City Should File Bankruptcy
Printed From: MiddletownUSA.com
Category: Middletown City Government
Forum Name: City Council
Forum Description: Discuss individual members and council as a legislative body.
URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=4665
Printed Date: Nov 23 2024 at 7:05am
Topic: City Should File Bankruptcy
Posted By: Middletown29
Subject: City Should File Bankruptcy
Date Posted: Jul 15 2012 at 9:04am
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Several cities across the country have filed bankruptcy over the past few years.
Middletown could wipe the debt off their books with a bankruptcy. Word is topic was discussed at a recent Gilleland staff meeting. Why not do it and start over? |
Replies:
Posted By: ground swat
Date Posted: Jul 15 2012 at 9:45am
| Why not with this pathetic voting base that pays Know attention to what city leaders are doing or a council that can't hold a city manager accountable. The New American way, don't try and actually work your way out of a problem just walk away from it and we'll cover the cost. Why doesn't it surprise me that this would be brought up. Start over with the same group that has had plenty of time and a exit off a major highway to a least show some creative thinking, oh thats right we don't have Robinette anymore so we're screwed. |
Posted By: VietVet
Date Posted: Jul 15 2012 at 1:28pm
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Don't know the ramifications for a city filing bankruptcy. Wouldn't that kill any chances for credit in future years? IE. eliminate the cities borrowing opportunities? How about the city rating for bonds and will the filing effect any grants, fed handout money and other deals that cities occasionally enjoy? Filing certainly won't help a city already heading to the bottom. Other options? State takeover on running the city? Would we get rid of Gilleland and company if that were to happen? Dunno.
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Posted By: TonyB
Date Posted: Jul 15 2012 at 2:57pm
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M29, First of all, the city is not bankrupt. They have a "rainy day" fund. So they have assets that are greater than their current debt. The problem at the moment is that they are spending more money than they are bringing in. I don't know about anyone else, but when I don't have enough money to pay for the things I want, I cut back to buying only the things that I need! Then I look to see if I can increase my income. I can't understand why the city doesn't balance its budget and look to providing additional revenues by attracting business to town. Isn't that what they are supposed to be doing? |
Posted By: Mike_Presta
Date Posted: Jul 15 2012 at 6:02pm
That is the problem in a nutshell. Somewhere along the line our city leaders (and government entities across our nation) have become confused when ranking priorities between what we really need, and what a select few want. ------------- “Mulligan said he ... doesn’t believe they necessarily make the return on investment necessary to keep funding them.” …The Middletown Journal, January 30, 2012 |
TonyB wrote:Posted By: Bocephus
Date Posted: Jul 15 2012 at 10:27pm
Maybe not bankrupt now but it will be probably be in the near future.
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Posted By: arwendt
Date Posted: Jul 16 2012 at 9:03am
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At least we got the roof off the City Centre Mart? ------------- “Sell not virtue to purchase wealth, nor Liberty to purchase power.” Benjamin Franklin - More at my http://wordsoffreedom.wordpress.com/ - Words of Freedom website. |
Posted By: Stanky
Date Posted: Jul 16 2012 at 10:18am
| There was a panel on one of Fox's investment shows that was talking about the issue of municipal bankruptcies and most of the panel agreed that the long term ramifications will haunt these cities for years to come. It will affect Middletown's borrowing rating long after this town is in healthy financial shape, if that ever happens. |
Posted By: acclaro
Date Posted: Jul 16 2012 at 11:01am
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M29....this is a head-fake isn't it? Middletown is not bankrupt. They haven't attempted to sell any assets, spent (or rather approved $1.1 Mm on the Land Bank they will take out of the public safety levy), spent $60,000 on getting a special election ballot to disrupt and stymie voter turnout in August (suppress is the proper word), pay consultants annually $150,000-$200,000 for prviding no value add), own a golf course, an airport, how many buildings downtown and else where----and you suggest the city discussed bankruptcy? Its a head fake, the city is not near bankruptcy, but is spending very dangerously to benefit a handful of individuals. Perhaps you meant morally bankrupt?
------------- 'An appeaser is one who feeds a crocodile, hoping it will eat him last.' - Winston Churchill |
Posted By: Middletown29
Date Posted: Jul 16 2012 at 12:26pm
| A city does not have to be broke to file bankruptcy. Corporations (which the city is) do it all the time. |
Posted By: acclaro
Date Posted: Jul 16 2012 at 3:30pm
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You are making reference to a Chapter 13 re-structuring. I don't believe the city has reached a point that its debt ratio is greater per month, than its cash-flow, and it makes its monthly payments timely. The only advantage would be the restructuring would allow debt restructuring and also help with pension liabilities, to the point the Ohio R.C. would allow, which is rather limited. It would be much better to negotiated with creditors than attempt a Chapter 13 restructuring. I do not believe Chapter 11 is a possibility. I'm astounded this even came forth in a serious conversation (if it did at all). Chapter 13 would not wash the debt away, it just restructures it, and the city would have to make serious efforts to liquidate assets before Chapter 13 even undertaken, which it has not. ------------- 'An appeaser is one who feeds a crocodile, hoping it will eat him last.' - Winston Churchill |