Bellevue Environmental Services Commission Meeting – June 22, 2026

The Environmental Services Commission (ESC) met on June 22, 2026, to discuss and vote on proposed changes to utility connection charges and to receive a revised 2027–2032 rate forecast. The meeting included public comment, councilmember kudos on the rate relief program, and detailed presentations from staff. All three proposed connection charge amendments were approved unanimously, and the commission requested further analysis on potential rate mitigation strategies.

Public Comments & Testimony

• Written Communications: Staff acknowledged emails received on topics including budget development and capital recovery charges, noting that these would be addressed in presentations and Q&A.
• Oral Communication: Alex Zimmerman spoke, criticizing the city council and mayor for environmental and governance issues. The chair reminded him that public comment must relate to the commission's powers. After two minutes, the chair asked him to focus on relevant topics, and Mr. Zimmerman declined, making personal attacks. The chair ended his comment.

Discussion Items

• ESC Recommendation on Proposed Changes to Utility Connection Charges

  • Dave Baish (Assistant Director of Engineering) and Matt Hobson (Fiscal Manager) presented three proposals to improve affordability, transparency, and equity:
    1. Retire DFCCs (localized expansion charges) and absorb costs into CRCs (capital recovery charges). This eliminates upfront barriers (e.g., a $130,000 DFCC per parcel would only increase the CRC by ~$172 for a single-family home). Staff noted this aligns with growth-pays-for-growth policy and does not shift costs to existing ratepayers.
    2. Simplify CRC calculation: Move from a complex single-family equivalent (SFE) model to a water-meter-size-based charge. This increases predictability, encourages water conservation, and for multifamily projects may lower charges. Fire sprinkler capacity would be exempted.
    3. Change CRC collection timing: Currently collected via utility bills over 10 years; proposed to collect at permit issuance (consistent with other development fees). Staff noted this eliminates confusion and aligns with industry practice. 1,012 accounts are currently in the 10-year cycle (76% single-family); those would continue under the old terms.
  • Commissioners asked about the 1,012 existing accounts, revenue impact, and the effect on affordable housing. Staff clarified that affordable housing can receive fee waivers if alternative funding (e.g., state grants) is secured.
  • On proposal 3, Commissioner Lutterman moved an amendment to collect CRCs at certificate of occupancy instead of permit issuance, to provide flexibility for developers. The amendment failed (1-5). The original motion then passed unanimously.

• Utilities 2027-2032 Rate Forecast Update

  • Matt Hobson presented a revised forecast based on updated operating and capital budgets, incorporating wholesale cost increases from King County and Cascade Water Alliance, and a 35% year-over-year increase in self-insurance costs for 2027.
  • Key changes from the May early outlook: higher King County treatment rates (11.5% for 2031–2032), higher Cascade wholesale costs (9.5% for 2027–2028), and a $3 million increase in insurance expenses (equal to ~1.5% rate increase). The capital program was reduced by $20 million, redirecting funds to the renewal-and-replacement fund with no rate impact.
  • Forecasted rate increases: Combined single-family bill to rise 9.8% in 2027 (to ~$246/month) and 9.7% in 2028. Drivers include wholesale costs (+$10.53/month), bill assistance program expansion (+$2.06), other local costs (+$6.95), and a sewer equity adjustment. Multifamily bills are projected to increase 8.2% in 2027, with a sewer rate reduction offsetting some costs.
  • Commissioners expressed concern about the spike compared to historical increases and asked staff to explore options to lower the rate, such as a temporary suspension of the policy to fully fund the renewal-and-replacement reserves. Staff noted that reductions would likely affect service levels or deferred maintenance, but agreed to analyze alternatives and present them at the July 2 meeting.
  • The chair noted the scheduled study session on utility connection charges for August 4 and the July 14 council meeting on Cascade budget rates.

Key Outcomes

• Proposal 1 – Retire DFCCs: Motion by Commissioner Lutterman, seconded by Commissioner Heinosh. Approved unanimously (6-0).
• Proposal 2 – Meter-size-based CRC calculation: Motion by Commissioner Lutterman, seconded by Commissioner Margolis. Approved unanimously (6-0).
• Proposal 3 – Collect CRCs at permit issuance: Original motion by Commissioner Lutterman, seconded by Commissioner Tyson. Amendment to collect at certificate of occupancy failed (1-5). Original motion then passed unanimously (6-0).
• Rate forecast update: No formal action was taken. The commission asked staff to provide additional analysis on potential rate reduction strategies by the next meeting (July 2, 2026).
• The meeting adjourned at approximately 8:30 PM.