Bellevue residents could face new vehicle fees or a sales tax increase under a Transportation Benefit District the city is proposing as part of its preliminary 2027-2028 budget.

The City Council will hold a public hearing on the two-year spending plan at its Tuesday, Sept. 15 meeting. The session will also include an overview of the 2027-2032 Capital Improvement Program.

City Manager Diane Carlson published the preliminary budget on Thursday, Sept. 10, calling it a plan to maintain core services while preparing for growth.

The budget includes a proposed Transportation Benefit District, or TBD. Under Washington state law, a TBD is an independent taxing district that cities can create to fund transportation projects. The Bellevue City Council would serve as its governing body.

State law allows a city TBD to impose a vehicle license fee of up to $20 per vehicle without a public vote, according to the Municipal Research and Services Center.

A non-voted sales tax of up to 0.1% is also permitted. The city has not specified which fees or tax rates it would pursue.

The city said a TBD could fund infrastructure ahead of growth, support access to regional transit and improve mobility across Bellevue's neighborhoods.

No specific dollar amounts or project lists have been released.

"This preliminary budget positions us to be future-focused and it is grounded in our commitment to providing high-quality services and making responsible investment choices," Carlson said in the city's announcement.

Beyond the public hearing, residents can join a budget information session on Wednesday, Sept. 30.

Registration is encouraged but not required. The city has also posted a survey on transportation needs and a full schedule of hearings and engagement opportunities on its Budget Public Involvement page. A new Budget 101 web page explains how the city's two-year budget process works.

The council has not yet voted on the budget or the TBD proposal.