City on brink of bankruptcy

Vallejo "currently has a $135 million liability for the present value of retiree benefits already earned by active and retired employees and an additional $6 million a year as employees continue to vest and earn this future benefit, Tanner said."
- I think this local tale has not been covered all that well in part because of the vague way cities have done their accounting. But soon, municipalities will have to quantify their unfunded liabilities, including pension and health care costs for the future. I think this will get worse.