Durant council and utilities authority approve financing for Main Street, drainage and waterline; accept audit, OK Albertsons deal; table emergency server buy

The Durant City Council and the Durant City Utilities Authority approved a package of borrowings and related agreements on Tuesday to fund a Main Street reconstruction project, related drainage work and a new water transmission line, accepted the city’s FY2023–24 audited financial statements and approved several professional services contracts and an economic development agreement with Albertsons LLC. Council members also tabled action on an emergency purchase of replacement servers after several members raised questions about the ordinance process for emergency purchases.

A funding package for three infrastructure projects led the meeting. The Durant City Utilities Authority authorized issuance of a system-and-sales-tax revenue note in an amount not to exceed $16,000,000 to support the Main Street reconstruction. The authority separately approved a loan application to the Oklahoma Water Resources Board (OWRB) for up to $16,450,000 to finance drainage tied to the Main Street work, and a second OWRB loan application not to exceed $35,270,000 to fund a 24-inch transmission waterline extension. All three financings were then approved by the City Council in companion resolutions.

Those transactions would be secured by a pledge of utility revenues (water, sewer, garbage) and 3 cents of sales tax; the presentations noted the half-cent sales tax extended by voters would be a principal source for the street/drainage repayment. Allen Brooks of Public Finance Law Group said the transactions would include contingencies (engineers’ estimates include 10% contingency) and that bank placement and OWRB financing timelines point to closings near year‑end: “We would probably close the transaction in 30 days or so,” Brooks said of the bank placement for the Main Street note. Financial adviser Chris Gander (BOK Securities) and staff emphasized that, under conservative projections, the authority meets required debt-coverage metrics and that the OWRB loans offer longer amortizations than a typical bank loan.

Public works staff explained project scope and timing. Philip (staff member) described the waterline as a 24-inch transmission line from the Gerlach pump station to the airport pump station to improve pressure and system capacity east and south of town; engineering authorization for that project had been approved previously. The city anticipates bidding construction in spring–summer 2025 once engineering is complete; staff said the Main Street street reconstruction will include curb, gutter, sidewalks, landscaping and associated drainage upgrades between Main and 16th streets.

The council accepted the city’s audited financial statements for the fiscal year ended June 30, 2024. Auditor Chris Syme reported a clean opinion: “In our opinion, the financial statements referred to above present fairly in all material respects,” he said. Syme highlighted financial trends: net position rose about 5% year over year, unrestricted net position increased roughly 23% to about $33,000,000, and the general fund’s unassigned fund balance stood at approximately $11,500,000 (noted as more than 60% of annual revenues). The audit report included no internal-control findings for 2024.

The council approved an economic development agreement between the city and Albertsons LLC. Kathy (city staff) said the contract submitted is signed by Albertsons and that the only change from executive session concerned permitting fees: “Anything over $25,000, Albertsons would pay up to $25,000 and then the City of Durant would assume those costs above that,” she said. City staff said further steps remain for Albertsons before a start date is set and that a formal public announcement will follow.

Council members approved a single-vendor contract with NewGen Strategies and Solutions for a comprehensive set of rate studies: a water and wastewater cost-of-service and rate-design study ($56,500), a stormwater utility rate study ($47,007.60) and a solid-waste cost-of-service study ($40,000). Staff said the firm expects draft reports by mid-December. The council also approved annual professional services agreements with Crawford & Associates (financial reporting support) and HBC CPAs & Advisors (external audit services) for the fiscal year ending June 30, 2025.

Councilors discussed an emergency procurement of two Dell servers priced at $63,870. Several members questioned whether the city had followed its ordinance for declaring a local emergency that exempts purchases from formal bidding. One councilor said a declared emergency is required to opt out of bid requirements and that the purchase was known about for months without a formal declaration; city staff responded that servers were old (8–10 years) and that the system outage prompted an emergency purchase. After debate, the mayor proposed tabling the item for further review and possibly a special meeting to resolve the ordinance question.

The council approved a mutual-aid agreement with Durant Independent School District for bus use and potential sheltering during emergencies and adopted a resolution supporting the city’s continued participation in the Main Street program. The meeting closed with routine approvals and adjournment.

Votes at a glance - Accept FY2023–24 annual financial statements and auditors’ report (auditor: Chris Syme) — Approved by roll call (Council: Miller, Shear, Vice Mayor Similescu, Mayor Tucker; Council member Fuller absent) — outcome: approved. - Approve economic development agreement with Albertsons LLC (contract signed; permitting-fee split up to $25,000) — Approved by roll call (Miller, Shear, Similescu, Tucker; Fuller absent) — outcome: approved. - Durant City Utilities Authority: authorize issuance of utility system & sales tax revenue note, series 2025A, principal not to exceed $16,000,000 (Main Street) — Approved by roll call (Trustees Miller, Scheer, Similescu, Tucker; Fuller absent) — outcome: approved. - Durant City Utilities Authority: authorize loan from Oklahoma Water Resources Board, principal not to exceed $16,450,000 (drainage) — Approved by roll call — outcome: approved. - Durant City Utilities Authority: authorize loan from Oklahoma Water Resources Board, principal not to exceed $35,270,000 (waterline) — Approved by roll call — outcome: approved. - City Council companion resolutions approving the authority’s issuance/loans for the three projects — Approved by roll call — outcomes: approved. - Approve NewGen Strategies and Solutions rate-study engagement (water/wastewater $56,500; stormwater $47,007.60; solid waste $40,000) — Approved — outcome: approved. - Approve emergency purchase of two Dell servers, $63,870 — action tabled for a subsequent meeting/special meeting pending review of emergency declaration and bidding ordinance — outcome: tabled. - Approve professional services agreement with Crawford & Associates (annual financial reporting support) — Approved — outcome: approved. - Approve audit engagement with HBC CPAs & Advisors for FY ending 06/30/2025 — Approved — outcome: approved. - Approve mutual‑aid agreement with Durant Independent School District for emergency bus use and sheltering — Approved — outcome: approved. - Approve resolution supporting continued participation in the Oklahoma Main Street program — Approved — outcome: approved.

What the council said and next steps Auditors and staff credited the city’s reserves and a “clean” audit opinion but noted the timing lag on the audit completion. Staff and the city’s financial adviser said the three-project financing plan is staged to align with engineering and bidding schedules; the OWRB application and related bonding steps are expected to continue through late 2025, with potential closings in November–December. The council directed follow-up on the emergency-procurement question and set the server purchase for additional review before final approval.

Council members, staff and outside advisers who spoke are listed in the accompanying speakers and provenance sections for the public record.