Agenda - Planning Commission - 02/04/2016

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City of #k., RAMSEY 7550 Sunwood Drive NW • Ramsey, MN 55303 City Hall: 763.427.1410 • Fax: 763.427.5543 www.cityoframsey.com SEPTIC SYSTEM COST AND FUNDING The following information was prepared by the University of Minnesota Extension Service. The Costs and Financing of Septic Systems Septic systems, when properly designed, installed, operated and maintained, provide effective treatment of household sewage at a very reasonable cost. Unfortunately because the septic system is buried "out of sight" in the back yard, it often becomes "out of mind." Many rural residents have had the idea that "disposing of sewage" should have little or no cost. We know now that the "treatment" of our sewage necessary to protect our family health and the community water supply will have a cost. Persons using municipal treatment systems pay both connection fees and user fees. Would you buy a car, then never change the oil until the engine starts knocking or seizes up? Of course not. Why would you buy a septic system for $3,000 to $10,000 and then never take care of it? There are three kinds of costs associated with a septic system: the original installation costs, the maintenance and repair costs, and the replacement costs if things go wrong. Because proper steps taken in the installation and maintenance will prevent many of the replacement costs. The original design and installation costs of an individual on-site septic system typically range from $3,000 to greater than $10,000, depending on the size of home, the site conditions and local ordinance requirements. The installation costs of multi - household systems in small rural communities, around lakes or in clustered suburban developments will also have a wide range. The variables contributing to the wide range include the number of homes on the system, the distances between homes, the distance to the soil treatment site, availability of land for the site and the type of treatment system necessary as determined by soil conditions. Several documented installations have cost between $3,900 and $16,000 per home. Installation costs are one-time costs that last for 20+ years. The annual operation, maintenance and repair costs occur over the life of the system. Traditional installations last 15 to 40 or more years. The annual costs of septic systems include the regular cleaning or pumping of the tank on a two or three year interval. The typical annual costs of an individual drainfield or mound system range from $30 up to $500 with the high end including replacement costs of pumps in mound systems. The annual costs with systems including constructed wetlands or sand and peat filters are often $50 to $1,700, depending on the discharge method and monitoring requirements. Annual costs for multiple -household systems are typically $200 to $1500 per household. The costs of contracted monitoring raise the lower end costs for these systems. The typical total cost for individual systems over a 20 year period is $6,300 to $13,000 for trenches and mounds, or $13,500 to $32,000 for alternative treatment systems. For multi- household systems, typical trench or mound systems range from $18,500 to $25,000. Alternative treatment systems typically range from $18,000 to $44,500 for 20 years of service. Financing of the original design and installation costs can be a major hurdle for some homeowners. The state of Minnesota, through the MPCA, Department of Agriculture and the Department of Trade and Economic Development has created several special loan or orant programs that may be available through local lending institutions, county water plan programs or other It is our mission to work together to responsibly grow our community, and to provide quality, cost-effective and efficient government services.