Hillview, KY (13 miles south of Louisville) became the first city since Detroit to file bankruptcy. Hillview’s Chapter 9 filing is the result of a dispute with a local company over a land sale and had been ordered to pay $11.4 million in damages.
The BloombergBusiness article reports that the City has liabilities in excess of $100 million. As of 6/30/2014 the City reported total liabilities of $1.78 million of which $1.26 million are bonds outstanding. Digging into the notes to the financial statements and the addition to the City’s public safety building was financed off-balance sheet and had a bullet maturity of $47 million in 2015. In addition the City’s GASB 68 pension liability is estimated to be over $40 million.
