Los Angeles ( CNN ) -- The City Council of San Bernardino , California , is scheduled to vote late Wednesday on a resolution formally authorizing the filing of bankruptcy . The council , scheduled to meet at 5 p.m. , is to consider first another resolution declaring a fiscal emergency . Last week , Interim City Manager Andrea Miller and Finance Director Jason Simpson issued a report stating that the city was facing insolvency and its expenditures are projected to exceed revenues by $ 45 million . The city 's general fund reserves had been as high as $ 19 million in 2001 but are now depleted , the report said . Some $ 10 million to $ 16 million in annual revenue has evaporated in recent years as taxable sales dried up and property values plummeted in the city of 211,000 residents , the report said . San Bernardino is about 60 miles east of downtown Los Angeles . Prior agreements reducing city salaries are now ending , `` creating an increase in salaries and benefits of $ 10 million effective July 1 , 2012 , and increased costs in future years as merit increases resume , '' the report said . Despite negotiating tens of millions of dollars in concessions and reducing its work force by 20 % over the past four years , San Bernardino would not have enough cash on hand to meet its obligations , according to the report . `` The city has reached a breaking point , '' the report said . Opinion : Can state governments step up ? San Bernardino would be the third California city to file for bankruptcy in the past few weeks . Many municipalities in the Golden State and around the nation are struggling to cover their costs as the economic malaise continues to hurt tax revenue streams , experts said . This will lead to more municipal bankruptcies , which have been rare until now . `` This is not the end . This is the beginning , '' Peter Navarro , business professor at University of California , Irvine , told CNN recently . `` As cities see it can be done and is being done , it will give them the idea to do it . '' The town of Mammoth Lakes , California , sought protection July 2 after a property developer won a $ 43 million court judgment against the resort town of just over 8,000 residents . Experts say this filing should not be lumped in with the other two California towns since it was an unusual circumstance . The city of Stockton , however , filed for bankruptcy in late June after three months of mediation with creditors failed to close a $ 26 million budget shortfall . The city of 292,000 residents had already addressed $ 90 million in deficits over the past three years , mainly through reducing services and employee compensation . Both Stockton 's and San Bernardino 's fiscal troubles are due in large part to the massive housing downturn and recession that swept across California . Both towns were hit particularly hard by the foreclosure crisis , which left numerous abandoned homes and reduced property values in its wake . That led to lower property tax revenues , critical to supporting public services . Also , municipalities have struggled from budget changes made on the state level . Because of massive budget shortfalls , Gov . Jerry Brown and the state legislature made changes to vehicle tax money allocation and redevelopment agencies that stripped locales of hundreds of millions in state funding . Governor signs high-speed rail bill . While some areas of the Golden State are starting to recover , the regions containing those two towns are not , said Chris McKenna , executive director of the League of California Cities . By filing for bankruptcy , cities will be able to keep police and firefighters on the street and possibly keep some parks and libraries open while they work out their finances , he said . More municipal bankruptcies are likely in California and throughout the nation , as cities continue to battle rising costs and a weak economy , said Eric Hoffman , an analyst at Moody 's Investors Service . CNNMoney 's Tami Luhby contributed to this report .
San Bernardino is scheduled to vote on declaring a fiscal emergency . The city faces a $ 45 million shortfall as millions in revenues have evaporated . San Bernardino would be the third California city to go bankrupt in recent weeks .