A federal judge has released the Solano County town from insolvency. The move puts an end to Vallejo's three-year bout as one of the nation's first and largest bankrupt cities.

Facing large deficits and a revenue crisis, the City Council filed for bankruptcy protection in 2008.

Since then, the city of 120,000 has closed fire stations and cut funding to senior centers, libraries and public works to save money, and worked to find new sources of revenue.

City Councilwoman Joanne Schivley:

"We're all glad to be out of it. It's a big step towards our future and it represents a lot of hard work by everyone involved."

Declaring bankruptcy gave the city protection from its creditors and allowed it to renegotiate contracts with employees. But bankruptcy court proceedings reportedly cost Vallejo $8 million in legal fees.