Understanding Proposed Changes to Utility Connection Charges
Bellevue Utilities is exploring updates to how utility connection charges are calculated and collected.
The updates would align with industry best practices and regional common practice while improving affordability, increasing transparency and preserving equity for Bellevue’s growing community.
What is being proposed?
- Eliminate Direct Facility Connection Charge, supporting affordability.
- Simplify how Capital Recovery Charges are calculated so costs are clearer and easier to understand.
- Move connection charges collection to permit issuance, consistent with all other utility development fees.
Background
When a new home or building connects to Bellevue’s water, sewer, or stormwater systems, a connection charge is required. Two charges are currently used:
Capital Recovery Charge (CRC)
A fee that helps pay for a property’s equitable share of the existing utility system.
Direct Facility Connection Charge (DFCC)
A fee used to recover costs of certain local system growth projects, such as sewer extensions, from properties that benefit from them.
Current Status
- Big upfront costs: DFCCs can be over $100,000. This increases costs of development and can create an affordability barrier for a customer to connect to the system (e.g., transitioning from septic to sewer). The resulting delay in project cost recovery is borne by ratepayers.
- Complexity: Water and Sewer CRCs are calculated using Single-Family Equivalents (SFE), which are based on factors such as number of units or fixtures making it hard to understand.
- Timing: CRCs are primarily collected via the utility bill for up to 10 years after connection. This is a surprise “extra charge” to property owners, since they often have no information about this fee prior to being charged.
Proposed Changes
- No more DFCCs: Retire use of DFCCs. Recover CIP expansion project costs as outlined within adopted system development plans via CRCs. This will lower costs to connect to growth projects (e.g., sewer extensions) and will improve cost recovery from those projects.
- Simpler calculation: Base water and sewer CRCs on the size of the water meter installed on the property, according to the capacity needed.
- Pay once upfront, not over 10 years: Collect CRCs at permitting instead of on the utility bill. Full utilities-related project costs are known upfront and can be included in any financing or grant applications (for low-income housing).
Stay Informed
Have feedback to share about the proposed changes, or a question? Call or email:
Dwight Smith III, Development Review Manager
425-452-4127
DBSmith@bellevuewa.gov
