City Manager Stan Brown confirmed Tuesday that $490,333 in sewer funds will be used for the work, which includes replacing a culvert on McEver Road at Mud Creek.
A contractor has already been chosen for the work with an expected completion date of Aug. 2.
The city council resolution authorizing the use of sewer funds for the work calls for the sewer fund to be fully reimbursed from the city's general fund by the end of 2014.
Oakwood is also getting $200,000 in emergency funds from the state Department of Transportation to use for culvert repairs.
The failure of this culvert on McEver Road at Mud Creek was caused by flooding last month. (File photo)
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