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As Jefferson County continues to dig its way out of debt, county leaders now have new incentives to come up with a solution to their financial problems as quickly as possible. Commissioners say the pressure is on to find a way out of the sewer debt crisis, not only for Jefferson County's sake, but for other cities and counties across the state now affected by its financial situation.
Commissioner Shelia Smoot says, "The situation has to be fixed. For anyone saying it's not my problem, yes it is."
BJCC executives learned that lesson. More than 60 million dollars of its bonds have been downgraded. Part of those bonds are paid off by Jefferson County taxes. The longer it takes Jefferson County to come up with a plan the worse it may get.
Commissioner Bobby Humphryes says, "It's starting to branch out now that it's drug out and drug out. It's starting to branch out." Commissioner Jim Carns, who heads the county's environmental services department, says, "Whatever happens to Jefferson County affects every county in the state."
Russell County is an example. Two weeks ago, Russell County leaders headed to New York to try to work out a bond deal. They were told by one company that it wasn't doing business with anyone from Alabama because of what has happened in Jefferson County. Buddy Sharpless, Executive Director of the Association of County Commissions of Alabama says, "It's a concern. Like all of these things they go in cycles."
Jefferson County Commissioners want the cycle to stop, but how that will happen remains to be seen. Commissioners are still negotiating with investment banks on a plan that would use excess money from the one cent sales tax to help pay off sewer debt. Some banks have asked the county to raise sewer rates as a way to come up with more revenue. Commissioners have said that can't happen due to federal guidelines that cap how high rates can go.
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