BRADENTON, Fla. — The Jefferson County commissioners who maneuvered Alabama's most populous county though bankruptcy will remain at the helm at least another four years.
While appeals of the bankruptcy case continue, local voters reelected commissioners George Bowman, Sandra Little Brown, David Carrington, Joe Knight and Jimmie Stephens on Nov. 4.
Before the election, the panel authorized the first annual sewer rate increases that were promised to support debt service on $1.8 billion in 40-year sewer refunding warrants issued in late 2013 as the cornerstone of the bankruptcy exit plan.
While sewer rates are a hot button with local residents, a 7.89% increase went into effect Nov. 1, and similar hikes are planned for the next few years. After that, the annual increase drops to 3.49% unless adjustments are needed to make bond payments.
Commissioners told the Birmingham News on Nov. 6 that during their second terms they wanted to focus on job creation, economic development, creating a health care authority, working toward exiting federal consent decrees the county has entered to comply with the Clean Water Act, and rectifying discriminatory hiring practices.
There was no mention about the bankruptcy appeals filed by a group of local residents and elected officials who are challenging the county's sewer debt plan and its cost to local residents, many of who are poor.
Jefferson County filed for Chapter 9 reorganization in November 2011 with $4.2 billion in debt. Of that, $3.1 billion was issued to support the county's sewer construction program, and consent decree. The county sold refunding warrants in December 2013, and exited bankruptcy.
In a recent ruling, U.S. District Judge Sharon Blackburn allowed the three appeals to go forward.
At the same time, Blackburn questioned the constitutionality of a key piece of the bankruptcy plan, which allows the court to enforce sewer rate increases if county commissioners fail to implement them.
Blackburn said she had the authority to overturn that provision of the plan, which is a benefit that was promised investors who purchased the 2013 sewer warrants.
Jefferson County has asked Blackburn for permission to appeal her decision, and a ruling is pending.
Commissioners have said regardless of whether they can appeal Blackburn's ruling, they intend to comply with the obligations undertaken by the county when the new sewer warrants were issued last year, including the rate structure that was adopted.
