Capital Improvements Program (CIP)

• 2011-2015 Approved CIP

PAST

• 2010-2014 CIP
• 2009-2013 CIP
• 2008-2012 CIP

The City of Olathe addresses infrastructure growth annually by conducting a CIP process and preparing a CIP document. The program consists of a five-year priority listing of all capital projects, accompanied by project financing that is consistent with the City’s debt management policies.

Funding for CIP projects comes from:

All projects are reviewed and approved by the Council based on the City’s priorities and goals to provide the best environment and support for Olathe’s citizens.

Key Funding Source Definitions 

Funding for capital projects can be obtained from any of the following sources:

Current General Fund Operating Revenues - Cash is allocated from the general fund to fund maintenance, technology and other small capital projects. 100% of street rehabilitation mill and overlay projects are funded through CIP cash.

Water & Sewer Revenue Bonds - The Water & Sewer fund is an enterprise fund, which is supported by fees for service rather than by taxes. Revenue bonds are a type of loan in which the loan is repaid with revenues from the enterprise, not by contributions from the General Fund. These loans are used to increase plant capacity and modernize the system.

General Obligation Bonds - This funding source is used to finance major capital projects with an expected life of 10 or more years. A general obligation bond is secured by the City's pledge to use legally available resources, including tax revenue, to repay bond holders. The City used a portion of the property tax levy to finance the debt service payments.

Benefit Districts - These are a financing and development tool whereby cities can issue general obligation bonds for construction of public improvement and assess the cost to properties that benefit. The bonds are then retired through payment of special assessments by these benefiting properties.

Parks Sales Tax Fund- This is funded by a voter approved 1/8% cent sales tax initiative. It is dedicated to parks and recreational facilities.

Storm Water Fund - This is funded by both residential and commercial user fees. It is dedicated to fund the operation, maintenance and capital improvement costs for the Storm Water system.

Water and Sewer Fund - This is funded from fees associated with water and sanitary sewer charges. It is dedicated to fund the operation, maintenance and capital improvement costs for the Water and Sewer system.

Street Excise Tax - In accordance with City ordinance, development in Olathe is subject to a street excise tax of $0.215 per square foot of land area. Funds generate by the street excise are used to construct two lanes of an urban arterial and for traffic signals at the intersection of arterial roads.

Temporary Notes - A temporary debt incurred by states, local governments, and special jurisdictions. Municipal notes are usually issued with a maturity length of 12 months, although maturities can range from 3 months to 3 years.

System Development Fees - These fees are collected when properties are developed. They are based on the expected usage of the new development and how much capital investment is needed to pay for additional treatment plan, distribution, and collection to meet these needs.

Grants - Funds may be granted from Federal, State or local sources, such as Community Development Block Grants (CDBG) or the Federal Emergency Management Administration (FEMA).

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