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SDCI seeks fee increases, staffing steadiness and AI tools to sustain permitting and inspections
Summary
The Seattle Department of Construction & Inspections presented a fiscally balanced 2026 proposal that includes an 18% phased increase to many permit fees, one-time and ongoing investments in AI permitting tools, and use of core staffing reserves to maintain reviewer capacity for large projects such as Sound Transit expansion.
The Seattle Department of Construction & Inspections told the City Council Budget Committee on Sept. 30 that it needs to phase in permit fee increases and preserve trained staff so it can process permits reliably and prepare for major infrastructure projects.
Interim Director Kaylee Lee said the department proposes an 18% increase to most construction and master-use permit fees for 2026 (noting a full 35% increase would be needed to fully cover current costs). The department also proposes $500,000 one-time and $250,000 ongoing for AI permitting software and $100,000 to design a program to incentivize private-property tree preservation.
Why it matters: SDCI is funded primarily by permit fees; state law limits how those fees can be used. The department said revenues have fallen because permit activity has shifted away from a smaller number of very large, high-value…
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