JeffCo filing new bankruptcy plan calling for higher sewer rates - ABC 33/40 - Birmingham News, Weather, Sports

JeffCo filing new bankruptcy plan calling for higher sewer rates

Posted: Updated:

Months of wet, cool weather and slow population growth are forcing Jefferson County to amend its bankruptcy plan. It's considered a risky move because it will cost sewer users and possibly the bankruptcy exit plan itself.

"We felt it was better to say, 'the assumptions in the original projection didn't appear to be accurate.' And it was better to say, 'we needed to make more adjustments,'" said Commission President David Carrington.

The original revenue projection in the bankruptcy plan filed last month is now being called "optimistic." To make up for the five percent revenue loss, the initial proposed sewer rate increases of approximately seven and a half percent will now be closer to eight. The base charge will rise from ten to fifteen dollars.

"The amended financing plan is the right and honorable way to proceed," said Jefferson County bankruptcy attorney Kenneth Klee.

Commissioner George Bowman doesn't agree. He was once again the lone "no" vote against the amended plan.

"It's being paid for by people on the system right now, the existing ratepayers. We've got to grow the system to make a difference," he said.

There's no promise rates won't increase yet again because the sewer rates are based on sewer revenues and the interest rate secured once the sewer debt is refinanced.

"There is no more wiggle room. In fact, interest rates have to adjust between now and the confirmation date in order for this plan to work," said Klee.

But Carrington says he's done and any additional money won't come from sewer users.

"Now it will be up to creditors to absorb any interest rate fluctuation, so there are no more rate adjustments I anticipate," he said.

Bowman isn't as confident.

"I don't know it [sewer rates] won't continue to increase. We're told it's because of lack of consumption. If that continues, rates will continue to climb," said Bowman.

Because the county is changing the bankruptcy plan, creditors do have the option of withdrawing their support. The bankruptcy attorney says it's a risk but adds it's not uncommon for plans to get amended eight even nine times.

The federal bankruptcy judge will still approve or reject the new plan August 6.

  • Anniston - Gadsden Area NewsMore>>

  • Oneonta police need help identifying woman who stole flowers from gravesite (pictures)

    Oneonta police need help identifying woman who stole flowers from gravesite (pictures)

    Wednesday, July 23 2014 12:55 PM EDT2014-07-23 16:55:33 GMT
    Oneonta police have turned to Facebook in trying to identify a woman who apparently stole flowers from a gravesite at a Oakhill Cemetery on Tuesday.More >>
    Oneonta police have turned to Facebook in trying to identify a woman who apparently stole flowers from a gravesite at a Oakhill Cemetery on Tuesday.
    More >>
  • Suspect in Jacksonville shooting from June turns self in

    Suspect in Jacksonville shooting from June turns self in

    Tuesday, July 22 2014 7:06 PM EDT2014-07-22 23:06:38 GMT
    Jacksonville police said the suspect in the June shooting of a Calhoun County man turned himself into police Tuesday afternoon.More >>
    Jacksonville police said the suspect in the June shooting of a Calhoun County man turned himself into police Tuesday afternoon.
    More >>
  • Jacksonville man arrested for child pornography

    Jacksonville man arrested for child pornography

    Tuesday, July 22 2014 7:05 PM EDT2014-07-22 23:05:18 GMT
    William Franklin Harper (Photo: Calhoun County Sheriff's Office)William Franklin Harper (Photo: Calhoun County Sheriff's Office)
    The Alabama Bureau of Investigation’s CyberCrimes Unit arrested a Jacksonville man Tuesday for possession of child pornography.ABI officers served a search warrant at the home of 49-year-old William Franklin Harper. Harper is charged with four counts of possession of child pornography.He is currently in custody at theCalhoun County Jailwith bond setat $100,000 bond.During the search, investigators found methamphetamine. Agents of the Alabama Alcohol Beverage Control Board and the Calhoun Coun...More >>
    The Alabama Bureau of Investigation’s CyberCrimes Unit arrested a Jacksonville man Tuesday for possession of child pornography.ABI officers served a search warrant at the home of 49-year-old William Franklin Harper. Harper is charged with four counts of possession of child pornography.He is currently in custody at theCalhoun County Jailwith bond setat $100,000 bond.During the search, investigators found methamphetamine. Agents of the Alabama Alcohol Beverage Control Board and the Calhoun Coun...More >>
  • Tuscaloosa Area NewsMore>>

  • Warrants issued to arrest Forkland mayor

    Warrants issued to arrest Forkland mayor

    Wednesday, July 23 2014 1:46 PM EDT2014-07-23 17:46:27 GMT

    Warrants allege: Theft of Property & Tampering Govt Records

    More >>

    Warrants allege: Theft of Property & Tampering Govt Records

    More >>
  • Forkland mayor surrenders to authorities, charged with felony theft of property

    Forkland mayor surrenders to authorities, charged with felony theft of property

    Wednesday, July 23 2014 1:35 PM EDT2014-07-23 17:35:20 GMT
    The mayor of Forkland surrendered to the authorities Wednesday to face charges related to the theft of money from the city.More >>
    The mayor of Forkland surrendered to the authorities Wednesday to face charges related to the theft of money from the city.More >>
  • Elderly Tuscaloosa man charged with sexual abuse of 18-year-old woman

    Elderly Tuscaloosa man charged with sexual abuse of 18-year-old woman

    Wednesday, July 23 2014 12:07 PM EDT2014-07-23 16:07:42 GMT
    Tuscaloosa man, 77, charged with sexual abuse of an 18-year-old woman.More >>
    Tuscaloosa man, 77, charged with sexual abuse of an 18-year-old woman.
    More >>
Most Popular
Stories
Videos
loading...