Birmingham, AL, October 14, 2025
News Summary
The Birmingham Water Works Utility has announced that it will not increase rates for its 770,000 customers in 2026. This decision is part of the utility’s efforts to control costs and ensure affordability for families and businesses across multiple counties. The budget under consideration includes significant cuts, such as suspending raises and eliminating unfilled staff positions, to avoid a rate hike. The projected legal expenses, along with the board’s political dynamics, have also been points of discussion.
Birmingham Water Customers to See No Rate Increase in 2026
The Birmingham Water Works Utility has announced that it does not anticipate a rate increase for its 770,000 customers in 2026. This decision comes as a part of the utility’s ongoing efforts to manage costs and maintain affordability for families and businesses serviced in Jefferson, Shelby, Blount, St. Clair, and Walker Counties.
During a work session held on Monday, Central Alabama Water leaders discussed the proposed 2026 budget, which has yet to be approved and remains under consideration. General Manager Mac Underwood has indicated that budget cuts have been implemented to avoid any increase in rates. These cuts include the suspension of merit or cost-of-living raises for employees and the elimination of funds for unfilled staff positions.
Employees of the utility received pay increases in the previous year, and the decision to maintain current rates may result in tighter debt service numbers moving forward. Critics of the utility have raised concerns over previous year-over-year rate increases, which have often been linked to bond debt issues. To counter this trend, the newly formed regional board has chosen to explore cost reductions in other areas rather than raising rates.
Among the contentious financial topics highlighted is the utility’s projected expenditure of $1.9 million on legal services in 2026. So far this year, legal expenditures have amounted to $1.1 million, with a budget allowance of $1.2 million. This has prompted vocal criticism from Jefferson County Commissioner Sheila Tyson and board member Jarvis Patton regarding the utility’s legal spending. Moreover, the board has been hiring several outside law firms, which charge rates between $300 and $400 an hour.
Birmingham Mayor Randall Woodfin has voiced conditional support for the utility, stipulating that there must be no rate increases, the establishment of an in-house legal department, and targeted goals for minority participation in construction projects.
The newly constituted board reflects a potential ideological divide, influenced by political party affiliations and regional demographics. Currently, this board includes five members appointed by Republican authorities, reaching into Birmingham’s city limits, while the remaining two members have been appointed by the Democratic Birmingham mayor and city council.
Conclusion
The Birmingham Water Works Utility is taking significant steps to manage expenses effectively while ensuring that customer rates remain stable. The approach taken for the 2026 budget aims to support the communities served while addressing ongoing critiques regarding legal costs and staff management.
FAQ
Will customers see a rate increase in 2026?
The Birmingham Water Works Utility does not anticipate a rate increase for its 770,000 customers in 2026.
What changes have been proposed in the budget to avoid a rate increase?
Budget cuts were made to avoid a rate increase, including no merit or cost-of-living raises for employees and zeroing out unfilled staff positions.
How much is the utility projected to spend on legal services in 2026?
The utility is projected to spend $1.9 million on legal services in 2026.
What conditions has Mayor Randall Woodfin outlined for supporting the utility?
Mayor Randall Woodfin’s support is conditional upon no rate increases, formation of an in-house legal department, and goals for minority participation in construction projects.
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Additional Resources
- AL.com: Birmingham Water Works Rates
- Wikipedia: Water Utilities in the United States
- WBRC: Birmingham Water Works Rate Increase
- Encyclopedia Britannica: Water Management
- ABC3340: Birmingham Water Works Rate Increase
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.
