Bellevue Proposes Largest Capital Plan in Its History at $1.3 Billion

Bellevue’s proposed six-year capital plan totals $1.3 billion, a level the city has not undertaken before, according to the Bellevue Chamber. Staff told the City Council on Sept. 22 that transportation is the one area where the council may consider new taxes, a discussion scheduled for Oct. 6.

The capital plan is part of City Manager Diane Carlson’s preliminary 2027–2028 budget, which the council took up at its second public hearing on Sept. 15. At that hearing the council also weighed three transportation funding scenarios, including a new car tab fee. A Bellevue Chamber recap published Sept. 16 laid out more of the numbers behind the proposal.

The Numbers

Staff put the general fund at about $964 million. Carlson said departments found about $15 million a year in savings, which the budget redirects to sustain existing services.

The base budget contains one revenue change: the regular 1% 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.

What the Base Budget Pays For

Funding for faster permitting continues, including the city’s GovStream AI work. The budget also pays to replace Fire Station 6 and sets aside money toward a possible new site for it.

Staff said the base budget also delivers the Grand Connection Crossing without new taxes.

Three Paths for Transportation

Transportation funding was presented separately as three scenarios. The base scenario adds no new revenue. The second adds a sales tax authorized by a Transportation Benefit District (TBD). The third adds a $20 vehicle registration fee on top of that sales tax.

Staff noted that the TBD sales tax carries a 10-year legal limit.

Business Coalition Asks for a Split

Tony Sprague, public policy manager, testified on behalf of the Bellevue Mobility Coalition. The coalition asked that TBD sales tax revenue, which it said is paid largely by businesses, keep prioritizing the growth corridor, and that car tab revenue go to the neighborhoods that pay it.

What Comes Next

The council is scheduled to discuss the transportation revenue options on Oct. 6. Its third and final public hearing is set for Oct. 27, with adoption of the budget targeted for Nov. 17.

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