Two hearings regarding Jefferson County's bankruptcy take place on Thursday.
The first hearing that started at 10 a.m. is about three different funds that total about $90-million. Jefferson County's attorneys told the judge that money should stay with the county for capital improvements to the sewer system. Attorneys argued that the only money available for capital improvements comes from an escrow account. In November 2011, that account had $57-million. Today, it is down to $27-million. The county's attorneys are worried that money is going to run out quickly and the county will not be able to make necessary improvements.
On the other side, attorneys for creditors say they need that $90-million to pay off the debt the county owes. They argue that they have a lien on sewer system reserves so that money belongs to them.
At 1:30 p.m., there will be another hearing. The creditors want to see emails and correspondence between county leaders and their attorneys regarding last year's sewer rate increase. The creditors believe the rates did not go up enough. The county says those emails fall under attorney/client privilege and should be kept private.
Stay with this story to see the results of the second hearing.
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