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Eugene

(61,593 posts)
Thu Oct 4, 2012, 08:28 AM Oct 2012

Atwater, California declares fiscal emergency

Source: Reuters

Atwater, California declares fiscal emergency

OAKLAND, California | Thu Oct 4, 2012 1:41am EDT

(Reuters) - The city council of Atwater, California approved a fiscal emergency declaration on Wednesday night, a move that could put the city of 28,000 on the path to becoming the fourth city in the most populous U.S. state to declare bankruptcy this year.

California requires its local governments to try to enter talks with their creditors to avert bankruptcy filings, but municipalities may declare fiscal emergencies to circumvent the law and file for bankruptcy.

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Like Stockton, Atwater has fallen on hard times after its housing market imploded and sent property tax revenue plummeting. Furloughs and a hiring freeze were not enough to stem Atwater's losses and the city now faces a budget gap of more than $3 million.

City officials are looking into options for increasing revenue such as raising 20-year-old rates for water services and 10-year-old rates for garbage collection services while clamping down on costs, all while considering whether to pursue a bankruptcy filing.

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Read more: http://www.reuters.com/article/2012/10/04/us-atwater-bankruptcy-idUSBRE8930AS20121004
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Atwater, California declares fiscal emergency (Original Post) Eugene Oct 2012 OP
Raising water and garbage rates won't help them hire or retain cops and firemen tularetom Oct 2012 #1

tularetom

(23,664 posts)
1. Raising water and garbage rates won't help them hire or retain cops and firemen
Thu Oct 4, 2012, 08:36 AM
Oct 2012

Because the money they raise from garbage and water bills is by law restricted to pay the cost of providing water and garbage services. You can't use utility funds to pay for general government expenses. You just can't. It's against the fucking law.

I'm guessing they'll have to fire a few cops and firemen because typically, police and fire department expenditures account for something like 80% of the general fund portion of a city's budget.

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