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Municipal Bankruptcy Woes

Posted by: Nate Berg
Thanks to: Jon Cecil, AICP
26 February 2008 - 12:00pm

The cities of Vallejo, California, and McCall, Idaho, are considering filing for bankruptcy.

"A labor agreement with the city's public-safety unions aimed at keeping Vallejo's general fund from going broke fell apart, prompting top administrators to recommend the city file for bankruptcy protection. Chapter 9 bankruptcy would allow the city temporary protection from creditors while officials devise a plan, subject to court approval, to regain fiscal stability."

In Idaho: "McCall City Council authorized its city manager to file a petition for bankruptcy at a city council meeting Monday night. However, Ron Blewett, an attorney for the plaintiff, agreed to negotiate some of the charges with the city council."

Full Story: Vallejo moves closer to bankruptcy
Source: Governing, February 26, 2008
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