Rexburb awarded $11.1-million loan for drinking water infrastructure
According to Idaho state law, the DEQ can grant loans to municipalities so that they can work on their public drinking water systems. Rexburg also qualifies for a disadvantaged loan as the annual cost of drinking water services for a household is more than 1.5 percent of the median household income. This means that the city will have very favorable repayment terms, with an interest rate of 1.75 percent payable over 30 years and a principal forgiveness of more than $2.2 million, which all amounts to savings of nearly $7.4 million compare to typical costs.
In addition to the new wells, the loan will also cover a 2.5-million-gallon storage reservoir, a booster pump station and improvements to the city’s control system and waterline.
The loan comes from the DEQ’s State Revolving Loan Fund, which receives an annual influx of funding from the Environmental Protection Agency (EPA).