From American City & County: On June 30 — the day its liability insurance was scheduled to be cancelled — the city of Maywood, Calif., fired all of its full-time employees and now will contract out all of its municipal duties, including fire.

The city's workers compensation and commercial insurance carrier, the LaPalma, Calif.-based Joint Powers Insurance Authority, terminated Maywood's coverage because of its claims history over the last five years. "As a result, the City of Maywood will be unable to administer a traditional staff," the statement reads. Shrinking grants and funding from both the state and the federal government also played a role in the decision, the statement says.

Read the entire statement from Maywood officials on the decision to outsource all city services.