General Provisions.

Ala. Code tit. 11, tit. 2, ch. 50, art. 1

in effect

Ala. Code § 11-50-1 Establishment, Purchase, Etc., of Waterworks, Gas or Electric Plants by Municipalities Generally; Contracts for Furnishing of Water, Gas, or Electricity; Regulation of Gas, Electricity, and Water Rates and Quality.

11-50-1. Establishment, Purchase, Etc., of Waterworks, Gas or Electric Plants by Municipalities Generally; Contracts for Furnishing of Water, Gas, or Electricity; Regulation of Gas, Electricity, and Water Rates and Quality. Cities and towns shall have the right to establish, purchase, maintain, and operate waterworks or contract for a supply of wholesome water for their inhabitants; to establish, purchase, maintain, and operate a gas or electric light works and to contract for the furnishing of gas or electricity to the city or town and surrounding territory; to regulate the manner and rates for furnishing gas, electricity, and water after expiration of a contract; and to prescribe the quality of gas or electricity furnished to the inhabitants by any person or corporation. (Code 1907, §1260; Code 1923, §2001; Code 1940, T. 37, §360.)

Ala. Code § 11-50-1.1 Acquisition of Certain Waterworks Systems Only with Consent of Governing Board of Corporation or Association Operating Same.

11-50-1.1. Acquisition of Certain Waterworks Systems Only with Consent of Governing Board of Corporation or Association Operating Same. Municipalities are hereby prohibited from acquiring, or duplicating any services of, any waterworks system or any part thereof, operated by a corporation or association which has been organized under Sections 10-4-190 through 10-4-194, Sections 11-88-1 through 11-88-21, Sections 11-88-40 through 11-88-111, or Sections 11-89-1 through 11-89-19, without the consent of a majority of the members of the governing board of said corporation or association. (Acts 1982, No. 82-624, p. 1179.)

Ala. Code § 11-50-2 Acquisition of Power Lines and Rights-of-Way, Etc., Incident Thereto.

11-50-2. Acquisition of Power Lines and Rights-of-Way, Etc., Incident Thereto. (a) Cities and towns in this state are authorized to construct, lease, purchase, or otherwise acquire power lines for the transmission of electricity from any point in this state or any other state to said city or town for the purpose of serving the needs of its citizens. (b) For the purposes of this section cities and towns may exercise the right of eminent domain in acquiring title to land for rights-of-way, power stations, and other purposes necessary to the operation of said transmission lines. Such eminent domain proceedings shall be conducted in the manner provided by law. (Acts 1933, Ex. Sess., No. 105, p. 99; Code 1940, T. 37, §361.)

Ala. Code § 11-50-3 Sale of Water and Power to Other Municipalities.

11-50-3. Sale of Water and Power to Other Municipalities. Any city or town in this state owning or operating a municipal water or light plant or both may contract with and sell to other municipalities and to residents thereof water and power. (Acts 1933, Ex. Sess., No. 105, p. 99; Code 1940, T. 37, §362.)

Ala. Code § 11-50-4 Condemnation of Sources of Water, Watersheds, Rights-of-Way, Etc., to Secure Water Supply.

11-50-4. Condemnation of Sources of Water, Watersheds, Rights-of-Way, Etc., to Secure Water Supply. For the purpose of securing and maintaining a water supply sufficient for its inhabitants and users within contiguous areas, any municipal corporation is vested with full authority to have condemned for its use sources of water and water supplies or necessary watersheds, rights-of-way for its pipelines, and lands for its water reservoir anywhere in the state. Condemnation under this section shall be governed by the provisions of Title 18 of this Code. (Code 1923, §2003; Code 1940, T. 37, §364; Acts 1953, No. 858, p. 1148.)

Ala. Code § 11-50-5 Construction, Purchase, Operation, Etc., of Waterworks and Water Supply Plants and Systems and Expenditure of Municipal Funds Therefor.

