New York's Nassau County lease of sewer plant faces hurdles | Reuters

New York's Nassau County taps the debt market this week, with plans to lease its sewer system for nearly $1 billion to help fill a budget hole running into obstacles.

Nassau's severe and lasting fiscal problems led the state to set up a control board in 2000, preventing a bankruptcy. Since then Nassau, on Long Island's western half and one of the nation's wealthiest counties, has continued to struggle. It faces a $310 million deficit in 2012.

A long-term lease of Nassau's Sewer and Storm Water Finance Authority, outlined in September by Republican County Executive Edward Mangano, has drawn interest from Severn Trent Services, Veolia Environment VE SA and United Water, a unit of