Alabama County Files Plan To Exit Bankruptcy in 2013

摘要

Jefferson County, Ala., filed a plan on June 30 to exit its bankruptcy by the end of this year after negotiating to accept major cuts and formulating a two-step rate increase for customers. The $4.2-billion debt was fueled by a major sewer expansion, the result of a U.S. Environmental Protection Agency consent agreement. The project ballooned from $3.2 billion after cost overruns, bribery and corruption brought fines or jail sentences for 26 businesses and individuals. If the bankruptcy plan is approved, customers face 7.41% annual rate hikes for four years and 3.49% annual hikes after that.