BOISE, Idaho (KIFI) — The Idaho Department of Environmental Quality (DEQ) announced the award of a $3 million low-interest drinking water construction loan to the city of Challis in Custer County.
The funding will be used for construction of a new well, well house, booster station, transmission line and to perform leak detection on waterlines.
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 for residential customers exceeds 1.5% of the median household income, the city 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 US Environmental Protection Agency, carries a simple 1.5% interest rate, is payable over 30 years, and has $261,337 in principal forgiveness. The favorable loan terms represent a $725,202 savings to the community when compared to average costs for municipal general obligation debt issuances.