Vallejo Proposes Plan To Come Out Of Bankruptcy
VALLEJO (KCBS) – Vallejo officials said the city is now on "stable" financial footing and it is time to move forward to try and restore employee morale.
The city has proposed a plan to pay $6 million to creditors in an attempt to come out of bankruptcy.
The bankruptcy court will have to decide if employees will have to give up accrued vacation and sick pay, if retirees have to take severe cuts in benefits and whether bondholders will agree to the plan.
KCBS' Bob Melrose Reports:
Vallejo City Manager Phil Batchelor said while all that is hashed out over the next several months, the city must move forward.
"Does the city council want to consider the objective of increasing revenues by putting this measure on the ballot," Batchelor said. "What might it be? Could it be half cent sales tax increase? We don't know."
Batchelor has listed nearly 300 items that should be worked on by city officials to help Vallejo restore services, especially those in the emergency field that have been cut over the last few years.
Under the plan, Batchelor said there are no more personnel or service cuts anticipated.
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