California Town of Victorville, Faces Insolvency

The Bond Buyer reports:

An independent auditor says Victorville is nearing insolvency.

The California city’s auditor, Mayer Hoffman McCann PC, noted the shuffling of tens of millions of dollars of bond proceeds between different agencies without proper approval.

“Substantial doubt exists about the city’s ability to continue as a going concern,” the auditor said in Victorville’s comprehensive annual finance report for the fiscal year ending June 30, 2010, released this week.

The community in Southern California’s high desert has almost $500 million in outstanding debt.

There will be more of these stories in the coming months.