In the 1950's Detroit was the fourth largest city in the U.S with a population close to two million people. It has since been on a downward spiral for the last sixty years, with a dwindling population now at 700,000. The city is claiming 18 billion dollars in debt. "The people of Laredo do not need to be concerned that what's happening in Detroit will happen in Laredo." City Manager, Carlos Villarreal, says he would never allow that to happen. When he first came into office six to seven years ago, there was 21 million dollars in the fund balance. "We have managed to increase our fund balance to almost 37 million." Individuals file for bankruptcy all the time. So what does it mean when a city does? "I think city services are going to be curt tailed. Just reading an article now, anything that's not nailed down is subject to auction and they'll probably sell it to pay the debt that's owed." Anything not essential to living will most likely be done away with. Meaning parks and anything recreational. This isn't the first time Detroit has been in the hot seat. Not too long ago, the motor city had problems with their automotive industry. Right here in the gateway city, we have experienced problems with the devaluation of the peso. But Villarreal says as the city manager you must be able to adjust to it. Eagle ford shale has given a boost to the local economy, which in turn has helped sales taxes. "If you increase sales tax, we keep a portion of that. That allows us a little bit of leeway. Not too much though." The city is expected to present a balanced budget at the end of the month.