Birmingham water board paid its retiring manager $245,000 in sick leave without approval

Subject of this story
Michael Johnson (Birmingham Water Works), Former General Manager, Birmingham Water Works Board
01 · What happened

An Alabama Department of Examiners of Public Accounts review of the former Birmingham Water Works Board, covering May 2023 to May 2025 and released in December 2025, found that former General Manager Michael Johnson received more than $245,000 for over 1,200 unused sick hours when he retired in June 2024, with no board approval, after the board's May 2024 handbook had removed such payouts. It also found directors paid meeting allowances for meetings they did not attend, a contract awarded without proof it went to the lowest bidder, and no operations policy manual, which coverage tied to at least two possible employee thefts, one near $2 million in copper. The Legislature replaced the board with Central Alabama Water in May 2025. CEO Jeffrey Thompson said the utility is taking corrective action. No repayment demand or charges have been reported.

02 · Sources · 2
WVTM 13 — State audit of Central Alabama Water predecessor boardOur customers should know this is a new organization with a new board and leadership team.
03 · Response
Birmingham Water Works Board

Not yet contacted for this story.

Not yet contacted
Michael Johnson (Birmingham Water Works)

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Central Alabama Water

CEO Jeffrey Thompson: "We are taking corrective action to address concerns raised in the report."

Statement given
04 · What happened next · 0

No outcome recorded yet.

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