DEQ awards $6.4 million wastewater construction loan to city of Genesee
Friday, May 29, 2020
BOISE—The Idaho Department of Environmental Quality (DEQ) awarded a $6.4 million low-interest wastewater construction loan to the city of Genesee in Latah County, Idaho.
The funding will be used to replace the collection system and improve the wastewater treatment system, which includes a new headworks facility, new lagoon system, and UV disinfection.
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 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 U.S. Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has $220,342 of principal forgiveness. The favorable loan terms represent a $1,290,409 savings to the community when compared to average costs for municipal general obligation debt issuances.