Vallejo is set to become the largest California city to declare bankruptcy after leaders voted in favor of the solution to the city's spiraling budget crisis.

The city council voted unanimously Tuesday night following hours of public comment.

City Manager Joseph Tanner had advised filing for bankruptcy before its fiscal year ends on June 30 because Vallejo faces a projected budget deficit of $16 million and has no money in its reserves.

Many officials and residents attribute Vallejo's fiscal troubles to overly generous pay and benefits to the city's police and firefighters.

The decision came after two years of negotiations with the police and firefighter unions failed.