Commission President Bettye Fine Collins discusses Jefferson County’s options as clock runs out.
Popularity: 5% [?]
Commission President Bettye Fine Collins discusses Jefferson County’s options as clock runs out.
Popularity: 5% [?]
IN BIRMINGHAM WE ARE FIGHTING HISTORY: Race against race, class against class, this side not talking to that side. Last month, that sentiment was the impetus that prompted Birmingham Weekly to convene five local leaders for a lunchtime conversation about our community. This week’s cover story features excerpts from that two-hour, one-of-a-kind conversation.
Other highlights of Vol. 11, Issue 30 include Hot Seat & Limelight, the news in brief and Courtney Haden ruminating on what makes the BAMAs so worthwhile by considering the slow decline of the Rock and Roll Hall of Fame. And what with the rising popularity of Guitar Hero, the problem is only bound to get worse.
Finally, if you don’t want to wait around for Peter Cottontail, check out Eat Beat for details on Easter brunch specials at local restaurants.
Popularity: 44% [?]
If the commission approves, Jefferson County will pledge surplus sales taxes to help meet debt service on its sewer bonds, Commission President Bettye Fine Collins said in a press conference Wednesday. Currently the county has only pledged net sewer revenues — money from ratepayers minus operating costs — to pay down the $3.24 billion in sewer debt. In recent years, the net sewer revenues have average about $130 million per year. After recent market events and Jefferson County’s technical defaults, annual debt service on the sewer bonds could rise to $250 million or more, Collins said.
In 2004, the county enacted a one-cent sales tax hike for school construction. Then-Commission President Larry Langford championed the tax increase. Today, the sales tax produces more revenue than needed to pay the school bonds, Collins said.
However, it will take an act of the Alabama Legislature to redirect the surplus revenue.
Read the full text of Collins statement here.
Popularity: 64% [?]
The financial crisis over Jefferson County’s sewer debt will not cause layoffs or otherwise effect employee benefits, Commission President Bettye Fine Collins said Thursday morning.
During the commission’s weekly work session, Collins read from a memo to county employees assuring them that their jobs and benefits are not at risk.
By the contracts with bond holders, the sewer system debt is payable only from the net revenues of the sewer system, Collins said. That means other county services will not be effected. What’s more, the debt service comes after other sewer operating expenses, such as payroll.
While that’s good news for county employees, the commission and its advisors are still struggling over how to keep the county out of bankruptcy. On Wednesday, the county announced that it would not post collateral or insurance to stop terminations of 13 interest rate swaps. Thursday, Collins seemed more upbeat, indicating that the county might be able to work with its creditors to avoid bankruptcy.
Read the full story
Popularity: 75% [?]
In an act of financial triage, the Jefferson County Commission Tuesday approved a resolution to give the Finance Committee special powers to negotiate new agreements with investment banks. Existing contracts with those banks entitle them to as much as $500 million immediately from the county. According to the county, those banks are willing to waive their rights in order to avoid virtual foreclosure on the county.
Were those banks to demand payment, the county does not have the cash on hand to make those payments. Bankruptcy would be all but certain.
Popularity: 45% [?]
