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Chapter 9 Bankruptcy

On June 28, 2012, the City of Stockton filed a petition for chapter 9 bankruptcy protection with the United States Bankruptcy Court in Sacramento, Case No. 2012-32118. The Stockton City Council approved a Pendency Plan on June 26, 2012. The Pendency Plan is essentially the budget and the plan that is followed for the day-to-day operations of the City while in bankruptcy. It identifies what expenditures will be reduced or suspended. The City will continue to pay employees, vendors and service providers. The focus of the City's plan is the restructuring of above market pay and benefits and unsustainable long term debt. 

The majority of the City's budget is not impacted by the City's fiscal crisis.  The total budget of $521 million includes $366 million in restricted funds, which cannot be used to resolve the General Fund crisis.  The $155 million General Fund provides for services such as police, fire, libraries, parks maintenance and administrative functions.  The Pendency Plan will protect these essential services for the safety and welfare of our citizens. 


City Pendency Plan

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This City of Stockton web page last reviewed on --- 6/28/2012