The city manager of Stockton, Calif., may be granted authority to seek bankruptcy protection in a City Council vote scheduled for June 5, moving one step closer to a fate the city has sought to avoid, Bloomberg News reported yesterday. The farming center about 80 miles east of San Francisco has been holding confidential talks with creditors such as public-employee unions to escape becoming the largest city to enter court protection in U.S. history. The talks with creditors, aimed at reaching an agreement under state-required mediation, have been extended until June 25. California’s constitution requires cities to adopt a balanced budget by July 1. Stockton faces a $26 million deficit in the coming fiscal year.
