Birmingham Water Works customers get details on planned rate hike for 2024

Birmingham Water Works customers get details on planned rate hike for 2024

Birmingham Water Works customers Tuesday evening heard directly from senior leaders about plans for utility and why they said a 5.8 percent rate increase is needed for 2024.

The town hall at the Birmingham Crossplex was the first in a series of public gatherings in advance of a board vote on the utility’s $133.5 million budget for 2024, which includes the rate increase.

“We really make sure that we are reasonable with what our budgets are,” General Manager Michael Johnson told the audience of about three dozen customers. “Out of that process we are able to make sure that our rates are reasonable.”

Johnson defended the price hike, saying the increase comes to about $2.76 a month to an average customer. Joint customers of the Birmingham Water Works and the Jefferson County Sewer will get two increases following passage of increased sewer rates earlier this month. The water works handles the billing for those Jefferson County sewer customers, but those rates are controlled by the Jefferson County Commission.

Absent Tuesday were contentious discussions or dramatic complaints about poor service that dominated previous public conversations regarding the water works.

The water works in 2022 emerged as the subject of public scrutiny for its billing problems such as multiple billings and overestimated meter charges. Critics including Birmingham Mayor Randall Woodfin at the time took to social media to lambast the board’s leadership.

“We said we’ve wanted to engage with our customers, and we’ve done that,” Johnson said regarding enhanced communication efforts. “We’ve told our customers we’ve invested in the utility and why. I think our customers understand that and we want to continue to engage our customers and talk to them so they understand that we drink this water too and we are invested in making sure the utility is run right.”

Still, as the water works continues its series of talks, one of its fiercest critics plans to invite to a meeting of his own.

State Sen. Jabo Waggoner, R-Vestavia Hills, who championed sweeping changes to the utility in 2015, said there remain serious problems at the water works that he wants to address with them. Waggoner, who was not present at Tuesday’s meeting, said he and numerous others remain dissatisfied with the water works.

“I thought it would solve the problem, but it did not go far enough,” Waggoner told AL.com regarding his reform legislation.

Eight years later, he said improvements at the utility are still unrealized.

“I get complaints regularly about bills and other issues,” Waggoner told AL.com. “The only source I have is the phone calls I have from people about the outrageous water bills.”

Waggoner said he even had to contact the utility to complain about an erroneous $600 water bill at his residence.

Waggoner said he would soon send a letter soliciting a meeting between senior utility leaders, him, and other state lawmakers to discuss unmet concerns.

“It’s a bad situation that needs to be solved, but so far we have been unable to do it,” he said. “I would love to get three or four from each side to sit down and act like grown men and women that want to solve a problem.”

Johnson said the Water Works remains open to any dialog that improves the utility.

“We’re always interested in doing what’s right for our customers, no matter what that is,” he told AL.com Tuesday evening when told about Waggoner’s pending request. “When the opportunity comes for whatever engagement we have, we want to make sure we do that.”

Susan Palmer of Birmingham said she comes to the public meeting each year to oppose the rate increase. Still, she was pleased to see evidence of spending that benefits her neighborhood directly with infrastructure improvements.

“We want to be able to be on the receiving end of that increase,” she told the water works panel. “I’m against the increase, but I am all for you bringing my money and our money back into our community so we can have clean and fresh water.”

The water works is mandated by state law to engage the public following passage of major reforms at the utility that were championed by Waggoner. The utility is required to hold a public hearing 30 days before voting to increase utility rates.

Waggoner’s 2015 legislation also implemented term limits, a $1,000 monthly cap on board compensation, and expanded the board to include members from suburban Jefferson County, Blount and Shelby Counties. The city of Birmingham still retains its majority at the board table.

The Water Works Board is expected to vote on its 2024 budget Nov. 15.

A second town hall meeting is Thursday at 5:30 p.m. at Aldridge Gardens in Hoover. Lastly, a public hearing is Nov. 6 at the Water Works Board office on First Avenue in Birmingham at 5:30 p.m.