Alabama’s largest water utility announced a major change to its drinking water Friday.
Central Alabama Water, Birmingham’s regional utility that serves 770,000, will stop putting fluoride in water.
CEO Jeffrey Thompson made the announcement shortly after a contentious board meeting where he also outlined significant cuts to operating and capital expenses.
Thompson said the utility’s new “austere” budget sets a higher standard with more restraint.
Protesters, some of whom were among the 135 people laid off last week, rallied outside the meeting.
Budget, staff cuts
Friday’s three-hour meeting was tense, heated and mostly divided along geographic, political and racial lines.
Significant cuts in the new $123 million operating budget include slashing $16.1 million in expenses, cutting employee positions from 688 down to 463.
The new capital budget is $34.9 million, cut more than half from the original $75.7 million.
It includes $7.7 million for repairs to the century-old Lake Purdy Dam, much less than the $28 million initially allocated to fix the leaking dam that provides drinking water to several of Birmingham’s suburbs.
“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,” Thompson said in a statement after the meeting.
“Over the past three months, our leadership team, accounting staff and employees across the organization worked hard to identify cost savings and operational efficiencies.”
Thompson, who was hired in November, has yet to sit for an interview with any news outlet.
The recent layoff spawned accusations that the new leadership of Central Alabama Water, including its CEO, were systematically eliminating jobs based on preference and not necessity.
Board member Jeff Brumlow asked Thompson if the utility could make further cuts in the future to mirror the 2021 spending plan.
“We’re not stopping,” Thompson said in response. “We are looking for additional savings for our customers.”
However, in an email to employees obtained by AL.com Thompson sought to assuage employee fears of further layoffs.
“Today’s changes, while painful, were absolutely necessary to ensure the future financial viability of this utility,” Thompson wrote in his email the day pink slips were handed out. “If any of you are still concerned, I want to assure you that the reduction in force process is now fully complete.”
Limited meeting access
Board member Jarvis Patton of Birmingham early in the meeting sparred with board chairman Tommy Hudson over the board’s refusal to allow more people inside the meeting, including State Rep. Givan Juandalynn, who was not allowed inside.
“Why is it that you just can’t do what’s right?” Patton standing, asked the chairman. “Just tell me that.”
Hudson told Patton that he was out of order but Patton shot back, reminding the chairman that the meeting was still in recess from the previous executive session.
“Don’t you think I know what the rules are?” said Patton, a former longtime chief of staff to the Birmingham city council and former Mayor William Bell. “Let the lady in.”
The large training room used for board meetings had less than 30 seats for the public, and many of those were taken up by consultants.
“This is a disgrace,” Patton said.
Board member Bill Morris then asked the board to allow Givan to be seated.
Hudson finally acquiesced and allowed Givan to come inside. An extra chair was brought in for her.
Expanded authority for CEO
In another tense moment, the board, after going to executive session, approved a resolution affirming unprecedented authority of the new CEO, including the ability to set policy – a power normally reserved for board members.
The board also affirmed a new employee handbook, issued by Thompson, that includes a zero tolerance policy for suspected drug use.
While the resolution was presented by attorney Shan Paden, Paden at the last meeting when pressed said the new policy should have come before the board before it went into effect.
“This resolution, all it’s doing is covering up the wrongdoing that was done to the employees,” said Board member and Jefferson County Commission Sheila Tyson.
“I do not support this resolution in any way and it’s wrong to put it on the table. We might as well not be here if we’re going to give the CEO total control to fire people.”
On Friday, the new resolution simply requires Thompson to return to the board at the next meeting after he has changed a policy or made a directive.
Thompson just hours after obtaining his new authority issued a news release that Central Alabama Water would stop adding fluoride to its drinking water.
In a release, the utility said the change will save money.
That new action did not come before the board, nor is it required under the newly affirmed board resolution.
Original article online at: https://www.al.com/news/2026/03/new-birmingham-utility-ceo-makes-major-change-to-drinking-water-amid-other-cuts.html