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).
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 helps ensure our approach is transparent, equitable and informed by community perspectives. The following engagement report summarizes what we heard and how it will inform 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 2026 (Date TBD) – Environmental Services Commission (ESC) Meeting
Q3/Q4 2026 (Date TBD) – Bellevue City Council Meeting
*As dates finalize, this timeline will be updated for any items marked as TBD.
Stay Informed
Have feedback to share about the proposed changes, or a question? Complete the form below and let us know.
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 proposed changes affect Latecomer agreements?
Latecomer agreements are not in scope of these proposed changes.
If approved, when will these proposed changes to CRC and DFCC go into effect?
If approved by City Council in Q3 2026, the changes will start to go into effect in Q1, 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. Proposed changes to how CRCs are calculated and collected will be applied to properties on a going forward basis, upon approval.