This position performs financial accounting duties in support of the city government.
An Overview of Chapter 9 of the Bankruptcy Code: Municipal Debt Adjustments August As attention shifts from the global financial crisis of — to the global sovereign crisis that currently is affecting much of Europe, lawmakers are scrambling to create new laws and regulations designed to stave off the next financial crisis.
With each passing quarter, unsustainable budgetary shortfalls, record level unemployment, and deepening losses in financial markets threaten the ability of some municipalities to continue providing even the most basic of services to its constituents.
This White Paper is intended to give municipalities and other interested parties a brief overview of some of the significant financial issues facing municipalities today, particularly the growing deficiencies in many public pension funds.
Municipalities Face Myriad Financial Problems The basic problems faced by municipalities are not difficult to identify. Similar to private entities, municipalities are in the midst of an extended cycle of declining revenues.
Such shortfalls are to be expected in light of the reduced income and sales taxes that municipalities have been able to collect from citizens who have, themselves, experienced job losses and other significant financial hardships. Similarly, the declining value of real estate and the high rate of foreclosure have negatively affected property tax revenues.
Moreover, in some cases, municipalities engaged in complex derivative transactions, such as interest rate swap agreements primarily for the purpose of hedging against rising interest ratesonly to discover now that such hedging devices require significant current payments and a costly final payment if terminated prior to their scheduled end date.
Compounding the problem is that the cost of issuing debt for a municipality is going up. The low interest rates traditionally enjoyed by municipalities are rising, whether because of the general "tightening" of the credit markets as a result of the financial crisis or because investors are beginning to take notice of the confluence of factors currently threatening municipalities.
In addition, the monoline insurance companies that provided relatively inexpensive credit enhancement for tax-exempt debt have completely disappeared from the market.
Similarly, public pension participants do not enjoy the insurance-like protection of the Pension Benefit Guaranty Corporation. Thus, municipalities have been left in a largely unregulated vacuum, free to make their own choices about vesting, benefits, qualifications, and funding.
As a result of these issues, when times get tough as they are nowthere are few rules or oversight agencies ensuring—with a threat of severe penalties, fines, and other sanctions—that public officials adequately fund their public pension plans and refrain from diverting money intended to fund a public pension to other necessary public services.
Further complicating the public pension issue is that, in many cases, the benefits are considered to be virtually untouchable. For example, in California, public pension benefits are considered a "vested right. City of Long Beach, 29 Cal. While case law on the issue has demonstrated that public pension benefits for active employees are subject to "reasonable modification" under certain fact-specific circumstances see Abbott v.
The historic legal protection afforded to pension plans and their beneficiaries has not inhibited certain municipalities from challenging such protection in current legal proceedings,  and such legal challenges can be expected to increase as the situation for many municipalities becomes more dire.
Unlike the traditional individual, corporate, or partnership debtor that has a largely unfettered right to choose from a variety of chapters of the Bankruptcy Code i.
Accordingly, the definition of "municipality" includes certain obvious examples, such as cities, townships, and villages.
External links. GASB Accounting and Financial Reporting for Chapter 9 Bankruptcies; Number of Ch. 9 filings by year data from the American Bankruptcy Institute; Ohio Local Government Fiscal Emergency/Fiscal Watch Law Fact Sheet. Type or paste a DOI name into the text box. Click Go. Your browser will take you to a Web page (URL) associated with that DOI name. Send questions or comments to doi. Comprehensive and meticulously documented facts about education. Learn about K education, higher education, Common Core, school choice, digital learning, and more.
First, the municipality must be specifically authorized by state law to file a bankruptcy case. As the bankruptcy court explained in In re County of Orange, B. For example, some states, such as California, have very broad statutes that give municipalities almost blanket authority to file.
Other states place conditions on the right to file, such as approval by the governor or other political body. Second, the municipality must be insolvent.
Because of the difficulty in accurately valuing the assets of a municipality, the standard "balance-sheet test" for determining solvency generally is not employed.
Rather, whether a municipality is insolvent is analyzed on a cash-flow basis, meaning that the municipal debtor generally is unable to pay its debts as they become due.
Alternatively, insolvency can be demonstrated through past failures to pay outstanding debts.Type or paste a DOI name into the text box. Click Go. Your browser will take you to a Web page (URL) associated with that DOI name.
Send questions or comments to doi. Many of the facts in this research reveal associations between education and variables like earnings.
These relationships may be caused in part (or in whole) by factors that are related to education but not necessarily caused by education. Get the latest UHY Advisors news and press releases as well as the latest events.
k. The Securities and Exchange Commission (SEC) requires that all publicly traded companies file a Form k every year.
The filing date, ranging from 60 to 90 days after the end of a company's fiscal year, depends on the value of the publicly held shares. The Governmental Accounting Standards Board (the "GASB") has proposed bringing discount rates more into line with realistic yields that, along with other measures including reduced amortization periods, allegedly could double or triple the annual contributions required from governments.
Pay Range: $27, – $44, JOB SUMMARY: This position performs technical duties in support of the accounting functions of the department. MAJOR DUTIES: Performs a variety of general accounting support tasks in the accounting department.
Processes the daily mail for the Accounting Division.