Vallejo Choosing Path Out Of Bankruptcy

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(Sacramento, CA)
Tuesday, December 22, 2009
Vallejo attorneys are scheduled to appear in court next month to present updates on the city’s plans to get out of the red. Before then, the city council must decide on a course of action.

Council members meeting Tuesday night are planning to examine three potential paths out of bankruptcy drafted by the city manager.

City spokeswoman Joann West says the plan examines three scenarios that look five years into future. One continues current service levels, which officials say is not sustainable;
“Then the other choices are to make reductions to the city’s budget so that the city can continue operating and the third choice is to consider new revenues in order to mitigate some of those reductions.”
Those new revenues include taxes. Vallejo filed for Chapter 9 bankruptcy protection in May 2008. Since then, the city has shuttered some fire stations and cut funding to senior centers, libraries and public works.