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Vallejo Bankruptcy
Vallejo police, firefighters and other city workers asked a judge Friday to reject the city's bankruptcy petition, which the employees argued was filed solely to wrest deep salary cuts from them.
The workers concede that the city is in "financial distress," but argued there were better ways to fix the financial problems than with a bankruptcy petition.
"This petition reflects an attempt by the city to avoid its contractual obligations to city workers and retirees, without reasonable efforts to address other costs and revenue sources," the workers said in a document filed in Sacramento federal bankruptcy court. "The city created its own financial problems by not taking steps easily available to it and should not be allowed to avoid those fiscal responsibilities in favor of a bankruptcy shearing scapegoat."
The workers' lawyer Dean Gloster said the employees are willing to endure a $10 million salary cut. City officials said that's not enough to lift the city out of dire straits.
The City Council authorized officials to file for bankruptcy in May after months of failed negotiations with the police and firefighters unions. The Solano County community of 120,000 residents faces a $16 million budget shortfall for the fiscal year beginning July 1.
Earlier this month, Vallejo managers asked the judge to void all four of its labor contracts covering 400 employees, blaming the rising contracts and imploding housing market for the financial turmoil.
Union leaders maintain that the city has $136 million at its disposal in other accounts and is using the bankruptcy filing as a ploy to get out of the labor contracts.
A hearing on the issue is set for July 23.