Rio Vista, Calif., a Sacramento River delta town about 30 miles east of bankrupt Vallejo, is considering its own Chapter 9 bankruptcy filing.

Town officials have met with bankruptcy lawyers from Orrick, Herrington & Sutcliffe LLP, and the City Council was scheduled to hear discuss a filing after press time yesterday.

Rio Vista, a town of 7,500 people, recently cut 16% from its general fund budget, but it still needs to cut another $800,000, which may not be possible without breaking its union contracts or seeking concessions from workers.

The town has faced a wave of foreclosures like Vallejo and other Solano County municipalities. The housing crisis has also left Rio Vista with a 750-home real estate development that’s partially completed and mostly empty.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.