The Board

General Information
The Board is a public corporation originally organized on April 22, 1948 under Sections 394 to 402, inclusive, of Title 37 of the Code of Alabama of 1940, as amended, and now exists as a public corporation under Article 8 of Chapter 50 of Title 11 of the Code of Alabama of 1975. The creation of the Board, its certificate of incorporation and all amendments thereto has, as required by the applicable statutes, been consented to by the governing body of the City. The Board is charged with the responsibility for the construction, operation and maintenance of all water facilities of the City and for the collection of all charges for water services.  Control of the Board is vested in a five-member board of directors elected by the governing body of the City of six-year staggered terms. Under its certificate of incorporation, the Board has corporate power to acquire and operate the System and to issue the bonds payable from the revenues therefrom.

Franchise
The Board was incorporated with the objectives and powers to acquire, construct, operate, maintain, improve and extend a water works plant or plants and system or systems and any part or parts thereof in the City, and in the territory surrounding the City. The Board follows a policy of supplying water at its standard rates for subdivisions beyond the city limits where subdivision developers install service lines at their own expense and donate these lines to the Board upon connection to the System. The governing body of the City has granted a franchise to the Board to use the streets, avenues, alleys, public ways and public places in the City to operate the System which franchise extends for a period of 30 years from June 1, 1996. No part of the System is located within the corporate limits of any municipality other than the City.

State Regulation
The Board is not at present subject to rate regulation by the Public Service Commission of the State of Alabama or any other state regulatory agency.

Debt Limitation
The Board has full power under the applicable statutes and its certificate of incorporation to incur indebtedness without limitation as to aggregate principal amount in accordance with the provisions of Section 11-50-235 of the Code of Alabama of 1975, and to issue in evidence of such indebtedness interest bearing bonds payable solely from the revenues derived from the operation of the System and to mortgage, pledge or otherwise convey the System from which the revenues are so pledged.