A CHARTER ORDINANCE AMENDING SECTIONS THREE AND EIGHT OF CHARTER ORDINANCE NO. 33 RELATING TO DELAY IN PAYMENT OF SPECIAL ASSESSMENTS FOR PUBLIC IMPROVEMENTS AND UNDEVELOPED AREAS.

BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF OLATHE, KANSAS:

SECTION ONE: That Section Three of Charter Ordinance No. 33 is hereby amended to read as follows:

"SECTION THREE: Conditions for Delay. The Governing Body may allow and provide for a delay in the payment of special assessments for the cost of constructing public improvements for a period of up to ten (10) years or until the property is sold, developed or platted if all of the following conditions are met:

(a) The land upon which the special assessment is to be levied is located inside the city limits of Olathe.

(b) The land is used for agricultural purposes. Agricultural purposes means that the land is being actively used for the growing of crops or the raising of livestock.

(c) The land is undeveloped and unplatted.

(d) The land is in excess of four (4) acres in size.

(e) The land has a population density of less than one family per acre.

(f) The land is not served by the public improvement. Not served by the public improvement means the following:

(1) For sewers--buildings or structures on the property will not use the sewage facilities and do not need the facilities to meet health requirements;

(2) For waterlines--structures on the property will not use the water improvements and have adequate potable water to meet property's need;

(3) For streets--the street improvement is not necessary to provide access to existing buildings or structures, or if none exist, to the property itself;

(g) The assessment would provide a hardship to the owner of the property; and

(h) For the term of the delay and the collection period of assessments, the owner agrees to pay an amount designed to compensate the city for the carrying cost associated with paying the debt service on special assessments that have been delayed (recoupment costs). This amount will be calculated as follows: the total cumulative amount of assessments paid by the property owner shall be subtracted from the total cumulative amount expended by the city for principal and interest payments on the delayed assessments to determine the net amount expended by the city. The net amount expended shall be multiplied by an interest rate equal to the yield of the most recently issued ten (10) year treasury notes as listed in the Wall Street Journal on the day following the passage of the assessment ordinance."

SECTION TWO: That Section Eight of Charter Ordinance No. 33 is hereby amended to read as follows:

"SECTION EIGHT: Recoupment Charge. The recoupment charge shall be payable on an annual basis. The city treasurer shall calculate the amount due and shall send an invoice to the property owner for payment."

SECTION THREE: This charter ordinance shall be published once each week for two consecutive weeks in the official city newspaper.

SECTION FOUR: This is a charter ordinance and shall take effect sixty-one (61) days after final publication unless a sufficient petition for a referendum is filed and a referendum held on the ordinance as provided in Article 12, Section 5, Subdivision (c)(3) of the Constitution of Kansas, in which case the ordinance shall become effective if approved by a majority of the electors voting thereon.

PASSED by the Governing Body, not less than two-thirds of the members elect voting in favor thereof, the 4th day of October, 1988.

SIGNED by the Mayor this 4th day of October, 1988.