City of Toledo modernizes its water utility system through comprehensive performance contract project

Before modernizing its water meter infrastructure, the City of Toledo relied on aging analog water meters that were read manually and often infrequently. Some meters were read quarterly but billed monthly, while others, especially those inside homes and business, were read even less often due to access constraints.

As a result, the City depended on estimated readings, making it difficult to capture full revenue, enforce payment, and provide predictable bills. Customers also lacked visibility into their water use, and the legacy meters offered no advanced diagnostics for leak detection or system insight.

Beginning in July 2022, the City partnered with Johnson Controls to modernize Toledo’s water metering system. The project retrofitted meters that were less than five years old and fully replaced older meters with solid‑state static smart meters designed to remain accurate over their lifetime. Crews retrofitted newer meters and replaced older ones with solid‑state smart meters designed for long‑term accuracy.

The meters securely transmit near‑real‑time usage data through a private network to advanced metering infrastructure (AMI) base stations and the cloud, enabling access for both the department and customers.

By completing the upgrade in less than three years, rather than over decades, the City accelerated revenue recovery and reduced losses. The program was delivered through a turnkey performance contract funded by guaranteed project benefits over 20 years.

The smart meter program is delivering measurable benefits for both the City of Toledo and its residents and businesses:

• More accurate billing: Automated meter readings provide near‑real‑time usage data, enabling accurate billing and capturing an estimated 579 million gallons of previously unbilled water per year, valued at nearly $5M annually.
• Improved customer service: Customers now have access to online dashboards that show water usage at any time, helping them understand consumption patterns, conserve water, and identify potential issues.
• Early leak detection: AI‑powered analytics identify continuous flow, no‑flow conditions, and smaller leaks before they escalate, helping prevent water damage and unexpected costs.
• Time and labor savings: City staff save hundreds of hours each month previously spent on manual readings, billing disputes, and troubleshooting, allowing resources to be redirected to higher‑value activities.

The project was completed without increasing water rates and has strengthened the City’s financial stability, data quality, and system reliability for the long term.

The City of Toledo, Ohio, operates a large municipal water system serving residents and businesses across the region. Through investments in modern infrastructure and data‑driven solutions, the City is working to improve service reliability, financial sustainability, and resource conservation for its community.