facebook
twitter
rss
account
search
search
 

San Bernardino files for bankruptcy

Aug. 2, 2012 at 7:11 AM   |   Comments

SAN BERNARDINO, Calif., Aug. 2 (UPI) -- The California city of San Bernardino filed for Chapter 9 bankruptcy protection in a federal court two weeks after the city council declared insolvency.

The petition, filed Wednesday in U.S. Bankruptcy Court in Riverside, included the council-passed July 26 resolution authorizing the action, the Los Angeles Times reported.

San Bernardino declared more than $1 billion in liabilities and $1 billion in assets.

"There will be no immediate service reductions or changes in service to the community as a result of the filing," city officials said in a statement.

Last week, interim City Manager Andrea Travis-Miller told council members they must cut $45.8 million -- roughly 30 percent -- from the budget so the city could remain solvent in the current fiscal year. Developing an austerity plan will be required in the Chapter 9 municipal bankruptcy process.

The cuts, expected to begin this month, are expected to lead to compensation cuts or widespread layoffs, and the city's police and fire departments won't be exempt, the Times said.

San Bernardino is the third California city to seek bankruptcy protection this year, joining Stockton and Mammoth Lakes.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Marijuana decriminalized in Philadelphia Marijuana decriminalized in Philadelphia
2
Reports claim Ukraine used cluster bombs in Donetsk city Reports claim Ukraine used cluster bombs in Donetsk city
3
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
4
No, Banksy hasn't been arrested, nor his identity revealed No, Banksy hasn't been arrested, nor his identity revealed
5
Pope Francis condemns 'hostile inflexibility' within the church Pope Francis condemns 'hostile inflexibility' within the church
Trending News
Around the Web
x
Feedback