Birmingham, October 15, 2025
News Summary
Birmingham Mayor Randall Woodfin has proposed new conditions to support Central Alabama Water’s $183 million loan application for replacing lead and leaking pipes. Key proposals include cutting legal service expenditures and preventing water rate hikes for customers. While Central Alabama Water’s General Manager Mac Underwood emphasized their commitment to avoid passing costs onto residents, the success of the loan depends on the city’s compliance with Woodfin’s terms amid ongoing political divides on the board.
Birmingham – Mayor Randall Woodfin is outlining new conditions for Birmingham to support Central Alabama Water‘s $183 million state loan application aimed at replacing lead and leaking pipes. Woodfin has shown his backing for the essential repairs the loan would provide for customers but insists on certain adjustments before the city will lend its support to the application.
The proposed conditions by Mayor Woodfin include cutting spending on outside legal services and ensuring that there will be no increase in water rates for customers. The Central Alabama Water General Manager, Mac Underwood, has mentioned that they are actively working to maintain current spending levels in order to avoid passing costs onto customers. Underwood also stated that they do not plan a rate increase for the upcoming budget period.
The loan, amounting to $183 million, would be administered through the Alabama Drinking Water Authority‘s revolving fund. The state has requested that Birmingham honor the terms of the loan if the city succeeds in its ongoing lawsuit regarding the transition from Birmingham Water Works to Central Alabama Water. A spokesperson for CAW explained that the city must agree to uphold the loan terms should it win the lawsuit, which could lead to a reversion of the water system back to the Birmingham Water Works Board.
Additionally, Mayor Woodfin’s conditions promote setting goals for minority participation in construction projects related to the loan. The governance of the water system has changed following state legislation that reduced Birmingham’s influence on the board. Leaders of the water board are divided along political lines over Woodfin’s conditions, potentially sparking ideological conflict within the board.
Birmingham’s two board members have indicated the need for an in-house legal department to help reduce external legal expenses, which have become a contentious issue. Legal fees for the utility reached $1.7 million last fiscal year, with projections indicating an increase in expenses. Woodfin’s proposal for establishing an in-house department aligns with campaign ideas discussed by board members from the city.
Discussions about possible goals for minority participation may also lead to further disagreements among board members. As of now, CAW’s board has not yet addressed Woodfin’s proposed terms. The board is scheduled to meet for budget discussions, which could significantly impact the loan agreement. If all agreements are satisfied, this loan would mark the first instance since 2021 in which the board has not raised water rates.
Background Context
The considerations for the loan application are particularly important due to Birmingham’s aging water infrastructure which currently includes lead and leaking pipes that pose potential health risks to residents. The loan aims to finance necessary repairs and improvements to ensure a safe and reliable water supply for the city’s residents.
Potential Implications of the Loan
The ultimate success of the loan application hinges on the city meeting the specified conditions set forth by Mayor Woodfin. Clarity on water rates, legal spending, and minority participation are critical factors that could dictate the approval and timing of this crucial funding for Birmingham’s water system.
FAQs
What are the conditions proposed by Mayor Woodfin for the loan application?
Conditions proposed by Woodfin include cutting spending on outside legal services and ensuring there will be no water rate increases.
What is the purpose of the $183 million loan?
The $183 million loan is aimed at replacing lead and leaking pipes in Birmingham’s water system.
When was the last time the water rates were not raised?
If all agreements are met, this loan would be the first time since 2021 that the board has not raised water rates.
Deeper Dive: News & Info About This Topic
HERE Resources
Birmingham Water Works Board Seeks Federal Loans for Pipe Replacement
Central Alabama Water Board Proposes No Rate Increase
Birmingham Farmers Face Challenges Amid Moderate Drought
Birmingham Welcomes New Legal Associate Kamryn Carpenter at Starnes Davis Florie LLP
Alabama Faces Increased Drought Conditions Despite Recent Rainfall
JPMorgan Chase Supports Alabama’s Small Businesses
Birmingham Water Works Completes Leak Repairs in Mountain Brook
Columbia University Faces Accreditation Threat Over Antisemitism Claims
Gulf Shores Welcomes Its First Commercial Flight
Goldman Sachs Invests $3 Million in Birmingham Small Businesses
Additional Resources
- Al.com: Birmingham Mayor Issues Conditions to Water Board for $183 Million Loan
- Wikipedia: Water Supply and Sanitation in the United States
- WBRC: Birmingham Water Works Sending Lead Pipes Letter to Some Customers
- Google Search: Birmingham Water Works Lead Pipes
- Birmingham Times: Birmingham Water Works Customers to Receive Letters of Potential Lead Issues
- Google Scholar: Birmingham Lead Pipes
- WVTM 13: Birmingham Water Works Potential Lead Pipes
- Encyclopedia Britannica: Water Quality
- Alabama Reflector: Cities and States Say They’ll Need More Help to Replace Millions of Lead Pipes
- Google News: Lead Pipes Birmingham
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
