| For
loans issued during state fiscal year 2005 the interest rate DEQ
will charge for loans awarded for water pollution control and drinking
water projects will be determined as follows:
The interest
rate for the following State fiscal year will be 75% of the “State
and local bonds” entry reported in “Federal Statistical Release,
H.15” as of January 1 of each year, lowered to the nearest quarter
percent. This entry is quoted by the Federal Reserve from the
“Bond Buyer Index” for general obligation bonds (20 years to maturity,
mixed quality). For FY2005 the rate for all loans from the Water
Pollution Control Loan Account will be 3.25% except loans to the
Idaho Soil Conservation Commission, which will be at 2.0%.
For FY2005
the rate for loans from the Drinking Water Loan Account will be
3.25% except that portions of projects that are being constructed
solely to comply with federal rules imposed by the Safe Drinking
Water Act will be 2.0%. In those cases, the interest rate will
be blended between the two rates. The actual loan rate will be
determined at the time the loan is awarded. Projects that are
consolidating one or more public water systems will also be eligible
for 2.0% loans.
These rates
are subject to available funds and are for one fiscal year only.
The interest rate may be adjusted if it is determined that the rate
of inflation is higher than the interest rate charged, thereby causing
the loan funds to lose purchasing power. Projects for which loan
awards have been made before July 1, 2004 are not affected by this
policy. |
