Fairhope water tower projected to cost $12 million, up from $9 million budgeted

Fairhope leaders are weighing whether a proposed two-million-gallon water tower is worth an expected $12 million price tag, a debate that has sparked sharp criticism and renewed questions about how the city should keep up with growing water demand.

Councilman Burrell reacted to the cost by saying, “I mean, this is highway robbery.”

The city has $9 million budgeted for the project, but the mayor said the total cost is expected to reach $12 million over multiple years. “It’s really not nine million. It’s 12 million split over two years. So it’s nine million, then plus three million,” the mayor said.

Burrell said a tank this size would have cost around $2 million when he first joined the council in 2012. “So we’re at four and a half times that inflation. I know I’ve been on this council a long time. I don’t think it’s 450% in that time,” Burrell said.

City officials say the discussion is not only about the sticker price. Fairhope has struggled to keep up with water demand during periods of extreme heat and dry weather, and residents have faced restrictions on irrigation, including rules allowing some homeowners to water only on certain days.

The proposed tank would add two million gallons of elevated water storage to the system, giving Fairhope more water available during periods of high demand and providing another buffer if the city loses capacity from a well problem or another issue.

The cost estimate comes as other utilities have made similar investments. In 2023, North Baldwin Utilities invested about $6.4 million in a new elevated water storage project in Bay Minette for a 2.5 million-gallon elevated water storage tank.

A speaker in the discussion said the pricing reflects what utilities are seeing more broadly. “And to be honest, I mean, if you it’s not only here in Baldwin County across the state, if you’re in utility meetings, this is what a two million gallon tank is running,” she said.

The mayor said the city hopes competitive bidding will bring the cost down. Burrell said he wants the city to take a closer look before committing to the full price tag. “I’d like to maybe look at the committee of experts that can go all over this country,” he said.

The decision ultimately hinges on whether the project is the right solution, at the right price, for a city that is continuing to grow.