Idaho DEQ awards Butte City $500,000 toward building a public drinking water system

BUTTE CITY, Idaho (KIFI) - A rural Idaho population is receiving some much-needed assistance. The Idaho Department of Environmental Quality (DEQ) has awarded $500,000 in drinking water construction funding to Butte City in Butte County, Idaho.

According to the DEQ, the funding will be used to improve the distribution system, including adding valves, hydrants, and water 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, the city qualifies for a disadvantaged loan, which carries favorable repayment terms," write department officials in a press release.

"The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the United States Environmental Protection Agency, has $500,000 in principal forgiveness. The favorable loan terms represent $810,998 in savings to the community when compared to average costs for municipal general obligation debt issuances."