Contact: MaryAnna Peavey, Grants & Loans Bureau Chief, maryanna.peavey@deq,idaho.gov.
BOISE – The Idaho Department of Environmental Quality (DEQ) today announced the award of a $7,383,448 low-interest wastewater construction loan to the City of Kendrick in Latah County, Idaho.
The funding will be used for wastewater treatment plant improvements, including upgrading from a lagoon system to a mechanical treatment system.
DEQ is authorized by state law to make loans to assist in constructing public wastewater 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 a $4,117,328 principal forgiveness. Since the annual cost of drinking water or wastewater service for residential customers exceeds 1.5% of the median household income, the City of Kendrick qualifies for a disadvantaged loan which carries very favorable repayment terms. The favorable loan terms represent a $9,986,077 savings to the community when compared to average costs for municipal general obligation debt issuances.