The Idaho Department of Environmental Quality announced it has awarded the city of Harrison a $771,262 low-interest drinking water construction loan.

The funds will be used to investigate and develop the Stonegate well, undergo leak detection, make necessary reservoir repairs and replace meters.

City Clerk Miriah Pfeiffer said Thursday the Harrison City Council has identified a severe need to improve the city's wastewater facilities, as well as increase its freshwater capacity.

"This need is a result of three variables: An increase in regulations, an aging infrastructure and the need to serve undeveloped lots within the city," Pfeiffer said.

Discharge of wastewater into Anderson Slough is becoming less viable due to increased regulation, Pfeiffer said. She said the City Council has identified land application of wastewater as the best solution to upgrade Harrison's system for sustainability.

"Our freshwater system needs have also increased," Pfeiffer said. "The need is in storage as well as capacity to replenish the system in the case of fire emergency, failed pumps or other emergent demands that exist for all water systems. We have identified the increased use and accessibility to water storage that already exists within what is popularly known as the 'Stonegate' subdivision. We have also identified the need for a new well to increase capacity."

DEQ is authorized by Idaho state law to make loans to assist in the construction of public drinking water systems. Since the annual cost of drinking water service for residential customers exceeds 1.5% of the median household income, Harrison qualifies for a disadvantaged loan that carries favorable repayment terms.

The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the United States Environmental Protection Agency, has $771,262 in principal forgiveness. The favorable loan terms represent a $1,266,012 savings to the community when compared to average costs for municipal general obligation debt issuances.

Harrison is currently under a moratorium. This is effective until the completion of the wastewater system and drinking water system improvements funded through the American Rescue Plan Act and DEQ’s State Revolving Loan Fund program are certified as completed as determined by the city’s engineer and DEQ, with a completion date on or before Dec. 1, 2026.

The Harrison City Council on Dec. 19, 2022, passed a Local Improvement District.

Harrison received a $1,108,000 dollar drinking water grant and a $9,691,435 wastewater grant; 15% of the wastewater grant will be evenly distributed to the burden of the local improvement district overall taxable parcels within city limits. The estimated per-property cost and expense of the improvements is expected to be about $3,100 to $3,600. The final assessment may vary based on overall project costs and the total number of included properties.