The Muskogee Municipal Authority and City Council on Oct. 27 approved actions to seek additional financing after bids to rebuild the citys wastewater treatment plant came in far higher than the design estimates. The authority authorized applying for a loan from the Oklahoma Water Resources Board (OWRB) in an amount not to exceed $37,170,000 and approved related professional services and bond counsel agreements; the City Council later ratified those actions.

City staff and the project engineer told members the plant has been repeatedly damaged by flooding and freeze events and is subject to a consent order from the Oklahoma Department of Environmental Quality that requires replacement or major overhaul. Olson Engineering and consulting selected after a qualifications process prepared plans; staff said tariffs, rapid construction inflation and constrained contractor capacity reduced the number of competitive bidders and drove the price up since the 2023 estimate.

"They borrow that money, then they turn around and loan you that money at the rate they borrowed at plus 20 basis points or or 2 tenths of 1%," bond counsel Alan Brooks told the authority, describing the OWRB Financial Assistance Program and why the boards joint borrowing window represented the most affordable option now available to the city.

Staff described two options: reject the lone bid and rebid (risking further delay and higher prices) or accept the lone bid and seek additional funds. Staff and the engineer warned rebidding carried the risk of missing ODEQ deadlines and increasing fines tied to the consent order.

Resident Ryan Lowe urged the council not to approve more borrowing without more public scrutiny and competition. "Importance does not excuse the need for responsibility," Lowe said during public comment, calling for transparency, a review of the bidding process and consideration of alternatives.

City finance staff and bond counsel said the OWRB offered a narrow scheduling window: the authority needed to submit financial statements and a loan application in time for the boards Nov. 18 meeting for the city to participate in that financing round. Staff said the mortgage-size figure in the resolution represents a not-to-exceed cap; engineers and counsel said the final borrow amount would be reduced if the project scope or alternates were taken out before closing. Staff estimated the construction account need at about $33.7 million based on current bids and said contingencies and allowance amounts could be adjusted pending further value engineering.

Council members pressed for details on cost drivers. Engineers and staff pointed to higher concrete and equipment costs and constrained contractor availability—several firms attended the pre-bid meeting but later withdrew because of workload or supply constraints. Staff said some equipment tariffs and global supply issues affected manufacturers and that rebidding now might return even higher numbers.

Alan Brooks and the citys advisors also described alternatives to OWRB financing but said those typically carry higher interest costs. Brooks and the city's financial adviser said the OWRB pool could borrow at a lower blended rate and re-lend to the city at that rate plus a small spread.

Councilors asked how the city would repay any added debt. Financial advisors estimated the additional debt service once fully in place could be roughly $1.9 million per year, which staff said equated to roughly $4 a month per sewer account if the cost were spread across customer accounts; advisors said the OWRB does not require an immediate rate increase to approve the loan, leaving the timing of any rate change to the council.

Votes and next steps
The Muskogee Municipal Authority passed the resolution authorizing the OWRB loan application (MMA resolution 3061) by roll call; two members voted No. The authority also approved a professional services agreement with Municipal Finance Services, Inc. and retained the Public Finance Law Group as bond counsel; those items passed with an identical roll-call pattern. The City Council later approved a parallel resolution (City resolution 3062) ratifying the authoritys actions and authorizing necessary documents and covenants. Staff will submit required financial documents to OWRB to meet the Nov. 18 consideration date and said the board could sell bonds in early December if approved.

What councilors said
Council members acknowledged the plants age and damage from the 2019 flood and a subsequent freeze, and several said they were uncomfortable with the magnitude of the increase but felt constrained by timeline and regulatory deadlines. Councilor Melody Cranford asked whether rebidding could still meet the consent-order timeline; staff said rebidding would likely delay work and risk fines tied to the ODEQ schedule. Councilor Dan Hall and others urged foundations and local partners to consider one-time support to reduce rate pressure on low-income residents.

Implementation and uncertainties
Staff and consultants said they will pursue value engineering and scope reductions where allowable under ODEQ-approved plans but cautioned that changes to key treatment systems could require ODEQ approval. The authoritys resolution sets a maximum, not a final borrowing amount; staff said the actual loan would be sized to the funds needed at closing, after any allowable reductions. The authority and council recorded the votes and directed staff to proceed with the OWRB application and related documents.

Votes (selected)
- Muskogee Municipal Authority (resolution authorizing OWRB application, MMA resolution 3061): passed by roll call (Yes: 7; No: 2).
- Muskogee Municipal Authority (professional services agreement & bond counsel authorization): motions passed by roll call (Yes: 7; No: 2).
- Muskogee City Council (resolution ratifying MMA actions, City resolution 3062): passed by roll call (Yes: 7; No: 2).

Why it matters
The city is under an ODEQ consent order with a compliance milestone tied to bringing a modern treatment plant online; missing the timeline could expose the city to daily fines. The council approved actions that keep the project on the fastest known path to construction at current bid prices while staff and engineers continue to seek cost reductions and third-party contributions.

Provenance: Staff presentations, engineer remarks and the authoritys and councils roll calls in the Oct. 27, 2025 Muskogee Municipal Authority and City Council meeting. Topic evidence begins with the staffs project briefing and the engineers explanations of bid results and financing options and continues through the authority and council resolutions and roll-call votes.