municide
n. The economic or political death of a city. [Blend of municipal and –cide.]

Example Citations:
Municide is a term coined by John Galt Fla [sic], and describes the death of cities through economic and political destruction. It is seen through budget deficits that are untenable, and bond ratings that make paying for city projects impossible.
—Kenneth Schortgen Jr, "Municide starts to accelerate as the city of Hamtramck seeks bankruptcy," Examiner.com. November 18, 2010

The absurd spending projects from sports stadiums to aquariums, butterfly colonies, ant farm research facilities or Malibu tennis courts are indicative of the extraction mentality inherent in almost every level of government. The consequences of this behavior have a price. I call it "Municide" and after my usual historical reference points and theories on how they apply to our current dilemma, the definition will become crystal clear.
—John Galt, "Municide," Shenandoah, February 21, 2008

Earliest Citation:
Mayor Washington is making another stab at persuading the state legislature to let Chicago levy an income tax on workers who live in the city and suburban residents who work in the city. If he succeeds, it will be only because a lot of legislators want to see if Chicago really is foolish enough to commit municide, or whatever it's called when a city kills itself economically.
—"No to a city income tax," Chicago Tribune, May 12, 1986

Notes:
Here's an even earlier citation that uses municide as part of the blend com-municide:

...community associations who applied intense pressure on council to scrap the bridge plan, describing it as 'com-municide'.
—Douglas H. Fullerton, The Capital of Canada: How Should it be Governed?, Information Canada, January 1, 1974

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