San Bernardino Files Emergency Bankruptcy Petition

Officials say the filing won't affect essential service to the community, and there are no immediate reductions or changes planned.

Thursday, Aug 2, 2012  |  Updated 8:10 AM PDT
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SB Files Emergency Bankruptcy Petition

San Bernardino on Wednesday became the third California city to declare insolvency, joining Stockton and Mammoth Lakes after officials say they filed an emergency petition for Chapter 9 bankruptcy.

The filing – prompted by a $45.8 million budget shortfall the city faces this year – makes official a move the City Council approved last month.

San Bernardino’s bankruptcy filing won’t affect essential service to the community, and there are no immediate reductions or changes planned, according to Interim City Manager Andrea Travis-Miller.

City officials are working on a plan for the city's operational budget during bankruptcy, and once the plan is complete reductions may occur, Travis-Miller said.

She hopes to submit a plan for the City Council's consideration within the next three weeks.

The city of 210,000 people declared a fiscal emergency on July 18.

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