Archive for Saturday, May 24, 2008

City of Vallejo files for bankruptcy protection

May 24, 2008

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— The city of Vallejo filed for bankruptcy protection Friday to deal with a ballooning budget deficit caused by soaring employee costs and declining tax revenue.

The San Francisco Bay area suburb of about 120,000 residents became the largest California city to seek bankruptcy protection.

Mayor Osby Davis said the city's attorneys filed papers seeking Chapter 9 bankruptcy protection in federal court in Sacramento.

"We've exhausted all avenues at this point, and this is all we had left," Davis said. "I had hoped to avoid it all the way up until yesterday. It's something we can't avoid ... We can't pay our bills."

Comments

May Soo 7 years, 1 month ago

been_there (Anonymous) says:Maybe everyone should e-mail the story to the commissioners.------------------------------Like they care, as long as they got their big yearly raises, their all-pay for trips, they could care less what the city/citizens need.

just_another_bozo_on_this_bus 7 years, 1 month ago

If it doesn't explain it to your satisfaction, Godot, google it-- there are other articles from other sources that have essentially the same conclusion.

Sigmund 7 years, 1 month ago

$2,600,000 a year, year after year, for the empTy, it is completely absurd. Watch as the City Commission rearranges the deck chairs as the city steams headlong into a iceberg (that should have melted from global warming but surprisingly didn't) and lacks the backbone to tell MV Transportation (a privately held corporation) that their corporate welfare gravy train has come to the end of the line.

Dorothy Hoyt-Reed 7 years, 1 month ago

The real estate bubble is really bad in California. My house would be worth a million dollars there at one time, but only 180,000 here. The city was probably use to living off the inflated values, but now the values are adjusting themselves, the tax revenues have dropped drastically. I don't think it will be that extreme in Kansas, even Lawrence. We may be the same country, but we don't have the same economy across the board.

professormarvel 7 years, 1 month ago

Bozo on the Bus: "The primary causes are the collapse of the housing bubble, as I already noted, and contracts negotiated in secret with employee unions. While there is less of a problem of that here, there is a good deal of government conducted in secret"....I understand the bubble, and understand the costs of unions, but am confused about the allegation of "secrecy.". Bozo, were the union contracts negotiated in any different fashion from any other city? What do you mean in secret? Cite your authority, please.

igby 7 years, 1 month ago

This is Lawrence in about a year. Raise sales taxes and drive business away. Watch the vacancy's excel. Watch your home values fall. Students can live cheaper because the town will be giving away apartments just to keep up with the bills. How many banks will be open then. The FDIC will swoop in and close many. The power of the penny!See what a change it will bring!

just_another_bozo_on_this_bus 7 years, 1 month ago

This is primarily the result of the collapse of the housing bubble. If that collapse finds its way here, then the policy of subsidizing suburban sprawl will have a similar dramatic effect on Lawrence, rather than the mild effect we are now experiencing (which Sigmund wants to attribute to the T.)

been_there 7 years, 1 month ago

Maybe everyone should e-mail the story to the commissioners.

Godot 7 years, 1 month ago

bozo uses an unsourced opinion piece from the Huffington Post as his source! ROFLMAO!!!!

igby 7 years, 1 month ago

Isn't smart growth all about making weak and bad loans to people who would not otherwise qualify to live in suburbia; instead packing them into more modern style glamor getto's, where everything they need is right their and they don't have to leave the complex for anything? A bask of diversity, food, liquor, entertainment, clothes, hardware and drug dealers in every complex. What a dream for some. Bicycles and scooters everywhere and no cars allowed. Substitutability of the ship of fools.Just like the good old USSR. Government funded glamor getto's, with a square and fountain and health care facility all on location; to dish out the tax payers dollar to the have not's and the haves. To make green and to take green from the wealth of the nation and bring about the utopia of the serenity of fools.The real estate bubble was broken due to millions of bad loans on houses and commercial properties, that values were inflated by local governments and doubly inflated by the greedy real estate industry, who rode the wave upward in almost all the cities who's governments were taken over by liberal Dem conquest. But we can't just blame the Dems for the greed of a market, even though, it was their pawns who started the inflation of properties values for tax gains. The market did react to what was called "nothing succeeds like excess", (OscarWild). There's correction in all markets, even in the backbone of our monetary banking system, the federal reserve. There are many lossers in it's correction and few will profit from it's correction and only time can correct it.After the GOP replaced the Dems in congress in 1994. The Dems launched a crusade on all local government. They infiltrated these governments with little resistance because the national Dem party open their purse to local candidates, some even running as Republicans, who got funded by the Dems purse string. It happened here in Lawrence, no one can deny that it's fact.

BigPrune 7 years, 1 month ago

This is a smart growth community in action, just like Lawrence.

BigPrune 7 years, 1 month ago

Vallejo filed Friday for bankruptcy protection to deal with a ballooning budget deficit caused soaring City employee costs and services, and declining tax revenues caused by its inability to attract new businesses due to high sales taxes, property taxes and development fees.Sound familiar?The scary thing is all the communities who embraced smart growth. This is the tip of the iceberg.

BigPrune 7 years, 1 month ago

As goes a former mayor/city commissioner so goes Lawrence.

just_another_bozo_on_this_bus 7 years, 1 month ago

Actually, "smart growth" doesn't appear to have anything to do with it. The primary causes are the collapse of the housing bubble, as I already noted, and contracts negotiated in secret with employee unions. While there is less of a problem of that here, there is a good deal of government conducted in secret here, primarily for the benefit of development interests."To the familiar litany of causes--falling sales tax revenue, the home mortgage crisis leading to collapsing home prices and lower real estate taxes--there needs to be added one more: Too much government secrecy."http://www.huffingtonpost.com/peter-scheer/vallejos-bankruptcy-might_b_101032.html

been_there 7 years, 1 month ago

I see a lot of building going on and yet a lot more vacancies. It doesn't make sense to me, do we need more housing? Doesn't this mean we need more infrastrucure for apartments we don't need?

1wetwilly 7 years, 1 month ago

A scenario similar to Vallejo is highly likely for Lawrence over the next two to five years:The increasing high cost of commuting to acceptable paying jobs in KC and Topeka will dissuade prospective new residence from moving to an increasingly expensive bedroom community like Lawrence. Likewise, a significant number of current commuters will move from Lawrence to a less expensive KC or Topeka. KU enrollment will decrease as students & parents seek less expensive institutions that are closer to home. Vacancy rates will increase in Lawrence, empty properties will proliferate, local real estate values will plummet, more people will leave, local government will increase taxes to counter-act the ever shrinking tax base...the spiral continues...Lawrence is in the path of an economic storm courtesy of 30 years of greedy self interest and collusion between city-county government, a few developers, bankers and local business owners.

BigPrune 7 years, 1 month ago

The path to ruin was put down by our former Progressive controlled City Commission.

just_another_bozo_on_this_bus 7 years, 1 month ago

Yea, BigPrune, they were really caught up in encouraging the sprawl that it is the real culprit for the budget problems.

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