Lynnwood approves fee increases for permit services, business licenses

EVERETT — The Lynnwood City Council narrowly approved fee increases to permit services and business licenses Monday.

The votes come as the city continues to address its $25 million shortfall. The shortfall largely stems from lower-than-expected revenues from building permits, as well as sales tax and red-light cameras. A combination of cuts , policy changes and tax increases had lowered the 2026 shortfall to $4.8 million before Monday’s votes.

Starting Jan. 1, the city will implement a 14.7% permit services fee increase across the board. Permits valued over $5 million will see a larger increase of 35%, and the base rate of building and electrical permits will increase by $114.

City staff anticipate between $537,000 and $2 million in additional revenue for 2026 from permit fees.

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