Disincorporation

The city of Vernon, California, fought hard recently to avoid disincorporation. The price of that fight has drained the city's coffers, and now some say it's too deep in the hole to function properly.
Dec 29, 2011   Los Angeles Times
Small towns like Mesa, WA and larger ones like Vallejo, CA may be forced to dissolve in light of their worsening finances. Local counties will need to absorb residents.
May 28, 2009   The Wall St. Journal