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City of Bellevue, WA City Council
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Council Roundup: Financial forecast update

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    Published July 18 2025

    Plus, garbage service, permit deadline extensions, Eastside energy partnership and commission appointments

    The City Council Tuesday received a mid-biennium financial outlook showing that while Bellevue’s tax revenues remain stable, national and regional trends are creating uncertainty that is impacting the local economy.

    Inflation, reduced consumer confidence, federal funding rollbacks and higher operating costs are creating instability that may limit future economic and revenue growth. Though construction activity remains steady, significant economic growth is not expected until at least 2027.

    Staff recommended a cautious, steady approach, staying the course with the current biennial budget while monitoring shifts in the broader economy. No changes were proposed to financial policy, but 2025 economic data will be critical to next year’s budget process. The city will continue to track conditions and update the council and public as needed.

    A video replay of the full discussion is available on Bellevue Television with supporting information available in the meeting materials.

    Republic Services work stoppage

    City Manager Diane Carlson gave an update on the Republic Services work stoppage due to an out-of-area labor disruption, which began July 9 and is affecting garbage collection in Bellevue and other communities across the country.

    Utilities staff are working closely with Republic and have coordinated a free drop-off location for residential waste while services remain suspended. Additional locations are expected to be provided as needed. Republic Services will provide service credits to customers on the next bill, and staff remain in close communication with Republic as the situation evolves.

    Permit deadline extensions approved

    In other business, the council unanimously approved Ordinance 6853, extending the validity of certain development permits in response to ongoing market uncertainty. The ordinance allows an initial extension, with the option for a second extension, for building, clearing and grading permits. This continues a long-standing policy – used during the 2010 recession and the COVID-19 pandemic – to support developers navigating economic headwinds and volatile construction conditions.

    The extension aligns with Bellevue’s Comprehensive Plan goals to foster a business-friendly environment and reflects the city’s commitment to easing development challenges during difficult periods. With additional time, developers can reassess project viability without facing costly reapplication processes or delays tied to updated building codes.

    Councilmembers discussed the appropriate duration for the policy, potential implications of older codes remaining in effect and the importance of monitoring whether extended permits lead to completed projects. The full discussion is available on Bellevue Television’s replay of the meeting.

    Eastside energy partnership spurs heat pump conversions

    The council received an update on Energy Smart Eastside, a partnership with Issaquah, Kirkland, Mercer Island, Redmond and Sammamish aimed at promoting equitable home electrification, with a current emphasis on heat pumps.

    Last year, adoption of heat pumps rose 5% on the Eastside (from 54% to 59%), driven largely by availability of ESE outreach, education, incentives and financial assistance. Bellevue aims to see 99% of all residential heating and cooling systems converted to heat pumps by 2032.

    On average, heat pumps reduce related greenhouse gas emissions by 91% compared to gas furnaces. They support community climate resilience, making adoption a key strategy for meeting Bellevue’s climate goals.

    This year, Energy Smart Eastside will expand to cover the full cost of heat pump installations in adult family homes that serve Medicaid patients.

    Proclamation and commission appointments

    The council issued a proclamation recognizing Pretrial, Probation and Parole Supervision Week (July 20–26), honoring the role of supervision professionals in promoting rehabilitation, community safety and second chances.

    Board and commission appointments

    Two community members were appointed to city boards: Mary Theisen to the Environmental Services Commission and Eric Drever to the Parks & Community Services Board. Both terms end on May 31, 2029.

    More information can be found at Boards and Commissions.

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