After a meeting of commissioners voted to go ahead with the bankruptcy, the town is now in talks with the creditors. In total, they are in debt $3.14 billion. The largest creditor, a national bank, is going along with the bankruptcy even though it will take the largest hit of the creditors. At the meeting, town leaders discussed the failed sewer renovation project that hit a snag and caused the city to go deeply into debt.
Yet, the sewer still needs to be repaired, so the bankruptcy plan is set to include $1.1 billion in concessions as well as a sewer-rate increase. Local residents can expect to see as much as an 8.2 percent increase in their sewer bills over the next three years.
The process of bankruptcy is expected to be a long and difficult one as the legislative delegation is already having trouble uniting over certain items.