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Public meetings for water department takeover begin this week

Signal Mountain resident Claire Gresinger holds up samples of water she collected from Tennessee American Water company's source, the Tennessee River, and water she collected from Walden's Ridge Utility District's source, an underground aquifer. Since WRUD's water, right, is clearer, she says, it requires less filtration before it is safe to drink. (Contributed photo)
Signal Mountain resident Claire Gresinger holds up samples of water she collected from Tennessee American Water company's source, the Tennessee River, and water she collected from Walden's Ridge Utility District's source, an underground aquifer. Since WRUD's water, right, is clearer, she says, it requires less filtration before it is safe to drink. (Contributed photo) Signal Mountain resident Claire Gresinger holds up samples of water she collected from Tennessee American Water company's source, the Tennessee River, and water she collected from Walden's Ridge Utility District's source, an underground aquifer. Since WRUD's water, right, is clearer, she says, it requires less filtration before it is safe to drink. (Contributed photo)

By Myron Madden 3 min read

The town of Signal Mountain is holding the first of its public meetings about the potential sale of its water department Thursday, March 22.

The two contenders are Tennessee American Water, which is proposing to buy the system for $3.4 million, and Walden’s Ridge Utility District, which is proposing to either purchase the system for $3.6 million or manage it for a monthly fee based on the number of customers.

According to Tennessee American’s proposal, if chosen, the company would make $1.25 million in capital improvements to Signal Mountain’s aging water system during its first five years of ownership, with $250,000 invested each year.

The company would also offer employment to current water department employees who meet its qualifications, and create a water advisory board made up of Signal Mountain residents to help guide the organization’s decisions.

If WRUD acquires the water system, the local utility provider would make $2.6 million in capital improvements to the system during the first five years, investing $600,000 the first year and $500,000 the following four years, according to the company’s proposal.