JeffCo to Weigh Sewer Rate Changes

Bankrupt Jefferson County, Ala., is on a course to make changes in its sewer system rates, though details are in short supply.

The county has scheduled a committee meeting for Oct. 29 so the County Commission can hear a presentation from sewer rate consultant, Eric Rothstein, and his recommendations for rates.

The commission will also hear about the economic impact of sewer rates from Stephanie Rauterkus, a professor at the University of Alabama at Birmingham.

Both Rothstein and Rauterkus spoke at public hearings the county previously held. Public comments won’t be allowed. A power-point presentation will be posted on the county’s website after the Oct. 29 committee meeting, a spokesman said.

The county has been posting information about the sewer system rating review process at www.jeffcosewerhearings.org.

At a meeting scheduled for Nov. 6 the County Commission will consider resolutions affecting rates and charges for sewer service, according to a public notice. It’s not clear if public comment will be allowed. The county has not raised sewer rates in at least four years.

Last December, Jefferson County filed the largest municipal bankruptcy in the nation with $4.2 billion of long-term debt. Some $3.14 billion of the debt is attributable to the county’s over-leveraged sewer system.

Most of the sewer warrants are in default, and remain outstanding in auction- and variable-rate securities.

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