San Bernardino Accomplishes Important Bankruptcy Goal

by San Antonio Attorney

The city of San Bernardino accomplished an important milestone in its four-year bankruptcy.

On Dec. 7, U.S. Bankruptcy Judge Meredith Jury announced that she will confirm the city’s bankruptcy plan.

The judge’s decision puts the city back on track to finally exit bankruptcy in the new few months.

Throughout the bankruptcy process, San Bernardino filed for bankruptcy has undergone major changes on how it conducts business.

Resident in San Bernardino approved a new agreement in 2016, reorganizing the city government. According to Jury, the city government lacked management while political power was excessive.

Moreover, San Bernardino promised contracting out certain services whenever it is more efficient to do so. This is going to save the city a lot of money by letting the private sector perform certain functions of the government, such as street sweeping and trash pickup.

City officials said in a statement that many cities are using contractors since they can get the best price for great services with existing competition in the business.

The city opted to do away with its high maintenance fire department, which burdens the county providing of emergency services.

These changes will bring the city good results. It is extending accountability and cutting unnecessary costs, which are important in running a sustainable government.

Nevertheless, there are still obstacles, and a lot of people lost during the process.

The decision of the city to maintain public employee pensions through the California Public Employees’ Retirement System meant that very little money would go for everyone else, according to experts.

But San Bernardino is in a much better position than it was at the time it filed for bankruptcy.

A reorganization plan aims to revive a bankrupt or financially troubled city or firm. A San Antonio Lawyer can explain how this process can help anyone who is dealing with unmanageable debt.

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