Guard troops may be needed in troubled Ala. county
BIRMINGHAM, Ala. – The sheriff in Alabama's most populous county may call for the National Guard to help maintain order, a spokesman said Tuesday, after a judge cleared the way for cuts in the sheriff's budget and hopes dimmed for a quick end to a budget crisis.
In my opinion, this is the most important part of the article sort of a canary in the coalmine so to speak for all of you out there still holding desperately onto your precious yield from your Municipal securities.
The budget crisis comes as the county seeks to avoid filing what would be the largest municipal bankruptcy ever over some $3.9 billion in sewer bonds it can no longer afford to repay. As with the tax problem, elected leaders can't agree on a solution.
The sewer system is still operating normally, but the county has closed four satellite courthouses because of the loss of the revenue from the occupational tax. Residents are standing in line for hours at the main courthouse to do routine business like renewing car tags.
Mark my words, $3.9 billion will not be the largest municipal bankruptcy for long. I'm sure we'll see much larger this year or early next.
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