Lawton Water Authority approves application for up to $1.5 million FAP loan to finance Willow Springs waterline improvements

The Lawton Water Authority authorized staff to file an application with the Oklahoma Water Resources Board for Financial Assistance Program (FAP) loan proceeds not to exceed $1,500,000 to finance water-system improvements serving the Willow Springs townhouse/condominium complex.

Rusty (city staff) told the board the improvement district process began at the request of property owners who sought the city’s help to replace failing private water lines. If completed, the improvement district would construct waterline improvements in public utility easements and transfer ownership of the new mains to the city. Property owners in the district would repay the district’s portion of construction costs via a separate annual bill tied to each parcel — a lien on the property that remains until paid — rather than an assessment on the general tax bill.

Board members asked staff for a homeowner-cost estimate. Staff said earlier estimates ranged roughly between $1,100 and $1,700 per year when amortized over different terms (figures depend on final project cost and amortization schedule). Staff said the loan structure, late fees and billing mechanisms will be established at the time the loan is set.

Council members pressed for collection safeguards; staff said the city’s billing system and cross-checks with the treasurer and assessor offices will be used and that state statute requires notification to Treasurer’s office. The board voted to approve proceeding with the loan application and related trust/security agreements, and the city council later ratified the Water Authority’s action.

Next steps: staff will finalize project design, determine the final assessed cost per property (apportioned across the participating parcels), return to council to set the amortization period and finalize the repayment schedule once project costs are known.