Category Archives: Jefferson County’s Flushable Sewer Bonds

Sewer bonds = Rock & Roll!

Rolling Stone article examines Jefferson County financial crisis | al.com.

It’s like a dream come true!

County will cut money to libraries, TASC – Breaking News from The Birmingham News – al.com

Cutting money from the library cooperative and from the domestic violence court? Tell me that the Republicans didn’t want to do those things anyway. Drown it in the bathtub!

Why now?

Jefferson County employees rally at courthouse on eve of indefinite leaves – al.com

Gosh, guys, if you wait a couple of day you’ll have all the time to rally you need. My suggestion is that you get together and bus down to Montgomery; there’s not much the people here can do.

Betty Fine Collins, meanwhile, was in San Diego for the RNC meeting. Way to stay in the game, BFC!

Basically, they’re doomed. DOOOOOOMED!

Jeffco’s choice: receivership, bankruptcy or deal – al.com

There just isn’t nearly enough money to even make payments on the debt, much less pay it down. ( ‘”I don’t think anybody, including the creditors, expect Jefferson County to pay this back,” said Andreas Rauterkus, a University of Alabama at Birmingham professor of finance.’) So either they declare bankruptcy, or they convince their creditors to make a deal with smaller payments, or turn over the system to somebody to try to make money from it somehow. Everything sucks.

I don’t know what that means

Jefferson County must pay $735 million to end swap agreements – a figure that could complicate debt settlement talks – al.com

But I know that the county doesn’t have that kind of money.

And now, the lawlessness begins

Non-sewer debt may jeopardize all services – al.com
Jeffco Commission President Collins tries to revive possibility of U.S. government insuring county sewer debt – al.com

There’s a non-sewer debt payment of $20 million coming up. And, of course, the county doesn’t have $20 million. A default on that could wipe out all sorts of county services, including public safety. But it’s not like public safety is important or something.

So, while Treasury is saying that it won’t help local governments, a congressman in Pennsylvania is threatening action to make it help. However, Artur Davis says he won’t support such a measure, and he’s the Democrat — moreover, the Democrat with close ties to Barack Obama. The local Republican, Spencer Bachus, is more open to such a move.

Feds to Jeffco: Drop Dead

U.S. Treasury rejects Jefferson County’s bailout proposal – al.com

Still, there may be a little hope, though it’s not contained in this story. Obama has talked about the Federal government giving aid to financially strapped municipalities, so if the county can hold on for a few months they might yet get a bailout.

C’mon, bailout!

Proposal could mean big hike in Jefferson County users’ sewer bills – al.com

It’s not that much when you think about it — eleven dollars a month. But sewer rates are already pretty high, the second-highest in the region (after Charleston). But either they raise the rates, or they declare bankruptcy, or a federal bailout, and it’s not like they’re a bank or something really important.

Seems fair to me

Jefferson County seeks federal bailout – al.com

But I’m guessing that the Bush Administration won’t see it that way. This money is for bankers! You local government people can just declare bankruptcy — who cares if the county shuts down?

Yeah, it’s only $3.2 billion

Artur Davis says county should not expect federal bailout for sewer debt – Breaking News from The Birmingham News – al.com

You have to be in at least eleven figures to get the feds interested.