Fee Increases

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Occasionally certain fees are increased to assure the City of Olathe can continue to provide the highest quality services possible. Explanations for why certain fees are increased are available below.
Transfer Station Fee Increase

Why is an increase necessary?

After completion of the Solid Waste Mater Plan, to maintain the current transfer station services, an increasein fees was necessary to cover service costs, as well as future expansion-related costs.

When will the new fees go into effect?

January 1, 2019

What does the fee pay for?

The fee generates revenue to cover current service costs, as well as future expansion-related costs.

What are other options for disposal in Johnson County and what are their rates?

Costs for the Olathe Transfer Station will continue to be the most competitive in Johnson County at $55 per ton with a $55 minimum. The other landfills in Johnson County can range from $75 per ton to $300 per ton.

Is there a discount available for Olathe residents?

Yes, Olathe residents can dispose of trash at a rate of $55 per ton, with a $30 minimum. Residents will need to provide an ID and City Utility Bill to qualify. 

What if I have additional questions?

If you have questions about the rate change, please contact Customer Service at 913-971-9311, Monday through Friday, 8 a.m. to 5 p.m.

System Development and Connection Fee Increase

What are system development fees?

A System development fee (SDF) is a one-time charge implemented to recover costs associated with the upfront capital investments required to make services such as water and sewer available to new homes, subdivisions, and retail/commercial developments. These costs generally include the construction of facilities as well as land, engineering, surveys, rights-of way acquisition and other related costs.

What is the difference between a system development fee and a connection fee?

SDFs help recover the capital cost of new water and sewer lines, water and wastewater treatment plants, tanks, pump stations, and other facilities to provide water and sewer to new customers. A connection fee recovers the City’s costs related to construction of the individual service lines from water and sewer mains in the street to the customer’s property line and includes the costs for labor, equipment and materials.

Why are SDFs necessary?

Water and wastewater operators use SDFs to fund capital projects that will provide service to new or future users of the system. This practice helps mitigate the need for the system’s existing customers to pay for system growth and expansion through increased monthly rates. In essence, a SDF assigns a portion of growth-related costs primarily to the new customers responsible for creating those additional costs.

How much are SDFs and who pays them?

SDFs depend on the customer's tap size. A tap is the individual service line from water and sewer mains in the street to the customer’s property line. An SDF is paid when a new tap is placed, and the customer applies for service. The fee can vary. Please see the chart below for more specific information.

Will only City of Olathe customers pay these fees?

No, SDFs are applied to all new water and/or sewer customers.

Do SDFs apply to exiting development?

No, SDFs only apply to new connections to the City’s water and/or sewer system.

Why don’t current property taxes or future taxes paid by new home and business owners cover system expansion costs?

The water and sewer utility does not operate using property taxes, instead it operates as an enterprise fund, using water and sewer rates and fees to cover the operating, capital, and debt service costs for the utility rather than property tax revenue.

System Development Fees – Water

 Fee 2018 Rate 2019 Approved Rate 
 5/8 inch meter $4,300 $4,450.50 
1 inch meter  $10,750 $11,126.50 
 1 1/2 inch meter $21,500  $22,252.50
2 inch meter   $34,400 $35,604
3 inch meter  $64,500   $66,757
4 inch meter   $107,500  $111,262.50
6 inch meter   $215,000  $222,525
8 inch meter  $344,000  $356,040 

System Development Fees –Sewer

FEE 2018 RATE 2019 APPROVED RATE
5/8 inch meter $4,800 $4,968
1 inch meter $12,000 $12,420
1 1/2 inch meter $24,000 $24,840
2 inch meter $38,400 $39,744
3 inch meter $72,000 $74,520
4 inch meter $120,000 $124,200
6 inch meter $240,000 $248,400
 8 inch meter $384,000 $397,440

 

Stormwater (Non-Residential) Rate Increase

 The City maintains an extensive stormwater system including:

  • 319 miles of pipes and culverts
  • 10,865 stormwater inlets
  • 259 miles of streams
  • Green infrastructure (lakes, dams, rain gardens, detention basins, wet ponds)
  • Currently valued at $264 million

Why is an increase necessary?

