San Bernardino, California, Files Chapter 9 Bankruptcy
San Bernardino, California, filed for municipal bankruptcy after disclosing a $46 million shortfall in the city’s budget, the third California city to seek court protection from creditors since June 28.
California cities from the Mexican border to San Francisco Bay are confronting rising pension costs as they contend with growing unemployment and declining property- and sales-tax revenue. The costs stem from decisions made when stock markets were soaring and retirement funds were running surpluses.
San Bernardino officials sped up the timing of the bankruptcy filing because they were concerned that some creditors may take legal action against the city, Mayor Patrick J. Morris said yesterday in a phone interview. Under Chapter 9, all court cases and other legal actions against the city will be halted until the bankruptcy case is over.
“All of our vital service bills will continue to be paid,” Morris said. “We are going to keep our city services running.”
San Bernardino, a city of 209,000 about 60 miles (97 kilometers) east of Los Angeles, listed assets and debt of more than $1 billion in a filing yesterday with the U.S. Bankruptcy Court in Riverside, California.
Copy of the petition below…
U.S. Bankruptcy Court Central District Of California (Riverside) Bankruptcy
Petition #: 6:12-bk-28006 Assigned to: Chapter 9 Voluntary Asset
Date filed: 08/01/2012
Debtor City of San Bernardino, California
City Hall 300 North “D” Street
San Bernardino, CA 92418
SAN BERNARDINO-CA Tax ID / EIN: 95-6000772
represented by Paul R. Glassman Stradling Yocca Carlson & Rauth 100 Wilshire Blvd Ste 440 Santa Monica, CA 90401 424-214-7000 Fax : 424-214-7010 Email: email@example.com
U.S. Trustee United States Trustee (RS) 3685 Main Street, Suite 300 Riverside, CA 92501
Docket Text 08/01/2012
1 Chapter 9 Voluntary Petition . Fee Amount $1046 Filed by City of San Bernardino, California (Glassman, Paul) (Entered: 08/01/2012) 08/01/2012
Receipt of Voluntary Petition (Chapter 9)(6:12-bk-28006) [misc,volp9] (1046.00) Filing Fee. Receipt number 28495989. Fee amount 1046.00. (U.S. Treasury) (Entered: 08/01/2012)