Saturday, December 22, 2012 – 08:00 a.m.
The bankruptcy saga of San Bernardino, California continues to have an unusual twist.
That being the city’s woe-is-me excuse for not paying its post-bankruptcy creditor and pension obligations.
Somehow the city portrays itself as not having the ability to pay debts incurred after filing for chapter 9 bankruptcy protection. A completely untenable position. And one that appears to have U.S. Bankruptcy Judge Meredith Jury somewhat skeptical.
The city says that if its’s forced to pay other current obligations, it won’t be able to make payroll. A position which begs the question should San Bernardino even remain incorporated?
Really! If the city can’t even make it’s current operating expenses, with all pre-bankruptcy obligations stayed, then either the city shouldn’t be a city, or they are lying to the court. San Bernardino has already reduced its workforce and implemented certain union concessions. Yet, it can’t pay its bills.
Maybe the story will change in February after the city receives its property tax revenue increment.
If the situation doesn’t, then maybe the San Bernardino County Local Agency Formation Commission (LAFCO), the group that would handle the city’s dissolution, should start doing its homework in earnest.
The city will not be disincorporated. LAFCO does not have the authority to force the matter, and the debt obligations for the city would remain with current property owners in what is now incorporated upon any dissolution, so why would residents cede control to the Board of Supervisors. Additionally, any attempt would require two simultaneous votes, one disbanding the City Charter, and two, disincorporation.
Better bet, business leaders in SB need to recruit candidates for Mayor and Council that will support charter changes that eliminate Council Districts, eliminate elected positions that should be filled by appointment, and eliminate the strong Mayor.
Not Really,
Your better bet is something that has been needed for at least the last two decades. Abolish the charter system may be part of a cure. But clearly if the city remains unviable then county control would be the only option.