The Spring Hill City Council voted 4-0 on May 8 to authorize the mayor to execute a merger agreement with Water District No. 1 of Johnson County (WaterOne) that will transfer operation of the city's water utility to WaterOne and to cover migration costs in an amount not to exceed $360,000, to be paid from the city's water fund.

City Administrator Lane Massey told the council the city's system serves about 2,000 customers and resells supply from Miami Rural Water District No. 2. "We can't grow," Massey said, describing the merger as a path to greater supply and long-term cost savings for customers.

The agenda review materials presented to the council said the current average monthly Spring Hill water bill is $53.15. Under WaterOne's tier-1 rates the average would fall to $46.61; after a 10-year development charge expires the packet estimated the average could drop to $32.89. Massey and WaterOne representatives emphasized the measures would be phased: a temporary supply agreement will let WaterOne supply water before the system ownership transfer is complete, and customers will continue to receive bills from the City of Spring Hill until the formal transfer takes place.

Sean Piedig, general manager of WaterOne, addressed the council and praised city staff cooperation. "We just want to support the community and whatever is best for the community," he said.

The council discussed merger-related costs the city will need to fund because, as Massey noted, "by statute, WaterOne cannot pay to acquire a system." The largest anticipated line items are repairs for up to two water-main breaks that might occur after system pressure is transferred and the repair or replacement of up to 21 hydrants. Other conversion costs include GPS mapping, meter location, and data migration. Massey said some $66,000 is expected to be incurred before June 2025, with the balance thereafter; payments will be made on a pay-as-you-go basis rather than as a single lump-sum transfer.

Council members asked about customer notice and account set-up. Massey said the city will provide the customer data so WaterOne can create accounts, and that WaterOne staff will take the lead on customer communications as the merger proceeds. The council was told the contract's effective date for full system transfer was expected by Dec. 31, 2026, although the presenters built in flexibility and said it could occur sooner.

A council member asked whether the merger is being done because of poor water quality; the city attorney clarified the move is to improve quality and capacity, not because Miami Rural Water District No. 2 is out of compliance. Massey also clarified that the migration costs will be paid from the water fund, not from general tax revenue.

Action: A motion to authorize the mayor to execute the merger agreement, including migration costs not to exceed $360,000, passed 4-0. No further conditions were recorded in the motion.

The council directed staff to proceed with the steps described in the agreement and to coordinate customer communications with WaterOne in the months leading up to the transfer.