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City finance staff reports Call Lake water program near completion, $10.2 million payment due mid-month
Summary
Finance staff updated the Mayor and Board of Commissioners on the Call Lake water supply program, reporting strong sales-tax collections, $82 million collected to date, two outstanding loans and a combined $10.2 million payment due on the 15th of the month.
Erin, a finance staff member, told the Mayor and Board of Commissioners the Call Lake water supply program is largely complete and its finances remain on track.
The Call Lake program has collected about $82 million in sales tax and earned roughly $1.5 million in interest, Erin said. Of the program’s $344.7 million budgeted amount, staff reported $335.1 million expended to date, with about $9.3 million under contract and roughly $308,000 remaining in the program budget.
The update noted two remaining open loans tied to the program: a 2019 loan with roughly $15 million left and a 2020 SRF loan with about $5.5 million held for retainage. Erin said the program’s loans and interest total about $342.5 million, of which $322.2 million has been drawn; about $20.3 million remains undrawn. “We have 8% of the principal of the loans paid off so far,” Erin said, adding that the first loan does not mature until 2046 and the last until 2053.
Erin said the city has $15.5 million in available sales-tax revenue for the program and approximately $5 million invested in laddered Treasury bills timed to match upcoming maturities. She also said the city expects a combined $10.2 million payment due on all five notes on the 15th of the month, which will temporarily draw down program cash on hand.
Federal and alternative funding sources remain part of the finance plan. Erin reported the city has fully recognized American Rescue Plan Act (ARPA) funding associated with a contractor’s work and is working with the federal congressional appropriation and the Oklahoma HUD office to clear environmental and other conditions needed to draw a separate $4 million congressional appropriation.
Erin described the remaining undrawn funds on two loans as being reserved for retainage and said that once the program closes, those funds will be released to the city. She also reviewed the program-level loan schedule and noted the program has repaid a portion of principal but will carry debt service into the 2050s.
Any further releases of congressional funding are contingent on environmental and related clearances with the federal office responsible for that grant, Erin said.
The board did not take any formal action during the update; commissioners asked clarifying questions about timing for payments and whether the program’s cash position could be made more conservative in future budgets.
