Bankruptcy

SAN FRANCISCO — An independent auditor says Victorville is nearing insolvency.The California city’s auditor, Mayer Hoffman McCann PC, noted the shuffling of tens of millions of dollars of bond proceeds between different agencies without proper approval.

CHICAGO — The Illinois Senate could vote as early as Wednesday on a revamped financing scheme, which includes a cigarette-tax hike that would allow the state to continue issuing bonds and keep a $31 billion capital budget on track ahead of a court decision on the original plan’s ­legality.

The Financial Industry Regulatory Authority fined nine firms a total of $129,500 for violations of muni trade reporting, pricing, book-keeping, record-keeping, and supervisory rules.

Four former superintendents of the New York Insurance Department argued Sunday that the regulating body didn’t have the authority to approve bond insurer MBIA Inc.’s February 2009 ­restructuring.

The Nassau County Interim Finance Authority will remain in control of Nassau County, N.Y.’s finances, as a judge Monday rejected the county’s request for a temporary injunction to stop NIFA’s supervision.

CHICAGO — In a deal brokered by federal authorities, Chicago Mayor Richard Daley and officials from American Airlines and United Airlines announced an agreement Monday that allows the city to begin work on $1.17 billion worth of a remaining $3.36 billion of expansion projects at O’Hare International Airport.

ALAMEDA, Calif. — Las Vegas Monorail Co. bondholder Eaton Vance has broken with other large holders of the bankrupt project’s debt to challenge the settlement that trustee Wells Fargo Bank NA negotiated with Wisconsin state regulators to commute the monorail’s bond insurance policy.

ALAMEDA, Calif. — California’s attorney general appears to have thrown a monkey wrench into school districts’ common practice of paying for issuance costs using original issue premium.

The California Supreme Court has declined to hear the appeal of an appellate ruling requiring developers of many community facilities districts to pay so-called prevailing wages for all public improvements, whether or not they are financed with bonds.

Voters in the beleaguered Southern California city of Bell tossed out their entire City Council during a recall election Tuesday.

Moody’s Investors Service has upgraded Sierra Kings Health Care District’s general obligation bonds to Baa3 from Ba2 after a federal judge ruled that GO debt service cannot be interrupted by the district’s Chapter 9 bankruptcy filing.

CHICAGO — Michigan is set to enact a controversial law that expands state power over fiscally stressed local governments and gives emergency managers broader authority, including the ability to terminate labor contracts.

SAN FRANCISCO — The city of Vallejo, Calif., must disclose more information about the role of its mayor and bankruptcy law firm in past bond deals due to accusations of conflicts of interest, a federal judge ruled Tuesday.

Louisiana is seeking damages of $1 million a day each from BP and other companies associated with the Deepwater Horizon oil spill in the Gulf of Mexico last year.

The U.S. Supreme Court on Monday refused to consider the appeals of former Jefferson County commissioner Chris McNair and several contractors who were convicted on bribery charges related to the county’s sewer system.

SACRAMENTO — A federal bankruptcy judge said he will set a date in June for the final showdown with creditors on Vallejo, Calif.’s plan to try and rid itself of debt.

Officials from Porter County said they will consider filing a new lawsuit with the Indiana Supreme Court after the state Court of Appeals last week declared the county could not withdraw from the Northwest Indiana Regional Development Authority.

WASHINGTON — In the first case of its kind, the Financial Industry Regulatory Authority fined Southwest Securities Inc. $500,000 for paying unaffiliated individuals to solicit municipal securities business for it, in violation of Municipal Securities Rulemaking Board Rule G-38.

Trustees of the Austin Independent School District declared a financial exigency last week that will allow it to terminate contracts covering 1,153 teaching and administrative posts.

BRADENTON, Fla. — Florida Gov. Rick Scott Friday rejected, once and for all, $2.4 billion of federal funds for a high-speed rail project as the state Supreme Court unanimously refused to overturn his decision.