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Terrebonne Sanitary District – Sewer System Hook-up Fees – Part 3

Sep 3, 2024 | Hook-Up Fees

This is a copy of page 97 from the 2022 Terrebonne Wastewater System Preliminary Engineering Report.*

The costs listed are:

  1. What you will pay each month for sewer service
  2. What you will pay in SDC fees. (Each property owner has to pay a one time SDC fee to help cover the cost of the sewer system.)
Total System Development Charges (SDCs)

The total SDCs are the sum of the reimbursement and improvement components. The estimated total SDCs would be $6,480 ($3,634 + $2,846). This total represents a worst-case scenario and assumes the entire project would be paid for through a state or federal loan.

Although not guaranteed to be awarded to the District, this amount can be reduced through applying for and acquiring grants to effectively reduce the overall direct capital expenditure by the District. For instance, if the District was to secure $1.8 million in grant funding for Phase A initial reimbursement costs for Phase A would be reduced by $1.8 million and the total SDCs would equate to $4,773. Please see Table 8-4 below for a summary of estimated sewer rates, SDCs, and revenues for both scenarios.

Table 8-4. Estimated Sewer Fees and Initial Revenues

Scenario 1 ($1.8 million grant funding) Scenario 2 (no grant funding)
Monthly Rate per EDU $65 $100
SDC Hookup Fee per EDU $4,773 $6,480
Initial Operating Revenues (160 EDUs in 2025) $124,800 $192,000
Initial SDC Revenue (160 EDUs in 2025) $763,616 $1,036,861
Initial SDC Revenue (160 EDUs in 2025) $763,616 $1,036,861
Annual Sewer Cost % MHI 1.37% 2.12%
EDU = equivalent dwelling unit; MHI = median household income; SDC = system development charge
Remember, these monthly rate numbers were based on the 2022 projection. When you update the cost to build and run the project, we have calculated the rate will need to be between $200 and $250 a month to operate the district.

From what we have heard, the Terrebonne Sanitary District has NOT updated its projected budget to reflect costs, increases in interest rates, or inflation.


Can YOU afford these costs?

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