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 $1,250,000 low-interest drinking water construction loan to the Cedar Springs Community Water, Inc. in Bonner County, Idaho.
The funding will be used for designing and constructing a new storage tank, decommissioning the existing storage tanks, and installing new water meters.
DEQ is authorized by state law to make loans to assist in constructing 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 a $1,250,000 in principal forgiveness. Since the annual cost of drinking water service for residential customers exceeds 1.5% of the median household income, Cedar Springs Community Water, Inc. qualifies for a disadvantaged loan, which carries very favorable repayment terms. The favorable loan terms represent a $2,317,121 savings to the community when compared to average costs for municipal general obligation debt issuances.