June 28, 2021
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $4.32 million low-interest drinking water construction loan to the Panhandle Village Water System located in Kootenai County, Idaho
The funding will be used to replace the distribution system and install a storage tank, booster pumps, and a new well.
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 Panhandle Village Water System 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 US Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has a $1,067,409 principal forgiveness. The favorable loan terms represent a $1,729,516 savings to the community when compared to average costs for municipal general obligation debt issuances.
Grants & Loans Bureau Chief