SEATTLE, WA – The Seattle City Council is considering increasing infrastructure fees so that the city can help developers cover the cost of installing critical water mainline infrastructure.
The Seattle Public Utilities Department says it needs better water and drainage systems, but notes that a chunk of this cost rests on housing developers. The first developer in an area that lacks this infrastructure typically pays more than $500,000 to cover the cost of infrastructure in the area if it is not fronted by a water, wastewater, or drainage main.
According to Seattle Mayor Bruce Harrell’s office, projects facing these costs are 30% less likely to move forward than those that don’t.
In order to relieve these subject developers, the department suggests using system development charge revenue to directly share cost burdens on development infrastructure projects.
Harrell’s proposed legislation is meant to help by charging more upfront, then reimbursing developers for part of the cost after construction.
Under the current city code, about 10% of projects that come to Seattle Public Utilities are required to build a water, wastewater and drainage mainline extension.
“But those 10% of [developers] are spending on average $16 million a year on these projects,” Seattle Public Utilities Deputy Director Keri Burchard-Juarez said during a committee meeting on Wednesday. “So what we are proposing is to spread that responsibility out a bit.”
The proposed ordinance would increase the current water system development charges of $2,400 to $6,900. Wastewater charges would be set at $2,600, and drainage at $1,125. The increased system development charges would bring in about $18 million, according to Burchard-Juarez. That’s enough to slash developer contributions from $16 million to $3 million, per public utilities estimates.
Under Harrell’s proposal, a developer would still design and build the watermain, but said developer would only be responsible for the cost of the portion directly in front of their development. Seattle Public Utilities would reimburse the remainder of the project.
Seattle Public Utilities officials estimate that the program will have a shortfall of approximately $1.8 million as it rolls out. In order to fill that gap, the department would use fees levied on new development.
The legislation will continue to be discussed in committee. If the city council approves the legislation, the new system development charges and cost sharing program would go in effect on Jan. 1, 2026.
