The Idaho Department of Environmental Quality awarded a $1,641,000 low-interest wastewater construction loan to Country Club Hills Utilities in Bonneville County.
The business is listed on state documents as a water users association attached to the Country Club Hills Subdivision, located on the eastern edge of Idaho Falls. It owns one water right and operates two wells for as many as 65 residential dwellings, according to the Idaho Department of Water Resources.
Efforts to reach utility representatives for comment Friday were unsuccessful.
The funding will be used to install two miles of 12-inch gravity sewer line system, as well as ancillary equipment, to connect to the existing Eastern Idaho Regional Wastewater Authority interceptor and decommission its existing lagoon, according to a department news release.
State law authorizes the department to make loans to assist in the construction of public wastewater systems.
Country Club Hills Utilities is able to qualify for a disadvantaged loan, which carries more favorable repayment terms, because the annual cost of wastewater service for residential customers exceeds 1.5 percent of the median household income.
The loan has an interest simple rate of 1.25 percent payable over 30 years with $307,120 principal forgiveness. The favorable loan terms represent about a $1,534,504 savings to the subdivision compared to average costs for municipal general obligation debt, according to the release.