Cullman council approves utility rates, theater grant, AHSAA contract

By:
0
1
Members of the Cullman City Council (City of Cullman)

CULLMAN, Ala. – The Cullman City Council at its Monday, July 6, meeting approved new fiscal year 2027 sanitation, sewer and water rates, along with grant, infrastructure, nuisance, economic development and tourism-related items. The council also received the city’s May financial report.

Sanitation, sewer and water rates

The council adopted Ordinance No. 2026-39, setting rates for collection and disposal of municipal solid waste for fiscal year 2027.

The rates begin with services rendered Oct. 1, 2026. Residential garbage collection inside the city limits will be $17 per month for the first city-provided container. Each additional container will cost $10 per month.

Optional residential single-stream recycling service will be $10 per month for the first container and $10 per month for each additional recycling container.

The ordinance states garbage and waste must be placed in plastic bags inside city-provided containers. It also states the city will not pick up trash or waste placed in containers other than city-provided containers.

Excessive trash pickup at a residence may result in an additional pickup fee at the discretion of the Sanitation Department.

For commercial locations, the ordinance sets a $70 monthly minimum charge for weekly solid waste dumpster pickup.

Commercial locations are generally required to use front-load dumpsters. The sanitation superintendent may grant a written waiver if space constraints prevent safe dumpster placement.

For locations receiving a waiver, the ordinance allows a 96-gallon cart. The cost is a $70 monthly minimum for weekly pickup for each office or business. The ordinance states cart service will not be provided to restaurants or food establishments.

Dumpster service will be billed per haul, with a $65 delivery fee. A 2-yard dumpster will cost $100 per haul. A 4-yard dumpster will cost $150 per haul. A 6-yard dumpster will cost $200 per haul. An 8-yard dumpster will cost $250 per haul.

Roll-off container service will include a $130 delivery charge. Per-haul charges will range from $215 to $250, depending on container size. Daily rent will be $8, plus tipping fees.

The ordinance also sets the minimum monthly rental charge for a compactor at $625, plus hauling and disposal fees.

Beginning each Oct. 1, all sanitation rates and fees will receive an inflation adjustment of 3% or the Consumer Price Index, whichever is greater.

A motion to adopt Ordinance No. 2026-39 was made by Councilman Jason Willoughby with Councilman Paul Schaffer providing a second. It was approved unanimously.

The council also adopted Ordinance No. 2026-40, setting retail sewer rates for fiscal year 2027. The rates are effective Oct. 1, 2026. Charges will be based on the quantity of water used during a billing period of approximately 30 days or once each month.

Residential customers inside the city limits will pay a $10 base charge plus $15.25 per 1,000 gallons. Residential customers outside the city limits will pay a $20 base charge plus $21 per 1,000 gallons.

Commercial customers inside the city limits will pay a $20 base charge plus $17.75 per 1,000 gallons. Commercial customers outside the city limits will pay a $40 base charge plus $23.50 per 1,000 gallons.

Industrial customers inside the city limits will pay a $50 base charge plus $20.25 per 1,000 gallons. Industrial customers outside the city limits will pay a $100 base charge plus $26 per 1,000 gallons.

Beginning Oct. 1, 2027, all sewer rates and fees will receive an inflation adjustment of 3% or the Consumer Price Index, whichever is greater, unless the council passes a resolution waiving the adjustment.

A motion to adopt Ordinance No. 2026-40 was made by Schaffer, with Councilman Chuck Shikle seconding. It was approved unanimously.  

The council adopted Ordinance No. 2026-41, setting retail water rates for fiscal year 2027.

The rates are effective Oct. 1, 2026. Charges will be based on the quantity of water used during a billing period of approximately 30 days or once each month.

Residential customers inside the city limits will pay a $10 base charge plus $10.75 per 1,000 gallons. Residential customers outside the city limits will pay a $20 base charge plus $16.50 per 1,000 gallons.

Commercial customers inside the city limits will pay a $20 base charge plus $12.75 per 1,000 gallons. Commercial customers outside the city limits will pay a $40 base charge plus $18.50 per 1,000 gallons.

Industrial customers inside the city limits will pay a $50 base charge plus $14.75 per 1,000 gallons. Industrial customers outside the city limits will pay a $100 base charge plus $20.50 per 1,000 gallons.

The ordinance also creates an agricultural rate for poultry farmers of $20 plus $12.75 per 1,000 gallons.

To qualify, a poultry farmer must operate at least one poultry house continuously during the year. The ordinance states poultry houses must be owned and operated by U.S. citizens to receive the rate.

