Municipal Bankruptcy Woes

<p>The cities of Vallejo, California, and McCall, Idaho, are considering filing for bankruptcy.</p>
February 26, 2008, 12pm PST | Nate Berg
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"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

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Published on Tuesday, February 26, 2008 in Governing
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