The city of Gardner owes Johnson County Rural Water District No. 7 (RWD No. 7) nearly half a million dollars, according to an agreement the entities inked in 2008 and amended in 2011. But city council members first learned of the $475,000 debt during a March 17 work session. Under the terms of the agreement, the city would become the water service provider for areas that had been annexed into the city since the 1970s, and the city would reimburse the rural water provider for an existing transmission line and related facilities within the transferred area. Bill Gay, who sits on the Johnson County Rural Water District No. 7, said city officials and the water board drafted the agreement to settle service boundary disputes. The agreement also includes an equation to determine the monetary value of customers. Using the agreement’s model, the average customer is valued at approximately $5,000.

(Read more: Gardner News)

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