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

Key takeaways: • Staff propose raising sewer connection charge by over $7,000 and introducing a new $1,932 water connection charge to bridge revenue shortfalls. • The Council also reviewed permit and business fee increases of up to 40% for large projects. • Councilmembers discussed ways to spend the City’s $1 million affordable housing fund.

The Lynnwood City Council spent its Nov. 19 work session wading through proposals to increase development costs across the city, including hikes to utility connection charges and development permit fees to generate revenue amid an estimated $8 million 2026 general fund deficit. The Council also discussed how to spend the $1 million in the City’s affordable housing reserve fund.

Utility connection charges: Lynnwood Public Works Director Jared Bo