Is the City of San Bernardino eligible for bankruptcy?
That’s a question that will likely be answered this August.
Last week the federal bankruptcy court set a tentative date of August 28, 2013 to determine whether or not San Bernardino’s bankruptcy can proceed.
While the San Bernardino Police Officers Association has not contested the City’s bankruptcy claims, the California Public Employee Retirement System (CalPERS) has argued that San Bernardino is not eligible for bankruptcy.
As the City’s largest creditor, CalPERS has been extensively reviewing San Bernardino’s financial records and found some truly shocking information.
For example, CalPERS recently brought to the court’s attention that San Bernardino had $26.8 million in the bank this January – even though the City said it only had $4.2 million on hand at that time.
As previously reported, this $22.6 million accounting error is a 538% discrepancy.
In most cities such a monumental financial disparity would be seen by shocking, in San Bernardino such adding errors appear to be nothing more than business as usual under the failed leadership of Mayor Pat Morris.
As the leader of San Bernardino, Pat Morris is principally responsible for taking the City over the fiscal cliff.