Ryan Hagen, Staff Writer
Posted: 10/24/2012 08:23:54 PM PDT
Document: San Bernardino Public Employee Association’s Objection (.pdf file)
The city of San Bernardino is not eligible for bankruptcy protection, argue court papers filed Wednesday by CalPERS and other creditors.
The state pension system and the San Bernardino Public Employee Association, which represents middle managers, each objected to the city getting Chapter 9 protection on several fronts in papers filed Wednesday in U.S. Banruptcy Court in Riverside.
The objection by CalPERS – the city’s largest creditor – argues primarily that the city still has not provided enough information to prove that it is insolvent and can come up with a plan to adjust its debts, both required for cities to receive bankruptcy protection.
“At this point in the case, it is impossible to determine whether the city meets the eligibility requirements of Chapter 9 because, despite its previous promises, the city has failed to provide interested parties with reliable financial information and a purported plan upon which to evaluate the city’s desire to effect a plan of adjustment,” wrote CalPERS’ attorneys, Michael J. Gearin and Michael B. Lubic.
The city’s audited financial statements are not complete, and City Council members have been struggling to agree on how to cut costs and raise revenue as part of a budget plan. Only some of the $45.8million deficit has been cut, which officials have said is the first step toward a plan of adjustment.
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