Vallejo City Council Votes for Bankruptcy.

The Bond Buyer | May 8, 2008| | Copyright

VALLEJO, Calif. -- The long, slow financial bleed of Vallejo, Calif., reached the low point of bankruptcy Tuesday night, as city leaders admitted they would run out of cash in a couple of months and be forced to shut down the government.

After months of cutting costs and begging unions for concessions, the City Council's vote to file for Chapter 9 bankruptcy protection was accompanied by the sounds of a cheering, whistling, and applauding audience. The combination of declining tax revenue and surging public safety salaries convinced lawmakers they had no other ...

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