ABC 33/40 - Birmingham News, Weather, SportsJeffCo future uncertain, fight over sewer certain

Jefferson County faces an uncertain future. But one thing is for sure- county commissioners have a huge fight on their hands with sewer receiver John Young.

County manager Tony Petelos sent out a letter saying until next week, Young will remain in control of the sewer.

This is after an emergency motion filed by Young's attorneys challenged the automatic stay. That stay went into affect when bankruptcy was filed and took the sewer out of Young's hands.

This bankruptcy filing is going into uncharted territory, which leaves a lot of unanswered questions.

Jefferson County Commission President David Carrington arrived at federal bankruptcy court with a smile and few answers about how Chapter 9 will affect daily life.

"I guess we're all going to learn. We are all plowing new ground. I'm not sure," said Carrington.

Bankruptcy attorney Kenneth Klee says it's similar to an airline going bankrupt - the planes keep flying and passengers don't notice any immediate changes.

"In a Chapter 9 case, the county retains the right to govern itself and render services, so it's more free than an airline is," said Klee.

Klee would like the county commission to take on an old responsibility- the sewer system. He's sent a letter to Young asking him to hand it over even though the bankruptcy filing automatically blocks him.

"It prevents the receiver from raising rates, prevents the sewer receiver from taking over control of revenues of sewer system," said Klee.

In an emergency motion filed by Young, his attorneys argue the bankruptcy judge has no right to interfere.

It's a fight Attorney General Luther Strange may have to get involved in.

"My job is to make sure the rates that come out of this process are just and responsible to the people who are set paying them," said Strange who is representing the ratepayers.

The first task is determining who will control the sewer then it's a December hearing to determine if Jefferson County is eligible for bankruptcy.

Creditors are expected to argue "no."

If the judge says "yes," Klee will develop a plan for consideration.

That makes sewer rates uncertain. But it certainly isn't expected to impact schools even though its debt is part of the bankruptcy.

Despite the unknowns and continued fight from sewer creditors and Young, Carrington still left smiling.

"Today is a new day. It's a new year. We were challenged with fixing it and we have three years to fix it," said Carrington.

The county is still dealing with two issues - sewer debt and the 40 million dollar general fund shortfall. Cuts will be made by December 1 to services not required by law.

The commission will still seek relief from lawmakers in the upcoming session because a bankruptcy judge cannot create new revenue. Only the legislature can pass legislation to create new revenue streams.