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Vallejo May Have to File Bankruptcy, Council Members Say
City of Vallejo may be forced to file bankruptcy; City Council members announce community meeting this week to discuss city finances
The City of Vallejo may run out of cash as early as March, and may soon be forced to file bankruptcy, according to officials here.
Vallejo City Council members Stephanie Gomes and Joanne Schivley have announced they will host - apart from the City Council - a Town Hall community meeting this Thursday to discuss the very real possibility of bankruptcy.
The meeting will be held Thursday, 7 p.m. at 733 Tennessee Street (between Napa and El Dorado).
In a report to the City Council dated February 13, Vallejo Finance Director Rob Stout projected that without deep cuts-including assumed agreements negotiated with Public Safety and other labor groups-by June 30, the City will be $6 million in debt and will have spent every last penny of its $4 million in reserves.
The City reportedly has a plan to cut $20 million out of the budget in the next year, which would devastate city services, but the City Council has refused to hold an official public meeting to discuss bankruptcy with residents.
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