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Stockton bankruptcy exit plan clears city council; court next

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POSTED October 4, 2013 8:58 p.m.

STOCKTON  (AP) — The city of Stockton's plan to emerge from bankruptcy has cleared the city council.

The council voted 6-0 on Thursday to give Deis authority to file the plan with U.S. Bankruptcy Judge Christopher Klein. The plan could still face opposition from the city's creditors.

City officials have said the plan's success depends on voters approving a three-quarter-cent sales tax hike in November. The tax revenue would help close an $11 million deficit and allow for the hiring of 120 police officers.

City Manager Bob Deis said that over the plan's life it would cut $2 billion in labor and other costs from the city's budget.

The city filed bankruptcy in June 2012 after three years of multimillion-dollar deficits. It has been working since then to restructure its debts.

 

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