Tuesday, March 3, 2009

Jefferson County Sewer Debt

Water and sewer are two of the most basic needs for a person to live. But Jefferson County official did not handle the sewer system with care and is now more than $3.2 billion in debt. The county had good intentions when it borrowed the money to build a new sewer system, but it solely relied on JPMorgan for advice instead of using competitive bidding. The county did what many homeowners did, borrowed money that it can not pay back. Because Jefferson County borrowed at rates that carried with the market, the soaring interest rates in February 2008 put the county in deeper debt.
Government policy, the economy, and water issues are all linked. Bad decision made water in sewer bill in Jefferson County went up 4 times in the past decade. The increase forced many families into sacrificing life style and other needs like the lady in the Bloomberg article (http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=aF_f8gLLNvn0). Not handling water and sewer properly is driving Jefferson County toward bankruptcy. Water is the most important natural resources that we have. As a nation and an individual, we should treat water with care.

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