Bond insurers and Jefferson County, Alabama, argue in filings over federal oversight

A significant development and emblematic of a local government so incompetent and corrupt that it needs to be stripped of its authority. The roots for the crisis go back to the late nineties when Chales Lecroy arrived in the area, sold the County Commission on a Bond deal that went south so bad that the county is about the declare almost a 4 billion dollar bankruptcy. Its a fitting development considering the Mayor is now forbidden to sign Federal documents because of the 101 counts of corruption hanging over his head. Of course its the middle and working class who who are suffering over these deals.

A record of widespread mismanagement, fraud and political gamesmanship in Jefferson County means the sewer system must be placed under federal oversight to force the county to meet its sewer bond obligations, lawyers for sewer bond insurers argue.

The bond insurers filed a 328-page document in federal court shortly before midnight Wednesday, asking U.S. District Judge David Proctor to appoint a receiver over the county's sewer operation, complete with rate-making authority.....

Bond insurers contend that a receiver will improve the system's finances and operational efficiency, as well as create a stand-alone billing system. The county has known for years that its sewer operation was facing financial crisis and did nothing, bond insurers said, and insurers have had to pay $215 million as a result of the county's defaulting on its obligations.

"Given the dysfunction of the County Commission, it is imperative that a receiver be appointed over the system to serve as an independent voice of reason," the insurers' brief said............

Jefferson County says that a receiver could not manage the system any better than the county.

County sewer debt has ballooned from $1.2 billion in 1997 to $3.9 billion today. Complex deals to refinance the bonds have gone awry. Bond insurers also argue that the system is corrupt, pointing out that 21 former county officials and contractors have been convicted of federal crimes.

Lawyers for Jefferson County, in a 27-page brief filed Thursday, said any fraud or waste associated with sewer system "had to do with events long ago and the actions of commissioners and county staff from days gone by."

They argue that bond insurers are not entitled to an emergency receiver under federal law, that bond insurers have not proved default under terms of the contract, and that unsettled questions of state law remain over scope of a receiver's powers.

The county says it is meeting with legislators in an effort to let the county divert excess proceeds from a 1 cent sales tax for school construction to reduce the sewer debt. County officials have also sought help from Gov. Bob Riley and recently passed a $12 private meter fee that will generate $100,000 to $400,000 a year.

Its disgusting how the local authorities have been reduced to raiding school construction funds to cover up their own scandalous behavior. As for days gone by, give me a break, the 10 years is hardly "days gone by" and the President of the county at the time of these deals is the current Birmingham Mayor Langford! The same man who:

• Is facing 101 counts on corruption and bribery charges
• The man who bankrupted Jefferson County Alabama
• Helped increase fees on middle and working class people
• The man who did it for designer suits and rolex watches.
• Mayor Langford's Culture of Corruption.
• Who helped J.P Morgan Chase and other Financial Groups overcharge by 100 million in fees Jefferson County.
• The same Mayor who has saddled his constituents with a billion dollar debt.