Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Council hears 2026 utility budgets; staff propose ~$86M water and sewer budget and rate increases for customers
Summary
Staff presented the proposed 2026 water, sewer, stormwater and solid-waste budgets and a multi-year CIP. The 2026 water and sewer budget was listed around $86 million with a five-year CIP near $245 million; staff said the average residential water and sewer account would see a little under $6 monthly increase in 2026; stormwater and solid-waste proposals would raise bills by $0.32 and $1.08 respectively.
City staff presented the second budget workshop for Olathe's 2026 utility funds on Aug. 5, detailing proposed budgets, capital projects and rate recommendations for water and sewer, stormwater and solid-waste services.
Interim Budget Manager Clara Bernauer outlined the proposed 2026 water and sewer budget totaling about $86 million and said the five-year water and sewer capital improvement plan is nearly $245 million. She highlighted large capacity projects including the West Cedar Creek interceptor ("over $47,000,000" total project cost) and Cedar Creek wastewater-treatment-plant expansion that together aim to increase liquid capacity to 11.25 million gallons per day.
Bernauer said the proposed rate package would increase an average residential water-and-sewer bill by "a little under $6 per month" in 2026. Staff also proposed an expanded Utility Discount Program raising the monthly service-charge discount from $4 to $12 for qualifying households (up to 80% area median income).
For stormwater, Bernauer presented a proposed 2026 budget of roughly $7.7 million and said residential stormwater bills would rise by 32 cents; the solid-waste fund proposal would increase a typical residential solid-waste bill by about $1.08.
Council members sought additional analysis, including alternative rate scenarios (for example a 3% increase) and a historical chart of rate changes over time, plus crosswalks tying CIP projects to the safety prioritization map. Staff said they use a rate model to test scenarios and will provide additional comparisons by customer class and historical rate data.
