Chelsea Economic Development Authority Receives $1,140,000 Loan for Water and Wastewater System Improvements from the OWRB
OKLAHOMA CITY – The Chelsea Economic Development Authority (Authority) received approval for a $1,140,000 Financial Assistance Program (FAP) loan on Tuesday from the Oklahoma Water Resources Board (OWRB) to improve their water and wastewater infrastructure.
The Authority operates a water treatment plant that serves 975 active water connections and 739 sewer connections in Rogers County. Due to aging infrastructure and growing demand, the system is nearing capacity. One of the plant’s two clear wells has been taken out of service due to the declining structural integrity and deteriorating water quality. This limited storage has created vulnerabilities for the Authority during extended power outages or peak usage. To improve reliability and ensure safe, consistent water service, the proposed project will construct a new 88-foot diameter welded steel clear well, along with all necessary components.
The estimated project cost is $1,989,894.50, which will be funded by the OWRB FAP loan of $1,140,000.00, $450,000.00 from a Rogers County American Rescue Plan Act (ARPA) grant, and $441,000.00 in local funds. A portion of the loan proceeds will be used to refinance debt that the Authority received in April of this year in the amount of $772,969.00. These funds will also be used to establish a debt service reserve.
According to Lori Johnson, chief of the OWRB’s Financial Assistance Division, the Authority’s customers will save an estimated $342,900 compared to traditional financing. The loan shall be secured with a lien on the revenues of the Authority’s water, sewer, and sanitation services, as well as a three-cent sales tax, and may include a mortgage on the water and sewer systems.
Local officials attending the OWRB’s monthly meeting in support of the loan application included Plant Manager Thomas Hiney. “We appreciate the consideration on this FAP loan,” said Hiney.
“This kind of investment makes a real difference for towns like Chelsea,” said Rep. Rusty Cornwell, R-Vinita. “The new water storage tank will go a long way in meeting local needs. I appreciate the Oklahoma Water
Resources Board for continuing to prioritize communities like ours.”
“We are grateful to State Senator Micheal Bergstrom and State Representative Rusty Cornwell for their support of our financial assistance programs,” said Julie Cunningham, Executive Director of the OWRB.
Since 1983, the Oklahoma Water Resources Board has approved over $8.2 billion in loans and grants for water and wastewater infrastructure improvements throughout Oklahoma.
