| WBRC
Birmingham Mayor Randall Woodfin is outlining new conditions for the city to support the Central Alabama Water’s application for a $183 million state loan to replace lead and leaking pipes.
In a post on social media, Woodfin said he supports the repairs the loan would provide for customers, but added that certain changes must happen before he and the city council will offer their backing.
Central Alabama Water General Manager Mac Underwood said during a budget workshop earlier this week that the utility is working to maintain its current spending levels to keep costs down for customers.
“What we are trying to do is operate at the current budget levels to be able to save the customer on the back end,” Underwood said.
Woodfin’s conditions include cutting spending on outside legal services and avoiding another water rate increase.
“Right now, we don’t have a rate increase planned for the budget,” Underwood said. “We will continue to work on the budget to make sure that is appropriate.”
If approved, this would mark the first time since 2021 that the board has not raised rates.
The $183 million loan would come through the Alabama Drinking Water Authority’s revolving fund. The state has also asked the city to honor the terms of the loan if Birmingham’s ongoing lawsuit over the transition from Birmingham Water Works to Central Alabama Water prevails.
While the city continues to challenge the new system, leaders agree that major infrastructure upgrades are needed to improve water service across the area.
A spokesperson with the CAW shared this statement: The Alabama Drinking Water Authority requested that the City of Birmingham agree that it would honor the terms of the loan in the event its lawsuit prevails. There is a lawsuit between the City of Birmingham and the CAW that challenges the passage of SB330. If the city wins, the system may revert to BWWB. If the CAW board wins, the system will remain CAW. Therefore, we will not be able to issue debt until the lawsuit is resolved. Central Alabama Water received the letter from Mayor Woodfin and the City of Birmingham. We will discuss the mayor’s request as soon as possible and the board will respond.
