Jefferson County commissioners voted Wednesday to default on the county’s general obligation debt payment. County Manager Tony Petelos submitted the resolution, which passed with the required unanimous consent.
On Wednesday afternoon, the commission reconvened a meeting that began Tuesday, but was recessed after a lengthy closed-door meeting with its bankruptcy lawyers. There was only one item on the agenda: to default on the general obligation debt. A $15 million payment was due on April 2.
The resolution blamed the county’s lack of home rule and the lack of an occupational tax for the county’s financial woes. The Legislature has failed to address the county’s fiscal issues.
Kenneth Klee, Jefferson County’s bankruptcy attorney, said Wednesday that the county had to decide between paying its general obligation debts and delivering necessary services, including emergency service.
Because the default resolution was part of “new business” for the commission meeting, it required a unanimous vote to pass.
Developing. Check back for updates.