Bellevue weighs transportation funding as budget process advances

Bellevue is considering new transportation revenue as the city moves toward its 2027-28 budget, but residents are not being charged the proposed tax or vehicle fee yet.

At a July 21, 2026, study session, Bellevue City Council staff outlined a potential Transportation Benefit District funding package that would combine a 0.1% city sales-tax increase with a $20 vehicle-registration fee for vehicles registered in Bellevue. City estimates say the sales-tax option could raise approximately $11 million annually, while the vehicle fee could generate about $2 million per year.

The study session was informational. It did not adopt either revenue measure or approve funding for specific transportation projects.

What Bellevue is considering

Bellevue established its Transportation Benefit District in 2023, but the city has not yet assumed responsibility for or funded it. The current discussion is whether to activate and fund the district as part of the upcoming budget process.

City documents describe both a base transportation capital plan and an enhanced option supported by district revenue. Bellevue says 90% of the new Transportation Benefit District revenue would be invested back into the transportation system.

The transportation plan is being reorganized into five program areas: Vehicle Mobility; Pedestrian and Bicycle Mobility; Neighborhood Mobility; Preservation and Reconstruction; and Major Projects.

Potential work could include congestion and intersection improvements, sidewalks and crossings, bicycle facilities, school and transit connections, neighborhood streets, pavement preservation, regional trails and transit links. The program areas are a planning framework, not a list of projects that have already been funded or scheduled for construction.

Why the city says it needs more funding

Bellevue’s planning materials connect the funding discussion to projected growth in housing, residents and jobs, along with higher future travel demand. The city says transportation investments will need to keep pace with development and address safety, mobility, preservation and regional connections.

That could affect people differently depending on how they travel and where they live. A household with a Bellevue-registered vehicle could face the proposed $20 annual fee if the City Council approves it. The city’s resident-facing publication estimates that the combined transportation changes could amount to about $57 annually for a non-vehicle household and about $77 for a household with one vehicle, although those figures remain city estimates tied to a proposal.

When residents can weigh in

The preliminary budget and transportation capital plan are scheduled for presentation on September 15, followed by a public hearing. Another budget hearing is scheduled for October 27, with council deliberations continuing in the fall and a planned budget adoption vote on November 17.

Residents can provide feedback through the city’s budget comment process, transportation survey, public meetings, written comments and information sessions. The key question is whether the council will include Transportation Benefit District funding in the adopted 2027-28 budget.

Bellevue Utilities is preparing separate budget and rate proposals for the same cycle. Those proposals could also affect household and business costs, but they are separate from the transportation revenue discussion.

Sources

• City of Bellevue transportation funding strategy memo
• Bellevue budget public involvement schedule