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newsMar 20, 20261:35

Central Alabama Water Cuts Costs, Focuses on Infrastructure

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Central Alabama Waters board approved a significant budget cut for fiscal year twenty twenty-six, maintaining customer rates while investing in infrastructure repairs and leak fixes. The operations budget dropped by twelve point five percent, and capital spending fell by over fifty percent, eliminating two hundred twenty-five positions. The utility also plans to stop adding fluoride to drinking water, saving millions in upgrades and maintenance. However, the boards decision to grant the CEO full decision-making authority sparked controversy.

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Central Alabama Water Cuts Costs, Focuses on Infrastructure

Birmingham News Today | 2 Min News | The Daily News Now!

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Full transcript

Birmingham News Today | 2 Min News | The Daily News Now!Central Alabama Water Cuts Costs, Focuses on Infrastructure. Machine-transcribed; use the interactive transcript above to jump the player to any line.

This is Cory with the story, here with your quick two-minute update from Birmingham News today. Central Alabama Waters Board approved slash budgets for fiscal year 2026, holding the line on customer rates with no increases this year. They cut overall spending sharply, directing millions toward fixing leaks, replacing aging pipes, and key infrastructure like the Lake Perty Dam. Earlier this week, the operations budget dropped to $123.8 million from nearly $140 million, a. 12.5% trim. Capital spending fell even more, from $75.7 million to $34.9 million with over $4 million aimed. At curbing water loss last year, 53% of treated water went unbuild. These changes eliminated 225 positions, down from $688, freeing up over $11 million. CEO Jeffrey Thompson praised the team's efforts for cost savings, stressing a focus on reliable

service without burdening customers. Tensions rose at the meeting when the board granted the CEO a full decision-making authority via alas-minute ordinance. State Representative Juwanda Lynn Jivan called it absurd, arguing it sidelines the board entirely for a public utility. Meanwhile, the utility plans to stop adding fluoride to drinking water, saving over $3.7 million in upgrades and $200, $50,000 yearly in maintenance. Serving 5 counties with more than 4,150 miles of mains, these steps chart a path to financial stability.

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