1. Maximum Cost. Each petition will include a maximum cost to construct the benefit district improvements, which amount will include appropriate contingencies. Such maximum cost will be based on the presumption that, upon creation of the benefit district, the City will contract for the design and construction of the project under a public solicitation process in accordance with Olathe Municipal Code Chapter 3.50 (Procurement Policies) and any amendments thereto. The City discourages, but reserves the discretion, to allow a petitioner to design and construct benefit district improvements in lieu of the city contracting for those improvements if they can demonstrate that doing so will result in cost savings for property owners within the district. In such event, the City will conduct all standard reviews and inspections of the project (and charge such related fees to the project) to ensure compliance with the City’s technical specifications and requirements for the design and construction of public improvements.

2. Benefit District Boundaries. Each petition will include a legal description which includes all property to be assessed the cost to construct the proposed improvements. It is the City’s strong preference that no lots be partially included within and partially excluded from a benefit district.

1. Pursuant to K.S.A. 12-6a19, the Governing Body may require the owners of property, which benefit from an improvement initiated by petition but which was not included within the original improvement district, to pay a benefit fee at the time the owners of such property request, by petition, to be served by such improvement. The benefit fee will be the amount of the assessment, including principal and interest (limited to the term of bond financing for the improvement district), which would have been levied against the property had it been included in the original improvement district. The benefit fee will be due and payable in one lump sum at the time the property begins being served by the improvements unless an alternate payment schedule is approved by the Governing Body.

2. If the costs of the project were originally assessed 100% to the original improvement district, any benefit fees paid will first be applied to the outstanding balance of bonds financing the improvements and will result in a commensurate reduction of any remaining assessments to be levied against property originally included in the improvement district. Any benefit fees paid in excess of the outstanding balance of bonds financing the improvements will be remitted to the then current owners of property within the original improvement district to reimburse such owners for assessments related to the improvements. No benefit fees will be collected after bonds financing the improvements have been paid in full.

3. If the costs of the project were shared by the original improvement district and the City, with the City paying the project costs attributable to the additional property subject to the benefit fee, any benefit fees paid will be applied to the City general bond and interest fund. Benefit fees financing improvements paid in whole or in part by the City will be collected regardless of whether bonds financing the improvements have been paid in full.

1. In accordance with the City’s Debt and Fiscal Management Policy No. F-1, annual CIP, Comprehensive Plan, and Subsection H, above, the deadline to submit all requests for creation of a benefit district and funding of the benefit district improvements by the City’s general obligation temporary notes or bonds is the December 31 of the year preceding the year the project would be funded with the proceeds of temporary notes.

2. Adherence to the deadline set forth in Subsection 1, above, will allow the Governing Body to include benefit district projects in the CIP process and to prioritize benefit district projects based on a combination and variety of factors in order to account for areas of greatest need. These factors may include, but not be limited to, the percentage of City cost participation proposed to finance construction of the benefit district improvements, the physical size of the district, the amount of private investment proposed for and served by the benefit district improvements, the location of the district, the impact on existing infrastructure caused by the district, the proposed land use of the development served by benefit district improvements, the degree to which the proposed improvements conform to the City’s growth management policies and comprehensive plan, and whether the proposed improvements are of a community-wide significance.

3. A petition which requests construction of improvements funded 100% by the property owners within a benefit district will be considered and recommended for approval after the submission deadline identified in Subsection 1, above, if the City determines, at its sole discretion, that it has the capacity to administer the requested benefit district project.

1. If construction of the improvements described in the petition have not begun for at least five (5) years after approval of the petition, and acquisition of all right-of-way and/or easements necessary for construction of the improvements has not been completed within five (5) years of approval of the petition (due to delays related to unforeseen events, including, but not limited to, litigation, inflation-related increases in construction costs, and changes in the financial environment such as a recession);

2. If changes in ownership and/or land development patterns in the area have reduced or eliminated the need for the improvements described in the petition; and/or

3. If the City’s share of the total costs to construct the improvements in the benefit area have increased over the amount described in the resolution creating the benefit district.

1. Benefit district financing will generally be limited to the construction of arterial streets and service streets in commercial and industrial developments, as defined in the City's Street Improvement Policy (Public Improvement Policy No. PI-3).

2. Arterial streets which serve primarily residential development may be initially constructed or improved to City arterial street construction standards through benefit districts so long as the developer petitioning the Governing Body to create a benefit district for such improvements makes the following affirmations in writing:

3. No benefit district created for the purpose of financing construction of an arterial street may have assessments levied against property in the district in excess of ten (10) years, with a goal of such assessments being levied for shorter periods of time. This maximum assessment term may be extended if the developer demonstrates extraordinary circumstances to the Governing Body which justify a term longer than ten (10) years.

4. The construction costs of service streets, including related drainage facilities, sidewalks, paths, side paths, landscaping, traffic control, traffic signals and other associated public infrastructure as determine by the City Engineer will be assessed 100% to the property within the benefit district.

5. The construction costs of arterial streets will be distributed in accordance with the City's street improvement policy contained in Public Improvement Policy No. PI-3. However, the City, at its sole discretion, may require costs of all street improvements and related benefit district fees to be assessed against and paid 100% by the benefit district.

1. Benefit district financing will generally be limited to the construction or extension of water mains along arterial streets and service streets within commercial and industrial developments. At the discretion of the Governing Body, water mains along collector or local streets may be improved through benefit districts if they principally serve property owned and/or to be developed by a unified school district for educational purposes or the Governing Body determines that improvement of these mains is in the public interest and such financing is the most feasible alternative.

2. Except as provided in Section One (General Policies) above, benefit districts will not be used to finance internal water line improvements in residential subdivisions.

3. Water main sizes will be determined in accordance with the City's technical design criteria for public improvements.

4. Construction costs of all water mains up to and including 12" diameter will be assessed 100% to the property within the benefit district. However, if water demands caused by the development to be served by the benefit district or unique hydraulic or topographic conditions require construction of a distribution main in excess of 12" to meet building and fire codes, the Governing Body, at its sole discretion, may require all costs of the main in excess of 12" to be assessed and paid 100% by the benefit district.

5. When the City determines that a water transmission main in excess of the size determined in Subsection B. 4., above, is needed to benefit the overall water transmission system, construction costs will be distributed so that property within the benefit district pays the cost equivalent of the required distribution main and the City pays the cost differential between the transmission and distribution sized main.

6. Pursuant to K.S.A. 12-541, all costs associated with compensation to a rural water district for the value of facilities located within the boundary of a benefit district may be included in the benefit district cost. Any bonds issued which include such costs are taxable under Federal law.

1. Benefit district financing will generally be limited to the construction or extension of trunk mains and collection mains, as well as sub-basins within commercial and industrial developments. At the discretion of the Governing Body, sub-basins outside of commercial and industrial developments may be improved through benefit districts if the district principally serves property owned and/or to be developed by a unified school district for educational purposes or the Governing Body determines that the improvements are in the public interest and such financing is the most feasible alternative.

2. Except as provided in Section One (General Policies) above, benefit district financing may not be used to finance sanitary sewer improvements in existing residential subdivisions.

3. Sanitary sewer mains will be sized to carry flows from the ultimate tributary population in accordance with the City's technical design criteria for public improvements. At the discretion of the Governing Body, if improvements are required to downstream receiving sewers, the cost of upsizing existing downstream sewer mains lift stations, force mains, treatment plant expansions may be included in the benefit district.

4. Benefit district Financing may be used to finance the construction of flood control, and sanitary sewar pipe replacement projects for new developments.

5. Construction costs of all sanitary sewer improvements will be assessed 100% to the property within the benefit district.