The Stockton City Council is assuring residents they won’t see a significant difference in services as a result of of the bankruptcy filing.
In a joint open letter to the community, the council and mayor write, “in order to protect our City and our modest level of services, this council had no other choice but to file for bankruptcy relief.”
But, the letter continues, “In bankruptcy, there will be impacts on our retirees, employees, and financial creditors. Commitments were made to employees in the 1990s, such as free lifetime healthcare for a retiree and dependent, but no funding for these benefits was ever identified or set aside. The problem has been ignored for so long, and grown so huge, and the City no longer has the money to pay for these benefits.”
The next council meeting is Tues. July 24th at 5:30 p.m.