Benefit districts are a tool property owners and the City use to finance the costs of new infrastructure.

The City of Olathe has a long-standing policy that new growth pays for itself, so taxpayers at-large do not continually fund new residential infrastructure as the city grows. Rather, property owners only fund the residential infrastructure benefiting them. This has been applied to all new developments and growth areas in the city for decades. 

Both cities and counties use benefit districts to fairly fund infrastructure in new growth areas when that infrastructure provides a special benefit for property within that district compared to other property within the city or county. When an infrastructure project within a benefit district is completed, property owners within the benefit district pay special assessments over time to fund their share of the cost.

Benefit districts allow property owners to pay for the costs of new infrastructure over time, as opposed to in a lump-sum.  Benefit districts also allow property owners to take advantage of the City’s low cost of borrowing.

Examples of Benefit District development include:

• Arterial roadways
• Water lines
• Sanitary sewers

City staff reviews the petitions to determine whether they meet all legal requirements.  Staff determines whether the cost estimates are reasonable and the project scope complies with all applicable public infrastructure requirements. Staff also provides guidance to Council about whether the petitions comply with formal and informal policies established by the Council. The Council retains full discretion to approve or deny the petitions.