City of Vallejo nears bankruptcy
February 20, 2008
NBC11 reports that, according to City Councilmembers, the City of Vallejo is on the brink of bankruptcy. In a report to the City Council last week, City Manager Joseph Tanner said the city faces a $10.1 million general fund operating deficit for the current fiscal year and a negative available fund balance of $5.9 million on June 30, 2008.
An emergency plan would cut city salaries to 5 percent lower than June 30, 2007 starting on March 28. Police and firefighter salaries under the existing labor agreements would be reduced 15 percent, by 8 percent for the electrical workers and 5 percent for confidential, management and un-represented employees.
Thirty general fund positions would be eliminated, 16 of which are currently filled and will require layoffs.
Other vacant positions could be filled by transferring employees but the reductions would reduce the general fund positions from 494 to 411, or by 17 percent. A single fire engine company would be closed each day on a rotating basis and there would be a three-month temporary reduction in truck company staffing from four to three.
What can we say…call your Congressman?
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What should we call our Congressman?
~ editor says: good question; as I am sure George Miller will blame it on Bush tax cuts, and certainly not out of control Congressional spending.
Exceprt below, see full article.
http://www.mercurynews.com/breakingnews/ci_8330114
San Jose Mercury News
02/21/2008
Vallejo bankruptcy could have far-reaching impact
By J.M. Brown and Sarah Rohrs
MEDIANEWS STAFF (What’s left of it)
VALLEJO — If Vallejo becomes one of the first California cities to file for
bankruptcy, the negative effects could be far-reaching, but also may leave
the city with a fresh start, experts said Thursday.
If it takes this route, Vallejo would still need to keep its doors open and
provide municipal services, though employees may be asked to stay home if
there’s nothing in the coffers to pay them.
http://www.mercurynews.com/breakingnews/ci_8330114
~editor says: this is essentially what Contra Costa did several years ago when it called in all the third party CDBG grants it had made to mission-oriented and less expensive third-party service providers and canceled them so they could use the grant money to keep the doors open instead of delivering services.