Besides local TV news stations, a Japanese television crew and a national finance news operation quizzed county leaders on the multi-billion dollar sewer debt. The added media attention suggests a national problem with municipal loans and the overall economy, according to commission president Bettye Fine Collins.
“There will be a lot of fallout from this situation because this is a nationwide problem. Ours may be the largest,” Collins said.
Here's why it's bad news for the nation's economy:
“We made our payments on time, we made the required amount, and all at once because they are downgraded, then our bonds are reduced to D-bonds. It's just not fair," Collins said.
“What has happened is due to the bonds being D-rated, and everything has happened as a result of our bond insurers being D-rated, and we ultimately got D-rated. Our interest rates have skyrocketed from $130 million to $260 million," said Commissioner Jim Carns.
The rating and related trouble also require faster principal payments. The county can’t afford to pay the high interest and quicker principal.
Today commissioners signed a deal aimed at more negotiating time with bankers. But some privately say chances for bankruptcy are climbing. It could be the largest municipal bankruptcy in
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