The suburb where I grew up is like this. The city can't get any tenants for vacant commercial and industrial lots. The school district is loosing enrollment and closing branches. Recently trash and recycling has been privatized. The budget hole cannot be closed because the governor cut funding to municipalities. I think it's starting to hit a bottom though. While there isn't any new construction to speak of, as boomers pass or move a surprising amount of younger families are moving in, probably because houses are only 100-200k.

I don't know what the end results look like. More ebb and flow I guess. I will say that this is a middle-middle class suburb; the upper middle class suburb it borders with the excellent school district and an equinox is doing great with homes selling for north of 500k.