San Bernardino, Calif., after disclosing a $46 million shortfall in the city’s budget, filed for municipal bankruptcy, Bloomberg News reported today. San Bernardino listed assets and debt of more than $1 billion in a court filing yesterday. It is the third California city to seek court protection from creditors since June 28. City officials sped up the timing of the filing because they were concerned that some creditors may take legal action against the city, Mayor Patrick J. Morris said yesterday. San Bernardino, a city of 209,000 about 60 miles (97 kilometers) east of Los Angeles, has reduced its workforce by 20 percent in the past four years and negotiated labor cuts valued at about $10 million annually, according to a June 26 budget analysis. One of the main problems is the high cost of the city’s union contracts, particularly for police and fire service, City Councilman Fred Shorett said.
