DEQ awards $400,000 low-interest drinking water construction loan to North Kootenai Water and Sewer District
Tuesday, December 27, 2011
BOISE - The Idaho Department of Environmental Quality (DEQ) today announced the award of $400,000 low-interest drinking water construction loan to the North Kootenai Water and Sewer District (Local Improvement District #3 – Chilco East) in Kootenai County.
The funding will be used to provide centrally treated drinking water to district residents that have previously relied upon well water.
DEQ is authorized by state law to make loans to assist in the construction of public drinking water systems. Since the annual cost of drinking water service for residential customers exceeds one and one-half percent of the median household income, the district is able to qualify for a disadvantaged loan which carries very favorable repayment terms.
The loan from DEQ’s State Revolving Loan Fund carries a simple 0.25% interest rate and is payable over 30 years. The favorable loan terms represent a $165,360 savings to the district when compared to average costs for municipal general obligation debt issuances.