The ordinance states the retail water rate changes do not affect the city’s wholesale water rate. That rate is calculated annually under contracts between the city and its wholesale customers.

Beginning Oct. 1, 2027, all water rates and fees will receive an inflation adjustment of 3% or the Consumer Price Index, whichever is greater, unless the council passes a resolution waiving the adjustment.

Schaffer and Councilman David Moss motioned to adopt Ordinance No. 2026-41. It was approved unanimously.

Other committee reports

Council President Kim Hall presented the city’s May financial report.

The report showed May revenues of $4,361,801, down 9% from May 2025. May expenses were $4,320,074, down 18.6% from the same month last year. The city reported a May surplus of $41,727.

For the fiscal year to date, the city reported revenues of $41,398,885 and expenses of $39,351,430. That left a year-to-date surplus of $2,047,455.

Sales tax collections were listed at $19,717,028, down 0.9% from the same point last year. Building permit revenue was listed at $363,234, down 39.6%. Property tax revenue, internet sales tax and business license revenue were all higher than the prior year.

Councilman Shikle gave the Public Safety Committee report, saying that according to the Cullman City Communications Operational report, Cullman City Communications took 3183 police calls, 438 fire medical calls and 802 911 emergency calls (not including hang-ups).

He also noted that on Wednesday, June 24, 2026, Cullman Fire Rescue hosted Mid-Rise Mayhem at The Goat at Cotton Creek.

“This is tactical training for mid-rise buildings – perfect training for the heights of our motels, apartments and businesses here,” Shikle said. “It’s training that can teach them not only how to put water in these higher areas, but it’s a great opportunity that allows them to work with other agencies.”

For the Tourism Committee, Councilman Moss reported the Airport Apron Project aims to be completed in August 2026. He noted the concrete is currently being poured.

He mentioned the upcoming 2nd Fridays event on July 10 will have an additional stage, making a total of four. This is projected to be a large turnout following June’s 2nd Fridays record of 11,900 in attendance.

Moss also shared the previously reported news that the Alabama Strawberry Festival was named Alabama’s Best Music Festival in the 2026 Best of Bama Awards by Alabama Magazine.

Cullman County Museum Director Molly Bloom was recognized following an introduction by Christy Turner of Cullman Parks, Recreation & Sports Tourism.

Councilman Willoughby of the Public Works Committee read a report from Sam Dillender, director of the City of Cullman Sanitation Department.

“Sanitation operations are currently working through a reroute of residential customers, making changes daily to the routes. This will allow the team to ensure that the residential system is efficient and provides consistent services to all residents.”

He advised that there will be no change to service days for any of the 6,587 residential cart customers.

Grants

The council accepted a $750,000 Appalachian Regional Commission (ARC) grant tied to the city’s planned community theater project at 303 Clark St. NE. Council members also approved grant management services for the project, awarded a bid connected to the Logan Street Southwest Community Development Block Grant (CDBG) improvement project and authorized a one-year agreement to help host the 2027 Alabama High School Athletic Association Outdoor Track and Field State Championships for Class 1A, 2A and 3A.

The council adopted Resolution No. 2026-119, awarding grant application preparation and administration services for federal grant projects.

The resolution states the city plans to apply for various federal grant projects that will benefit city residents. Under the resolution, the selected firm will provide application preparation services and grant administrative services needed to implement approved federally funded projects through fiscal year 2029.

Application development services will be provided at no cost to the city. If an application is approved by a federal or state agency, the mayor is authorized to enter into a contract with the selected firm for project administrative services under the approved administrative fee scale.

The resolution reads, “Be it resolved that the City Council has evaluated the administrative proposals received and have selected Community Consultants, Inc. to provide application preparation services and all grant administrative services required to implement all approved federally funding grant projects through FY2029 in accordance with federal regulations.”

Moss motioned to adopt the ordinance, and Shikle provided a second.

The council also adopted Resolution No. 2026-120, awarding federal grant engineering development and design services.

The resolution states the city solicited proposals from qualified professional engineering firms. The firm or firms will provide application development services, engineering design and inspection services for approved federal grant projects.

The selected firm or firms may be used on a project-by-project basis.

If a project is determined feasible, the selected firm may begin developing maps, cost estimates and other required documents upon city approval. Those development services will be provided at no cost to the city.

If an application is approved by ADECA, the mayor is authorized to enter into a contract with the selected firm for engineering services under the approved FmHA engineering fee scale.

“We had multiple companies put in bids. We are able to accept more than one of those bids in case specialty areas apply,” Hall advised. “The three companies will be St. John and Associates, Sain Associates and Three Notch Group.”

