Government Fleet Top News

The City of Vallejo Declares Bankruptcy

May 14, 2008

VALLEJO, CA – The City of 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 on May 6 as hundreds of residents watched, according to The Mercury News.

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. The 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.

Comment On This Story

Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that every comment is moderated.


Fleet Management And Leasing

Jack Firriolo from Merchants will answer your questions and challenges

View All


Public Fleet Tracking And Telematics

Amin Amini from Verizon will answer your questions and challenges

View All


Fuel Management

Bernie Kanavagh from WEX will answer your questions and challenges

View All


Recent Topics

How many different types of antifreeze do you stock? I’m curious to know what others are doing to deal with the numerous specifications...

View Topic

would anyone be willing to share there salary ranges for equip tech I thru III, and a welder salary range also

View Topic

Fleet Documents

1106 Fleet Documents (and counting) to Download!

Sponsored by

Annual award from Fleet Financials Magazine to a fleet executive who exhibit excellence and innovation in cost-saving initiatives, policy setting, innovative programs, and cultivation of fleet manager training and management


Read more