Mayor Wilson’s 2027–2028 Proposed Budget for SDCI
Mayor Wilson’s 2027–2028 Proposed Budget focuses on providing responsible fiscal management of public funds for the people of Seattle. After years of unsustainable one-time fixes that did not address the deficit in future years, the mayor’s first budget begins the important, necessary work of stabilizing Seattle’s budget so that we can continue to provide essential services to the people of this city.
The people of Seattle deserve good government that delivers a city that is safe, affordable, and inclusive for all of Seattle’s residents. Mayor Wilson’s 2027-2028 Proposed Budget is structured to provide it. The decisions made in this proposed budget are not easy and come amidst a difficult backdrop of an inherited ongoing General Fund deficit that is compounded by actions taken at the federal level. Mayor Wilson’s budget is intended to help Seattle residents build a resilient city and create the conditions for lasting prosperity by making real progress towards closing the deficit and breaking the cycle of annual budget crises.
Seattle Department of Construction and Inspections (SDCI) key department highlights:
SDCI relies primarily on permit fees to support permitting, plan review, and inspection services. Development activity has improved modestly but remains substantially different from the conditions that historically supported SDCI’s fee structure, with fewer large, high-value projects and continued demand for smaller and mid-sized projects that still require significant staff review and inspection resources.
In 2026, SDCI implemented an 18% permit fee increase as the first step in a phased approach to improving the financial sustainability of permitting services. For 2027, SDCI proposes a 7% adjustment above the inflationary adjustment of 3.7% to applicable building and land use permit fees. The proposal continues the City’s checkpoint approach: SDCI will continue monitoring development activity, permit workload, revenues, service levels, and fund balance before determining whether additional adjustments are necessary.
The fee proposal is being paired with cost reductions. SDCI is reducing primarily vacant fee-supported positions, along with a limited number of other positions where reductions can be made while maintaining core permitting and inspection services. These actions will help slow the drawdown of SDCI’s reserves and better align ongoing costs with current development activity.
At the same time, SDCI continues to invest in improvements intended to make the permitting experience more predictable, accessible, and responsive.
Improving the Permit Review Experience
SDCI continues implementing recommendations from the October 2023 Permitting Process Audit, including efforts to improve customer focus, increase consistency and transparency in review comments, strengthen intake and submittal standards, and reduce unnecessary back-and-forth during permit review. To make the permitting process easier to understand, we’ve created a new Construction Permit Timeline tool. This visual guide shows each step of a permit application from intake, when SDCI first accepts your materials, all the way to permit issuance. It’s designed to help see where a project is in the review process and what comes next.
SDCI is also expanding how it measures the permitting experience. Customer surveys are already underway, and SDCI is developing recurring staff surveys to gather feedback from the employees who work directly on permit applications. Together, these perspectives will help identify where processes are working well and where additional improvements are needed.
Expanding Customer Access and Support
Customers can receive assistance in person through SDCI’s Info Desk and remotely through mobile‑friendly online support—including free live chat, video calls, phone assistance, and email—so customers can get permitting guidance from anywhere. Staff connect with customers quickly and in multiple languages, providing free coaching to about 200 people each day with consistently high satisfaction. This streamlined approach has proven more efficient than our former in‑person‑only model while maintaining the high‑quality service customers expect. With an overall satisfaction rating of over 94%, it’s clear our staff continues to provide the knowledgeable and friendly service our customers value.
Supporting Housing Production and Cross-Department Coordination
SDCI is participating in the City’s Housing Production Task Force and related efforts to identify ways to make housing permitting faster and more predictable across City departments. The 2027-2028 Proposed Budget also establishes an Affordable Housing Ombud at SDCI to help low-income housing permit applicants navigate cross-departmental permitting processes, with a particular focus on community-driven development.
Using Technology to Improve Permitting
SDCI continues to evaluate and deploy technology intended to make permit review more efficient and consistent. This includes work to introduce AI-assisted tools into portions of the permit process and modernize mapping and information systems used by staff to evaluate development proposals. These efforts are intended to support staff expertise, reduce repetitive work, and improve the consistency and timeliness of permit review.
