City Officials Scramble to Head Off Bankruptcy

From Times Staff and Wire Reports

This East Bay city is on the brink of bankruptcy, leaving officials scrambling to find a way to avoid defaulting on a major bond payment and bouncing checks in April.

Contra Costa County’s second-largest city, Richmond has only $125,000 in available cash flow, according to the Contra Costa Times. Officials are considering a third round of cuts and layoffs before the fiscal year ends in June.

Officials stopped short of announcing a bankruptcy filing, but called the situation “dire.”

The city has a $9.5-million budget gap to close and $12 million in bond payments to make in April and December.