ABC 33/40 - Birmingham News, Weather, SportsJefferson County's municipal bankruptcy filing the largest in U.S.

Jefferson County's filing of 4.3 billion dollars is more than twice what used to be the largest municipal bankruptcy in the country. However, the times and circumstances were different for Orange County.

Three years after the first bankruptcy vote failed, the commission approved it four to one. Now, the county is taking a step into the unknown with the same attorney who handled Orange County's bankruptcy.

"The creditors had signed no agreement. The form of the agreement changed last night and the commission decided they'd had enough," explained bankruptcy attorney Kenneth Klee.

Commissioner had enough because creditors fell short on concessions by 140 million dollars, refused to cap the sewer rate increases, and wanted the county to cover low income assistance fund for ten years.

"They just pulled the rug from out underneath us. We can't go on this train any longer," said Commissioner Sandra Little Brown.

"I've always been for settling but it's time to go the other way," said Commissioner Joe Knight.

Bankruptcy will bring uncertain sewer rates with no help from an assistance fund and attorney fees of one million a month.

"They're back at square one and they've got a fight on their hands for the total amount, all the concessions that were on the table," said Commissioner George Bowman who was the lone vote against bankruptcy.

Bowman even proposed his own plan to refiance part of the debt to prevent sewer rate increases.

But bankruptcy still doesn't fix the general fund shortfall of 40 million dollars.

"We're looking at all those services not mandated by the constitution. From there, we will begin the reductions," said Commissioner Jimmie Stephens.

Commissioners say they'll do what the Jefferson County Delegation couldn't do as a collective body to provide relief in a special session.

"It's time this commission shows by example other elected officials in our state and country what it means to be statesmen," said Commission President David Carrington.

The county will make its first appearance in federal bankruptcy court Thursday morning.

Commissioners are still looking to Montgomery for general fund relief, and Brown hopes the cities who passed resolutions opposing the settlement and lawmakers who refused to help will ensure there is a low income assistance fund in place.