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Have discovered that horizontal connections are provided (by the city?) on level -1. Suppliers can reach out and supply from level -2; while users (utility closets?) can reach out and grab these from level 0. So logically, the architect may use Utility Closets for vertical connectors and wires/pipes for horizontal connectors (similar to the level -1 horizontal connections). ... this 'one tile reach' may require further investigation?
Also, just happened to notice that tenants expecting a particular type of utility connection will provide one tile of that type of connection (which is the tile you must provide a connection to); with a little bit of planning this may allow one to save 'a tile here, a tile there, etc' on utility connections.
If money is REALLY tight, you don't need to build the closets right away, but you should leave space for them. Depending on the scenario you're doing, the cost for the closets can range from $10 to $50 per day, IIRC. The same thing goes with wiring. When money is flush, toward mid and end game, I tend to just run the wires across the whole floor, but early going, you'll have entire floors that only need electric and maybe water or telephone.
As NetPCDoc notes, all of your utility boxes should be in the basement. However, make sure you keep a VERY close eye on your utilization. With things like electricity, which every unit needs, you're going to want to use the medium and large boxes ASAP. With the other ones, you can get by with small and medium boxes for a while. If you can avoid it at all costs, you don't want to overburden your system. If you have only 10 power connections but 11 units that need power, it's random which one gets cut off, usually.