San Bernardino, California, Weighs Chapter 9 Bankruptcy
July 11, 2012
San Bernardino may join the growing list of California cities filing for municipal bankruptcy protection. As the city struggles with growing employee costs, declining tax revenue and ill-timed public-works projects, city officials are seeking options that will help erase its growing deficit.
"Cities are running out of options," said Michael Sweet. "As they see pension contribution obligations and retiree health-care costs going through the roof, revenue is at best stable if not declining."
According to its financial statements, the city and its agencies held $243 million of outstanding debt.
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This article also appeared in the San Francisco Chronicle.