How may a city die?

According to the AP (4/14), the Virginia city of Bedford was incorporated about forth years years ago. Now, city officials are having second thoughts about returning the city to town status in hopes "that it will improve services" [?].

The city of 6,300 people already "shares services of the sheriff, judges, and court systems [possibly with the town?]," and "it contracts with Bedford County for schools, social service, and health services." The AP notes that City Manager Charles Kolakowski "said the city has signaled its intentions to give up its independent jurisdiction." [Is it due to financial difficulties or coordination problems?]

If Bedford makes the switch, it would become just the third city in the state to revert to a town in the past 20 years. (Courtesy of ICMA Newsletter.)