Lynnwood weighs development, utility fee hikes to address 8M deficit

The Lynnwood City Council is grappling with an anticipated $8 million deficit for 2026, prompting proposals to raise utility connection charges and development fees significantly. The sewage connection charge may increase from $4,000 to $11,720 per equivalent residential unit, while a new water connection charge of $1,932 is under consideration. Public Works Director Jared Bond emphasized the importance of these charges for funding essential utility projects as the city's population grows. The council is also reviewing permit fee increases of 40% for large projects to better align with service costs, which currently see only 86% recovery. Staff presented multiple options for how to implement these increases, including an across-the-board fee hike or a varied incremental approach based on project size.

Concerns about discouraging residents from obtaining necessary permits for smaller projects were raised during discussions. The council plans to vote on these measures during its meeting on Nov. 24. These proposals aim to secure funding for future infrastructure needs while addressing the city's financial challenges.