Friday, September 21, 2012

Atwater, California mulls fiscal emergency, bankruptcy


I’ve read several articles on cities in CA facing possible bankruptcy, but this one was never mentioned.

Atwater faces a general fund deficit of $3.3 million, the notice said. "Without further action, the City will not be able to pay its obligations," it added. According to the notice, city staff have recommended to Atwater's city council that it take up the matter of a fiscal emergency again on Oct. 3.

That will give city staff time to work on solutions to avoid a bankruptcy filing and gather material needed for a fiscal emergency declaration, according to the notice.

"While bankruptcy is always a last resort, if other solutions do not allow the City to meet its legal obligations to balance its FY 12/13 operating budget, while providing adequate levels of services necessary for the health, safety, and welfare of the citizens of Atwater, the City may be required to seek bankruptcy protection," the notice said.

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