July 1, 2025
Contact: MaryAnna Peavey, Grant and Loan Bureau Chief, maryanna.peavey@deq.idaho.gov
BOISE – The Idaho Department of Environmental Quality (DEQ) today awarded a $3,957,000 low-interest drinking water construction loan to the city of Murtaugh in Twin Falls County, Idaho.
The funding will be used to address capacity needs through the acquisition of water rights, construction of a new storage tank booster station, and distribution system improvements.
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 1.5% of the median household income, the city qualifies for a disadvantaged loan, which carries favorable repayment terms.
The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the U.S. Environmental Protection Agency, carries a simple 2% interest rate, is payable over 30 years, and has a $1,957,000 principal forgiveness. The favorable loan terms represent a $5,566,855 savings to the community when compared to average costs for municipal general obligation debt issuances.