Posted on 05/08/2008 10:14:10 AM PDT by John Jorsett
Vallejo has become the first city of its size in California to seek bankruptcy protection.
The decision to file for bankruptcy came in a unanimous vote by the city council Tuesday night as hundreds of residents watched.
The dramatic vote came despite a last-minute appeal by state Sen. Pat Wiggins, D-Santa Rosa, and an aide for Assemblywoman Noreen Evans for the city to avoid bankruptcy.
Mayor Osby Davis said he had "turned over every rock he could find to find a solution" but none came and there is no longer an ability for the city to pay its debts.
Vallejo has been slammed by increasing costs of its public safety contracts, the housing crisis and lower property values.
The city faces a $16 million deficit in the 2008-09 fiscal year that starts July 1. Tuesday night's vote came after months of fruitless talks between city and labor representatives.
Chapter 9 bankruptcy will allow Vallejo to gain temporary protection from creditors and enable the city to continue to offer citizens necessary services.
The bankruptcy process will cost $750,000 to $2 million just in legal fees, city officials said.
Vallejo bankruptcy attorneys had recommended the city approve any bankruptcy filing at least a month before city coffers run dry, which could happen as early as June 30.
(Excerpt) Read more at mercurynews.com ...
It’s hard not to laugh.
I bet every last one of the city officials are democRATS.
Alright, without knowing the demographics of this city, what is the “socialist” population, the illegal alien population, etc.? With this information, the city’s expenditures/lack of revenue streams (i.e. people with jobs) should be rather clear....
The racial makeup of the city was 30.97% White, 30.69% African American, 0.66% Native American, 19.16% Asian, 1.09% Pacific Islander, 7.88% from other races, and 6.56% from two or more races. Hispanic or Latino of any race were 19.92% of the population.
Vallejo has the third highest percentage of Filipino Americans in the United States mainland, behind the nearby cities of Daly City and Hercules. Vallejo is the 9th largest city in the San Francisco Bay Area by population,the 45th in the state of California,and 189th in the U.S. by population also.
The bankruptcy process will cost up to $2 million just in legal fees.
Vallejo bankruptcy attorneys had recommended the city approve any bankruptcy...
Those with the most to gain recommended bankruptcy. And the city listened.
There were 39,601 households out of which 36.5% had children under the age of 18 living with them, 49.1% were married couples living together, 16.5% had a female householder with no husband present, and 28.7% were non-families. 22.7% of all households were made up of individuals and 8.0% had someone living alone who was 65 years of age or older. The average household size was 2.90 and the average family size was 3.43.
In the city the population was spread out with 27.6% under the age of 18, 9.0% from 18 to 24, 29.6% from 25 to 44, 22.6% from 45 to 64, and 11.2% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 93.9 males. For every 100 females age 18 and over, there were 89.7 males.
The median income for a household in the city was $47,030, and the median income for a family was $53,805. Males had a median income of $40,132 versus $32,129 for females. The per capita income for the city was $20,415. About 7.7% of families and 10.1% of the population were below the poverty line, including 12.2% of those under age 18 and 8.9% of those age 65 or over.
And have been raised cradle-to-grave with a vision of a cradle-to-grave welfare state utopia.
No doubt they also believe a city can tax itself back into prosperity.
Local news this morning said that 66% of the city budget goes to police and fire dept. salaries.
Bankruptcy
On 20 February 2008, KRON, KPIX, KNTV, and the San Francisco Chronicle reported that Vallejo is on the brink of becoming the first California city in history to declare bankruptcy. Vallejo city council member Stephanie Gomes, interviewed on camera, said the Vallejo police and fire department payroll consumes 80 percent of the city budget, meaning the city could be bankrupt as early as March or April. The city council is negotiating with the police and firefighters unions to avoid this outcome.[6]
Stephanie Gomes, Vallejo City Councilwoman largely blames exorbitant salaries and benefits for Vallejo firefighters and police officers. Reportedly, salaries and benefits for public safety workers account for 80 percent of Vallejo's general operating budget. 98 firefighters made more than $100,000 and 10 made more than $200,000 including overtime. [7]
Two contributing factors have also been cited: the aforementioned high salaries, and current and future pension outlays, payments of which are likely not sustainable if bankruptcy is to be avoided. [8].
On May 6, 2008, however, the City Council voted 7-0 to file for Chapter 9 bankruptcy, becoming the largest city to do so ever in California
“Local news this morning said that 66% of the city budget goes to police and fire dept. salaries”
Sounds like they might be a bit overstaffed.
“98 firefighters made more than $100,000 and 10 made more than $200,000 including overtime. “
Well that’s just insane.
Reading your post, I think I see the problem...
Will they actually have to fire city employees or be able to cut future pension payouts?
“I bet every last one of the city officials are democRATS.”
In my town all the official were Republicans. Then one fine day the called a press conference and announced that they had all become Democrats.
Wanted to make sure they got their take before all the money was gone
The report’s a bit inaccurate. The city budget contains a large number of accounts that are ‘dedicated’ in nature. Gas tax moneys, for instance, can’t be used to pay for anything but streets. Same with sewer fees, water bills, etc. The percentage figure quoted is actually the percentage of the General Fund, which is the fund available for the operation of city government. Sixty is sort of a normal figure in that context, I actually thought Vallejo’s public safety number was higher than 66.
According to my contacts in California, cities, counties and the State are facing a MAJOR financial crisis. Home buyers (notice I did not use that misleading appellation 'homeowners') are under tremendous pressure. Most people refinanced the homes several times. Some people say about 70% of property owners are mortgaged over their heads. Property taxes are set at 2005 or 2006 levels. Tax assessments are being appealed in record numbers.
Gas prices and diesel prices are insane. Food prices are rising rapidly. Road rage happens at virtually every intersection. When I traveled the whole state for a month a while back I was shocked by what I observed. The entire state has been taken over by Hispanics. Downtown La La Land looks a lot like Mexico City. The once famous 'garment district' is a cesspool whores wasted tar heroin and petty violent crime. Sad, but true. 'Nuff said here.
Check out my Freeper page
This is NOT a loaded question. What would you consider a fair salary for a fire fighter in one of the most fire-prone areas of the country. Personally, I think firefighters deserve more than the police, but I don’t have an agenda here. I wonder what their tax rate is?
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