JeffCo will not make warrant payment - WBRC FOX6 News - Birmingham, AL

JeffCo will not make warrant payment


The Jefferson County Commission will soon miss a warrant payment.

Commissioners voted on a resolution to instruct County Manager Tony Petelos to not make a payment on the county's general obligation warrants. The payment skipped would have been a little more than $15 million. This will be the first payment missed since they were declared eligible for bankruptcy by a judge.

While reading the resolution, Jefferson County Commission President David Carrington said that making the payment will exhaust one-time money and threaten county government.

Investors holding the general obligation warrants by Jefferson County are small individual investors in Alabama, according to county officials.

"Everyone must share the pain," Commissioner Jimmie Stephens said.

The vote for the resolution not to pay the debt was unanimous. It is expected to have a dire impact on the warrant market especially for counties in Alabama. The warrants had the county's "full faith and credit" behind them.

This is not a payment on the county's sewer debt.

Copyright 2012 WBRC. All rights reserved.

Powered by Frankly