On May 7th city of Vallejo, California voted to declare Chapter 9 bankruptcy. Tyrone, Georgia could be next.



The Citizen is reporting Tyrone finance director: "We’re broke"



The Tyrone Town Council got a huge dose of reality Thursday night. “We’re broke,”said Finance Director Mary Sturm. Sturm said the city’s operating costs per month are $275,000 per month, but the town has only collected $53,000 in revenue this month.



The economic climate has taken its toll on the town, with only two building permits this month, she added. The town currently has a Certificate of Deposit valued at $794,000 that earns just over 4 percent interest. Sturm recommended cashing in the CD, and invest in another CD when tax money starts rolling in at the end of the year.



“We only have 7,000 residents and we’re providing services that towns such as Peachtree City with a population of 40,000 provide,” she added. The town reluctantly agreed to cash in the CD, but Councilman Tracey Young wants to make sure this does not happen again.

Math Lesson Needed