City on the brink: Petersburg can’t pay its bills and time is running out

WaPo ^ | 09-05-2016 | Gregory S. Schneider

[NRx]

...This city of 32,000 just south of Richmond is facing a financial crisis unusual for fiscally conservative Virginia — or any state. In at least the past four years, the city had spent all of its reserves and then kept spending money it didn’t have. It took out short-term loans based on anticipated tax revenue to keep paying bills.

When the loans ran out, it stopped paying. Some fire and rescue equipment has been repossessed. The city trash hauler is threatening to stop pickup. And lenders will not give Petersburg any more loans.

In his 46 years minding state ledgers in various roles, Virginia Finance Secretary Ric Brown has never seen anything like it. “As a rule, most Virginia localities are in pretty good shape,” Brown said.

What’s more, there is no mechanism in state law to help Petersburg — no provision for bankruptcy, no set way for the General Assembly to step in.

[max americana]

“fiscally conservative Virginia”. Didn’t they turn blue a long time ago?

[blueunicorn6]

“Kept spending money it didn’t have”

There’s the money quote.

[Extremely Extreme Extremist]

As of the 2010 United States Census, there were 32,420 people residing in the city. 79.1% were Black or African American , 16.1% White, 0.8% Asian, 0.3% Native American, 0.1% Pacific Islander, 1.8% of some other race and 1.8% of two or more races. 3.8% were Hispanic or Latino (of any race).

https://en.wikipedia.org/wiki/Petersburg,_Virginia

Well, there's your clue right there.

[Da Coyote]

Hmmmm, no political party mentioned.

Could it be both?

Naaaaaaaasssh, wouldn’t bet on it.

[trisham]

This city of 32,000 just south of Richmond is facing a financial crisis unusual for fiscally conservative Virginia

*********************

This doesn't make sense. If they were truly fiscally conservative, how could they be in this crisis?

[DoughtyOne]

I note they didn’t mention it, so it has to be a Democrat controlled town.

Anyone know one way or the other?

[goldstategop]

Detroit in VA.... plow it over and incinerate the rest.

No use throwing away good money after bad.

[trisham]

Sorry. I misread that. Duh.

[Extremely Extreme Extremist]

Typical leftist piece. City under DemonRats and Peter Principle black leaders can't manage and screw everything up, so now the clarion call goes out to the state or feds.

Wilkow has talked about this and I'm glad it's finally an issue. Democrats have run cities into the ground.

[citizen]

Typical ‘Rat conduct. They never cut the credit card in half, just keep on spending.

[Steely Tom]

I lived in Petersburg for three years when I was growing up.

Went to Dinwiddie County elementary school.

School bus driver was 15, and was the son of our landlord.

[Menehune56]

The city probably figures the man will have to step in to bail them out.

[P.O.E.]

“Kept spending money” On what, pray tell.

[LostInBayport]

The previous city manager oversaw construction of a $12.7 million public library

Petersburg’s three museums — sources of local pride, especially Blandford Church and its exquisite collection of Tiffany stained glass — were found to have a grand total of 36 visitors per day.

The city’s fire department, for instance, is so well-staffed and equipped that it recently won an insurance designation given only to the top 1.3 percent of fire departments nationwide.

Hmm...my Spidey sense is telling me that maybe, just maybe, the payroll is too big. Could it be?

[rockinqsranch]

They went bankrupt for many reasons, and they are all Democrat. It’s not good to be blue.

[citizen]

On themselves and handout programs most likely. They probably have thousands of water bills years overdue.

[PAR35]

If anyone here has stereotyped guesses as to what the city government looks like — shame on them (but they are right).

[Klemper]

There is absolutely no reason for firetrucks and ambulances to be repossessed. This is fiscal insanity, and the tar and feathers should come out.

[Tilted Irish Kilt]

blueunicorn6:" “Kept spending money it didn’t have”
There’s the money quote."

Maybe they could raise taxes on just all the Govt. employees.
Expect "speed traps" in the area to raise local revenue.