Wednesday, July 18, 2012 – 10:30 p.m.
The San Bernardino, California City Council voted 5-2 to declare a fiscal emergency and file for chapter 9 bankruptcy protection on Wednesday night.
The move comes in an effort to right the city’s upside down finances and embark on a fresh start.
Amazingly, Council Members John Valdivia and Chas Kelley voted against the action, even though there is really no other viable option.
The city is expected to have its filing in U.S. Bankruptcy Court completed within the next thirty days.
The municipality is currently operating month-to-month by way of continuing resolution and has a deficit estimated to be between $46 and $51 million.
On another note. The city of Compton, California announced Wednesday that it also may have to seek bankruptcy protection within the next thirty days.