The Central Alabama Water board voted on Friday to raise water rates for its roughly half‑million customers by an average of $1.61 per month, a 3.4% increase that will take effect on Jan. 1. The modest hike is intended to generate the revenue needed to repair an aging distribution system that is losing more than half of its water revenue to leaks and unbilled usage.
Why the increase is needed
CAW staff warned in May that without additional revenue the utility would have to cancel or postpone major repair projects, or else raise rates even further. “It’s a little bit of pay‑me‑now or pay‑me‑later,” board Vice Chairman Phillip Wiedmeyer said. “If we delay, the cost of doing those projects in the future will be more expensive than it would be to do them now.”
Scope of the system’s problems
Chief Reliability Officer Ray Sloan reported that 53% of the system’s water revenue is lost, with about 58.3 million gallons per day leaking or going unbilled from the 4,100 miles of water mains. “It’s not good,” Sloan said. “It is not indicative of a system that can make it a little bit longer. It is indicative that our system has reached the end of life in so many areas. It’s crumbling.”
Financial picture
After the rate increase, CAW’s proposed FY 2027 Operations and Maintenance budget totals $126.7 million, slightly below the revised FY 2026 spending plan approved in March. The FY 2027 capital budget stands at $49.7 million after a 54% cut to the 2026 capital budget, which was reduced from $75.8 million to $35 million. Notably, the FY 2027 capital plan does not allocate funds to repair Lake Purdy Dam, a project that was previously cancelled.
Public reaction
Several ratepayers voiced frustration at the meeting, which was held in Cleveland, Blount County, a location many said was inconvenient. Rev. Julie Conrady, a minister with the Unitarian Universalist churches of Birmingham and Tuscaloosa, attended for the first time after hearing rumors of a rate hike. She noted that her family’s bill already exceeds $300 before the proposed increase and emphasized that the problem stems from a neglected system, not wasteful customers.
Former Board of Education member Terri Michal expressed disappointment with the board’s process, saying, “If they’re going to raise rates, they need to look us in the eyes… It’s just them moving it out here and doing it like they did – it incensed me.” Sabrina McClain, a Talladega County resident, attended as a “voice” for friends who could not travel to the meeting. Retired nurse Terri Wright criticized the meeting’s timing and location, calling it a setup for failure.
Looking ahead
The new rates will be reviewed again in May, giving the board an opportunity to assess whether the additional revenue is sufficient to stem the system’s deterioration. CAW serves the five‑county region of Jefferson, Shelby, Blount, St. Clair and Walker counties, and its decisions will affect a broad cross‑section of Central Alabama households.
While the increase is modest, it reflects a broader challenge facing many municipal utilities: aging infrastructure that requires significant investment. The board’s decision underscores the need for proactive maintenance to avoid larger, costlier repairs in the future.
Original reporting: BirminghamWatch — read the source article.
