DEQ awards drinking water construction loan to the city of Athol, Kootenai County
Wednesday, July 03, 2019
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $3,286,000 low-interest drinking water construction loan to the city of Athol in Kootenai County
The funding will be used to construct a new water system, which includes demolishing two existing water reservoirs, modifying an elevated water reservoir, constructing a standpipe and water main, and adding transmission line, electrical, pump, and building upgrades.
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 one and one-half percent of the median household income, the Mores Creek Rim Ranches Water District 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 $700,000 of principal forgiveness. The favorable loan terms represent a $2,012,165 savings to the community when compared to average costs for municipal general obligation debt issuances.