Bellevue Begins 2023-24 Budget Discussions

BELLEVUE, WA — The Bellevue City Council this week began early discussions on the 2023-2024 operating budget, which officials expect will be further impacted by rising inflation and a projected $3 million deficit in the general fund.

Council members discussed a report Monday evening, providing an updated outlook on the upcoming budget and capital investment projects along with some preliminary recommendations.

In a news release, the city noted inflation rose 6.3 percent in the 2021 fiscal year, and the situation is likely to worsen heading toward June when rates are calculated for the next budget. Data released by the Bureau of Labor Statistics on Thursday found inflation up more than 8 percent in the Puget Sound region for consumer purchases between February 2021 and February 2022.

"During the 2023-2024 budget cycle, city expenditures — driven by urbanization and inflation — will outstrip revenues, a structural deficit that was expected and has been shared in prior budget forecasts," the city wrote Wednesday. "Councilmembers discussed strategies for sustainably overcoming the imbalance through cost containment measures, new revenue sources and partnerships, or one-time use of reserve funds."

As The Urbanist reported Tuesday, the city estimates that, without action, Bellevue's cumulative budget deficit could hit $70 million by 2028. Revenue estimates were better for the city's seven-year capital investment plan, including an extra $20 million in projected revenue available from the city's tax on large real estate transactions.

With the budget process still in its early stages, at least three more public hearings are scheduled in the coming months and the city said opportunities for public comment and other community engagement will be shared in the coming weeks and months.