San Bernadino Files for Bankruptcy Protection

Sadly, all I can think of given its finan­cial sit­u­a­tion is when does the city of Man­i­towoc fol­low suit?  The city is weighed down by a moun­tain of debt from years of bond­ing it can’t afford.

Is this that city’s future?

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.

I wish I were kid­ding about the Man­i­towoc thing.  I really am.

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