Edmond council approves package of water, wastewater and sewer financing; staff says projects were planned in rate plan

Edmond City Council on Aug. 26 approved a package of financing authorizations and resolutions designed to fund a slate of water and wastewater projects, including state revolving fund loans and applications to the Oklahoma Water Resources Board.

City public works staff described a multi-project program that includes a $54 million Drinking Water State Revolving Fund (SRF) loan, the Chisholm Creek force main and Spring Creek interceptor projects, and a combined-financing package that includes the Tango 2 project and other system improvements. Chris Nifing, who briefed the council, said the projects are included in the water/wastewater rate plan adopted last September and noted the city is seeking to time financing to secure favorable interest rates and state assistance.

"This is not something different, not something new," Nifing told the council, stressing that the projects were anticipated in the existing rate plan and that updates are available on the city's project website.

Council discussion focused on the scope, timing and communication to ratepayers. Council member [Lawmaker 12] said the overall investment — which staff described as part of a much larger multi-year portfolio of projects — requires better public communication on why the work is necessary and how residents will be informed when they report water-line problems. The council member said she would vote no until the city provided an improved communications plan for ratepayers who report leaks. The mayor clarified that a communication plan was not part of the financing item before the council.

Alan Brooks, bond counsel, outlined a related Clean Water SRF resolution and said the Oklahoma Water Resources Board offered a 70-basis-point reduction in interest rate tied to Build America, Buy America compliance for projects the city agreed to include in the program, yielding a sizable net present-value savings to Edmond.

The council moved, seconded and approved the PWA and city resolutions to pursue the SRF loans and related financing actions. Staff said bids on certain pipeline projects came in well under earlier estimates — for example, bids for the Chisholm Creek Forest Main arrived under $7 million, compared with prior estimates as high as $15 million. Nifing said some projects await final permits or easement acquisition before construction awards.

Votes at a glance

- Resolution to file Clean Water SRF application and related authorizations (PWA resolution): approved (council ratified PWA action). - Resolution to file Drinking Water SRF application (up to $54,000,000): approved (council ratified PWA action). - Other related PWA loan approvals and budget amendments included in the packet: approved.

Why it matters

City staff said the projects address aging water infrastructure, add redundancy to critical transmission lines and replace failing wastewater mains that have caused repeated creek ruptures. Officials said financing now will allow Edmond to lock in subsidized or lower interest rates and proceed with designs and bids while minimizing near-term rate impact under the adopted rate plan.

What’s next

Staff will complete permit and easement work where required, return for project awards when bidding is complete, and proceed with closing the SRF loans in the weeks after council approval.