The 2027-2028 Proposed Budget includes smaller fee adjustments than in 2026, along with staffing and expenditure reductions, continued monitoring of financial conditions, and ongoing work to improve permitting services. Our goal is to maintain a financially sustainable permitting system while improving predictability, responsiveness, and service for applicants.
The following is a summary of SDCI’s significant budget and fee changes:
Permit Fee Adjustments
Continued Phased Fee Adjustments – The 2027 proposed fee adjustments are part of a phased approach to improving cost recovery while avoiding a larger one-time increase. This approach provides greater predictability for applicants and allows us to monitor development activity, revenues, and service needs each year before determining whether further adjustments are necessary.
- The phased fee adjustments that began in 2026 will continue through 2027. SDCI proposes to increase building and land use permit fees 7% above the inflation adjustment of 3.7% (estimated increase in staffing costs).
- Mechanical, refrigeration, furnace, boiler, and related inspection fees increase 15% above the inflationary adjustment, while conveyance fees increase 5% above the inflationary adjustment.
- A new, recurring, 2-year, $11‑per‑rental- unit Rental Agreement Regulation fee (equivalent to $5.50 per rental unit per year) will support implementation and enforcement of Ordinance 127497.
- Vacant Building Monitoring fees are realigned to match SDCI’s Base Fee methodology and to improve cost recovery for the program.
- Fee terminology is standardized to make future updates easier and more consistent.
New Programs & Initiatives
Rental Agreement Fee Regulations Implementation – SDCI is adding 3.0 FTE (1.0 Planning & Development Specialist, Sr. and 2.0 Code Compliance Analysts) to implement and enforce newly adopted City regulations governing fees charged to residential tenants under rental agreements. The 2027 Proposed Budget provides $915,000 in 2027 and $796,000 in 2028 for implementation, enforcement, and ongoing administration. The program will be self-supported by a new per-rental-unit regulatory fee billed in conjunction with the Rental Registration and Inspection Ordinance (RRIO), rather than General Fund. RRIO fees will not be increased in 2027.
Affordable Housing Ombud – SDCI is adding 1.0 FTE (Strategic Advisor 2) to establish an Affordable Housing Ombud position to help low-income housing permit applicants navigate cross-departmental permitting processes, with a particular focus on supporting community-driven development. The position advances the permitting actions identified in Mayor Wilson’s Executive Order 2026-4 to accelerate housing production and is supported by the JumpStart Payroll Expense Tax Fund.
Reductions
Permit Fee-Funded Position Reductions to Improve Fund Health – SDCI reviewed the staffing levels in our Building and Land Use permit fee-supported workgroups in light of current and projected permit volumes, workload, and revenue trends. To better align our staffing with anticipated workload, minimize permit fee increases, and stabilize the Construction & Inspections Fund, the 2027-2028 Proposed Budget eliminates 34 positions, most of which are currently vacant. While no filled permit processing, plan review, or inspection positions are impacted by this budget proposal, staffing reductions in other areas will be necessary.
Shift Tenant Services Funding to JumpStart Payroll Expense Tax – As part of SDCI’s General Fund reductions, funding for Tenant Services added by the City Council in 2026 will shift from the General Fund to the JumpStart Payroll Expense Tax Fund. This change maintains funding for the services while reducing ongoing General Fund support and better aligning the added resources with the program’s existing funding structure.
For more information on the proposed budget, read the mayor’s press release here: Office of the Mayor – Mayor Katie B. Wilson.
NEXT STEPS AND COMMUNICATION ABOUT BUDGET
Over the next two months, the City Council will review Mayor Wilson’s 2027–2028 Proposed Budget. Public hearings are on October 6 and November 5. Final adoption of the budget is expected on November 20. Press questions may be directed to MOS_Comms@seattle.gov.
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