Ashton wins low interest loan for wastewater project

The city of Ashton has been awarded a $4.9 million low-interest loan. The Idaho Department of Environmental Quality said the wastewater construction loan will help the city repair or replace its wastewater collection system and make improvements to the treatment system. The improvements will include replacing aerators, constructing a lined storage pond and pump station, repairing a chlorine contact basin, and implementing a land application program. Since the annual cost of wastewater service for residential customers exceeds 1.5 percent of the median household income, the city of Ashton is able to qualify for a disadvantaged loan, which carries favorable repayment terms. The loan from Idaho DEQ’s state revolving loan fund carries a simple 1.75 percent interest rate over 30 years. The loan has $786,670 of principal forgiveness. Those favorable loan terms will save Ashton residents about $3,752,156 compared to average costs for a general obligation project like this one. The state revolving loan fund is capitalized annually by grants from the Environmental Protection Agency.