By james art 
Birmingham water chiefs at a public hearing on Monday night laid out their reasons for the proposed 4.9% increase in 2025, and area residents voiced opposition to the move, questioning why customers should shoulder higher costs each year.
If approved at the Board of Water’s Nov. 20 meeting, the rate increase would be the ninth rate increase in 10 years for customers of Alabama’s largest water utility, which serves approximately 770,000 people in Birmingham and Jefferson, Shelby, St. Clair, Blount and Walker Counties. Residential customers who use the average amount of water would pay $2.14 more per month in 2025, compared to 2024, under the proposed rate increase.
“My concern with the rate increase is that as it stands now, we have people choosing to pay their sewer bill or their water bill,” Reshonda McNeil, a Birmingham resident and president of the Killough Springs Neighborhood Association, told board. “Our seniors are suffering. We, as consumers, suffer. Please reconsider your decision.”
Reasons for increase
During a presentation of Water Work’s proposed 2025 budget, Interim Deputy General Manager Mack Underwood said the main drivers of the 2025 budget include increased costs for labor, chemicals and electricity. Compliance costs more because of a new lead and copper ordinance that will require more sampling and testing, and BWW is beginning to pay costs associated with purchasing equipment for an automated meter reading system that must start operating in 2028.
“Inflation hit us just like it hit everyone else in America,” said BWW Interim General Manager Darryl Jones. “All of our costs to produce the same volume of water we produced a year ago have gone up.” He pointed to fuel, vehicle and infrastructure costs.
“The amount we charge is strictly to make sure we can provide the service to our customers,” Jones said.
Underwood noted in the budget presentation a five-year trend of reduced per capita water use in the residential market and projected reductions in both residential and non-residential use in 2025.
Some residents who later spoke said the information made them feel penalized for using less water.
“As we use less water, you raise it (rates) to pay the difference,” Trussville resident Sherry Zimmerman said. “So it really doesn’t matter if we use a lot of water or use less water, we’re still losing as a society because we’re paying for the same thing.”
Seven members of the public and Jefferson County Commissioner Sheila Tyson addressed the board. Hearing organizers gave each person three minutes to speak and there was no question-and-answer session.
Residents suggest ways to raise funds without raising interest rates
Residents asked why Birmingham Water could not generate revenue through means such as investments, grants, cost savings and reserve fund reductions instead of rate increases.
“The economic development piece is missing,” Tiffany West said. “You have to have something other than raising customers’ rates. I’m wondering what the interest rate is on those deposits you deposit in the bank? Is there a way we can use this revenue to increase the interest if we move our deposits to another institution?’
Jones said BWW’s main focus is to produce quality drinking water.
“People always have an opinion about what we can do to generate more revenue,” he said after the hearing. “We are not in the process of competing with other industries. Our bar is drinking water, and that’s what we do, and we do it well. All we sell is water.
Jones said it’s also important for the utility to maintain its strong AA bond rating, which requires reserves on hand for 150-250 days of operating expenses.
Carl Tonitis, a Hoover resident, asked if the automated meter reading system would reduce labor costs.
“Along that line, with the infrastructure law in place, there are a lot of opportunities to get grant funding that can help offset some of the cost of the meters,” Tonitis said.
Through the Bipartisan Infrastructure Act, the federal government allocated $43.7 million to the state of Alabama through 2025 for water infrastructure upgrades. Jones said in an interview last week that Water Works is continually looking for grant opportunities and is aware of the 2025 BIL funding.
“We will apply for some of that money,” he said. “Anytime there’s an opportunity to apply for money, from a federal standpoint, we’re in the process of doing that.” Many times these funds may only be available for a smaller system.
Jones said BWW has been successful this year in obtaining a low-interest loan through the Water Infrastructure Financing and Innovation Act. He said the loan provides up to $171 million that will help in three main areas: rehabilitation of Lake Purdy Dam, upgrades to aging pipelines and updates and maintenance of water storage tanks.
Billing complaints are ongoing
Residents who spoke at the meeting also expressed ongoing complaints about excessive bills and unreported meters.
McNeil gave the example of two residences having the same water bill when one residence is vacant.
“They charged me $500 a month for a one-bedroom, one-and-a-half bath apartment with no leaks because I checked it myself,” said Jackie Gordon of Birmingham.
Tyson said she came to the hearing because she has received numerous calls about water bills from constituents.
“It’s a big concern and I’d like this council to address these issues because even though we’re coming here, you’re not giving us an answer to the questions that are being asked,” Tyson said. “And if someone could give me an answer to the questions that were asked, at least I would have a way to communicate with the people who are calling me.”
Plumbing staff met after the hearing with some speakers who expressed problems with their bills
Recent improvements
At the October 23 Water Board meeting, executives reported on recent improvements in the billing department. The number of implausible accounts – accounts outside the normal parameters for their respective accounts – fell from 25,230 in July to 13,121 in September. The number of bills calculated because meters were not reported also fell from 8,430 in July to 1,263 in September.
Jones, who began his current role in June, said Water Works executives will continue to drive efficiencies. The company also appointed four interim managers in September “to work collaboratively to address customer concerns,” according to a news release.
The automated meter reading system is expected to further reduce billing issues.
“The plan is to install automated meters over the next three, four, five years,” Underwood said. “So we’ve budgeted $10 million for 2025, and this is a project that will really help us make sure we’re billing all of our customers and that billing and meter readings are accurate.”