Owasso staff outlines modest rate increases, large capital needs and proposed debt to fund water and storm projects

Carly (OPWA staff) told the council that the authority has used a five-year rate plan since 2016 (extended in 2021) to restore fund balances and fund capital projects. She said construction and material costs have risen sharply — for example, material costs for a 6-inch water line increased about 152% since 2020 and an 8-inch line rose 178% — and tipping fees for refuse have grown substantially.

To address more than $20 million in capital needs, staff proposed a one-year rate adjustment for 2026 rather than a multi-year plan. Under the proposal, water rates would rise about 1.1%, sewer 2.9%, stormwater by $0.50 per month and refuse from $17.95 to $19.50. Staff said the overall approach targets a roughly 3% increase that averages to about $3.89 per average customer per month.

Carly presented a debt-financing scenario that would add roughly $16 million in borrowing to fund the service-road lift station upgrade, the Bird Creek waterline replacement (Phase 2) and clarifier refurbishment at the wastewater treatment plant. Without additional loan funding, staff said the OPWA fund balance would be depleted by the proposed projects. Councilors asked clarifying questions about the duration of proposed debt service, the distribution of increases across customer classes and how outside-city users are charged (staff said outside customers pay 20% higher rates by resolution). Staff said they plan to return with formal ordinance/resolution language and bring the rate plan back for council approval at a future meeting.

No formal vote occurred at this session; council directed staff to prepare the rate plan for a future council action.