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Fire, Police Offer Plan To Halt Vallejo Bankruptcy

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May 12, 2008 5:53 pm US/Pacific

Fire, Police Offer Plan To Halt Vallejo Bankruptcy

VALLEJO (CBS 5 / KCBS) ― Unions representing police officers and firefighters proposed a plan Monday to keep the city of Vallejo out of bankruptcy.

The proposal calls for a $10 million reduction in salaries, said Matt Mustard of the Vallejo Police Officers Association.

City officials and the unions were unable to reach an agreement for salary reductions prior to a city council vote last week to file for Chapter 9 bankruptcy, but Mustard said this plan may win acceptance when the council meets again on Tuesday.

Vallejo, the largest California city to declare bankruptcy, is facing a $16 million deficit.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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© MMIX, CBS Broadcasting Inc. All Rights Reserved.