Cities are not companies which are fully able to seek refuge within the bankruptcy code; many times cities are limited by the state (and in some states, they can be forbidden from going bankrupt.) Further, almost every city in California is specifically forbidden by their city charters from having ANY debt which isn't funding through bonds. If the voters haven't approved it, no debt can be carried. Some patchwork legislation has been passed by the state to somehow re-write city charters to allow them to carry CALPERs debt, and specifically forbid cities from repudiating that debt (which they can't legally have any debt...)
Cities can raise rates almost at will to pay debt something companies can’t do. In fact cities know to the penny their projected revenue another thing companies can’t do. What they should do is cap their pension plan and move new hires to 401k. Also terminate retirement health plans. This is what the private sector did.