Municipal Bankruptcy Woes

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."

Thanks to Jon Cecil, AICP

Full Story: Vallejo moves closer to bankruptcy


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