Stockton went back to bankruptcy court yesterday for the fifth and final day of testimony in the Chapter 9 trial. Now it’s back to waiting.
Not surprisingly, this is costing the city a lot of money — $14 million in bankruptcy costs in the past two years, according to Stockton’s attorneys. And the cost keeps rising.
The city allocated $5.2 million for bankruptcy costs in the current fiscal-year budget. But it turns out the cost for 2013-14 will be more like $7 million. So at Tuesday’s City Council meeting, council members will be asked to approve appropriating an additional $1.8 million from Stockton’s bankruptcy fund to apply to 2013-14 costs.
Read the agenda item here.