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Residents of Bankrupt San Bernardino Launch Council Recall

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Up in arms against the leadership it blames for San Bernardino's bankruptcy, a group of business people and residents yesterday launched a campaign to recall the California city's council, mayor and city attorney, Reuters reported yesterday. The group, looking for a "clean sweep" inside crisis-hit San Bernardino, presented its initiative on the steps of City Hall before a crowd of residents and local media. San Bernardino, a city of 210,000 about 65 miles east of Los Angeles, filed for bankruptcy in August 2012 citing a cash-flow crisis and a budget deficit of $45 million for the current fiscal year. San Bernardino passed a new budget last week that calls for it to resume payments to CalPERS in July - after a year of non-payments - but not to many other creditors, including holders and insurers of its $50 million in pension bonds.