Birmingham water board paid its retiring manager $245,000 in sick leave without approval
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.
The Board did not maintain a policy manual for daily operations.
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CEO Jeffrey Thompson: "We are taking corrective action to address concerns raised in the report."
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