March 3, 2021
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $25.2 million low-interest wastewater construction loan to the city of Preston in Franklin County.
The funding will be used to replace part of the collection system and improve the wastewater treatment system, which includes new headworks, lift station, oxidation ditches, tertiary filtration system, and UV disinfection system.
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 Preston 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 US Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has $154,905 of principal forgiveness. Of these funds $22,280,000 is expected to be refinanced by the United States Department of Agriculture Rural Development leaving a total obligation to DEQ of $2,765,095. The favorable loan terms represent a $406,043 savings to the community when compared to average costs for municipal general obligation debt issuances.
Grants and Loans Bureau Chief