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Why It Matters
The City of Worley in Kootenai County will use nearly $5 million in state and federal funding to expand and modernize its drinking water system, addressing supply and infrastructure needs in the small community.
What Happened
Idaho’s Department of Environmental Quality awarded the city a combined $4.9 million package consisting of a low-interest construction loan and legislative supplemental funding. The money will finance construction of a new groundwater well, upgrades to existing well facilities, repairs to tank 2, replacement of service meters, and acquisition of new water rights.
Worley qualified as a disadvantaged community, making it eligible for favorable loan terms. The city will repay the $2.76 million loan component over 30 years at a simple 2 percent interest rate, significantly below typical municipal borrowing costs.
By the Numbers
- $2.76 million in low-interest drinking water construction loan
- $2.15 million in legislative supplemental funding
- 2 percent annual interest rate on the loan
- 30-year repayment period
- $6 million in estimated savings compared to standard municipal general obligation debt
Funding Source
The DEQ administers Idaho’s State Revolving Loan Fund, which receives annual capitalization from U.S. Environmental Protection Agency grants. The supplemental funding portion was authorized through Idaho House Bill No. 455, passed during the 2025 legislative session, which directed additional state resources to public drinking water infrastructure.
What’s Next
Worley will begin project implementation using the awarded funds. The city must complete the infrastructure work according to the loan agreement and state environmental standards.
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