Customers of the Birmingham Water Works will ring in the new year with another price increase.

Birmingham Water Works Board today approved a 4.9% rate increase for 2025.

Officials said the rate increase for customers will represent a monthly increase of $2.14 on average bills.

The utility serves about 770,000 customers in Jefferson, Shelby, St. Clair, Blount and Walker counties.

“Nobody wants rate increases, and we were all committed to reducing the burden on our customers as much as we could,” Water Works Board Chairwoman Tereshia Huffman said in a statement this afternoon. “We are proud that our 2025 increase remains below national averages while providing the revenue necessary to maintain and improve our system.”

The increase was approved on a vote of 5 to 3. Members George Munchus, Lucien Blankenship and Mashonda Taylor were no votes.

The operations and maintenance budget for 2025 totals $142.5 million, which is a 7.9% increase over the current year. The capital budget for 2025 is $115.6 million, a 37.5% increase over 2024.

Major projects for 2025 include the first phase for automated meters to reduce billing and service issues, increased pipeline replacement and major renovations to the Lake Purdy Dam in Shelby County.

“Our immediate priorities are improving customer service while upgrading our infrastructure to ensure we can continue to provide our customers the very best water,” said Interim General Manager Darryl Jones.

The hike comes after a mandated public hearing Nov. 4 and a town hall Nov. 13 where some residents questioned the annual increase and asked officials for alternatives.

Munchus, the longest-serving board member, said he agreed with residents and Jefferson County Commissioner Sheila Tyson who urged the utility to take a pause from another annual rate hike.

“There are other ways to generate revenue and not just look for ratepayers to pay operations cost but they will not engage in any robust business and economic development that could generate revenue to offset costs on the backs of ratepayers,” Munchus told AL.com after the vote.

Additionally, Munchus said he has lingering questions about major capital projects that were ignored by the board, including details regarding the $85 million upcoming overhaul of the Lake Purdy Dam.

“It’s all about transparency and accountability,” he said. “The ratepayers deserve better.”