Okmulgee Municipal Authority Receives $10,760,000 Loan for Water and Wastewater System Improvements from the OWRB
OKLAHOMA CITY – The Okmulgee Municipal Authority (Authority) received approval for a $10,760,000 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 regional water distribution system that supplies water to multiple communities and utilities across Okmulgee County, including the City of Morris, OSU Institute of Technology, and several rural water districts. The system’s aging infrastructure has led to over 80 water line breaks annually since 2016, disrupting service and increasing maintenance costs. To improve reliability and meet growing demand, the proposed project will replace 3,500 linear feet of 18-inch water lines with 24-inch lines, along with 39,000 linear feet of smaller 6- and 8-inch lines. These upgrades will reduce water loss, enhance service delivery, and support long-term sustainability for the region.
The estimated cost of the project is $10,000,000 and to establish a debt service reserve will be funded by an FAP loan not to exceed $10,760,000.
According to Lori Johnson, chief of the OWRB’s Financial Assistance Division, the Authority’s customers will save an estimated $3,094,900 compared to traditional financing. The loan shall be secured with a lien on the revenues of the Authority’s water, sewer, and sanitation services and a two-cents sales tax.
Local officials attending the OWRB’s monthly meeting in support of the loan application included City Manager Rickey Pearson and City Clerk Ronnia Andrews. “I would like to thank you all for your consideration for this loan,” said Pearson. “This loan would greatly improve our water system infrastructure. We're fighting leaks every day, big leaks. We have major water loss, and I think this will help our city out greatly.”
“We are grateful to State Senator Bryan Logan and State Representatives Scott Fetgatter and Chris Banning 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.
