Wednesday, July 11, 2012

3rd California City to file bankruptcy this month - San Bernardino seeks bankruptcy protection

ALSO CLICK AND READ THIS: Minimum wage for all city workers after city goes BROKE! Scranton, PA mayor takes heat for slashing police, fire dept. paychecks

-----------------------------------------------------------------------

San Bernardino on Tuesday became the third California city in less than a month to seek bankruptcy protection, with officials saying the financial situation had become so dire that it could not cover payroll through the summer.

The unexpected vote came at the suggestion of the interim city manager, who said the city faces a $46-million deficit and depleted coffers.

"We have an immediate cash flow issue," Andrea Miller told the mayor and seven-member City Council.

Mayor Patrick Morris called the decision, passed on a 4-2 vote, a "stain" on the city. But he said the only other option was "draconian cuts" to all city services, including the police and fire departments.

"It means the bills will be paid," said a dejected Morris, who is not a voting member of the council.

The city's fiscal crisis has been years in the making, compounded by the nation's crushing recession and exacerbated by escalating pension costs, lucrative labor agreements, Sacramento's raid on redevelopment funds and a city reserve that is tapped out, officials said.

Miller told the council that the city faced major deficits for the next five years.

The deficits remain even after the city negotiated $10 million in concessions from employees and slashed the workforce 20% over the last four years.

The expected bankruptcy for the city of 209,000 residents is certain to heighten concerns about the fiscal forecast for other struggling California cities, which have been slashing jobs and services as tax revenues have declined during the prolonged economic slump.

San Bernardino "is still facing the possibility of insolvency due to a variety of issues including accounting errors, deficit spending, lack of revenue growth and increases in pension and debt costs," according to a budget analysis prepared for the council.

"The city has reached a breaking point and faces the reality of deficient cash on hand to meet its contractual and debt obligations," the report said.

City Atty. James Penman said city budget officials had falsified documents presented to the mayor and council for 13 of the last 16 years, masking the city's deficit spending.

"For the last 16 years the budget prepared for the council showed the city was in the black," Penman said, not naming those allegedly responsible. "The mayor and the council were not given accurate documents."

Morris was taken aback by the comments, saying this was the first time he has heard of the allegations.

City Hall was packed for Tuesday's emergency council meeting, which had been called to discuss San Bernardino's bleak finances. Bankruptcy was expected to be discussed as one option but an actual vote to file was not anticipated.

About a dozen residents urged officials to protect services for the underprivileged, libraries and public safety.

Kathy Mallon, 57, who has lived in San Bernardino for a decade, blasted the city's elected leaders for allowing the financial crisis to grow unabated and wasting millions of tax dollars on transit projects and other non-essential services. Still, she urged them to do everything possible to avoid filing for bankruptcy.

"This is lose, lose, lose all the way around. Residents will suffer. Businesses will suffer and city staff will suffer," Mallon, a member of the city's senior affairs council, said before the vote. "We elected you to handle this, and I do not want to see the outcome decided by a bankruptcy judge who has nothing at stake."

With the vote, the council instructed the city attorney to file for Chapter 9 bankruptcy protection, a section of the federal bankruptcy code covering municipalities.

CLICK HERE FOR THE FULL NEWS STORY

29 comments:

Anonymous said...

When you cater to section 8 welfare niggers as well as illegal beaners neither who pay taxes while fucking the white taxpayers then this is what you get

Anonymous said...

pension?????


If there is no money,and you cant squeeze blood from a turnip,what then?

Anonymous said...

big paycut coming for city workers,cops firefighters will be first then the trades.lift residency after 7 yrs of employment this keeps home values intact and the tax base intact.

Anonymous said...

Same here we can only afford minimum wage for public employees. Thank your local democrat crook for his stealing and dealing.

Anonymous said...

IT'S COMING HERE...

Anonymous said...

Just a matter of time before it happens here. By all means keep inviting and allowing Illegals and blacks to live free of the system while Whitey pays the bills.

Anonymous said...

You aint seen nothing yet folks.Its going to become mad max beyond thunderdome and the road.

Anonymous said...

We have almost a Billion dollars in bank accounts from TIF districts, but it's not for regular jagoffs, it's for the rich folk that live in Streeterville and Kenilworth. Nobody says a thing. Just take our pension money and walk away laughing. Nobody says anything.

I Voted For Obama said...

Is it a coinciidence that both San Bernardino and Scranton voted for Obama?

LaRaza said...

You greedy foolish People thank goodness Obama will set all of you right.

Anonymous said...

