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May 16, 2008 12:05 am US/Pacific

Vallejo Rejects Contract Offer From Police, Fire

VALLEJO (AP) ― Vallejo officials have rejected a contract proposal from police and fire unions that union leaders claim would save the city from bankruptcy.

The unions on Monday announced they would take $10 million in salary cuts to help the city overcome its projected $16 million budget deficit.

City Councilwoman Stephanie Gomes said the council directed the staff during a closed session Tuesday not to accept the proposal. She said the council did not vote on the proposal because no formal offer was made.

The city council voted unanimously last week to file for Chapter 9 bankruptcy protection. The city attorney's office has yet to file the papers.

Experts say the Solano County suburb of 117,000 will be the first California city to file for bankruptcy because its revenues cannot cover expenses.

(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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