City officials report stronger-than-expected Kaw Lake sales-tax receipts and outline loan timeline for water project

Enid city finance staff gave the City Commission a midyear update on the Kaw Lake water program, reporting that 1% sales-tax collections for the first six months of the fiscal year were above budget and laying out the program’s remaining loan balances, near-term debt service and potential federal and state grant sources.

In a presentation to Mayor Mason and commissioners, Erin (identified in the meeting only by her first name) said the city budgeted just over $5,000,000 in 1% sales-tax receipts for the July–December period and collected about $6,300,000, “a $1,000,000 increase or 20.5227 percent over last year,” driven in part by a one-time use-tax payment from a manufacturer that failed to file an exemption on time with the state. Erin noted that without that one-time payment the program would still be up roughly $251,000 over the prior year and about $482,000 (9.6%) over budget for the period.

The presentation summarized cumulative program cash flow and loan activity since the sales-tax began in fiscal 2017. Erin said the Kaw Lake program has collected about $74,600,000 in sales tax receipts and earned roughly $1,250,000 in interest on those funds, bringing total receipts to about $75,900,000. To date, the city has paid about $60,400,000 in loan payments. The presentation showed $15,480,000 in segregated sales-tax balances currently invested (about $12,500,000 of that laddered into Treasury bills to meet future maturities).

Erin walked commissioners through the outstanding loan picture: the city drew roughly $334,000,000 in loan principal across multiple notes, has repaid about $24,000,000 (roughly 7% of the principal drawn) and has approximately $309,800,000 remaining on those obligations. As of the end of December in the reporting period, Erin said about $31,700,000 remained available to draw from outstanding loan funds, including approximately $26,100,000 on a 2019 FAP note and $5,500,000 in retainage tied to a 2020 SRF (State Revolving Fund) loan that will not be released until project completion later this year. She said the next set of loan payments are due March 15 and will total about $7,400,000 (with the FAP notes that month being interest-only and some SRF notes including both principal and interest).

City officials also described other funding sources expected to help the program. Erin said a $4,000,000 congressional appropriation tied to the project has been moved from federal administration to state administration and will be handled by the same state office that administers the city’s Community Development Block Grant (CDBG) program; she said that should speed access once the transition is complete. The city also has committed $9,980,000 of American Rescue Plan Act (ARPA) funds to the COP program; Erin reported the city recognized about $9,840,000 of that amount in recent pay applications and $134,590 toward professional services.

Commissioners and staff noted the program’s financing structure has multiple loan notes with different maturity schedules and payment profiles. Erin said the largest remaining loan balance will not be fully retired until the 2050s (she cited the latest loan paying off in March 2053) and emphasized the city’s conservative budgeting approach for sales-tax revenues.

During discussion, elected officials and staff framed the finance update as evidence the city’s budgeting has been conservative and deliberate. Commissioners praised staff for securing federal and state help and pointed to the city’s investment and debt strategy as a reason the large capital project remains affordable. The commission did not take formal action on the finance update; Erin closed by asking if there were questions.