A motion to adopt was made by Willoughby and Shikle. It was approved unanimously.

The council adopted Resolution No. 2026-122, awarding the bid for precast manholes for the Logan Street Southwest CDBG Neighborhood Improvement Project to Foley Products Company.

The project is tied to a CDBG for infrastructure improvements on Logan Street Southwest, Sixth Street Southwest and Austin Avenue Southwest.

According to the resolution, the city and St. John and Associates, the city’s consulting engineer, evaluated the bids and determined Foley Products Company was the low bidder.

The mayor is authorized to enter into a contract with Foley Products Company, upon approval from ADECA, in the amount of $53,605.05.

Schaffer motioned to adopt this resolution and Moss seconded. It was approved unanimously.

The council adopted Resolution No. 2026-123, accepting a $750,000 ARC grant from ADECA to renovate the former Calvary Apostolic First United Pentecostal Church for development of the Cullman Community Theater.

The project location is listed on the agenda as 303 Clark St. NE. The city will provide a local cash match of $750,000, plus all administration and architectural fees.

The local match was previously committed by the council through Resolution No. 2025-51 on June 2, 2025.

The resolution authorizes Mayor Woody Jacobs to sign the ARC grant agreements, certifications, assurances and other documents needed to implement the project.

Moss made the motion to adopt, followed by Willoughby.

The council adopted Resolution No. 2026-125, authorizing a contract with Community Consultants, Inc. for grant management services tied to the ARC theater grant.

The resolution in addition to Resolution No. 2026-123, which accepted the $750,000 ARC grant for the Cullman Community Theater project.

The resolution states Community Consultants, Inc. was selected to provide grant administration services for all federal grants approved through fiscal year 2026.

The resolution authorizes the mayor to enter into a contract with Community Consultants, Inc. to perform project administrative services required to implement the theater project under the approved ADECA administrative fee scale.

The motion for adoption was made by Moss and seconded by Schaffer.

Downtown Redevelopment Authority of Cullman

The council adopted Resolution No. 2026-121, which will begin the process of dissolving the Downtown Redevelopment Authority of Cullman.

The resolution states the authority was created under Alabama Code § 11-54A-1 et seq. to promote trade and commerce by revitalizing and redeveloping the city’s central business district.

The resolution states the council determined the authority’s original purposes have either been substantially achieved or can be handled more efficiently through direct administration by the city and its existing departments and boards.

The resolution cites Alabama Code § 11-54A-20. That law allows an authority with no bonds or other obligations outstanding to dissolve after its board adopts a resolution of dissolution and files a certified copy with the Alabama Secretary of State.

Under the resolution, the Downtown Redevelopment Authority board is requested and directed to adopt a resolution of dissolution at the earliest practicable date.

Once that resolution is filed with the Secretary of State, the authority’s funds, property, contracts, records and other assets would vest in the city. The city would also assume the related responsibilities.

The resolution authorizes the mayor and city clerk to coordinate the transfer of assets, records, documents and ongoing projects to the appropriate city departments.

A motion to adopt was made by Shikle, with Schaffer providing a second. It was approved unanimously.

Nuisance properties

The council adopted Resolution No. 2026-124, affixing the cost of nuisance abatement and creating a weed lien at 611 Cleveland Ave. SW.

The resolution cites Alabama Code §§ 11-67-60 through 11-67-68. Those sections give municipalities authority to declare overgrown grass or weeds a public nuisance and provide for abatement.

According to the resolution, the council adopted Resolution No. 2026-109 on June 22, 2026. That resolution declared the property at 611 Cleveland Ave. SW a public nuisance.

The property is identified as PIN 30695 and Parcel No. 17-05-16-4-003-007.000.

The resolution states the nuisance involved overgrown grass and weeds exceeding 12 inches in height. It states the growth was unsightly, constituted a fire hazard and provided breeding grounds for pests.

The council assessed the total abatement cost at $1,100, including labor, equipment, materials and administrative costs. The resolution creates a weed lien against the property.

The lien is superior to all other liens except tax liens and will remain in force until paid in full.

The city clerk is directed to file a certified copy of the resolution with the Cullman County Probate Office. A copy will also be provided to the Cullman County Tax Collector or Revenue Commissioner so the amount may be added to the next regular tax bill.

Willoughby motioned to adopt and was seconded by Moss.

AHSAA

The council adopted Resolution No. 2026-126, authorizing the city to enter into a one-year contract with the Alabama High School Athletic Association and Cullman City Schools to collectively host the 2027 AHSAA Outdoor Track and Field State Championships for Class 1A, 2A and 3A.

