I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.- Thomas Jefferson.

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Monday, January 10, 2011

ANOTHER CITY GOES: Chowchilla, Calif. Defaults On Bond

Central California's Women's Facility in Chowchilla



Image: wikimedia commons

Chowchilla, Calif. has failed to make its January payment on a bond issued to make expensive renovations to its city hall.



We warned you on Tuesday that city was on the brink and could foreshadow similar cases across the country.



Now Chowchilla has crossed the line.



The 11,000-person town got into this situation through a massive collapse in home prices and bad fiscal management, not least of which was an $8 million city hall project. Earlier this year the city posted a technical default by depleting its bond reserve fund to make a payment.



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