After a decade-long battle, the city of San Bernardino can finally say it’s out of bankruptcy. Last week Judge Scott C. Clarkson issued an order to discharge San Bernardino’s bankruptcy case.
“What exciting news and a moment for San Bernardino residents collectively to celebrate,” said Mayor John Valdivia. “The closure of this chapter in our city’s history – the grueling and deep cuts we all experienced are in the rearview mirror of San Bernardino’s history. I wish to express my gratitude to our community along with the businesses who have stood fast with our city.”
In 2012, when San Bernardino filed for bankruptcy, the City had a cash deficit of $18.2 million and a projected $45.8 million budget deficit.
Now ten years later, the City exits bankruptcy in a strong financial position. San Bernardino has cash reserves exceeding $40 million and a projected budget surplus of $2.5 million this fiscal year.
“The real unsung heroes throughout this process were the residents of San Bernardino,” said City Manager Robert Field. “In a time of crisis, they stepped up by approving a major structural re-organization of our city government along with a local sales tax measure. The importance of those votes cannot be overstated.”