A federal judge released the Solano County city from bankruptcy Tuesday, ending its dubious distinction of being one of the largest and first U.S. cities to go that route since the financial meltdown.
"I think we're all exhausted but exulted," said City Councilwoman Stephanie Gomes. "It's been a rough road."
Vallejo's City Council declared bankruptcy in May 2008, faced with large deficits, few reserves, costly police and fire contracts and plunging tax revenue. Declaring bankruptcy gave the city protection from creditors and allowed it to renegotiate its employee contracts.
Among other changes, city staffers now contribute more to their health insurance, new firefighters have lower pension plans, and the fire department no longer has minimum staffing requirements.
The city has also taken steps to find more revenue. It's created a one-stop permit center for developers and is asking for a 1-cent sales-tax increase and medical marijuana tax on the Nov. 8 ballot.
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