JeffCo Hires FY '08 Auditor

Jefferson County commissioners last week hired Warren, Averett, Kimbrough & Marino LLC to audit fiscal year 2008, which ended Sept. 30, 2008.

The firm will be paid up to $647,000 and expects to complete a draft of the audited financial statement by Dec. 3.

Although the work does not address fiscal 2009, some commissioners have said in published reports that they hope that the financial information will help in negotiations to restructure nearly $3.2 billion of sewer debt that is outstanding in variable- and auction-rate mode.

For several years the county has worked on restructuring the debt, but most plans favored by commissioners required creditors to take billions in haircuts. The sewer system has defaulted on bond payments due to soaring interest and penalty rates.

The county is suing its largest creditor, JPMorgan, and others involved in the bungled sewer deals. Bond trustee Bank of New York Mellon is suing for a receiver to take over the system. Syncora Guarantee Inc. filed against Jefferson and JPMorgan, saying it was "fraudulently induced" to provide more than $1 billion in insurance coverage for the bonds.

Several other lawsuits have been filed against the county by various plaintiffs, including sewer ratepayers.

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