Following bankruptcy the city introduced austerity measures and also reduced its fire and police services. It exited bankruptcy in 2011 and that same year voters approved a one-cent sales tax, which they would later renewed in 2016. This provided the city with an extra $14-16 million a year, which was earmarked to cover the lost police and fire services.

In 2023, the city estimated it has raised $10 million per year over the last 10 years. This reserve budget became very useful in 2020, when the pandemic hit and Vallejo faced an expected $12-13 million deficit. But although it has much to celebrate, it might not be out of the woods just yet as the city’s pension contributions are expected to increase to at least $52 million by 2030...

US cities that went bankrupt