Lava Hot Springs in Bannock County, Idaho will receive much needed upgrades to its water system through a $4.4 million low-interest drinking water construction loan awarded by the Idaho Department of Environmental Quality (DEQ).
The construction will include a new well and replacement of water meters and transmission and distribution lines within the city’s water system.
The regulations of the loan will allow the city to save $3,567,538 as compared to normal rates for municipal general obligation debt issuances. The funding comes from DEQ’s State Revolving Loan Fund, which is supplemented by the Environmental Protection Agency each year and offers a simple 1.75 percent interest rate. The loan is payable over 30 years and offers a principal forgiveness of $1,471,160.
The city of Lava Hot Springs qualified for the advantageous repayment terms because the yearly costs for drinking water for residents of the community is greater than 1.5 percent of the median household income. State law allows DEQ to distribute loans and help with the renovation of public drinking water systems.