DEQ awards $13,639,750 to American Falls
AMERICAN FALLS, Idaho (KIFI) — The Idaho Department of Environmental Quality (DEQ) announced the award of a $13,639,750 low-interest drinking water construction loan to the City of American Falls in Power County.
The funding will be used to construct a new well, install a water meter and Supervisory Control and Data Acquisition system and improve the water distribution system.
DEQ is authorized by state law to make loans to assist in the construction of public drinking water wastewater 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 American Falls qualifies for a disadvantaged loan that 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 1.50% interest rate, is payable over 30 years, and has $604,063 in principal forgiveness. The favorable loan terms represent a $5,519,154 savings to the community when compared to average costs for municipal general obligation debt issuances.
