CULLMAN, Ala. – Cullman residents using an average of 8,000 gallons of water per month are expected to save roughly $10 per month under the city’s fiscal year 2027 water and sewer rates.
City officials said Cullman reviews its water and sewer rates annually based on operational needs, financial requirements, inflation, infrastructure needs and customer usage. For the upcoming fiscal year, residential water and sewer rates will decrease.
Commercial water rates will remain the same, while commercial sewer rates will be reduced. Industrial water and sewer rates will increase because of upcoming infrastructure improvements.
The city also created a new, lower water rate specifically for poultry houses to better reflect that category of water usage.
According to the city, the largest driver of rate changes is usage volume. Other factors include rising costs for labor, materials, chemicals and fuel, along with infrastructure replacement, upgrades and expansion.
The adopted rates support day-to-day operations, smaller infrastructure improvements and debt service payments on larger infrastructure projects. Larger projects are typically financed through low-cost State Revolving Fund loans through the Alabama Department of Environmental Management.
City officials said the water and sewer rates are designed to produce enough revenue to fund operations, make necessary capital improvements, serve community needs and maintain water quality standards required by ADEM.
The city’s water and sewer rate structure includes a base charge and a per-1,000-gallon usage charge.
The base charge is the fixed monthly amount each customer pays to help cover the cost of maintaining the water and sewer system. The per-1,000-gallon charge is based on actual usage, meaning that portion of a bill increases or decreases depending on how much water a customer uses.
The city said the $10 base charge was established in 2018 to help reduce the burden on customers with lower water usage, including many elderly customers and others on fixed monthly incomes. Under the previous billing method, a customer using 1,000 gallons would have paid $105.80, compared to $46 under the current method, according to the city.
Cullman’s rate ordinances also continue to include a 3% or Consumer Price Index inflation adjustment. City officials said the adjustment can be waived by the Cullman City Council through a resolution if it is determined to be unnecessary.
That would include situations where current rates are sufficient to cover expenditures and needed infrastructure improvements. If customer growth and usage volume increase enough to support the system, rate increases may not be needed.
Sanitation rates will also change in fiscal year 2027.
The city said the residential trash rate will decrease by 42 cents per month. The major sanitation change is a new $10 monthly residential recycling rate.
Residential recycling will be optional. Residents who want the service in fiscal year 2027 will have to sign up and request it.
Free residential recycling drop-off will remain available at the city’s recycling center, located at 925 Convent Road NE.
City officials said sanitation costs are reviewed annually based on labor, benefits, repairs, maintenance, disposal, capital equipment, equipment costs and the number of customers. Equipment costs have continued to increase significantly each year, according to the city.
Sanitation charges support residential trash service, residential recycling, street sweeping, mosquito spraying, brush and limb removal, the household hazardous waste collection event, the annual spring cleanup event and industrial and commercial services.
Commercial and industrial customers with dumpsters or roll-off service will see an average increase of 3%.
The city said the 3% or CPI inflation adjustment for sanitation was based on years of data showing the average annual cost increase was about 3%. The council can waive that adjustment if it is not needed.
City officials said Cullman has waived the automatic residential sanitation adjustment several times in past years. Fiscal year 2027 includes an actual reduction in the residential sanitation rate.
Customers who believe their water or sewer bill is incorrect, or who have a leak, pool-fill adjustment or other account-specific issue, may contact the Cullman Water Department at 256-775-7210.
Customers with sanitation billing questions may contact the Utilities Billing Department at 256-775-7107 or utilitiesbilling@cullmanal.gov.
