DEQ awards $4.9 million low-interest wastewater construction loan to city of Ashton
Friday, March 17, 2017
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $4.9 million low-interest wastewater construction loan to the city of Ashton in Fremont County.
The funding will be used to repair or replace the collection system and to make improvements to the treatment system. Treatment improvements include replacing aerators, constructing a lined storage pond and pump station, repairing a chlorine contact basin, and implementing land application.
DEQ is authorized by state law to make loans to assist in the construction of public wastewater systems. Since the annual cost of wastewater service for residential customers exceeds one and one-half percent of the median household income, the city of Ashton is able to qualify for a disadvantaged loan, which carries very favorable repayment terms.
The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has $786,670 of principal forgiveness. The favorable loan terms represent about a $3,752,156 savings to the community when compared to average costs for municipal general obligation debt issuances.