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| Click play to watch raw video of the county commission meeting. |
Governor Bob Riley continues to negotiate with sewer bond lenders in New York to bring Jefferson County's sewer debt under control. On Monday, the Governor felt he had a deal in place, but it would take the support of legislators to make it happen.
Bond lenders have agreed to waive $1 billion of the bond debt and renegotiate interest rates on the remaining money if the County will put additional revenue on the table and consider allowing an outside agency to oversee the sewer system.
The additional revenue was supposed to come from excess money collected from the school bond sales tax. The sales tax brings in an estimated $30 million dollars more than is needed to pay on the bond obligations each year.
Riley wants to take that money and apply it to the sewer bond debt and then extend the sales tax an additional 40 years after the school bonds are paid off.
For that to happen the Jefferson County Delegation would have to line up behind the plan and vote to allow the excess dollars to be moved. On Tuesday, the Governor met with 12 members of the Delegation and was told by 11 of them that they would not support reallocating any tax dollars to pay the debt.
With the support waining the Jefferson County Commission is facing some tough cuts to make up that $30 million needed to get a deal done.
During a vote to extend an existing forbearance agreement, allowing negotiations to continue, Commissioners Bettye Fine Collins and Shelia Smoot put a new plan on the table.
Collins is proposing making up the short fall through multiple cuts to personnel and county services.
The Commission President says that making these cuts will be difficult and will place a burden on Jefferson County residents, but are necessary to avert Bankruptcy.
Under the proposal Collins says the commission will have to consider repealing a 15% discount on Residential Sewer Rates that has been in place since 1970. Doing so would generate $11.5 million.
Collins adds that the Commission will consider eliminating $15 million through positions and projects assigned to Environmental Services. Commission Jim Carns opposes the cut because he says it could threaten compliance with the Watershed Act.
Roads and Transportation could also take a $10 million cut which would mean fewer new roads and repairs.
And Sheriff Mike Hale could lose that new Court House In Bessemer. Collins says the county will have to consider selling off the property in addition to closing satellite court houses in Homewood and Forestdale while dramatically cutting days of operation at offices in Center Point and Gardendale.
Commissioner Bobby Humphryes and Jim Carns remain opposed to any further cuts and continued negotiations with Wall Street. Both commissioners say the time is now to file for Chapter 9 Bankruptcy.
Read Commissioner Bettye Fine Collins statement here.
Read the new Forbearance agreement here.
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