These California cities could be next in bankruptcy

Since a federal judge ruled in April that Stockton, Calif., can pursue bankruptcy protection, the question has been which of the state's fiscally troubled cities will be next. These 10 are facing the kind of serious financial stress that sent Stockton and several other cities toward bankruptcy. STORY: Calif. cities looking for economic recovery • Atwater. This farm city in the Central Valley declared a fiscal emergency in October with a $3 million deficit and appeared poised for a bankruptcy filing. City leaders say they pulled the city back from the brink after winning concessions from unions to cut costs. The deal cuts pay 5% for city workers, including police. Last month, voters approved a half-point sales tax increase to 8%. The city has cut jobs but struggled as costs on a new water treatment plant exceeded $85 million in bond financing. • Azusa. This city east of Los Angeles saw its credit rating downgraded in 2012 by Moody's and branded with a negative outlook by Standard & Poor's. Analysts cited low general fund reserves, which fell to $50,000, or 0.17% of expenses, last August. A 2011 audit found the city's general fund balance was almost entirely in restricted land assets. Read the rest at http://www.usatoday.com/story/news/nation/2013/05/15/ten-california-cities-in-distress/2076217/