What is the Likely per-Family Cost of the System?

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 FAMILIES WILL PAY $108,379.20 OVER 40 YEARS (without a USDA grant) OR $60,340.80 (with a 75% USDA grant) UNDER THE TLCSA’S CURRENT ESTIMATE

CONSTRUCTION COST

Since its 2017 inception, the estimated project construction cost (not including ongoing monthly fees) has risen from $37,000,000.00[1] to $40,000,000.00[2] to $43,017,000.00[3] to the current $58,968,000.00 estimate.[4]

ONGOING MONTHLY FEES

Users will also have to pay separate ongoing monthly fees, which Wade-Trim estimates at $92.36 per month per single-family residence.[5] This amounts to a $44,332.80 per family over 40 years.

OTHER COSTS

Wade Trim estimates that a single-family residence will pay $225.79 monthly for the construction cost and ongoing monthly fees combined. Over 40 years, this totals $108,379.20 per family. The actual cost could be much higher, however. For starters, the TLCSA writes, “[A]n increase in rates should be occurring at regular annual increases to offset O&M increases.”[6] Next, each user must pay out of pocket for electrical service to new pumps installed on each property.[7] If a user is already at electrical capacity, he or she will have to pay for upgraded service into the house. Finally, the estimate is based on unknown assumptions regarding inflation rates and an assumes a 2.25% interest rate to finance construction costs.[8] Inflation is highly variable, and USDA interest rates fluctuate quarterly, so costs could vary based on actual rates.

WHAT ABOUT THE USDA GRANT?

The TLCSA is applying for a USDA grant that could defray up to 75% of project costs.[9] However, the grant would not apply to ongoing monthly fees.[10] As shown in the table below, costs are still very substantial, even with a grant.