11-50-5. Construction, Purchase, Operation, Etc., of Waterworks and Water Supply Plants and Systems and Expenditure of Municipal Funds Therefor. (a) Any municipality in this state may construct, purchase, operate, maintain, enlarge, extend, and improve waterworks plants and systems or any part or parts thereof, whether located within or without or partly within and partly without the corporate limits of such municipality. Such plants and systems may be purchased subject to encumbrances and to contracts to furnish water therefrom, the payment and performance of which may be assumed. Any municipality in this state may furnish and distribute, under contract, water to persons, firms, and corporations in such municipality and to persons, firms, and corporations in the territory surrounding such municipality, whether or not the territory surrounding such municipality is contiguous thereto. (b) Without limiting the generality of any of the language contained in subsection (a) of this section, any municipality in this state may construct, purchase, operate, maintain, enlarge, extend, and improve water supply plants and systems, whether located wholly within or wholly without or partly within and partly without the corporate limits of such municipality, and may sell and deliver water therefrom to public corporations for ultimate distribution to the inhabitants of such municipality and to the inhabitants of the territory surrounding such municipality, whether or not the territory surrounding such municipality is contiguous thereto. (c) The construction, purchase, operation, maintenance, enlargement, extension, and improvement of waterworks plants and systems, including water supply plants and systems, and any part or parts of any thereof are hereby declared to be purposes for which any municipality in this state is authorized to expend funds. (Code 1907, §1261; Acts 1911, No. 489, p. 565; Code 1923, §2002; Code 1940, T. 37, §363; Acts 1951, No. 597, p. 1028; Acts 1955, No. 556, p. 1217.)

Ala. Code § 11-50-6 Issuance of Bonds for Payment for Waterworks Plants, Etc., Purchased; Security for Bonds; Provision in Purchase Agreement as to Disposition of Revenues from Plants, Etc.

11-50-6. Issuance of Bonds for Payment for Waterworks Plants, Etc., Purchased; Security for Bonds; Provision in Purchase Agreement as to Disposition of Revenues from Plants, Etc. In payment for such plants, cities or towns may issue their bonds in the manner provided by law, and the same may be secured by a mortgage or deed of trust on the plants so purchased. By the terms of such purchase it may be provided that the revenue of such waterworks may be collected, controlled, and disbursed by a commission selected in the manner and having the powers and term of office which may be agreed upon between the vendor of such plant and such city or town. (Code 1907, §1262; Code 1923, §2004; Code 1940, T. 37, §365.)

Ala. Code § 11-50-6.1 Referendum on Issuing Obligations to Construct Hydroelectric Generating Facility in Class 5 Municipality.

11-50-6.1. Referendum on Issuing Obligations to Construct Hydroelectric Generating Facility in Class 5 Municipality. Should any Class 5 municipality subject to this section desire to construct a hydroelectric generating facility, said municipality is hereby authorized to call for a referendum of all registered voters living in said municipality. The election shall be held and conducted as nearly as may be in the same way as elections on amendments to the Constitution, and shall be held on the same day as the next general, primary or special election following final passage of this section. The question to be placed before the qualified voters is as follows: Whereas, the city of (name of municipality) is considering the construction of a hydroelectric generating facility on the (name of river or stream), the question is hereby placed before the qualified voters of said city as follows: Shall the city of (name of municipality) be authorized to issue obligations payable from both general and electric revenues to construct and operate a hydroelectric generating facility on the (name of river or stream)? Yes ( ) No ( ). (Acts 1987, No. 87-552, p. 854, §1.)

Ala. Code § 11-50-7 Provision in Purchase Agreement as to Franchise Right of Purchaser at Foreclosure Sale.

11-50-7. Provision in Purchase Agreement as to Franchise Right of Purchaser at Foreclosure Sale. By the terms of purchase, it may be further provided that the purchaser at a foreclosure sale under such mortgage or deed of trust shall have a franchise for not exceeding 30 years to operate such plant. (Code 1907, §1263; Code 1923, §2005; Code 1940, T. 37, §366.)

Ala. Code § 11-50-8 Execution of Mortgages or Deeds of Trust as Security for Debts, Etc., Incurred in Construction, Acquisition, Etc., of Waterworks, Electric Lighting, or Power Plants, Etc.