The event is scheduled for May 6-8, 2027. The agreement term begins June 17, 2026, and ends May 10, 2027.

The championships will be held at Cullman High School. The city and Cullman City Schools will provide the stadium, staff and use of the premises at no cost to AHSAA.

Parking may not exceed $5 per vehicle per day.

Under the agreement, the city and Cullman City Schools will retain stadium concession revenue and parking fees. AHSAA will retain gate revenue.

The city and Cullman City Schools will provide a maximum cash bid fee of $18,000, payable to AHSAA no later than 60 days after completion of the event.

They will also provide complimentary rooms for AHSAA staff, the tournament director, the track announcer, event officials and athletic trainers.

The agreement also calls for a hospitality area at the stadium, with complimentary breakfast and lunch Thursday, Friday and Saturday for AHSAA staff, officials, workers and volunteers.

The city and Cullman City Schools will work with area hotels to secure discounted rates for participating teams and fans. Those rates are to be posted on the AHSAA website and the city’s website.

Moss motioned to adopt the resolution, and it was seconded by Shikle.

Project Panel

The council adopted Resolution No. 2026-127, amending the tax abatement for Project Panel.

The amended resolution replaces a resolution adopted May 26, 2026. The amendment updates Project Panel’s capital investment figure to $6,610,500. 

After the original abatement was passed, the prospective company discovered that additional renovations and equipment will be needed for the building.

Because of these changes, the total capital investment increased by more than 10% from the original estimated amount. 

According to state law, an amendment is required to a previously approved abatement when the cost changes by more than 10% from the amount approved in the original Tax Abatement Agreement and Resolution.

This amendment ensures that the project documentation accurately represents the company’s commitment and allows the additional qualifying investment to be included under the approved tax abatement.

The resolution states Project Panel involves a new project within the city’s jurisdiction.

Under the Tax Incentive Reform Act of 1992, the company requested abatement of state and local noneducational ad valorem taxes, construction-related transaction taxes, and sales taxes on manufacturing and non-manufacturing machinery/equipment, except those levied for educational purposes to the extent allowed by law.

The noneducational tax abatement, if applicable, will extend for 10 years.

The documents list an estimated annual noneducational property tax abatement of $22,476 and an estimated $36,585 in tax abatements for construction-related transactions and equipment.

The documents also project employment growth from five initial jobs to 12 in year one, 18 in year two and 18 or more in year three.

Projected annual payroll is listed at $343,200 initially, $686,400 in year one, $823,680 in year two and $1.5 million in year three.

The resolution authorizes the city to enter into an abatement agreement with the company.

Moss motioned to adopt the resolution, and was seconded by Willoughby.

Cullman Primary Water Transmission Pipeline Replacement project

The council also heard the first reading of Ordinance No. 2026-44, which would authorize the issuance of a $5,090,000 general obligation warrant through the State Revolving Fund, Series 2026-DWSRF-DL.

The agenda describes the item as a State Revolving Fund loan to replace the 30-inch Primary Transmission Pipeline, phase one. The loan is tied to the Cullman Primary Water Transmission Pipeline Replacement project.

The ordinance states the warrant is dated July 1, 2026, and would be issued to the Alabama Drinking Water Finance Authority. The loan amount is $5,090,000.

The project fund is listed at $5,079,000, and the loan recipient share of finance expenses is listed at $11,000. No principal forgiveness is listed.

The project’s estimated completion date is June 1, 2028. Loan payments begin Aug. 15, 2026.

The principal installments are due on Feb. 15 each year from 2027 through 2046. The documents list an interest rate of 0.10% and an administrative fee rate of 2.10%, both calculated on the outstanding principal installments.

The ordinance states the warrant is a general obligation of the city, backed by the city’s full faith and credit.

Since Ordinance No. 2026-44 was listed as a first reading, final adoption would normally occur at a later meeting unless the council took additional procedural action.

No action was taken at this time, but the ordinance will be addressed at the next council meeting.

Councilmember Willoughby, before the meeting adjourned, said, “I see the audience trying to look at the scroll on the screen. Very proud that it’s there, but we go through a lot in a short amount of time. I would invite anyone that’s interested to go and look at the hyperlinks because all of the documents that we’re voting on are public knowledge.”

This agendas and minutes of 2025 as well as 2026 can be found at https://cullmanal.gov/cca/

Next meeting

The next Cullman City Council meeting is scheduled for Monday, July 20, at 7 p.m. in the city hall auditorium.

The public is encouraged to attend and meeting notices are posted in advance at www.facebook.com/CullmanCity