In Cherokee County, Oklahoma, several water systems rely on the City of Tahlequah as their sole source of water. This dependence has limited growth for some of these systems. A few systems have their own small treatment plants, but these are aging and would be very costly to replace. In 2018, Communities Unlimited (CU) assisted Lake Region Electric Development with a funding application for a new water treatment plant to serve a newly formed district. This system is the newest among those that will be served by a regional water supply through the Tenkiller Utility Authority (TUA).

The Tenkiller Utility Authority was originally established to provide a regional water supply to multiple systems in the area, prior to the formation of Lake Region Electric Development. Ultimately, six systems — including Lake Region Electric Development — will be served by the Tenkiller Utility Authority, with treated water drawn from Fort Gibson Lake. Together, these six systems serve approximately 7,332 residents. Some systems will purchase their entire water supply from the Tenkiller Utility Authority, while others will buy a specified number of gallons per month from the regional supplier while maintaining a connection with the City of Tahlequah.

Ultimately, six systems — including Lake Region Electric Development — will be served by the Tenkiller Utility Authority, with treated water drawn from Fort Gibson Lake. Together, these six systems serve approximately 7,332 residents. Some systems will purchase their entire water supply from the Tenkiller Utility Authority, while others will buy a specified number of gallons per month from the regional supplier while maintaining a connection with the City of Tahlequah.

USDA staff was first approached in the late 1990s with the idea of establishing a regional water supply in Cherokee County. Communities Unlimited became involved in the discussions around this initiative in the early 2000s. Since then, the entity has received ongoing assistance from Communities Unlimited whenever needs aligned with the organization’s expertise. One of the primary challenges for any start-up water system is determining the wholesale water cost for purchasing systems and securing sufficient funding to complete the project. These types of projects often take years to progress from concept to completion, which can lead to significant cost increases between the initial engineering estimate and the time the project is ready to go out for bid.

The Chairman of the Board of TUA expressed the board’s appreciation for CU’s assistance and guidance.

Communities Unlimited initially provided assistance by calculating a weighted median household income to determine eligibility for USDA loan and grant funding. This funding would support the purchase and expansion of the Lake Region Electric Development water treatment plant to serve five additional system members. The work involved gathering data from each of the proposed systems, including the number and location of residential and commercial customers within various census tracts, and performing the income calculation to justify the need for the poverty interest rate and maximum grant eligibility.

In 2019, the Cherokee Nation issued two memorandums of agreement, contributing $93,850 toward engineering costs and $2,000,330 toward construction. In 2020, an additional memorandum of agreement provided $213,350 to support project development. Around the same time, USDA issued a Letter of Conditions offering a $10,648,000 loan and a $4,643,000 grant for the purchase and expansion of the water treatment plant, including water storage and pumping facilities. The USDA required completion of the environmental review process by September 30, 2021. To meet this requirement, additional predevelopment funding was needed, and Communities Unlimited extended an $85,000 loan for that purpose.

The environmental review process required extensive coordination with the U.S. Army Corps of Engineers (USACE) and tribal nations. Mitigation measures were identified, including construction restrictions during culturally significant times of the year. The review depended on the project engineer providing detailed maps of proposed line locations, which were frequently updated as easements were secured from landowners. The USACE’s final step was to solicit and receive comments from two tribal nations within a set timeframe.

To keep the project on track, Communities Unlimited staff facilitated monthly progress meetings with the entity, its legal team, the project engineer, and funding officials. These efforts ensured the environmental deadline was met in September 2021, preventing the loss of USDA funding.

The USDA Letter of Conditions process required that all transmission line easements, conveyance documents for permanent sites, and the proposed purchase agreement for the water treatment plant be reviewed by legal counsel to ensure USDA would have a first lien position on the system. This process took over a year, primarily due to the time required to secure all easements. During this period, Communities Unlimited helped the system fulfill USDA requirements by completing a proposed operating budget and a conflict-of-interest policy. CU also developed a document outlining the full USDA Letter of Conditions process — from issuance to loan closing — to help the entity track its progress.

By the time the loan closing instructions were requested, Communities Unlimited recognized that the available funding would be insufficient and recommended that the project engineer develop a new cost estimate. Based on that estimate, CU assisted the Authority in applying for inclusion on the Drinking Water State Revolving Fund (DWSRF) Project Priority List. The engineering design work also required over a year to complete, as easement locations had to be confirmed before submitting final plans to the Oklahoma Department of Environmental Quality.

The project is scheduled to open bids on April 3, 2025. An application for $13,000,000 in Drinking Water State Revolving Funds has been submitted and is expected to be reviewed for approval shortly after the bids are opened. Communities Unlimited assisted the system in preparing and submitting the DWSRF application.

The project would not have secured financing without the assistance of Communities Unlimited, nor would the entity have been able to navigate the USDA Letter of Conditions process without guidance from CU staff. The monthly progress meetings facilitated by Communities Unlimited were critical in maintaining communication with the U.S. Army Corps of Engineers (USACE); without them, the Authority would not have met the environmental review deadline, and the USDA funding would have been lost. These ongoing meetings also ensured that all parties remained aligned and continued progressing toward obtaining loan closing instructions. Additionally, without Communities Unlimited’s support in completing the DWSRF application forms, the Authority would not have been able to apply for the additional funding necessary to complete the project.