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Owasso Public Works Authority reviews five-year utility rate plan, flags $12M in near-term capital needs
Summary
OPWA staff reported on the five-year utility rate plan in year four, noting more than $12 million in water and wastewater capital needs, a $15.5 million stormwater backlog, the system serves over 10,000 accounts, and the final 5-year rate increase will occur in October.
Carly Novisonstead, presenting for the Owasso Public Works Authority, reviewed the five‑year utility rate plan and the authority’s capital needs at the joint meeting.
Staff told the council the OPWA has funded more than $48 million in capital projects in recent years, including a $24.3 million wastewater-treatment-plant expansion, a $6.2 million Ranch Creek interceptor upgrade and a $5.5 million lift-station upgrade. Despite those investments, staff said the OPWA still has over $12 million of water and wastewater capital needs (about $8.6 million for wastewater and $1.9 million for water projects) plus $1.4 million for refuse trucks and containers.
The stormwater division’s capital needs total roughly $15.5 million and include drainage improvements in 3 Lakes, Hay Lakers and Country Estates and construction of a regional detention pond. Staff said current stormwater service fees bring in about $2.1 million annually.
Novisonstead said the authority serves more than 10,000 customer accounts and has seen roughly 7% growth in water customers over the past decade. She noted material costs have risen substantially — citing a greater-than-100% increase in the cost of 6‑inch water-line materials since 2020 — and that regulatory changes and OPWA indebtedness factor into rate planning.
The OPWA’s rates use tiered water charges and a 20% premium for customers outside city limits. Staff said the average residential water customer uses about 7,000 gallons monthly and saw a $1.23 monthly water increase and a $1.75 monthly sewer increase in 2024. The final increase set by the five‑year plan is scheduled for October 2025 and staff will study whether another multi‑year plan is needed going forward.
Councilors asked whether the 3.1% annual pattern in recent years is realistic given construction-cost volatility; staff said that will be evaluated over the next year.
Ending: Staff will continue capital planning and rate analysis and return with recommendations ahead of the October increase.
