City loans bring water improvements
Nov. 19 â A previously approved loan for a water improvement project that ultimately needed more funding, which Duncan’s board members approved last week, received final approval from Oklahoma Water Resources Board (OWRB) Tuesday.
Loan funding – which was on the Duncan City Council’s November 9 agenda for approval of an increase after looking at estimated project budgets – to the City of Duncan was $ 26,450. $ 000 from the OWRB. According to city information, the first request was for $ 16,200,000, funded by the Financial Assistance Program (FAP), and the second request was for $ 10,250,000 and was funded by the Fund. Oklahoma State Renewable Drinking Water System (CWSRF).
Funding approved for Duncan Public Utilities Authority (DPUA) in the first loan will be used to âreplace water pipes throughout the system and improve the water treatment planâ while funding for the second loan will cover âl ‘installation of advanced metering infrastructure (AMI) and replacing approximately 13,000 water meters and 9,600 electricity meters with automatic meters. “
Nate Ellis of the Public Finance Law Group told the board on Nov. 9 why the funding increase was necessary.
“We approved this loan for the replacement of the meter at the end of September when we granted the other two loans from the water authority,” he said. âSince then, based on the type of estimated project budget, it has been determined that you need to borrow around $ 10.5 million, as opposed to the $ 6.2 million originally approved. So it’s basically a re-approval of that for a higher dollar amount. “
The board approved it 4-0, returning to the higher entities that approved it on Nov. 16.
âThese loans would both progress with a close probably the second, third, fourth week of December,â Ellis said.
The loan for the new meters, according to the documentation, will allow DPUA to “better monitor and bill for water and electricity used by its citizens, thereby reducing the amount of water and energy consumed.” The same documents show that the project is helping “meet Oklahoma’s water targets for 2060 by focusing on water conservation through reduced unintentional flows to the wastewater treatment plant and is recognized under Oklahoma’s Point Source Management Plan for Improved Energy Efficiency, which helps reduce atmospheric deposition of mercury in nearby water bodies. “
According to information from the OWRB, Joe Freeman, head of the financial aid division of the OWRB, calculated that clients of the Office will save a combined estimate of $ 3,719,800 over the term of the two loans by compared to traditional financing. The documents show that the loans will be secured by a lien on the revenue from the Authority’s water, sewer, sewerage and electrical systems and a one-cent sales tax. A representative of the DPUA said, âOn behalf of the citizens of Duncan, we would like to express our appreciation to the Oklahoma Water Resources Board. thank the staff of the OWRB for their hard work and help. “
Ellis also gave an update on the project and the loan of the fire station, which was put out to tender. Ellis said the lowest rate to date was 1.98% over 15 years, so “it’s moving forward.”
The next Duncan City Council meeting will be at 5:15 p.m. on Friday, November 19. The meeting is a special meeting and will see a new council member appointed to the board for the vacant Ward 1 position.
Duncan’s council meets in the council chamber, located inside the Duncan Police Department on 7th Street.