11-50-8. Execution of Mortgages or Deeds of Trust as Security for Debts, Etc., Incurred in Construction, Acquisition, Etc., of Waterworks, Electric Lighting, or Power Plants, Etc. All cities and towns, in order to secure the prompt and faithful payment of the principal and interest of all debts, bonds, or other evidence of indebtedness heretofore or hereafter incurred or issued by such cities or towns for the construction, acquisition, extension, or maintenance of waterworks systems or plants, electric lighting plants or systems or power plants or systems, whether such plants or systems are owned and operated separately or in conjunction, may execute a mortgage or deed of trust upon any or all of any such plants or systems and all property used in connection therewith, including the franchise or any part thereof, whether such property is now owned or hereafter acquired by such city or town. (Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2006; Acts 1933, Ex. Sess., No. 9, p. 6; Code 1940, T. 37, §367.)

Ala. Code § 11-50-9 Terms, Covenants, Etc., in Mortgages or Deeds of Trust Generally.

11-50-9. Terms, Covenants, Etc., in Mortgages or Deeds of Trust Generally. Such mortgages or deeds of trust may contain such terms, conditions, covenants, and warranties for the protection of the municipalities and holders of such bonds or securities issued by such cities or towns as may be determined and agreed upon by the governing body of such cities or towns and the persons, firms, or corporations owning such debts, bonds, or securities. (Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2007; Code 1940, T. 37, §368.)

Ala. Code § 11-50-10 Provision in Mortgages or Deeds of Trust as to Franchise Right, Etc., of Purchaser at Foreclosure Sale.

11-50-10. Provision in Mortgages or Deeds of Trust as to Franchise Right, Etc., of Purchaser at Foreclosure Sale. Such mortgages or deeds of trust may provide that in the event of the foreclosure of such mortgage or deed of trust the purchaser at such foreclosure sale may acquire the right, privilege, and franchise of operating such plants or systems as may be so sold or conveyed, and such purchaser or his vendee may have the right, authority, and privilege to carry on and operate such business, plant, or system in the same manner, on the same terms, and to the same extent as the cities or towns are now authorized to operate until the city or town may redeem such plants or systems from such mortgage sale. (Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2008; Code 1940, T. 37, §369.)

Ala. Code § 11-50-11 Provision in Mortgages or Deeds of Trust as to Disposition of Revenues, Etc., from Plants, Rates, and Charges, Etc.

11-50-11. Provision in Mortgages or Deeds of Trust as to Disposition of Revenues, Etc., from Plants, Rates, and Charges, Etc. Such mortgages or deeds of trust hereby authorized may provide that during the ownership of the plant or system by the municipality, its control of the service of the system or systems shall not be diminished or interfered with by the grant of any other franchise for the operation of any other plant or system for similar purposes and that such rates and charges shall be established and maintained sufficient to meet the costs of operation and maintenance; and such cities or towns may pledge all of the receipts, earnings, and revenues from the operation of any and all of such plants for the payments of the debts, bonds, or other evidences secured by such mortgages or deeds of trust. (Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2009; Code 1940, T. 37, §370.)

Ala. Code § 11-50-12 Combination of Electric Light and Power Plants, Etc., and Waterworks Plants, Etc.; Use of Electric Light and Power Plants, Etc., and Disposition of Revenues Therefrom.

11-50-12. Combination of Electric Light and Power Plants, Etc., and Waterworks Plants, Etc.; Use of Electric Light and Power Plants, Etc., and Disposition of Revenues Therefrom. All cities and towns which own and operate an electric light plant or system or any power plant of any kind may combine such electric light and power plants and system with the waterworks or waterworks system owned and operated by the city or town, and the receipts and revenues derived from the electric light plant and works or from such power plant may be applied in payment of or pledged to secure the payment of any indebtedness incurred by the city or town in the construction, maintenance, or extension of its waterworks system or any additions or improvements thereto; and any electric or hydroelectric power or power plant of similar kind owned and operated by any of the cities and towns within the provisions of this section may use such lighting or power plants and systems for the operation of its waterworks system and plant. (Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2010; Code 1940, T. 37, §371.)

