The city’s own sewer has never paid for itself
The city-owned sewer system serving Riverchase, Inverness, and Southlake has run at a deficit since 2008, and a new board created in April 2026 may recommend the city sell it.
Where it stands
Getting worse
Hits residents
6/10
Years covered
2021–2026
Sources
3 linked
- $1.3M
- Annual general fund subsidy to the sewer system
- $20M+
- Sewer-related debt carried by the city
- $6.1M
- Diverted from a planned arts-center fund to emergency sewer repairs
As of 2026
As of 2026
As of 2025-04
What happened
Hoover’s own wastewater system serves about 4,500 residential and 200 commercial customers, roughly 15 percent of city households. It has posted negative retained earnings since 2008 and requires a general-fund subsidy of about $1.3 million a year on top of more than $20 million in sewer-related debt. In April 2025 the council voted 6-1 to redirect $6.1 million from a planned performing-arts-center fund to emergency repairs, including relocating a sewer line away from the Cahaba River, after the mayor cited about $25 million in deferred maintenance. In April 2026 the council created a three-person Inverness-Riverchase Sewer Board and hired an engineering firm to inventory the system. City Administrator Brian Muenger said “a potential disposition of the system” is on the table, though no assets were transferred at that meeting, and Mayor Nick Derzis said “doing nothing is not an option.” The city says the system currently meets its discharge permit and that no rate increase is proposed.
Timeline
Council votes 5-1 to raise sewer rates 71% over three years for the average residential customer.
Hoover Sun (hooversun.com) ↗Council votes 6-1 to divert $6.1 million from an arts-center fund to emergency sewer repairs.
Hoover Sun (hooversun.com) ↗Council creates a three-person Inverness-Riverchase Sewer Board and hires an engineering consultant.
Hoover Sun (hooversun.com) ↗
Who's involved
Brian Muenger
City administrator; raised possible disposition of the system
Mayor Nick Derzis
Said doing nothing is not an option
Elizabeth Martin, Robert Fowler and Scott McFadden
Appointees to the new sewer board
The other side
Muenger said the system “is fully compliant with state and federal regulations” and is not having widespread overflows, and that “there is no proposal whatsoever to go up on rates.” Councilman Derrick Murphy noted the city has reserves to draw on for repairs.
Open questions
- Whether the sewer board will recommend a sale, and to whom, is unresolved.
- The current discharge-permit compliance history for the system’s two treatment plants was not retrieved from state regulators.
Sources (3)
- 1Hoover City Council creates Inverness-Riverchase Sewer BoardHoover Sun · Apr 14, 2026 · hooversun.com
- 2Hoover council diverts money from arts center to sewer upgradesHoover Sun · Apr 7, 2025 · hooversun.com
- 3Hoover council raises sewer rates for Riverchase, Inverness, SouthlakeHoover Sun · Jun 7, 2021 · hooversun.com
Last checked July 29, 2026