Tuesday, July 10, 2012 – 09:00 p.m.
It’s official! San Bernadino, California will seek bankruptcy protection.
As forecast here at InlandPolitics.com, the San Bernardino City Council voted 4-2, with one member abstaining, to file for chapter 9 bankruptcy at an emergency meeting Tuesday night.
San Bernardino becomes the fourth California municipality to seek protection under federal law. The city joins the California cities of Vallejo, Stockton and Mammoth Lakes, who have all went bankrupt.
The move will buy the city some time to void certain union contracts, shed debt, and re-negotiate obligations with its creditors.
The city, of late, has been more obsessed spending millions of taxpayer dollars on securing the opening of the downtown Regal Cinema, instead of focusing on financial matters.
A memo sent to city leaders last month projected the current year operating deficit to exceed $51 million.
Under the city charter the city manager reports directly to the mayor, and pressuring is already starting to mount on Mayor Pat Morris to resign.