Partial list of municipal bankruptciesNote: Larger bankruptcies are in bold
Hamilton Creek Metropolitan District, a quasi-municipal corporation in Summit County, Colorado, 1989[16]
Orange County, California, 1994, $1.7 billion[17] (largest municipal bankruptcy until November 2011, and $3 billion when adjusted for inflation[18]), on interest rate-related losses[19] (see Robert Citron).
Prichard, Alabama, 1999, due to inability to pay pensions.[20]
Desert Hot Springs, California, 2001, due to losing a housing discrimination lawsuit.[21][22]
Millport, Alabama, 2005, due to loss of sales tax revenues after factory closing.[23]
Los Osos, California, 2006, debt related to a wastewater facility. [24]
Moffett, Oklahoma, 2007, due to loss of ability to issue traffic tickets.[25]
Gould, Arkansas, 2008,[26] due to spending money withheld to pay employee income taxes.
Vallejo, California, 2008, due to inability to pay pension obligations.[27]
Westfall Township, Pike County, Pennsylvania, 2009, due to losing a lawsuit[28]
Washington Park, Illinois, 2009, due to high license fees for topless bars being ruled unconstitutional.[29]
Prichard, Alabama, 2009, due to inability to pay pensions and especially state mandated pension increases.[30]
Central Falls, Rhode Island, August 2011, due to inability to pay obligations, especially pensions.[31]
Jefferson County, Alabama, November 2011, over $4 billion in debt (largest Chapter 9 bankruptcy to date),[17] from sewer revenue bonds tainted by a interest rate swap bribery scandal with JPMorgan and county commissioner Larry Langford, and bond insurance credit rating collapse in the late-2000s subprime mortgage crisis, followed by the occupation tax being declared unlawful in Alabama.[19][32] (see Jefferson County, Alabama: Sewer construction and bond swap controversy)
Stockton, California, June 28, 2012, Stockton filed for Chapter 9 bankruptcy. Stockton is the largest city to file for bankruptcy in U.S. history.[33]
Mammoth Lakes, California on July 3 2012 [3]
San Bernardino, California on July 10 2012 [4]
[edit] Municipalities placed under receivershipThe city of Central Falls, Rhode Island petitioned to be put into receivership in 2010, as Rhode Island does not permit Chapter 9 filings. The state appointed receiver or overseer assumed all financial responsibilities from the mayor. Rhode Island's receivership law was rewritten to allow the receiver the ability to declare Chapter 9 Federal Bankruptcy and Central Falls has done exactly that.[34]
[edit] Hospital district Chapter 9 bankruptciesA Hospital District is a governmental entity with taxing authority that owns and operates medical facilities.
The Valley Health Systems district, California[35]
West Contra Costa Healthcare District, California[36]
[edit] Other entities that declared Chapter 9 bankruptcySan Jose Unified School District, 1983.[37]
Washington Public Power Supply System (WPPSS), 1983, due to halt in construction of planned nuclear reactors.
The West Jefferson Amusement and Public Park Authority owner of VisionLand Park now known as Alabama Adventure Theme Park, 2002, due to business that could not support its debt.[38]
Pierce County Housing Authority, 2008, in Pierce County, Washington, residents' lawsuits due to mold in properties.[39]
Sarpy County Sanitation Improvement District, 2009, in Sarpy County, Nebraska, due to reduced real estate development.[40]
New York City Off-Track Betting Corporation, December 2009, in New York City, due to mismanagement,[41]
Connector 2000 Association, operator of the Southern Connector, 2010, due to toll collections being less than expected.[42]
[edit] Chapter 9 bankruptcies that were declared but withdrawnBridgeport, Connecticut, 1991[43]
[edit] Petitions for permission that were deniedIn 2010, the city of Hamtramck, Michigan requested permission from the Governor to declare Chapter 9 Bankruptcy,[44] but was denied. Instead of bankruptcy, the treasury advised that Hamtramck be offered a selection of loan options.[45]
Washington Park, Illinois December 2010. Washington Park briefly emerged from bankruptcy and then filed a new petition for bankruptcy which was rejected by the judge, who claimed there was no state law enabling a municipality to declare bankruptcy.[46]
Boise County, Idaho, March 2011, due to judgment against the county for violating the Fair Housing Act.[47] The claim was dismissed by the judge after concluding the municipality has “sufficient surplus moneys” to satisfy the judgment and continue operations.[48]
Harrisburg, Pennsylvania, October 2011, approximately $400 million in debt, due in part to a failed trash incinerator.[49] The presiding judge rejected the bankruptcy claim on grounds that "all of the branches of a municipality must be on the same page".[50]
[edit] Notable defaults that did not result in Chapter 9 bankruptcyCleveland, Ohio, 1978, dispute with city creditors over sale of a utility.[51]
[edit] Notable bankruptcies that were declared ineligible for Chapter 9 bankruptcyThe Las Vegas Monorail was declared a private entity, 2010.[52][53]
[edit] See alsoFinancially Distressed Municipalities Act, State of Pennsylvania Act. 47
[edit] References
