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Call Lake water program has collected $79 million; city reports $12.6 million available, $10.2M due in September debt payments
Summary
City finance staff reported that the Call Lake water supply program has collected roughly $79 million in sales tax proceeds plus $1.5 million in interest, has $12.6 million available in reserves and faces about $10.2 million in loan principal and interest due Sept. 15.
City finance staff gave a quarterly financial update on the Call Lake water supply program, reporting cumulative collections, investment status and upcoming debt obligations.
Miss Crawford said data through May show the city has collected about $79 million from the 1% sales tax set aside for the program and earned approximately $1.5 million in interest on those funds. "Of that $80.6 million, we have paid out in loan payments $68 million, and we have $12.6 million sitting available to make future payments," she said. Of the available funds, Crawford said about $10 million is laddered in Treasury bills timed to upcoming maturities and about $2.6 million is in cash for immediate obligations.
Crawford said the program has drawn $319 million of $334.1 million budgeted loan authority and that the entire program budget is about $344.7 million with $330.8 million paid to date and $13.57 million currently encumbered under vendor contracts. She said the program has paid 8% of principal so far and that a combined principal and interest payment of roughly $10.2 million is due Sept. 15.
Staff also reported $4 million in congressional funding is pending and that the city’s grant writer is continuing work with Oklahoma HUD to clear outstanding environmental items needed to access those funds. Crawford said American Rescue Plan Act funds already were used to pay invoices during construction.
Commissioners asked questions about how surplus collections are held and whether extra collections reduce required subsidy from utility revenues; Crawford said the funds are invested and held to meet future payments and that prepayment of the loans is not permitted under current agreements.
Staff said remaining closeout invoices, furnishings and startup equipment for the new treatment plant will require use of program interest and remaining budget authority and that staff will manage those disbursements as the program finishes.
