That's what happened in Oakridge, Oregon:
http://oregoncapitolnews.com/blog/2011/08/05/missing-money-from-city-coffers-leads-to-oakridge-plan-b-ask-citizens-for-a-loan/
If these citizens were smart they would write it up to own the town or just plain buy it out. This country is a disaster and it's only the beginning of more to come....developing...