Jefferson County, Ala., mired in a financial crisis that could lead to bankruptcy proceedings, came one step closer to a resolution on Sept. 16 when the County Commission approved an agreement that included debt concessions and sewer rate hikes. Now, however, the agreement faces approval by state legislators before it can move forward.
According to a USA Today article, Wall Street agreed to forgive about $1.1 billion of Jefferson County?s $3.1 billion, with JP Morgan Chase, which arranged most of the debt, absorbing $750 million of the total. The County would refinance the remaining debt and raise sewer rates to cover costs. Additionally, a special commission would need to be created to oversee the water and sewer department. Rates would increase as much 8.2 percent for three years, which hikes of no more than 3.25 percent afterward. According to Business Week, average sewer bills would increase from $600 to $800 annually after the initial three years of rate hikes.
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