SAN FRANCISCO — San Bernardino, Calif.’s decision this week to authorize a bankruptcy filing, which would make it the third California city to do so in less than a month, has shaken the municipal market and set up a likely showdown with bondholders.

The City Council Tuesday night during a special meeting voted 4 to 2 with one abstention in favor of filing for Chapter 9 protection in U.S. Bankruptcy Court because it said it would otherwise be unable to pay its workers.

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