City Council Recap: A Budget With One Tax Change, and Three Paths for the TBD

Bellevue Chamber of Commerce  |  September 15, 2026

Bellevue's City Council opened the final stretch of its 2027-2028 budget process on September 15, holding the second of three public hearings and receiving the City Manager's preliminary budget and 2027-2032 Capital Improvement Program. Read our recap of the meeting below.

What the preliminary budget proposes

City Manager Diane Carlson said departments identified roughly $15 million a year in savings, which the budget repurposes to sustain services. Staff put the general fund at about $964 million and the six-year capital program at roughly $1.3 billion, and the only proposed revenue change is the regular 1 percent property tax increase, which staff said totals about $900,000 across all levies. Staff expect tax revenues to return to a positive position around 2029.

The proposal keeps funding for faster permitting, including the GovStream AI work, and funds the replacement of Fire Station 6 with money toward a possible new site. Staff also said the base budget delivers the Grand Connection Crossing, without new taxes.

Three transportation scenarios

The base scenario discussed during the Council meeting relies on no new revenue, whereas scenario two adds a sales tax authorized by a Transportation Benefit District, and scenario three adds a vehicle registration fee of $20. Staff noted the TBD sales tax carries a 10-year legal limit, but ultimately the Council takes up transportation funding in detail on October 6.

Our testimony

Also during the meeting, our public policy manager Tony Sprague testified for the Bellevue Mobility Coalition following a letter we submitted to the Council that day.

We asked that TBD sales tax revenue (paid largely by businesses) keep prioritizing the growth corridor, while car tab revenue supports the neighborhoods that pay it. 

We also asked the City to name three growth corridor intersections in the CIP, fund early engineering on key WSDOT projects so they are ready for a future state transportation package, adopt a transparent framework with performance metrics for TBD spending, and protect pavement preservation and vehicular capacity if revenues fall short.

Where councilmembers stand

Deputy Mayor Dave Hamilton voiced general support for funding the TBD and interest in a closer look at scenario three, and Councilmember Lynne Robinson asked whether scenario three would complete more projects sooner, including Westlake Sammamish Parkway and the Vasa neighborhood work. (Staff said it would.)

Robinson also asked whether a vehicle fee could carry a sunset, and staff said the Council could set one.

Councilmember Vishal Bhargava asked staff to model dips in sales tax and B&O revenue, to list what the base budget leaves unfunded, and to explain why the TBD projects sit outside the base budget. 

The third public hearing on the budget is October 27, and the Council is targeting adoption on November 17. Stay tuned for more!