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Authority considers up to $26.4 million OWRB loan for water and sewer projects
Summary
Staff presented Resolution 16-64 to authorize seeking an Oklahoma Water Resources Board loan not to exceed $26,400,000 to finance water and sewer capital projects; members and a resident questioned whether borrowing or pay-as-you-go financing best serves ratepayers.
Staff introduced Resolution 16-64, which would authorize the authority to apply for and accept a loan from the Oklahoma Water Resources Board (OWRB) for water and sewer capital projects and to execute related promissory notes and agreements.
"Resolution 16 64 is the resolution of the authority to authorize a loan from OWRB in the an amount not to exceed $26,400,000," the presenter said, summarizing the elements of the authorization, which would include pledging revenues and approving trust and loan agreements.
A member of the public asked whether the loan was simply prepaying expenses or whether the authority could instead pay as projects were funded through rates. Staff responded that the city maintains a long-range capital plan and that identified projects often total $20 million–$30 million annually; because the authority lacks the cash capacity to complete large projects immediately, staff said borrowing through OWRB is typically the most cost-effective option due to low municipal interest rates.
"It's simply the most cost effective way for the ratepayers and for the city to get the work done is to actually go through the Oklahoma Water Resources Board," staff said, and explained that OWRB loans are drawn down as projects proceed so interest begins only as funds are used rather than on the entire authorized amount.
Members attempted to move to approve the resolution during the meeting; the motion was withdrawn temporarily so the public commenter could speak. The provided transcript does not contain a definitive final vote tally for the resolution in the recorded segments.
