Vallejo, Calif., firefighters' union asks court to dismiss city's Chapter 9 bankruptcy case

By Jennifer Lanning Drey

Portland, Ore., June 27 - The City of Vallejo, Calif.'s local chapter of the International Association of Firefighters asked the U.S. Bankruptcy Court for the Eastern District of California to dismiss the city's Chapter 9 bankruptcy case.

In a Friday filing, the firefighters' union said it believes the city is using the bankruptcy petition to avoid its contractual obligations to city workers and retirees without having made a reasonable attempt to address its costs and potential revenue sources.

The union claimed that the city is not insolvent because it is still making current interest and principal payments to bondholders.

Additionally, they said Vallejo has numerous options for raising new revenue and cutting expenditures that would allow the city to meet its obligations through the next fiscal year and accumulate "millions of dollars in reserve."

Specifically, they mentioned enhancing revenues, pursing repayment of "tens of millions of dollars in loans" owed to the general fund and taking reasonable steps to control expenses.

The firefighters union said it, along with other unions, has offered to modify collective bargaining agreements to allow pay cuts, staffing cuts, work rule accommodations and raise give backs. The concessions would have been enough for the city to achieve a balanced budget through the next fiscal year, they said.

Vallejo filed for bankruptcy on May 23. Its Chapter 9 case number is 08-26813.

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