The San Bernardino city officials listen in as the public takes turns speaking on the cities bankruptcy issues during a council meeting on Monday, July 16, 2012 in San Bernardino.(STAN LIM/STAFF PHOTOGRAPHER)
BY IMRAN GHORI
Published: 17 July 2012 05:59 PM
The San Bernardino City Council will meet again Wednesday to consider a declaration of fiscal emergency and an authorization to proceed with filing for bankruptcy.
Council members delayed making a decision after a more than three-hour hearing Monday, July 16, where many residents and city employees urged the city to seek an alternative.
But with concerns that the city will soon run out of cash and might not make its Aug. 15 payroll, city administrators say bankruptcy is the best course to buy the city some breathing room and get its finances in order.
Last week, the council majority agreed to seek bankruptcy protection due to a $45 million budget deficit. However, it must still approve a formal resolution authorizing the city attorney to file for bankruptcy.
Interim City Manager Andrea Travis-Miller also recommended that the council declare a fiscal emergency, which would allow the city to bypass a 60-day mediation period with stakeholders. Unless a fiscal emergency is declared, the mediation period is mandatory under bankruptcy law.
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