For Immediate Release: Friday, March 20, 2026
Click here to download the budget presentation as a PDF.
BIRMINGHAM – Central Alabama Water’s (CAW) Board of Directors today approved a revised operations and maintenance budget and a revised capital budget for FY2026. The revised budgets replace spending plans that were approved in December 2025 as temporary measures while the new management team evaluated operations and capital needs. The budgets do not include a rate increase.
“The revised budgets accurately reflect our current financial situation and demonstrate that we are making the decisions necessary to put CAW on a path towards sustainability,” CEO Jeffrey F. Thompson said. “Over the past three months, our leadership team, accounting staff and employees across the organization worked hard to identify cost savings and operational efficiencies. We want our customers to know that we’re focused on providing them a world-class utility.”
Operations and maintenance budget highlights
- Does not include a rate increase.
- Reduced to $123.8 million from the $139.9 million approved in December.
- A reduction of $16.1 million or 12.5%.
- Number of budgeted positions declined from 688 to 463.
- A reduction of 225 positions.
- Revenue Anticipation Bond funds are fully reserved for payment September 1, 2026.
Capital budget highlights
- Reduced to $34.9 million from the $75.7 million approved in December.
- A reduction of $40.8 million or 54%.
- $7.7 million for site stabilization measures and monitoring of Lake Purdy Dam.
- $4.2 million for water loss mitigation projects to reduce the amount of treated water that is not billed to customers.
About Central Alabama Water
Central Alabama Water serves customers in Jefferson, Shelby, St. Clair, Blount and Walker counties. It operates four water treatment facilities and maintains more than 4,150 miles of water mains in its distribution network. Please visit caw-al.gov for more information.
