SAN BERNARDINO – (INT) – It can no longer be said that this one-time All-American city is bankrupt.

It was announced late Monday that the Plan of Adjustment is now effective and the city has begin making distributions to creditors.

Some of the major elements of the Plan include dissolving the fire department and turning over fire protection to the County Fire District, contracting for refuse services, and investing city resources to the strengthening of the police department.

On Wednesday, the City Council is expected to adopt a $160 million budget, as well as a $22.6 million Capital Improvement Budget.

Officials said the city will increase staffing and equipment replacement in the Police Department, initiate a new Violence Intervention Program, hire additional maintenance staff in Public Works and Parks, and increase the Community Development staff to facilitate development opportunity. The capital budget provides for new street rehabilitation, street light and traffic signal repair, storm drain and median maintenance, and several park facility improvements.

The announcement said the end of bankruptcy has already led to a noticeable increase in parties interested in business and development investment in San Bernardino.

City government offices will return to a 5-day-a-week operation on August 7th.

Mayor Carey Davis thanked those who cooperated with the City during the bankruptcy process. "From the beginning, we understood the time, hard work, sacrifice and commitment it would take for the City to emerge from the bankruptcy process," Davis said.

Story Date: June 26, 2017