June 26, 2024
Contact: MaryAnna Peavey, Grants and Loans Bureau Chief, MaryAnna.Peavey@deq.idaho.gov
BOISE – The Idaho Department of Environmental Quality (DEQ) today awarded an $8,320,000 low-interest drinking water construction loan to Cave Bay Community Services in Kootenai County, Idaho.
The funding will be used to purchase a new well, well house, standpipe, and mixers, rehabilitate an existing well, upsize water mains, address fire flows, and add service meters.
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, Cave Bay Community Services 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 a $2,350,000 principal forgiveness. The favorable loan terms represent a $5,868,924 savings to the community when compared to average costs for municipal general obligation debt issuances.