Category Archives: Jefferson County’s Flushable Sewer Bonds

Sewer bonds = Rock & Roll!

Rolling Stone article examines Jefferson County financial crisis |


It’s like a dream come true!

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

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 –

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 –

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 –

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 –
Jeffco Commission President Collins tries to revive possibility of U.S. government insuring county sewer debt –

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 –

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.