Title
Presentation / Discussion: Consideration of the Water Connection Fee Recommendation
Body
Key Issues:
The Water Tap Fee for FY25 for a residential equivalent unit which is identified as a 5/8" x 3/4" meter was established at $4,080. The methodology provided that: •
• Fees would be proportional to the size of the water meter.
• Costs of projects with annual review to ensure the proper allocation and cost recovery necessary to serve new development.
For the 2026 update of the Water Tap Fee Model, the following factors were updated.
• In FY25, there were 621 equivalent residential units consumed through the issuance of building permits. The number of remaining equivalent units was reduced to 40,919.
• The Water Tap Fee fund collected $2,958,588 during FY25.
• The remaining projects costs in the model were updated based on the Engineering Record Construction Cost Index which was 2.4% for this year through November.
Staff recommends:
Increase the water tap fee for residential equivalent unit for the (5/8” x3/4” meter) from $4,080 to $4,218 effective data of July 1, 2026.
Increase fees proportionally to the size of the water meter.
Proposed Motion:
I move to recommend City Council approval to amend water tap fee and fee schedule effective July 1, 2026.
Background:
In December of 2022, The Water Utilities department presented new methodology for calculation of water tap fees based on the completion of master planning efforts to ensure that fees were appropriately designed. The Water Master Plan allowed the department to review the water tap fee model similar to the process that was used for the sanitary sewer connection fee methodology.
The original water tap fee methodology was developed in the mid 1990’s to address water supply demands that were in constraining development. The water tap fees were des...
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