Ala. Code § 11-50-13 Transfer of Waterworks, Sewer, Electric, and Gas Plants, Etc., to Boards Organized and Incorporated to Own and Operate Same.

11-50-13. Transfer of Waterworks, Sewer, Electric, and Gas Plants, Etc., to Boards Organized and Incorporated to Own and Operate Same. (a) Each municipality in Alabama which now or hereafter owns a waterworks plant and system, a sewer plant and system, an electric plant and system, and a gas plant and system, or any one or more thereof, is hereby authorized to transfer and convey one or more of such plants and systems or any part or parts of such plants and systems or any rights incidental thereto, without the necessity of authorization at an election of the qualified voters of such municipality, to a board which is a public corporation organized and incorporated under Sections 11-50-231 through 11-50-238, 11-50-240 and 11-50-241, as amended, or under any act providing for the incorporation of like boards to own and operate any waterworks plant or system, any sewer plant or system, any electric plant or system, or any gas plant or system, whether such board was incorporated with the approval of the municipality owning such plant and system or with the approval of some other municipality in Alabama. (b) Any such transfer or conveyance may be made with or without pecuniary consideration and on such terms and conditions as the governing body of the municipality owning such plant and system may determine. Any such transfer and conveyance shall be made only upon the enactment by the governing body of the municipality owning such plant and system of an ordinance or resolution authorizing such transfer and conveyance. (Acts 1951, No. 190, p. 453, §1.)

Ala. Code § 11-50-14 Agreements with Boards; Conditions, Etc., in Instruments of Transfer as to Control, Operation, Etc., of Plants, Etc., by Boards; Powers of Boards as to Conveyance, Etc., of Title to Plants.

11-50-14. Agreements with Boards; Conditions, Etc., in Instruments of Transfer as to Control, Operation, Etc., of Plants, Etc., by Boards; Powers of Boards as to Conveyance, Etc., of Title to Plants. (a) The governing body of such municipality is hereby authorized to enter into any agreements with such board which may be necessary or appropriate in order to effectuate such transfer and, in the instrument of transfer, may impose any conditions or stipulations deemed advisable by its governing body and not inconsistent with the provisions of this section and Section 11-50-13 respecting the subsequent control, management, operation, extension, and improvement by such board of the plant or plants and system or systems so transferred to it. (b) Nothing contained in this section and Section 11-50-13 shall be construed to authorize any such board to convey any plant or system which may be transferred to it by a municipality so as to vest title thereto in private ownership and control; provided, however, that title to such plant and system may be subjected to a mortgage, deed of trust, or pledge agreement as security for repayment of money borrowed by such board. (Acts 1951, No. 190, p. 453, §2.)

Ala. Code § 11-50-15 Fees of Directors.

11-50-15. Fees of Directors. In any instance where a public corporation heretofore or hereafter organized pursuant to the provisions of Sections 11-50-231 through 11-50-238, 11-50-240 and 11-50-241, or under the provisions of Sections 11-50-310 through 11-50-318 and 11-50-320 through 11-50-324 owns and operates one or more utility systems, the board of directors of such corporation may at its election authorize the payment by such corporation of the following directors’ fees to the members of the board of directors in lieu of the directors’ fees authorized in the statute under which such corporation was organized. No fee shall be paid to any director for services rendered with respect to a sanitary sewer system. In any instance when the system or systems owned and operated by the corporation are any one or more of a water system, a gas system, and an electric system, the chair of the board of directors may be paid a director’s fee in an amount not exceeding six hundred dollars ($600) per meeting attended, not to exceed seven thousand two hundred dollars ($7,200) per year, for one system and twenty-five dollars ($25) each meeting for each additional system, and each member of the board of directors other than the chair may be paid a director’s fee in an amount not exceeding four hundred dollars ($400) per meeting attended, not to exceed four thousand eight hundred dollars ($4,800) per year, for each system and twenty dollars ($20) each meeting attended, not to exceed four thousand eight hundred dollars ($4,800) per year, for each additional system. Upon the adoption of a resolution by the board of directors of such corporation electing to come within the provisions of this section and fixing the amount of the directors’ fees to be paid within the limitations set forth in this section, the corporation shall thereafter be authorized to pay the fees so fixed. Nothing in Act 2007-458 and nothing in Act 2010-580 shall apply to the City of Montgomery, the City of Prichard Water and Sewer Board, the City of Cullman, or the City of Mobile. The amendatory provisions of this section as provided in Act 2010-580 and in Act 2007-458 shall not affect the current board director and member fees in the City of Birmingham. (Acts 1953, No. 850, p. 1141; Acts 1981, No. 81-688, p. 1159; Act 2007-458, p. 946, §§1-3; Act 2010-580, p. 1291, §1.)

