San Bernardino filed for bankruptcy protection on Wednesday citing more than $1 billion of debts and making it the third California city to seek protection from creditors.

The city of about 210,000 residents 65 miles east of Los Angeles declared a fiscal crisis last month after a report said local government had tapped out its reserves and projected spending would top revenue by $45 million in the fiscal year that began on July 1.

The filing, made in the United States Bankruptcy Court, Central California District, states that the city has "more than $1 billion" in liabilities, and estimated that it has between 10,001 and 25,000 creditors.

It also states that San Bernardino has estimated assets of more than $1 billion.

In San Bernardino, a recent report by the city attorney said officials had falsified budget reports to the mayor and council for 13 of the last 16 years, hiding the scale of the city's debt.

Via: http://www.reuters.com/article/2012/08/02/us-usa-bankrupty-san-bernardino-idUSBRE87105220120802

True democracy in action. Constant falsification, debt that can not be paid (and every official knew it).