Focus Area: Infrastructure and Legal
Staff Contact: Mary Jaeger, Beth Wright, Ron Shaver
Subject: Proposed amendments to Title 13 of the Olathe Municipal Code pertaining to water and sewer fees and charges.
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Consideration of Ordinance No. 25-29 amending Title 13 of the Olathe Municipal Code pertaining to water and sewer fees and charges.
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Summary:
This item was provided as a report on the City Council agenda on August 5, 2025. No changes were made to the proposed ordinance following that meeting.
In preparation for the adoption of the 2026 budget and comprehensive listing of fees, staff recommends that the sections of the Olathe Municipal Code (“O.M.C.”) authorizing wastewater service fees and water and sewer systems development charges be amended to specifically allow separate rates to apply within and outside the City boundaries, as the O.M.C. already allows for water service fees. Staff has prepared a proposed ordinance to make these changes (Attachment A).
Reasons to establish separate rates include the following:
• There is a cost to maintain water and sewer mains to areas outside of the city limits. A surcharge helps to ensure that all customers contribute to the overall cost of maintaining, operating and upgrading the utility’s infrastructure system.
• Serving those outside the city utilizes capacity that otherwise would be available to parcels within the city’s service areas.
• Low density areas mean fewer customers and higher per-customer investment to operate and maintain utility services.
• The addition of a surcharge also provides an incentive for customers to annex into the city limits. They would then contribute additional taxes and fees to support services for the entire community. At that point there would be an immediate reduction of cost of water and sewer services.
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Financial Impact:
The proposed amendments to the O.M.C. will allow the City to charge higher rates for water and wastewater services outside of the City boundaries.
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Action Needed:
Approve Ordinance No. 25-29 amending Title 13 of the Olathe Municipal Code pertaining to water and sewer fees and charges.
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Attachment(s):
A. Ordinance No. 25-29