lowest for sales tax, with the caveat that the comparison excludes King County's recent 0.1 percent sales tax increase.

A $1.3 billion capital plan, and one new-tax question

The six-year CIP totals $1.3 billion — a level staff said the city has not undertaken before. It is now organized into portfolios, including the Grand Connection Crossing, transportation mobility and safety, parks, and public safety facilities. (Private contributions toward the Grand Connection are budgeted at $24 million in the first six years, and $41 million over ten.)

Staff said departments reallocated internally before any new revenue was considered, and that transportation is the one area where the Council may weigh new taxes, at its October 6 session.

Asked by Councilmember Naren Briar how accelerating transportation investment fits with fiscal restraint, staff pointed to growth expected under the adopted comprehensive plan and to construction costs.

Councilmember Vishal Bhargava asked what happens if Wilburton and other development slips in the next two or three years, and staff said some 2029 and later investments would move out, with the Grand Connection's cash flow the main question.

The Bellevue Chamber and the Bellevue Mobility Coalition testified with conditional support for the Transportation Benefit District at the September 15 budget hearing. The Council takes up transportation funding in greater detail on October 6.