Skip to content
Subscriber Only

Small Alabama City Says It’s Broke, Files for Bankruptcy

  • City in Jefferson County has $17 million in outstanding bonds
  • Mayor says in resolution that city has ‘exhausted its options’
Updated on

A small city on the outskirts of Birmingham, Alabama, filed for bankruptcy, a rare step by a local government that comes as budgets across the nation are being upended by the coronavirus pandemic.

The city of Fairfield’s filing Tuesday in the U.S. Bankruptcy Court for the Northern District of Alabama listed assets and liabilities between $1 and $10 million. A resolution signed by Mayor Eddie J. Penny included with the filing said Fairfield has “exhausted its options” after years of financial stress.