San Bernardino Bankruptcy Follows Troubling Trend
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The city council in San Bernardino joined other California cities in a troubling trend, voting Tuesday night to file for bankruptcy. Video by kmir6.com
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The city council in San Bernardino joined other California cities in a troubling trend, voting Tuesday night to file for bankruptcy.
City leaders voting to file for bankruptcy blamed a poor economy and high employee pensions among other financial strains. The city is left with only $150,000 in its bank account, just scraping by to make payroll this month.
San Bernardino joins two other California cities in recent weeks to file for bankruptcy, but Riverside County Supervisor John Benoit says the Coachella Valley won't share the same fate.
"We have a reasonably good reserve and we are moving forward with no thought that we are going to end up in a San Bernardino-type situation," said Benoit.
But Benoit warns the situation in San Bernardino could affect other cities in the area.
"It takes a little harder sell to sell the bonds for another city that has even done all the right steps," said Benoit.
Jessica Flores, KMIR6 News.
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