Monroe council directs staff to return with ADU fee options after sharp debate over system development charges

Monroe City Council members told staff on May 20 to return with alternative fee approaches for accessory dwelling units, including a deferred-charge option modeled on Arlington's policy and a 50% park/transportation-fee cap, after a lengthy discussion about who should pay for added utility and infrastructure costs.

The workshop focused on whether ADUs should be assessed system development charges (SDCs) and connection charges for water and sewer, park impact fees capped by state law at 50% of the primary unit's fee, and transportation impact fees (TIFs). Amy Bright and a city staff team described the policy choices and the technical basis for existing fees; Jacob (staff member) outlined how Monroe currently calculates SDCs by dwelling unit and noted that "accessory dwelling units are exempt from system development charges at this time." Council members pressed staff over whether charging SDCs on existing connections would discourage ADU construction.

Why it matters: The state's recent ADU law (House Bill 1337, codified at RCW 36.78.680 and .681) lowers some local barriers to ADU construction beginning July 1, 2025. Cities must decide how to apply capital-cost recovery fees when ADU growth increases demand on sewer, water, parks and streets; those choices affect the affordability and feasibility of ADUs for homeowners.

Most important facts

- Staff presented options ranging from continuing the current exemption (no SDCs for ADUs) to charging full SDCs plus physical connection charges. Alternatives included: (a) a full-charge P3 committee recommendation (SDCs + physical connection charge), (b) a 50% SDC reduction, and (c) the Arlington model (defer some fees until sale/condominiumization of a detached ADU).

- Several council members, led by Councilmember Gamble, argued that charging SDCs on an ADU that shares an existing utility connection would "make it worse for our residents" and could recreate the high-fee barrier the city previously removed; Gamble said: "Is that what we're proposing now? Which is an impact fee charge on an existing connection on a single family unit of upwards of 17,000 to…