“Attention San Bernardino Residents Important City Bankruptcy Information”
August 6, 2012 Leave a comment
By Michael Reiter, Attorney at Law
“ATTENTION SAN BERNARDINO RESIDENTS IMPORTANT CITY BANKRUPTCY INFORMATION” reads the first page of a mailer from the San Bernardino Police Officers Association and the San Bernardino City Professional Firefighters.
The mailer is below (scanned with the back and front first, with the interior page below), and arrived August 4th in post :
The back of the mailer says:
SAN BERNARDINO’S FIREFIGHTERS AND POLICE OFFICERS STAND WITH THE RESIDENTS OF SAN BERNARDINO
Dear San Bernardino Residents,
San Bernardino’s Firefighters and Police Officers go to work each day
risking their lives and their safety to protect the lives and safety of the
City’s neighborhoods and families.
We’re in this together with you. We have your back- and we know you
have ours.
Mayor Pat Morris and his administration must be held accountable for
the failed policies that have driven San Bernardino into bankruptcy.
His failures cannot be excused.
Your tax dollars have been squandered.
Jobs have been run out of the City.
Vital city services needed to protect San Bernardino’s families are
facing devastating cuts that will threaten public safety.
We’re willing to do our part and make our fair share of sacrifice to help
the City balance its budget- just as we have for the last several years.
As the City moves forward into Bankruptcy Court we will keep you
informed to ensure that you have the facts about how San Bernardino’s
bankruptcy will affect you and your family.
We thank you for your continued support and are honored to serve you.
Yours truly,
SCOTT MOSS, President
San Bernardino City Professional Firefighters
STEVE TURNER, President
San Bernardino Police Officers Association
Learn more about the City’s Bankruptcy at
www.sanbernardinocitybankruptcy.com
Page Two continues:
WHY DID THE CITY OF SAN BERNARDINO
DECIDE TO DECLARE BANKRUPTCY?
The City claims to have a $45 million budget deficit that will prevent it from
paying its employees and the other bills it owes by the end of summer.-
WHAT CAUSED SAN BERNARDINO’S $45
MILLION BUDGET DEFICIT?
Mayor Pat Morris and his administration failed to make the tough choices
necessary to honestly balance the City’s Budget.
According to an outside independent expert, “San Bernardino faced years
of deficit spending. It’s structural gap, however, was covered-up instead of
addressed. The city sold assets, borrowed from city funds, borrowed from
banks and bondholders, used one year’s surplus to cover the following
year’s deficit, and raided its reserves.”
IS IT COMMON FOR A CITY TO
DECLARE BANKRUPTCY?
No, it’s very rare. Only one or two cities in the entire
nation declare bankruptcy each year. Recently the
cities of Stockton and Mammoth Lakes declared
bankruptcy, and Vallejo declared bankruptcy in 2008.
Vallejo has completed the bankruptcy process but the
financial benefits are unclear. Vallejo spent $13 million
of taxpayer money on legal bills and still does not
have a balanced budget.
Page Three says:
IS THE COST OF THE SALARIES AND PENSIONS
OF FIREFIGHTERS AND POLICE OFFICERS THE
CAUSE OF THE CITY’S BANKRUPTCY?
No. Pat Morris is falsely making this claim to hide the fact that his failures
to stop wasteful spending and balance the City’s budget have driven San
Bernardino into bankruptcy.
The truth is the San Bernardino City Charter, as approved by the voters,
protects taxpayers by limiting the salaries and benefits of the City’s
Firefighters and Police Officers.
Additionally, San Bernardino’s Firefighters and Police Officers have always
been willing to do their fair share to help balance the budget. They’ve
offered and accepted reductions to their pay and benefits for the last four
years that has saved the City millions of dollars.
Unfortunately Mayor Morris and his administration failed to use the money
from these savings to cut the deficit. Instead the money was used for
wasteful pet projects like the SBX line.
WILL BANKRUPTCY BE BAD FOR
SAN BERNARDINO?
The greatest risk bankruptcy poses to residents is in the area of job creation.
The decision to declare bankruptcy will likely make it more difficult to attract
job-creating businesses to the City because they will be afraid to invest in
San Bernardino.
That would likely result in an increase in San Bernardino’s already high
unemployment rate.
The information you obtain at this blog is not, nor is it intended to be, legal advice. No attorney-client relationship is established by reading or commenting on this blog. You should consult an attorney for advice regarding your individual situation.
About Michael Reiter, Attorney at Law
Michael Reiter, Municipal Attorney. Partner with Cole Huber, LLP in Ontario, Roseville California 