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On May 23, 2008, the City of Vallejo filed for chapter 9 municipal bankruptcy relief in the Eastern District of California, Sacramento Division in case #08-26813. Vallejo, a city of about 120,000 people, is located about 30 miles northeast of San Francisco. Vallejo is the largest California city to file for bankruptcy relief.
Vallejo's bankruptcy filing was widely anticipated in the media since February as tax revenues fell and employee labor costs remained high. The LA Times reports that "eighty percent of the city's budget goes to police and firefighters, far above the norm for most California cities." The largest creditor listed is the California Public Employees Retirement System for retirement health benefits for about $135 million and unfunded pension plan benefits for about $84 million. The City requested the court to set June 9, 2008 as the deadline for objections to its bankruptcy filing.
The city has set up a website to provide information on its bankruptcy filing.Jordan E. Bublick, Miami, Florida, Attorney at Law, Practice Limited to Bankruptcy Law, Member of the Florida Bar since 1983