Facility Reserve Charges (FRC) are a “connection fee” to the District’s water system. Simply explained, any time a new water meter is installed, more demand is placed upon the overall water distribution system. The FRC fulfills two purposes. First, the fee recovers the costs that existing customers have paid to provide capacity for new customers through existing facilities. Second, the fee provides that future facilities built in order to serve new connections are paid for by the new connections. The FRC is a mechanism through which growth pays for the facilities needed to serve growth. The FRC is a fee imposed on new development wishing to connect to the District’s system as well as existing customers that upsize their reserved capacity in the system. The FRC is designed to equitably recover a proportionate share of available capacity in the existing water system and for the cost to expand system capacity necessary to meet the demands of future development.