DEQ awards $2.2 million to city of Weston
The Idaho Department of Environmental Quality (DEQ) awarded a $2,249,500 low-interest drinking water construction loan to the city of Weston in Franklin County.
DEQ reports the funding will be used to construct a new water storage tank, a new well, well house and transmission line.
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 one and one-half percent of the median household income, the city of Weston is able to qualify for a disadvantaged loan that 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 $293,173 of principal forgiveness.
The favorable loan terms represent a $1,516,293 savings to the community when compared to average costs for municipal general obligation debt issuances.
