Contact: MaryAnna Peavey, Grants and Loans Bureau Chief, MaryAnna.Peavey@deq.idaho.gov
BOISE – The Idaho Department of Environmental Quality (DEQ) today announced the award of a $4,500,000 low-interest drinking water construction loan to the Twenty Mile Creek Water Users Association in Boundary County, Idaho.
The funding will be used to make drinking water treatment plant improvements, replace water lines and mains, add water meters, and replace the pressure reducing valve station.
DEQ is authorized by state law to make loans to assist in the construction of public drinking water systems. The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the United States Environmental Protection Agency, carries a simple 2% interest rate, is payable over 30 years, and has $2,751,037 in principal forgiveness. Since the annual cost of drinking water service for residential customers exceeds 1.5% of the median household income, Twenty Mile Creek Water Users Association qualifies for a disadvantaged loan which carries favorable repayment terms. The favorable loan terms represent a $6,319,499 savings to the community when compared to average costs for municipal general obligation debt issuances.