Jefferson County said in a material-event notice Tuesday that it had another payment default on some of its outstanding sewer warrants.

The Series 2002C and 2003B variable-rate demand warrants had been purchased by banks under standby warrant purchase agreements at the time of issuance.

The county failed to redeem $46.05 million of warrants Oct. 1 due under an accelerated redemption schedule, the notice said.

On Sept. 16, county commissioners voted to pursue a restructuring agreement with creditors holding about $3.11 billion of defaulted variable- and auction-rate sewer warrants.

The board voted 4 to 1 to accept a term sheet that included concessions of $1.09 billion from creditors in return for refinancing $2.05 billion of sewer warrants into new, 40-year debt with a moral obligation pledge from Alabama that the state has yet to approve.

The deal requires three annual sewer-rate increases of 8.2% starting this November, and 3.25% each year starting in 2014.

JPMorgan, the largest creditor of the sewer system, is taking $750 million of the haircut. Creditors are also forgiving all swap termination fees.

Attorneys for the county and creditors currently are drafting a definitive agreement with comprehensive details of how the restructuring will be accomplished. The agreement was expected to be completed by mid-October.

Meanwhile, the county’s first professional manager began work on Monday.

Former Hoover Mayor Tony Petelos, 58, took the $224,000-a-year job. The state Legislature mandated several years ago that the county hire a manager in the wake of crushing financial problems.

Petelos served 11 years as a state representative.

Last week, the commission made severe cuts and dipped into reserves in order to adopt a $638.5 million budget that became effective Oct. 1.

The new budget is a significant reduction compared to the $817 million 2011 budget due to the loss of an occupational license tax that was struck down by Alabama courts.

Commissioners are still hoping that legislators will approve some form of budget relief in a special session before the end of this year.

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