Bankruptcy

The city council in San Bernardino, Calif., citing continuing deficits and the depletion of its general fund reserves, voted Tuesday night to authorize the city to file for Chapter 9 bankruptcy.

In the aftermath of financial guarantees by Scranton, Penn. and Stockton, Calif. recently contributing to the cities' defaults, the Government Accounting Standards Board is seeking to improve the visibility of these guarantees.

A retired state judge has filed a lawsuit challenging the constitutionality of a new Illinois law that overhauls the state's retiree healthcare program and shifting more of the funding burden for premiums to beneficiaries.

William Lynch wants a state court to force the City Council to raise the earned-income levy to 1.5% from 0.5%.

Detroit faces two new lawsuits challenging the city's recent consent decree with the state about its finances.

Linda Thompson proposes ending a five-year old incinerator fee agreement with the Harrisburg Authority public works agency that she said would redirect $275,000 per year to Pennsylvania's distressed capital city.

Moody's Investors Service said Monday that a recent ruling in Jefferson County, Ala.'s bankruptcy case is a credit positive because it will prevent revenues securing the county's $3.14 billion of defaulted sewer warrants from being further diluted.

A Lackawanna County, Pa., judge late Friday enjoined Scranton from paying its employees only the federal minimum wage, but the mayor of the cash-strapped city said there's no money left with which to comply.

A U.S. appeals court will take up a lawsuit as early as October that attacks the financial backing of billions of bonds paying for the Washington Metrorail's Silver Line Extension to Dulles Airport.

Northeast public officials are glancing westward for any precedent that could emerge from that northern California city's bankruptcy filing.

A new civil grand jury report provides a new view of Victorville, Calif.'s convoluted finances, raising questions about the way the high-desert city uses bond proceeds.

Michigan and city officials reached an agreement with Bank of America Merrill Lynch that pushes back by two weeks the payment date on $80 million of privately placed notes. The extension gives the city more time to resolve a dispute with its top attorney, who is challenging the city's consent decree with the state.

For states planning cash flows over the next two years, passage of the federal Highway Bill creates a positive scenario for grant anticipation revenue vehicles known as Garvees, according to ratings analysts.

President Obama will sign the compromise two-year, $105 billion highway bill at a White House ceremony on July 6.

Mammoth Lakes, Calif., is set to become the second California municipality in as many months to file for bankruptcy protection after negotiations with its largest creditor failed.

Michigan Treasurer Andy Dillon last week recommended that the state launch a formal investigation into the finances of Allen Park, which has struggled with growing deficits since issuing $31 million of bonds in 2009.

Municipal issuers back the Municipal Securities Rulemaking Board's proposal to require dealers to discontinue temporarily masking the exact par value of large muni bond trades on EMMA, while dealer and institutional investor groups oppose it.

Federal Bankruptcy Judge Thomas Bennett said Friday June 29 that Jefferson County cannot keep sewer revenues in excess of operating expenses that are specified in bond documents. The county wanted to withhold the funds to pay estimated legal estimates and establish a reserve fund. Jefferson County currently pays $5.5 million a month in debt service on the $3.2 billion of outstanding sewer bonds. The county filed for bankruptcy in November 2011.

Lawmakers push the moratorium to Nov. 30 over the objections of critics who say it robs the capital city's receiver of a bargaining chip with major creditors.

The bankrupt, 18,000-population Rhode Island city receives long-awaited positive news from Wall Street