| Following is a detailed example of how your net operating income should be improved by SageWater's free submetering program. For the purposes of this example, we assume:
• A 200 unit complex, fully occupied
• Water and sewer costs of $400 per unit per year, before submetering
• Basic accessible installation with volume discount pricing
• 25% reduction in water/sewer usage from conservation & leak detection
• Sharing revenue with SageWater for a limited period of time
In the first year your water and sewer cost is reduced by $20,000 through decreased usage and prompt leak reporting. Plus, your share of the costs recovered from your residents would be $9,000. The net affect is an immediate increase of your operating income and cash flow of $29,000 during the first year. A program such as this requires as few as 12 months of revenue sharing, after which time, 100% of the conservation savings and cost recovery ($74,000 in this example) will flow straight to your bottom line.
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