Alexander City reviews wastewater fund models; commercial rate hike and lodging tax most protective

Alexander City council members and staff heard a presentation on wastewater fund forecasts and four revenue scenarios during a work session where consultants from Waterworks outlined how different combinations of rate increases and new taxes would affect the utility’s cash position.

The presentation matters because the wastewater fund faces large capital needs, including a roughly $20,000,000 Coley Creek maintenance project, and without revenue changes the city’s cash position falls below zero in the model as soon as 2027. The council and staff discussed trade-offs between commercial and residential rate adjustments and new revenue sources such as a hotel lodging tax and a self-storage tax.

Lynn Miller, a city staff member who introduced the item, turned the presentation over to consultants from Waterworks. "Waterworks is a software platform that empowers local governments like Alexander City to achieve financial sustainability while balancing affordability," Andrew, a member of Waterworks’ client success team, told the council. Andrew showed a status-quo forecast that layered operating expenses, existing debt service and projected capital spending; he said, "the cash position drops below 0 by 2027" in the model…