Senate and House committees will debate over four bills this week in the Alabama Legislature that could result in the state controlling the Jefferson County Commission. Meanwhile, the County Commission will vote today to extend the deadline on a $53 million sewer bond debt payment, that is due to Wall Street banks tomorrow, to May 15 in order to reach an agreement with banks, including JPMorgan Chase, that serve as trustees for bondholders.
This extension could help Jefferson County settle with the banks and avoid bankruptcy but the extension may be stretched again since the county said they didn’t have the cash and missed the sewer bond debt payment on April 1.
The four bills under consideration include SB Bills 591 and HB 838 which would create an eight-member Alabama Public Management Authority, which would include Gov. Bob Riley, Lt. Gov. Jim Folsom and other top state officials or their appointees. And SB Bills 583 and HB 837 would require a county, city, town or municipal authority such as a utility to first get the permission of an eight-member state authority before it could readjust public debts after declaring bankruptcy. Thus, the APMA would takeover the county’s powers and duties if the county defaults on debt and would maintain control until the utility or county made 12 consecutive debt payments on time and implemented any APMA recommendations.
Some in the committee support the bills and blame the commissioners who oversaw the county but some also think the people closest to the problem would best understand and handle the problem.
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