October 25, 2024
Contact: MaryAnna Peavey, Grants and Loans Bureau Chief, MaryAnna.Peavey@deq.idaho.gov
BOISE – The Idaho Department of Environmental Quality (DEQ) today announced the award of a $5.4 million low-interest drinking water construction loan to the city of Island Park in Fremont County, Idaho.
The funding will be used to address water supply and distribution deficiencies.
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 city of Island Park 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 United States Environmental Protection Agency, carries a simple 2% interest rate, is payable over 30 years, and has a $5.4 million principal forgiveness. The favorable loan terms represent a $9,230,770 savings to the community when compared to average costs for municipal general obligation debt issuances.