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Creditor Files Motion To Increase Jefferson County Sewer Rates

By: Stephen Crews

Updated: April 2, 2012

One of Jefferson County's largest creditors, New York-based Financial Guaranty Insurance Company, filed a motion Wednesday asking the U.S. bankruptcy judge presiding over the county's bankruptcy to lift the stay on the county sewer receiver in order to increase sewer rates.

If the judge doesn't agree to lift the stay, the creditors want the county to implement rate increases by July 1st.

The creditor said the county contractually agreed to increase sewer rates when warrants were issued in order to pay principal and interest. FGIC argued that sewer rates haven't increased prior to 2008.

County manager Tony Petelos said he was disappointed by the motion and believes the judge will rule in the county's favor.

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