DEQ awards drinking water loan to city of Lewiston, Idaho
Tuesday, November 12, 2019
Boise — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $32,082,661 low-interest drinking water construction loan to the city of Lewiston, Idaho, in Nez Perce County.
The funding will be used to make water treatment upgrades, replace undersized mains, upgrade booster pumping facilities, construct new well supplies, and develop a new water storage reservoir.
DEQ is authorized by state law to provide loans to communities to assist in the construction of public drinking water systems. The city of Lewiston qualified for a disadvantaged loan since the annual cost of drinking water services for residential customers exceeds 1.5% of the median household income.
The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the US Environmental Protection Agency, carries a simple 1.625% interest rate, is payable over 25 years, and has a $812,540 principal forgiveness.
The favorable loan terms represent a $5,755,138 savings to the community when compared to average costs for municipal general obligation debt issuances.