VALLEJO, Calif. -- The hearings on whether Vallejo is eligible for Chapter 9 bankruptcy ended Friday in U.S. Bankruptcy Court in Sacramento and the presiding judge said he hoped to have a decision by Sep.2.

Marc Levinson, Vallejo's bankruptcy attorney, said the city and the unions opposed to the Chapter 9 petition will submit written legal findings of fact and conclusions of law to Judge Michael McManus by Aug. 29.

The judge indicated he will review the material over Labor Day weekend and could have a decision Sept. 2 on whether the city's bankruptcy petition prevails, Levinson said

If he rules in favor of the city, McManus will then hold hearings on the city's request to reject its collective bargaining agreements with its employees' unions and the process of negotiating with the unions and the city's creditors will begin, Levinson said.

Levinson said Roger Mialocq, a senior partner with the consulting firm Harvey M. Rose Associates, completed his testimony Friday. The firm issued a report in May that analyzed the city's finances and asserted the city is not insolvent.

Bankruptcy Judge Michael McManus denied a motion Thursday by the employees' unions. The motion claimed the city has not proved its assertion that it is bankrupt. McManus' ruling allowed Mialocq to resume his testimony this morning, Levinson said. That testimony should finish Friday, Levinson said.

The city has presented four witnesses over six days to support the bankruptcy petition.

After the Vallejo City Council voted May 3 to file the bankruptcy petition, it was filed May 23. City finance officials claimed Vallejo faced a $13 million deficit in the 2008-2009 budget and the city would have had a negative fund balance of nearly $6 million by June 30.

City officials said public safety employees' salaries and benefits comprise 74 percent of the general fund budget. The police and fire unions claim that number is misleading and public safety spending is only 17 percent of total city spending.

The public safety unions claim the city has shifted services and other program costs out of the general fund to special funds or specific service districts, driving up the public safety percentage of the general fund budget.

If the bankruptcy petition is approved, the city hopes to modify its employees' contracts that expire in 2010.