OWRB approves $12.6M loan for Pauls Valley water system improvements

Pauls Valley took another step toward making needed improvements to the city’s water infrastructure last week.

The Pauls Valley Municipal Authority (PVMA) received approval Nov. 18 for a $12,630,000 Financial Assistance Program (FAP) loan from the Oklahoma Water Resources Board (OWRB) to improve water infrastructure, including upgrades to the water treatment plant.

According to a press release from OWRB, the PVMA-operated public water supply system includes a microfiltration water treatment plant, distribution lines and backwash lagoons. Aging facilities and unpermitted discharges from the backwash system have created operational challenges that must be addressed to restore regulatory compliance.

The proposed water infrastructure project includes constructing a new covered 75-foot clarifier— a structure that helps remove solids during treatment—along with concrete-lined backwash basins and upgraded chemical feed systems.

Additional improvements include replacing the plant’s microfiltration membrane and rehabilitating a lift station with a new force main and discharge structure. According to the press release, these upgrades will strengthen the city’s water treatment process and ensure safe, reliable service for the community.

FAP loans through OWRB are long-term, low-interest revenue bond loans that assist communities with projects related to water and wastewater systems, according to OWRB’s website.

Lori Johnson, chief of the OWRB’s Financial Assistance Division, said PVMA and its customers will save an estimated $3,285,400 with the FAP loan, compared to traditional financing. The loan will be secured with a lien on the revenues of the Authority’s water, sewer, and sanitation services, a .5 cent sales tax, and a mortgage on the water and sewer systems.

A portion of the increase in water, sewer and sanitation rates PVMA implemented for customers Oct. 1, was to meet the revenue requirements to secure the FAP loan. The remainder of the increase, according to city officials, was to allow the city to meet water production costs, without continuing to run in the negative.

Local officials attending the OWRB’s monthly meeting Nov. 18 in support of the loan application included Pauls Valley City Manager Joe Livingston.

“We’d like to say thank you for this assistance,” said Livingston. “This is a project we’ve been working on for a while. We’ve made the news recently on the quality of our water not being where it should be, so this funding will help us improve our plant and provide our citizens with quality water, so we appreciate it.”

“This investment is a major step forward for Pauls Valley and the residents who depend on reliable, safe water every day,” Rep. Cynthia Roe, R-Lindsay, said. “These improvements will not only bring the city into compliance with environmental standards but also strengthen the long-term stability of our water system. I’m grateful to the Oklahoma Water Resources Board for recognizing the importance of this project and supporting the community’s commitment to maintaining high-quality infrastructure.”

Julie Cunningham, executive director of the OWRB, expressed appreciation to local legislators, including State Senator Jonathan Wingard and State Representatives Roe and Tammy Townley for supporting OWRB financial assistance programs.

Pauls Valley was one of 11 Oklahoma communities approved for FAP loans during the Nov. 18 OWRB meeting.

Since 1983, the Oklahoma Water Resources Board has approved over $8.3 billion in loans and grants for water and wastewater infrastructure improvements throughout Oklahoma.