Ala. Code § 11-50-16 Employment of Mayor or President of Board of Commissioners of Certain Municipalities as Superintendent of Light, Water, Sewer or Gas Systems, Etc.; Duties and Compensation; Validation of Prior Employment, Etc.

11-50-16. Employment of Mayor or President of Board of Commissioners of Certain Municipalities as Superintendent of Light, Water, Sewer or Gas Systems, Etc.; Duties and Compensation; Validation of Prior Employment, Etc. (a) In all incorporated municipalities organized and operating under the provisions of Articles 1, 2, and 3 of Chapter 44, of this title, which own and operate a municipal light and power system, a municipal water system, a municipal sewage system, or a municipal gas system or any of them, the board of commissioners may, by resolution duly entered in its minutes, authorize the mayor or president of the board of commissioners to act as superintendent of such system or systems and to give as much of his time thereof as the commissioners may direct; provided, that in any such municipality in which a municipal board or municipal public corporation owns or operates a municipal light and power system, a municipal water system, a municipal sewage system, or a municipal gas system or any of them, such board or municipal public corporation may, by resolution duly entered in its minutes, employ the mayor or president of the board of commissioners to act as superintendent of such system or systems and to give so much of his time thereto as such board or corporation may direct. (b) The mayor or president of the board of commissioners, as such superintendent of such system or systems, shall serve as purchasing agent and make all purchases authorized by the board of commissioners, board, or municipal public corporation therefor. He shall keep a check on meter readings and bids for service of the system and see that the collections thereof are made. He shall see that the system or systems are kept in proper repair and operation, he shall keep an inventory showing the supplies and equipment on hand for such system or systems, he shall keep a full and complete monthly financial statement of all operation costs and receipts and keep a proper inventory of the fiscal assets of such system or systems available for the board of commissioners, board, or municipal public corporation at such times as it shall require, but not less frequently than once every three months, and shall handle all such data and information relative to such system or systems. For his service as superintendent of such system or systems the mayor or president of the board of commissioners shall be paid, in addition to the salary now or hereafter provided by law, such sum as the board of commissioners, board, or municipal public corporation shall deem reasonable, but not to exceed $600.00 per month, except in cases where the board of commissioners, board, or municipal public corporation requires the full time services of the mayor or president of the board of commissioners as superintendent of such system or systems, in which event he may be paid not more than $1,200.00 per month for such service. The board of commissioners, board, or municipal public corporation may at any time it deems best dispense with the mayor or president of the board of commissioners’ services as superintendent. (c) The provisions of this section shall be curative and retroactive and any employment of any mayor or president of the board of commissioners as superintendent of any such system or systems (utility or utilities) heretofore made by any such board of commissioners, board, or municipal public corporation and any salary heretofore paid to any mayor or president of the board of commissioners by any such board of commissioners, board, or municipal public corporation for his services as superintendent of such system or systems is hereby validated. (Acts 1967, No. 519, p. 1242; Acts 1982, 2nd Ex. Sess., No. 82-764, p. 239.)

Ala. Code § 11-50-17 Payment of Interest by Waterworks Boards in Class 1 Municipalities on Customer Security Deposits.

11-50-17. Payment of Interest by Waterworks Boards in Class 1 Municipalities on Customer Security Deposits. Any public water works board in a Class 1 municipality in the state shall pay interest per annum on all customer security deposits required for utility service. The amount of interest paid for each calendar year shall be at the federal funds rate in effect on December 31 of the preceding calendar year. (Acts 1980, No. 80-327, p. 448; Act 2011-336, p. 609, §1.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026