An increase is necessary to continue to adequately fund the stormwater system. Stormwater management routes water through the City in a way that prevents flooding and protects water quality, as well as comply with regulations from the Environmental Protection Agency (EPA). Significant portions of the system are reaching the end of their useful lives and will need to be replaced. Proactive planning will allow for strategic replacement vs. costly emergencies.

How will the additional revenue be used?

The additional revenue will be used to pay for necessary operations and maintenance expenditures, as well as current and future capital projects.

Why are the increases not equal across tiers?

The increase for non-residential fees and stabilization of rates for residential fees is due to rate inequity between fee groups. The City is currently not collecting the full cost of providing service to non-residential customers.

When will the new fees go into effect?

January 1, 2019 and January 1, 2020

What do the fees pay for?

Stormwater fees pay for the three main purposes of stormwater management:

  • Water Quality Protection
  • Flood Control
  • Stormwater System Management

How were the revised fees calculated?

Fees are calculated through a cost of service model that uses current and future revenues and expenditures to determine how to adequately maintain and pay for the current and future stormwater system.

Are any discounts available?

Yes! Charitable, nonprofit organizations located in Olathe may qualify for a monthly discount on City non-residential stormwater service charges. Any nonprofit organization located in Olathe and exempt from taxation under § 501(c)(3) of the Internal Revenue Code (IRS) are encouraged to apply. Upon receipt of needed information and approval of the discount, future monthly bills will be based on the nonprofit rate as stated in the most current Comprehensive Listing of Fees and Charges. A completed application includes your IRS Letter of Determination and submittal of the online web form.

Stormwater Management Fee – Non-Residential

 Lot Area Sq. Ft. 2018 Approved Rate 2019 Approved Rate
 20,000 $5.77/mth $6.46/mth
< 40,000 $17.32/mth
$19.40/mth
< 60,000 $28.87/mth
$32.33/mth
< 80,000 $40.41/mth
$45.26/mth
< 100,000 $51.96/mth $58.20/mth
< 120,000 $63.51/mth
$71.13/mth
< 140,000 $75.05/mth
$84.06/mth
< 160,000 $86.60/mth
$96.99/mth
< 180,000 $98.14/mth
$109.92/mth
< 200,000
$109.69/mth
$122.85/mth
< 220,000
$121.24/mth
$135.79/mth
< 240,000
$132.78/mth $148.71/mth
< 260,000
$144.33/mth
$161.65/mth
< 280,000
$155.88/mth
$174.59/mth
< 300,000
$167.42/mth
$187.51/mth
< 320,000
$178.97/mth
$200.45/mth
< 340,000 $190.52/mth
$213.38/mth
< 360,000
$202.06/mth
$226.31/mth
< 380,000
$213.61/mth
$239.24/mth
< 400,000
$225.15/mth
$252.17/mth
< 420,000
$236.70/mth
$265.10/mth
< 440,000
$248.25/mth
$278.04/mth
< 460,000
$259.79/mth
$290.96/mth
< 480,000
$271.34/mth
$303.90/mth
< 500,000
$282.89/mth
$316.84/mth
< 520,000 (2018 cap of > 500,000)
$288.66/mth
$323.30/mth
< 540,000
  $334.85/mth
< 560,000
  $346.40/mth
< 580,000
  $357.95/mth
< 600,000
  $369.50/mth
< 620,000
  $381.05/mth
< 640,000
  $392.60/mth
< 660,000
  $404.15/mth
< 680,000
  $415.70/mth
< 700,000
  $427.25/mth
< 720,000 (2019 cap of 700,000)
  $438.80/mth
< 740,000
   
< 760,000
   
< 780,000
   
< 800,000
   
< 820,000
   
< 840,000
   
< 860,000
   
< 880,000
   
< 900,000
   
> 900,000 (2020 cap of 900,000)