Lowery letter critical of sewer crisis

Published 11:38 am Monday, April 14, 2008

By Adam Smith

The North Jefferson News




A local leader sounded off this week on Jefferson County’s continuing sewer woes in a letter sent to the chairman of the Birmingham Regional Chamber of Commerce and county commissioners.

Fultondale Mayor Jim Lowery voiced concerns over whether the sewer system’s debt would impact other county services and called for outside help in dealing with the issue.

Lowery’s letter, dated April 9, urged the formation of a state task force of elected officials and business leaders who would travel to New York and meet with bond insurance companies.

He also requested legislators consider establishing a Jefferson County Regional Sewer Authority, requiring the transfer of the sewer system and debt to the nine-member board, composed of appointed officials.

“We’ve got to get together and work out a plan to resolve this issue,” Lowery said on Friday. “Bankruptcy is not the answer.”

He said a sewer board made up of the county’s best financial minds may have a better chance at reaching some kind of solution to paying down the $3.2 billion sewer debt.

State Sen. Scott Beason, who represents Fultondale, said something needs to be done about the state of the county sewer system, but expressed caution on involving government agencies.

“Thinking outside the box is a good thing, but I’d be a little cautious about proposing a lot of different ideas,” Beason said. “I haven’t talked to any of the bond people, but it seems they don’t want to lose money anymore than we do. I’m sure they are interested in the county commission figuring out how to run its organization.”

Lowery’s letter points out that Fultondale has already seen a reduction in county services. He expressed concern over the discontinuation of road paving projects and condition the deteriorated condition of a bridge connecting Fultondale and Coalburg that is supposed to be maintained by the county.

Lowery, who governs a city which has seen substantial commercial development over the past year, is also concerned about how the crisis will affect county growth.

“My main concern is how it would put central Alabama into a downward spiral to where growth is not going to happen for 30 years,” he said. “If we turn this thing over to a bankruptcy judge, you may not ever build anymore homes, schools or businesses.”

Lowery’s plan to form task force was echoed this week by Sen. Steve French of Mountain Brook.

French said the best option may be to trade financial expertise for management contracts. “We can satisfy debts in exchange for running the sewer operations in return,” French said. “That’s a great opportunity.”

The senator also said Collins will have to be more open-minded to ideas to help solve the problem and called on her to accept outside help.

“It’s clearly not reasonable or rational that you can get the financial markets to forget you owe a billion dollars,” he said. “If that’s her only or best plan, it’s past time to get people who have better views and better plans to help solve this problem.”

County commission president Bettye Fine Collins announced this week that the county would miss a $53 million payment due to Wall Street banks, scheduled for Tuesday.

Calls made to Collins’ office were not returned as of press time.

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