California, the most populous U.S. state, isn’t likely to see a wave of cities defaulting on payments to municipal bond holders, according to a study sought by Treasurer Bill Lockyer’s debt and advisory commission.
San Bernardino, the insolvent California city, shouldn’t be allowed to cancel contracts with its three biggest unions until a judge decides whether the city’s bankruptcy is legal, labor officials said.
Veolia Environnement SA’s water division has been awarded a 30-year contract through its North America subsidiary to manage water and wastewater systems for the Southern California city of Rialto and its water agency.
San Bernardino, the bankrupt California city facing an inquiry by the U.S. Securities and Exchange Commission, masked its growing deficits by using funds meant for sewers, roads and construction to cover current expenses, according to city records.
In Farmersville, California, a city of 11,000 in the agricultural San Joaquin Valley, firefighters sleep in the city council chambers, share a bathroom with the public and prepare meals in a city hall break room.