• About the “B” word

    Bankruptcy as an option for Pacific Grove has rumors spreading like last summer’s wildfires, especially since it has been brought up repeatedly by members of the public in the oral communications at city council meetings. But Pacific Grove’s Director of Management and Budget Jim Becklenberg says that it is just that — a rumor.
    “Council and staff are not considering bankruptcy.  We’ve heard about other cities in the state which could be confronting this prospect and the Budget and Finance committee wanted to learn about the process just in case the economy gets much worse than it is now,” he told the Times.
    For the foreseeable future, the city is not going to consider bankruptcy as an option.
    “CalPERS hits will start in 2011-12. They’ll start increasing our rates and they could be significant.” But, he says, “We have preliminary estimates in our 5-yr budget forecast, so they are built into our long-range budget challenge already.”

    posted to Cedar Street Times on April 24, 2009

    Topics: Current Edition, Front PG News

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