SWSD nets $850K loan

SAGLE — Southside Water and Sewer District’s expansion plans are in the bag with the Idaho Department of Environmental Quality’s award of an $850,000 no-interest loan on Monday. 

The utility provider ended its moratorium on new hook-ups last month when it became apparent that the DEQ was willing to assist SWSD’s capacity expansion plans with a loan. Now that the transaction is complete, board chairman Jim Haynes said he expects the expansion projects to occur gradually over the next year.

“With the snow, we can’t do a whole lot,” he said. “We expect to see a lot of the work get done once spring rolls around.”

Those improvements include an expansion of the district’s irrigation zones by utilizing previously-designated buffer areas. The district hopes to increase their capacity even further by purchasing additional land to use for irrigation. Potential purchases are still in negotiation and will likely take more time to bear fruit, Haynes said.

In the meantime, the district is focusing on tasks that can be accomplished during the unfavorable season. They’re purchasing pipeline and replenishing its reserves while making plans for the more extensive springtime work like lift station repairs.

The terms of the loan will allow the district to make repairs with relatively few headaches. According to the DEQ, Southside qualified for a disadvantaged loan since its annual residential costs exceeded one a half  of the median household income. That allowed for very favorable loan terms with a no-interest rate, a 20-year repayment period and $172,720 of principal forgiveness. The DEQ estimates a total savings of $548,244 compared to traditional lenders.

“With the principal forgiveness, it’s in some ways a little like a grant,” Haynes said.

Since opening its services up for additional hook-ups last month, Haynes said that resuming normal operations as a utility provider has been a seamless process.

“There are some concerns among the board about what will happen once more than 50 people want to add hook-ups,” he said. “But our expansion plans should be able to accommodate the demand.”