Understanding Upcoming Changes to Utility Connection Charges
Bellevue City Council has directed Bellevue Utilities to prepare an ordinance to implement the Environmental Services Commission's recommendations to amend Bellevue City Code to improve affordability, increase transparency, and preserve equity in the city’s utility connection charges as part of the upcoming biennial budget process.
What are the upcoming changes to utility connection charges?
- Discontinue use of Direct Facility Connection Charge, supporting affordability.
- Simplify water and sewer Capital Recovery Charges so that they are calculated based on meter size.
- Collect Capital Recovery Charges upfront at 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 charge for new connections that pays for the equitable share of the existing utility system.
Direct Facility Connection Charge (DFCC)
Recovers the city's costs of system expansion projects from new connections that directly benefit from it.
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.
Upcoming Changes
- No more DFCCs: Retire use of DFCCs. Recover utility 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 permit issuance 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).
Community Engagement
We hosted a community discussion session to share proposed changes to how utility connection charges are calculated and collected, and to hear feedback from the impacted community. This conversation helped ensure our approach is transparent, equitable and informed by community perspectives. The following engagement report summarizes what we heard and how it informed next steps.
Engagement Report - April 8, 2026
Timeline
April 8, 2026 – Bellevue Development Committee (BDC) Meeting
May 7, 2026 – Environmental Services Commission (ESC) Meeting
June 18, 2026 – Environmental Services Commission (ESC) Meeting
August 4, 2026 – Bellevue City Council Meeting
Aug-Dec 2026 – Public Awareness and Preparedness
January 2027 – Effective Date
Stay Informed
Have a question about the upcoming changes? Complete the form below and let us know.
In the upcoming changes, how much will Capital Recovery Charges (CRC) cost going forward?
The change replaces the SFE methodology used to assess water and sewer CRCs with a meter capacity equivalent ratio or “MCE.” The MCE methodology sizes the CRC on the basis of the maximum safe operating water flow for different-sized water meters. These ratios as published by the American Water Works Association (AWWA) are outlined in Exhibit 1. For example, a new ¾ inch connection would be assessed a CRC equal to one meter capacity equivalent. A new two-inch water meter would be assessed a CRC based on eight MCEs because a two-inch water meter provides a maximum flow of 160 gallons per minute, which is eight times the maximum flow of a ¾ inch water meter (160 gpm divided by 20 gpm).
Meter Size | Maximum Flow (gpm) | Meter Capacity Equivalent |
¾” or similar | 20 | 1.00 |
1” | 50 | 2.50 |
1½” | 100 | 5.00 |
2” | 160 | 8.00 |
3” | 320 | 16.00 |
4” | 500 | 25.00 |
6” | 1,000 | 50.00 |
Here is what the water and sewer CRC fee schedule for new connections would look like for 2026 based on water meter size.
Meter Size | Estimated Water CRC* | Estimated Sewer CRC* |
¾” or similar | $4,567 | $2,686 |
1” | $11,418 | $6,715 |
1½” | $22,835 | $13,430 |
2” | $36,536 | $21,488 |
3” | $73,072 | $42,976 |
4” | $114,175 | $67,150 |
6” | $228,350 | $134,300 |
*Charges assuming a new permit issued in 2026 using 2026 dollars
If CRC is based on meter size, will additional capacity for fire sprinkler systems lead to a higher amount?
Similar to how the city assesses the Cascade Water Alliance Regional Water Capital Facilities Charge (RCFC) for single-family customers, domestic “combination” meters sized to serve both domestic use and fire protection through installed fire sprinkler systems will be charged based on the meter size required for domestic demand alone, excluding fire protection needs. For CRC calculation purposes, the meter will be assumed to be one size increment smaller than the installed meter, and any additional capacity required solely for fire flow will not be subject to CRCs.
Will these upcoming changes affect Latecomer agreements?
Latecomer agreements are not in scope of these upcoming changes.
When will these upcoming changes to CRC and DFCC go into effect?
The changes will go into effect in January 2027. Please revisit this webpage for the latest updates and timelines.
What will change for properties paying a CRC as part of their utility bill?
There is no change anticipated for properties already paying a CRC as part of their bi-monthly utility bill. Upcoming changes to how CRCs are calculated and collected will be applied to properties on a going forward basis, upon approval and implementation.