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RSA Director David Bronner spent about an hour Friday morning outlining his plan to take over the Jefferson County Sewer System through Municipal Bankruptcy.
More than 50 elected leaders from city council members and mayors, to the Jefferson County Commission, to state legislators were in attendance.
During the speech Bronner outlined seven significant points regarding the the County's $3.2 Billion sewer debt obligation.
The RSA Director pulled no punches during the speech in which he addressed the County has too much debt, too much variable debt, and too much mismanagement and corruption.
He further added that neither he nor Governor Bob Riley wanted to see Bankruptcy in Jefferson County, but for his plan to work bankruptcy was needed, but as a last resort.
Bronner made clear that the County should approve filing for Chapter 9 as an incentive to get Wall Street Investors to come to the table and force a resolution to retire much of the principle owed. But for the plan to work, the county would have to be sincere in its threat to move forward with Bankruptcy.
Bronner added that the RSA with an agreement in place with the County could be listed in bankruptcy as the principle buyer for the system and would be willing to sell the system back to Jefferson County in seven years or on another date to be determined.
Bronner further added that if RSA were to purchase the system that he believes the sewer rates would drop, but would not commit to rate increase or decrease. He further added that the RSA would take over the management of the system while using the staff members currently operating the system for the county.
To hear the Bronner plan for yourself watch the attached video. Or read the plan by clicking here (.pdf document).
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