Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Finance topic
No spam. Unsubscribe anytime.
Utilities authority, city approve up to $112.9 million OWRB loan for water and sewer projects
Summary
The Stillwater Utilities Authority and the City Council approved companion resolutions authorizing an Oklahoma Water Resources Board (OWRB) FAP loan of up to $112,905,000 for water and wastewater improvements, including the raw water line from McMurtry Lake; the authority plans a 30-year note and will use pledged revenues for repayment.
Stillwater — The Stillwater Utilities Authority and the City Council on Aug. 18 authorized a financing package to borrow up to $112,905,000 through an Oklahoma Water Resources Board bond/loan program to fund water and wastewater system improvements. Chris Gander, public-finance counsel for the city, said the funds would support a suite of projects identified in the city's 10-year capital plan and specifically referenced work on the raw water line from McMurtry Lake. "This basically is part of those those improvements that need to be done, specifically the raw water line from McMurtry Lake," Gander told the council. The resolution approved by council (CC-2025-21) and the authority (SUA-2025-5) authorize the issuance of a promissory note to the OWRB and related documents, designate a local trustee, and approve professional-services agreements and payment of fees. Staff and bond counsel described the loan as an FAP program allocation, explaining that OWRB issues bonds and then lends proceeds to participating Oklahoma communities. The authority's resolution also included a reimbursement declaration allowing project expenses to be reimbursed from eventual loan proceeds. Councilors asked whether taking this loan would preclude pursuit of other grants; staff replied projects pursued under this funding source would not be submitted for grants, but the city has other projects it could still take to grant programs. City staff and bond counsel said the proposed debt service was consistent with rates adopted in a 2023 rate study and that the loan term under discussion was 30 years. Why it matters: The loan will fund large, multi-year water and sewer capital projects the city identified in earlier planning, including critical raw water infrastructure; it ties to prior rate-setting and to a long-term capital program. Next steps: The authority will finalize loan documents, allocate proceeds for eligible expenditures, and return to council as required for any further approvals tied to specific projects and contracts.
