Birmingham Water Works a Sinkhole for Public Money
An ongoing series of financial missteps has the Birmingham Water Works under sharp scrutiny, as accusations of serious financial mismanagement prompt questions about the organization’s competence.
Self-Serving Decisions, Wasted Money
Controversial spending habits of the Birmingham Water Works are putting the public faith to a severe test, and potentially reveal gross negligence. Their most recent decision is to vote into action a $69,000 survey intended to probe public sentiment about their operation. However, critics argue this move is another financially wasteful action, siphoning off public money in an unwarranted appeal for public favor.
Are Surveys the Solution?
Rather than addressing the root of the problem, Birmingham Water Works appears to be more concerned with exploring public image. The projected cost of this survey could cover the grocery budget for an average Alabama family for five years. For a water company that already has to shoulder a stressful history of mishandling public funds, this seems to be a questionable decision.
Furthermore, this survey does nothing to resolve the poor reputation of the Birmingham Water Works. Only changes at the level of operations and decisions can hope to change how the public views the Water Works.
Repeated Rate Hikes
Birmingham Water Works, infamously known for ranking last in customer satisfaction surveys conducted by J.D. Power, has been persistently increasing rates annually for as long as anyone can remember. In offbeat moves, it even paid a $37,500 membership fee to J.D. Power in a questionable bid to improve its rank.
The organization’s lack of empathy towards users is also evident in their reaction to recent complaints about water quality. Customers had complained of water tasting strange, akin to dirt or beets, but the Water Works minimized concerns by stating it was safe to drink.
Lavish Spending on Lobbying and PR
Despite an image crisis and distrust among the public, the Birmingham Water Works continues to squander resources. This includes paying $300,000 to former Congressman Earl Hilliard for federal lobbying over three years, planning to pay two firms $360,000 this year to lobby the state Legislature, and maintaining a full-time PR department alongside two external PR firms.
A Call for Accountability
These numerous financial discrepancies have led to deserved criticism and calls for greater accountability. This Water Works board meeting seems to have entirely missed the point – it’s not image that needs repair, what’s crucial is the core functionality of the organization and how well they serve their customers. Missteps such as a $4.3 million loss in a Ponzi scheme only adds to their already-tarnished image.
The key issue here: the board appears to have lost sight of its main purpose – to provide clean, safe water to Birmingham citizens at an affordable price. Unless the focus shifts from superficial public relations work to actual customer service and fiscal responsibility, the Birmingham Water Works may continue to leak money like a broken pipe, gradually eroding any remaining public trust.
John Archibald is a two-time Pulitzer winner. If you purchase a product or register for an account through a link on our site, we may receive compensation.
