Video: JeffCo. Commission discusses bankruptcy vs. receivership

JEFFERSON Co. Ala.—Jefferson County Commissioners are preparing for hearing that could place power over the county’s sewer system in the hands of a receiver.

On Wednesday, February 25, Federal Judge David Proctor is scheduled to preside over a receivership hearing.

Officials tell us that the judge could rule to appoint a receiver over the county sewer system and how to handle its $3.2 billion dollar debt troubles.

“I’m not sure what they can do us.  But they have to recognize our best efforts to solve this outside of bankruptcy. I don’t know how they can put a receive over us . A receiver can not force legislation action or find federal funds (to help solve the debt),” Jefferson County Commission President Bettye Fine Collins said after Wednesday Jefferson County Commission Meeting.

Though commissioners are not clear on what a receiver can impose if appointed, some believe a receiver could, if approved, increase sewer rates, impose non-user fees on county taxpayers, create fees for county septic tank users or do whatever is legally possible to address the multi-billion dollar debt.  With this possibility looming, all Jefferson County Commissionesr agree, that next Wednesday’s hearing is one that could set a new direction on how to address the county’s sewer debt crisis if a receiver is appointed.

“If there is a receiver , if that what comes out of the judges order, then I think there will be a strong incentive to file bankruptcy ... because that’s the way you trump the receiver,” Commissioner Jim Carns said.

For a commission that usually divide on how to address the multi-billion dollar sewer, Commissioner Carns believes that the appointment of a receiver could finally prompt swift action from the Jefferson County Commission on a matter he feels has been drastically delayed resulting in the spending of additional tax payer funds.

“If we go a receiver, I think the dynamics on commission will change. Because I think there will be three votes for bankruptcy at that time,” Commissioner Carns said.

Taking power away or filing for bankruptcy, now the next step will depend on what a federal judge decides.

In the meantime, when asked how the county is fairing with negotiations with creditors on the sewer debt and financially in the midst of it’s $3.2 billion dollar sewer debt, Commissioner Shelia Smoot responded.

“There is no update on the negotiations.  We( Jefferson County operations) continue to operate, and we are doing well here and as long as you can get your licenses and protection from the sheriff’s office,  then you know things are not as bad as it seems,” Commissioner Shelia Smoot said.

To view an video report of Jefferson Co. Sewer Debt: Commissioners discuss nearing bankruptcy or receivership please click on the video player above.