Sewer receiver denied funds transfer

A judge has ruled on the side of Jefferson County in a hearing between the county and the receiver appointed to oversee its sewer system.

Receiver John Young wanted to transfer $60 million of the county's money into an account only he would have control over.

The Jefferson County Commission held a meeting where the county attorney gave a report on the hearing. He said it lasted about 20 minutes and the judge declined the transfer of $60 million into an account that would be controlled solely by John Young.  

The county had said previously it believed the move was illegal under state law and the court agreed it was inappropriate.  

Young will still have signatory authority over sewer system assets including money.  It is a power he was given when first appointed receiver.

Commission President David Carrington says signatory power still gives Young a great deal of control even without the $60 million transfer.  He says it is a power his commission is not responsible for.

"That was approved in the bonds that were issued," said Carrington. "The last commission or the two previous commissions gave the right if we went into receivership, that the receiver would have those powers and it is what it is."

Also in the meeting, commissioners approved putting $18,000 toward keeping the courts open and running.  That amount will fund the courts for another two weeks as commissioners work on some long term fixes.

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