For the past seven years, the City Attorney’s Office, along with the council members from the Seventh and Fifth wards, have been the most vocal critics and opponents of the direction in which San Bernardino was moving. On Aug. 23, 2010, our office predicted the city would go bankrupt if the pending budget was adopted. Those same two council members agreed.
Not only were our collective concerns ignored, but a specific group of individuals, mostly non-residents, claimed we were being divisive and not “team players.” Later that year, members of this group backed a charter amendment to make the city attorney an appointed rather than an elected office. That effort failed.
The following year, when we refused in writing to sign off on that year’s budget because it was not balanced, this same group recruited an out-of-county attorney to move in and run, unsuccessfully, for city attorney.
Today that same group demands replacing all elected city officials with candidates they have chosen. They boast they will put up the money to accomplish this, their takeover of our city.
Setting this history aside we are working together with the other elected officials to prevent this city from dissolving. It has not been easy, but we have done it.
On April 22 the City Council adopted a final budget. It projects San Bernardino ending the current fiscal year with a cash balance of $7.7 million. This means a $2.3 million cash surplus. If our office’s calculations are correct, this budget may be off by approximately $2 million. However, that still leaves a surplus of $300,000; a substantial improvement over the $41 million deficit projected previously.
This is a significant milestone in the city’s effort to reorganize. This is what the U.S. Bankruptcy Court and our creditors have wanted to see, a balanced budget.
While we are not out of the woods, and difficulties lie ahead, I can report to you that it is now unlikely the city will dissolve. The city is no longer in critical danger of being unable to make payroll and your employees continue to report for work.
Every day we confer with our creditors and often reach agreements with them. Slowly, we have succeeded in reaching consensus with most creditors that this city does need the protection of the federal bankruptcy laws.
The bankruptcy court and our creditors seek stability from our city government. They want to see whether or not we are able to enter into binding commitments with creditors, large and small. CalPERS, Wall Street municipal bond insurers, the state Department of Finance and HUD all have issues and questions, and each seek binding commitments from our city government.
Only a city government that is united, dedicated and informed will be able to continue the progress we have made thus far without significant interruption.
But that same group mentioned previously has taken it upon itself to try to impose its political agenda into our problems.
These individuals have seldom or never attended the Bankruptcy Court hearings and lack understanding of our day-to-day negotiations with creditors or what the Bankruptcy Court and our creditors seek. Yet, they want to take over San Bernardino’s tax dollars and the bankruptcy case.
What San Bernardino needs most today is unity and continuity. Unity and a common determination that we will get through this crisis; confidence that significant progress and a new and better San Bernardino is our future.
Three council seats along with the mayor’s position will be up for election this November. The voters, not outsider money, must then decide on new leadership for our city.
James F. Penman is the city attorney of San Bernardino.
