The city of San Bernardino’s over four-year-long bankruptcy is nearing its end. On Friday, U.S. Bankruptcy Judge Meredith Jury agreed to issue a written confirmation order formally paving the way to the city’s exit from bankruptcy.
“The last words I will say is congratulations to the city,” Jury said in court. “I look forward to the order and I look forward to the city having a prosperous future.”
City officials expect the city’s plan to take effect in March or April. It’s a momentous occasion for San Bernardino, which has experienced significant tumult over the past several years. Being free from the confines and stigma of bankruptcy is sure to provide a boost to economic development efforts.
It is difficult to overstate the magnitude and breadth of the city’s problems at the time of its August 2012 filing for bankruptcy protections.
A lagging economy, inadequate financial planning, rapidly growing pension obligations and a fundamental breakdown of the integrity of city government contributed to a dire situation, forcing San Bernardino to become one of the largest municipalities in history to file for bankruptcy.
Some of these issues have since been ameliorated.
City residents approved a new city charter in November, which is expected to clear some of the many redundancies in how city government is organized.
The city has also contracted out a significant portion of city operations to the private sector, which should yield long-term savings on retirement costs.
Though difficult, the city also took the step of closing its long-held fire department in favor of receiving services through the county, alleviating the city from responsibility over one of its largest budget items.
More controversially, however, has been the city’s decision not to impair its obligations to the California Public Employees’ Retirement System. The state pension giant had intimated the prospect of costly legal action against the city, were it to pursue cuts to pensions.
The city has also approved a bankruptcy exit plan that will shortchange many victims of excessive police uses of force owed money under settlements.
Alas, it must be hoped that city officials in San Bernardino and abroad have learned a few things from what has been a difficult, contentious process.
And may the city of San Bernardino find itself in a better place moving forward.
Our editors found this article on this site using Google and regenerated it for our readers.
