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Cost to get a municipal water supply in Texas in 1500 acre development that has private wells currently

Started by RogerJ13 replies • 251 views

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RogerJ1 (Texas)
Posts: 550
Posted:
Anyone have ballpark estimate on how much it would cost to get a municipal water supply to a ~1500 acre development that has 56 lots that are on private water wells currently?

Background: every 5 years of so, neighbors in the community get worked up about wanting fire hydrants. At first, they do not realize that we do not have fire hydrants because we are on a private water supply - they think the county or fire department is just ignoring us. After it is pointed out that residential water pumps do not supply enough water to feed a fire hydrants, and that fire department shut off power when fighting a house fire, so they pumps would not run even if strong enough, so we would have to have a municipal water supply, fire hydrant talk usually ends.

Based on the people bringing it up now, I think they will push it further - explore getting municipal water at least explore it on a discussion level. I assume that would entail establishing a MUD, which would issue bonds to pay for the water development, then greatly increase property taxes to pay off those bonds.

So just out of curiosity how much would the capital costs be? Note: the nearest neighborhood to us with a MUD and municipal water is around a mile or a little farther away. If that could not be tapped and pipe to our subdivision, the next closest supply would be many more miles.

I suspect it would be well over a million dollars but I do not know and I can find nothing researching MUD development costs.

Anyone know a ballpark figure?
TimB4 (Tennessee)
Posts: 21,061
Posted:
Your water company should be able to give you that info without a commitment.

Additionally, if it's like gas, the first person to get it pays for the install of most of the main line. Therefore, it's best to get commitments from as many owners you can to help share the cost.
TimB4 (Tennessee)
Posts: 21,061
Posted:
A quick online look says it can costs between $50 and $250 per linear foot just to run a line from your home to the main line (which I expect from your posting doesn't exist at this time).
RogerJ1 (Texas)
Posts: 550
Posted:
Quote:
Posted By TimB4 on 12/02/2021 1:14 AM
A quick online look says it can costs between $50 and $250 per linear foot just to run a line from your home to the main line (which I expect from your posting doesn't exist at this time).

No water company - private wells. Nearest MUD, which are the water and utility governments in unincorporated areas in Texas, is ~1 mile away.

I went about finding a ballpark number by looking at the financial statements of various MUDs in my area. Most cover much bigger areas than our subdivision, but some are not too much bigger at least land wise. Looking at their depreciated capital assets, I found they range from about 1.8 million to many 10s of millions and more, and those are net depreciated capital assets.

So I assume at least $2 million and maybe more. MUDs, in Texas, are capped at 1.5% property tax I think. So with only 56 lots, and less than 50 homesite, since there or half a dozen owners who own two lots, I doubt there is a total tax base that could support a MUD - one could not generated enough tax capped at 1.5% for our home values in total, therefore no entity would start one.

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