DEQ awards $708,000 low-interest wastewater construction loan to the city of Basalt
Wednesday, June 07, 2017
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $708,000 low-interest wastewater construction loan to the city of Basalt in Bingham County.
The funding will be used to replace 5,500 feet of sewer trunk lines, make 40 point-repairs in the collection system, and improve a lift station.
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 Basalt 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 Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has $104,827of principal forgiveness. The favorable loan terms represent about a $516,073 savings to the community when compared to average costs for municipal general obligation debt issuances.