12:33 pm July 26, 2011, by jgalloway
The news below is particularly relevant, given tax-rate votes today in both Cobb and Clayton counties. From the Associated Press:
Alabama’s largest county is laying the groundwork for filing what would be the largest municipal bankruptcy in U.S. history.
The Jefferson County Commission approved resolutions Tuesday to both hire prominent bankruptcy lawyers and to sell bonds later in case money is needed to emerge from bankruptcy later.
Two of the five commissioners say there’s an 80 percent chance the county will file bankruptcy over a more than $3 billion debt for its sewer system. The vote could come at a meeting scheduled for Thursday in Birmingham.
The commission president, David Carrington, says other possibilities include extending talks with creditors or accepting a settlement offer.
Jefferson is Alabama’s most populous county. It’s been trying for three years to avoid filing bankruptcy over debt payments it can no longer afford.
- By Jim Galloway, Political Insider
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