Toronto obviously is not "bankrupt" and I'm not sure how many people who are reasonably well informed would think that way. But Toronto has a history of bickering at council between left-wing and right-wing factions, and this has been brought into sharper focus thanks to Rob Ford and his complaining about some recent spending.
It's also pretty well publicized that some of the Toronto infrastructure badly needs updating (breaks in water lines on almost a daily basis during winter, arenas more than 25 years old and looking grungy, etc.) You don't hear of this in Miss. where older community centres and arenas are being overhauled. It's a matter of the perceptions. Once established, perceptions are hard to change, whether accurate or not.