Dont think Chicago will file for bankrupcy, Didnt the CPS offer the teachers a 2% a year in the first contract offer. I know there were takebacks and longer school days but no offer of paycuts

Anonymous said...

Fuck 'em. They voted wrong. Next subject.

Mark12A said...

Stop feeding and housing the niggers and beaners. If they starve to death, who really gives a shit? If they chimpout and start stealing shit, we can shoot them. Maybe one or two will learn how to work. They can stay around, as long as they don't forget.

BYE BYE PENSIONS!! said...

I hope you all saved/invested 25% of your pay like I have been doing for going on 19yrs now.

Anonymous said...

Bankruptcy the easy way out Illinois will go bankrupt too!!

Anonymous said...

It's the scumbag elected officials who have wasted and squandered money $$$$$ for decades. They blame it on the police, fire and other gov. workers, we pay into our pension every pay period, the scumbags do not pay their part which is levied twice a year from the tax payers, they spend it on bullshit. The town I work for, many of the bullshit elected and appointed scumbabgs have unmarked squad cars (all the bells and whistles, computer, emergency lights, radios) to take home. What the fuck does a Mayor or Town manager need an unmarked squad car for? Some our squads have over 200,000 miles on them and barely roll and these scubags have brand new gov. owned cars.

P.S. our idiot mayor does traffic enforcement even though he has NO POLICE POWERS. I beleive that is called, " UNLAWFUL RESTRAINT, OFFICIAL MISCONDUCT."

Anonymous said...

Chapter 9 Bankruptcy and the City of Chicago:

http://www.suntimes.com/test/searchtest/4488514-570/public-pension-war.html

Anonymous said...

Every city in California will go bankrupt before the State of California shorts the welfare accounts one dime.

They and every state that has welfare rolls knows that the welfare is the one bill they can't afford to pay and they can not afford not to pay. But they keep adding more mouths to drying-up public teat.

So every one of those states and the country will go down the drain because no one has the guts to put a stop to the bleeding.

When Quinn raised the state income tax, he cut the wages of every working person in the state by 3%. The non-working did not see a cut at all.

When welfare gives you everything you need, what incentive is there to work and better yourself??NONE.

Anonymous said...

big paycut coming for city workers,cops firefighters will be first then the trades.lift residency after 7 yrs of employment this keeps home values intact and the tax base intact.

No it doesn't. Cutting wages for city workers prices them out of the city housing market. Which means fewer applicants. Why apply for a job that makes you live where you can not afford?

Dropping residency after 7 years? Sheeeeet, ever hear of "renting"? Or get a group together, rent an apartment for your workweek, then to your estate in the burbs on the weekend.

In order for the city to survive, it has to make living in the city attractive for the working middle class, black, white, brown, yellow, etc. They are failing miserably at that.

Anonymous said...

Minimum wage for everyone! Scranton, PA mayor takes heat for slashing police, fire dept. paychecks.........................."oy,haff I got a deal for you!"Wait till your next contract ,blue stooges!

Anonymous said...

You fat porkers have been too long at the trough, fuck Your fat pensions and perks, it;s not like your doing your job and stopping the terrorist black gang bangers
Just waite until we have a good Hispanic mayor, He will get good cop's on the farce

Anonymous said...

Willow Springs Police Pension Fund down to 20% funded uh oh.

Anonymous said...

Anonymous said...
Just a matter of time before it happens here. By all means keep inviting and allowing Illegals and blacks to live free of the system while Whitey pays the bills.

July 11, 2012
You right let the White Haters keep paying, boo hoo my pension gone jajajajaja fuck u

Anonymous said...

Lol those links are getting loser and closer for CPd

Anonymous said...

The entire State of California is going to go belly up. Just can't support so many illegals and do nothing parasites any longer. This shit has been in the making for years. So fuck them. California is probably the only state in worse shape than our own Illinois.

Anonymous said...

CA is the model for IL it seems...

I hope we get our shit together here in Chi sooner then later.

Vote batty spend crazy liberals and sensible representatives in.

Anonymous said...

Got ammo???

Anonymous said...

If there is no money,and you cant squeeze blood from a turnip,what then?

July 11, 2012 8:02 AM

Then the economy crashes, a whole bunch of people die, and whoever is left standing when the smoke clears starts all over again, pretty much from scratch.

Anonymous said...

You fat porkers have been too long at the trough, fuck Your fat pensions and perks, it;s not like your doing your job and stopping the terrorist black gang bangers
Just waite until we have a good Hispanic mayor, He will get good cop's on the farce

July 11, 2012 5:06 PM

My fat porker is in your sister's burrito right now. I think I'll put it in her taco too before I shoot my horchata all over her face.