BIRMINGHAM, Ala. (CN) – In the continuing, multibillion-dollar sewer bond fiasco, the Bank of New York Mellon says Jefferson County owes it $3.2 billion – and the bill is due. The bank says more than $331 million is past due, and the county has failed and refused “to operate the system in a manner that will generate net revenue sufficient to service the county’s warrant obligations.”
The bank sued Jefferson County and its commissioners in Jefferson County Court. It demands the $3.2 billion owed by the County Water and Sewer Board for six years of sewer revenue capital improvement warrants.
The warrants were secured with future net revenue from the water and sewer system. Now county residents face enormous sewer fee hikes, and the county itself is facing bankruptcy.