The legislation needed would also include the state’s “moral obligation” backing the refinancing debt and resolution of the county’s general fund deficit, created when an occupational tax was declared unconstitutional.

The next step is reaching a definitive binding agreement by Oct. 15 so Bentley can call the special session for November.

Bentley, a strong advocate for a settlement, issued a statement saying, “Jefferson County now has a framework in place to solve a longstanding local issue that has a significant statewide impact.”

“I look forward to continuing to work with county commissioners and legislators … so that we can pass laws necessary to move forward …,” he said.

John S. Young Jr., the court-appointed receiver who has been running the sewer department, called the vote “a critical first step.”

“The terms have many milestones the County, State and creditors need to meet to reach the day when all terms of the settlement are in place and the County’s wastewater debt is refinanced,” Young said. 

The settlement eliminates more than $1 billion in debt and is contingent on another $30 million in creditor concessions.

JPMorgan Chase & Co. is the largest creditor; others include Bank of America, Lloyds Bank of Scotland, State Street Bank of Boston, Societe Generale of Paris and Bank of Nova Scotia.

A JPMorgan spokesman did not return a call for comment.

The sewer debt, coupled with school and general obligation debt, would push a bankruptcy to more than $4.1 billion, shadowing the record $1.7 billion bankruptcy by Orange County, Calif., in 1994.