STOCKTON — Stockton’s city manager says the only way the Northern California city can get out of bankruptcy is to raise sales taxes.
Bob Deis said Tuesday that without the three-quarters of a cent sales tax increase on the November ballot, city officials would have to make deeper cuts at the fire department and close libraries and recreation programs.
Deis spoke on the heels of the city’s long anticipated bankruptcy plan, which was released last week.
The plan makes no cuts in the city’s annual contribution to CalPers, the state pension fund.
Creditors who hold bonds issued to help Stockton meet its pension payments have argued that members of the pension plan should also suffer cuts.
The plan is subject to votes by the City Council, the city’s creditors and a judge.