Reuters: U.S.: San Bernardino short-term proposal: suspend debt payments

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San Bernardino short-term proposal: suspend debt payments Jul 24th 2012, 19:41 Tweet Share this Email Print Related News Stockton made scant headway in pre-bankruptcy talks Sat, Jul 21 2012 San Bernardino, California, sets course for bankruptcy Thu, Jul 19 2012 CORRECTED-City of Compton may declare bankruptcy by September-officials Wed, Jul 18 2012 San Bernardino, Calif., postpones fiscal emergency decision Tue, Jul 17 2012 Authorities probe San Bernardino, city mulls bankruptcy move Fri, Jul 13 2012 A concrete sign marking the city limits for San Bernardino, California is seen July 11, 2012. Credit: Reuters/Alex Gallardo By Peter Henderson SAN FRANCISCO | Tue Jul 24, 2012 3:41pm EDT SAN FRANCISCO (Reuters) - San Bernardino, California, which is planning to file for bankruptcy, would suspend payments on pension obligation bonds and other debt under a three-month proposal to be submitted to the city council on Tuesday. A package of materials on the city council's website included the plan for July-September of this year. City staff recommend deferring $3.6 million in debt and lease payments, including on pension bonds and infrastructure bank loans. "The Council is being asked to authorize City staff to defer payment on the City's debt coming due between July 1, 2012 and September 30, 2012, administratively 'freeze' non-essential vacant positions, curtail spending organization-wide, suspend all equipment purchases, and defer any new Capital Improvement Program projects," the materials said. The city of about 210,000 people located 65 miles east of Los Angeles would become the third city in California to seek protection from its creditors since late June, after Stockton and Mammoth Lakes, and the speed with which its situation has deteriorated has shocked residents and observers. In a few weeks the city has declared a fiscal emergency and begun preparing for a bankruptcy filing, revealing a $45.8 million shortfall for the budget year that began this month. (Reporting by Peter Henderson and Jim Christie; Editing by Chizu Nomiyama and James Dalgleish) Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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