Irondale's City Council voted Tuesday to revise the rate structure for non-metered fire-protection water lines after businesses across the city reported eye-popping spikes in their sprinkler-service bills, with one customer's monthly charge expected to fall from roughly $1,718 to $342.66. The move follows months of complaints from local business owners who watched routine fire-line fees balloon by well over 1,000 percent after rates changed earlier this year.
A Rate Hike That Blindsided Local Businesses
According to WBMA, the revised structure approved by the Irondale City Council affects 71 customers and is designed to ease the financial burden on businesses hit hardest by the earlier increase. The city had raised water rates in April, driving up charges for both households and businesses, as reported by WVTM. WVTM separately reported that Mayor James D. Stewart said the increase affected 77 businesses based on the size of their water main pipes, a figure that differs from WBMA's count of 71 affected customers.
Among the businesses caught off guard was Simply 10, a small company headquartered in Irondale. Its monthly fire-line service bill jumped from $78 to $1,713 once the new rate structure took hold, the same account notes, pushing its annual sprinkler-service cost from about $1,200 to nearly $20,000. Austin Englebert, vice president of Simply 10, raised the issue at the city council's September 1 meeting, telling officials the size of the business's water main, 10 inches, produced the $1,713 bill, and that a pipe just two inches larger would have cost more than $3,200 a month.
Why the City Says Rates Changed
Fire-protection water lines supply sprinkler systems inside commercial buildings, and charges apply to those specialized connections even when the systems are rarely used. Mayor Stewart said a rate study conducted in 2023 found that businesses had been undercharged for fire-suppression service, a finding that set the stage for this year's increases. City officials had been working on a plan to phase in higher charges over five years, but the rollout instead produced the dramatic spikes that drew complaints from business owners across Irondale.
The revised rate structure relies on methodology associated with the American Water Works Association and is meant to spread the financial impact over a longer period rather than imposing it all at once. Even so, the city has acknowledged that revised charges may remain significantly higher for some businesses than what they paid before the original increases took effect.
Credits, Not Refunds, for Affected Accounts
Rather than issuing cash refunds, Irondale plans to apply credits to customers' future utility bills. The council's Resolution 2026-R-240, approved alongside the new rate schedule, directs the water department to review affected accounts and calculate adjustments dating back to April 1, 2026. Qualifying late-payment penalties and delinquency fees tied to the disputed charges will also be reversed.
Mayor Stewart referenced a 24-month credit provision intended to help affected customers recover from the spike. The city has not disclosed the total amount it expects to credit across the affected accounts, and it has not explained how customers with closed accounts might recover any unused credit balance.
More Rate Changes Could Be Coming
Stewart said Irondale plans to conduct another rate study and hopes to develop a different approach within the next year. City officials could return to the council with a new ordinance based on whatever that study finds. In the meantime, the revised five-year structure approved this week could eventually bring some customers back up to the higher rates originally approved, even as it softens the immediate blow for businesses like Simply 10.
