Rural water vs well - what am I missing?

[soilsailor]

My wife and I are working on our 'well vs rural water' decision for our acreage. I'm hoping the wisdom of the group here at TBN can look at this to make sure I'm not missing anything.

Background: we bought 40 acres of bare land with a plan to build a house and shed on it. We have a pretty substantial creek flowing on the east side of the property. Last summer we had a drought in Iowa and it flowed until about October. We have planted a chestnut orchard and I plan to irrigate the trees, when necessary, by pumping out of the creek and storing run-off from the shed roof. Currently have about 9000 gallons of storage capacity. The land is about a 75' elevation change, so irrigation would be gravity powered from the storage tanks.

So, here are the details on potable water source options:

Drill a well: local driller indicated that a nearby well required 300' at $30/foot, plus about $5k-$6k in finishing costs/pump. I'm budgeting $16k for this option. Neighbors about a mile away indicated that they had iron in their well water and were glad to get rural water service.

Rural water: This service is available by extending the main to our property. Cost for main extension and metering pit is $4k. They offered to install a 2" service line from the pit back 550 feet to our building site for an additional $1k. My responsibility is to maintain the service line from the pit on back to my buildings. Expected monthly costs for buying water and service charge should average about $65 per month. If I use no water at all - I pay the minimum monthly service charge of $21.

Based on this, other than my desire to not be a slave to future rate increases and the fact that I can never 'undo' the metering pit, I cannot cost-justify a well. Add the risk of not hitting water, having bad water that requires conditioning etc. etc. I don't see going the well route.

What am I missing?

Rick

 

[Rustyiron]

Your domestic & drinking water needs kinda push you to drilled well or the rural hook up. Those drilling costs sound very, very high, you might call a few other drillers. Your "finishing" costs are more inline with the total well costs for an average 300' well. I don't see why it would be much different in Iowa.

 

[Clint S]

Those well prices are WAY high. Around here it would be 3 to 4k to drill 300 feet and about 1k for the pump, wire, pipe and tank ect. Like Rustyiron said your finishing costs are about what the well would cost around here too (NY). If you can get the GPM's to meet your needs, I prefer well water as I know where it came from and nothing was added to to it. A softener can take care of alot if needed

 

[Egon]

Get a few more prices and redo the math.

 

[HarryN]

It's all in the location. I have a well here in Louisiana. In one of the finest aquifers in the US. People tell me it should be bottled because it's so good. The well is 115 feet deep. Was drilled new about 25 feet away from my original well (drilled in 1980) that was destroyed from Hurricane Katrina in 2005. Was about $4,000 to drill it. In MY area it's a no brainer. In YOURs, in Iowa, have no idea. When we drilled the first well, I went to all the neighbors and asked how there water was, how it tasted, how much it was, who drilled, etc. When all said it was great I check out a number of drillers. Some didn't know what the heck they were talking about. You get the picture..... Do a little research and good luck with your decision and new 40 acres! Let us know how you make out.....

 

[/pine]

FWIW...

I am lucky enough to have a surface (gravity fed) source of water...several of the neighbors elected to have wells drilled (generally $12-$15 per foot at an average depth of 200')...my water consistently tests better than the drilled well water...

 

[smstonypoint]

An advantage of the rural water system is that you will have water in the event of a power outage. You can buy a generator, but that would be another hit to your wallet. Of course, you may want a generator regardless of your water source.

The annual interest rate for an annuity purchased for $11,000 that would give a monthly payout of $65 for 20 years is 3.7% (rounded).
The annual interest rate for an annuity purchased for $11,000 that would give a monthly payout of $65 for 30 years is 5.9% (rounded).

These are nominal pre-tax values.

Steve

 

[Western]

Quotes I got here 3 years ago was in the $20-$24 per ft. range and we are high! I agree with the others, do some more price checking, ask your neighbors for references and their experiences with there water vs well.

 

[rekees4300]

What am I missing?

You aren't missing anything. If you can get "rural water" then do so, consider yourself fortunate that it's available.

 

[Bikewanderer]

I'd say it's a crapshoot between the two at even money, which is what it should cost. Prices here are $12/ft to drill and another $5/ft to case it. Add two grand for trenching, pump, etc and you're at even money. You're not far enough away for prices to be much different.