Signal Mountain is losing approximately 20 percent of the water it sells, meaning lost revenue for the town and a savings for some residents. That could change in the near future.
The town is considering partnering with Johnson Controls for a study and overhaul of its meter system.
"As the project pays for itself over time, the income captured and retained is returned back to the city," said company representative Kevin Waters. "You're looking at around $50,000 in annual savings."
Some of that money will come from those with outdated and inaccurate meters. Although most of the town's meters are around 15 years old, according to Water Utilities Director William Sanders, Waters said time is not necessarily what wears out meters; consumption does. He estimated the town's meters to be between 95 and 97 percent accurate.
"Your type of city is not going to see a lot, but everyone is going to have to pick up some, but it's just paying for what you're using," he said. "I know economic times are tough but ... if the city is cleaning it, somebody's got to figure out where it's going and have someone pay for it accordingly."
Sanders said that the larger commercial meters are closer to 20 years old, including the town's two biggest water users: Alexian Village and the Signal Mountain Golf & Country Club.
Waters will come back to the town with engineers to do a more in-depth cost analysis. Since his company only makes money when it finds money for its clients, the process could stop there. The town's water loss is already low compared to many other municipalities.
"Across the state of Tennessee the average is 30 or 40 percent," Waters said. "In California we found a municipality with 10 percent water loss and still found ways to cover costs. It's close. You might have to have some capital infusion on the front end to cover front costs annually, but it's not going to be near what it would be."
The initial sample population studies and replacement, if need be, of those meters will cost between $40,000 and $60,000, "depending on how many we pull out of the ground," Waters said. They will only replace meters that warrant it.
Waters' proposal comes on the heels of talk of upgrading to automatic meters. Even if not upgraded to newer models, an auto reader could be attached to meters. This would mean less time required, saving the town money in employee costs, and would enable monthly billing instead of quarterly, meaning a more constant cash stream.
"I know you're considering going from quarterly to monthly. I don't know if you could actually find any monetary advantage, but it will help you in running your business, for sure," said Waters.