FAIRFIELD, Ala. (WBRC) - The City of Fairfield filed for Chapter 9 municipal bankruptcy Tuesday.
Mayor Eddie J. Penny said the city’s expenses exceeded the city’s revenue.
The city lists assets of between $1-$10 Million and liabilities in the same range.
"We just need a fresh start," said Mayor Penny.
Penny also said there won't be any disruption of city services. Mayor Penny said "we need to reorganize."
Penny and Mary Roberson, City Manager/City Clerk signed the petition.
Fairfield has struggled over finances for the past several years, with employees sometimes saying they have gone days without getting paid.
The petition states the city’s largest creditor debt of $18M is owed to U.S. Bank.
The other debts run the gamut from Alabama Power to the Fairfield Board of Education.
The city also owes a little more than $1.7M to Jefferson County.
“There’s talks of dissolving and going back into Jefferson County. There’s talks of merging with other municipalities. There’s talks of restructuring their debt,” said County Commission President Jimmie Stephens.
The city’s bankruptcy petition states they’d like to restructure the debts and honor their obligations to city employees.
Stephens agreed with Penny about the city’s new start.
“This has been an ongoing process. We’ve met with the officials of Fairfield and given them advice because we’ve been there and done that. This is day one of a new beginning for Fairfield,” Stephens added.
Here is part of the list of creditors who have the largest unsecured claims in Fairfield.