Could Hercules Share Stockton’s Bankruptcy Plight?

Stockton, the largest city in the U.S. to declare bankruptcy, has shown signs of serious money problems for years, says an article by The New York Times Thursday. Hercules shares several of those major indicators.

Since 2009, Stockton has reduced its police force by 25 percent and dropped its city hall employee numbers by 40 percent, almost identical . But Hercules made those decreases over the last year and a half.

Also similar to Hercules, “(w)hile Stockton’s bankruptcy troubles can be traced in part to the collapse of the housing market and the subsequent erosion of the city’s tax base, for years city leaders also mismanaged and overspent funds, pushing the city into financial peril, analysts and current city officials say,” the article said.

Like Herculeans, Stocktonians disagree about whether is right for their city. “Some say Chapter 9 is a stain the city will never be rid of while others swear it is the last chance to crawl back from insolvency and tough luck,” the article said.

Stockton, and Hercules are not alone in their financial struggles. From Northern to Southern California, cities are teetering on the brink of bankruptcy, the Times said. “On Wednesday night, city leaders in San Bernardino, Calif., voted to declare a fiscal emergency, which would allow the city to file for bankruptcy within 30 days,” said the Times. Hercules in February.

But Hercules is still working to avoid bankruptcy by , l assets and considering . City manager Steve Duran recently announced that the city had $316.5 million in debt. The city’s ability to make its bond debt interest payments could mean the difference between solvency and bankruptcy.