Calif. city declares fiscal emergency

Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Share
Updated: 10/04/2012 7:04 am

ATWATER, Calif. (AP) — A fiscal emergency has been declared in the small Central California city of Atwater, a move that could lead to the state's fourth municipal bankruptcy this year.

KFSN-TV (bit.ly/Wn0kWE) says leaders of the agricultural city of 28,000 approved the declaration on Wednesday night. Atwater is along State Route 99 northwest of Merced.

The foreclosure crisis and mounting employee pension costs are being blamed for the city's $3 million debt.

Layoff notices have already been sent to dozens of city employees and service cuts are expected.

California cities must try to enter talks with creditors to avert bankruptcy filings, but a fiscal emergency declaration allows them to circumvent the law and file for bankruptcy.

The cities of San Bernardino, Stockton and Mammoth Lakes filed for bankruptcy protection earlier this year.

___

Information from: KFSN-TV.


©2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Share
0 Comment(s)
Comments: Show | Hide

Here are the most recent story comments.View All

No comments yet!
NEWSCASTS ON DEMAND
WATCH OUR LIVE NEWSCAST

What's On

All content © Copyright 2014 Intermountain West Communications Company. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.
You may also view our Sitemap

Inergize Digital This site is hosted and managed by Inergize Digital.
Mobile advertising for this site is available on Local Ad Buy.