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  • What Detroit And The Stockton Bankruptcy Mean For Bonds [View article]
    The debt service for hockey arenas and baseball stadiums are "non-productive" examples of 1950's boosterism. The port district should have been modernized and rebuilt to better compete with West Sacramento. San Jose--another free-standing pension city--laid off a significant portion of its police department (with predictable results) while still finding funds to subsidize an arena for the Sharks.
    Apr 6, 2013. 08:39 AM | Likes Like |Link to Comment
  • What Detroit And The Stockton Bankruptcy Mean For Bonds [View article]
    As a retired public employee (City of Palo Alto) I object to the "piling on" by analysts who think that all municipalities financial woes are caused by legally negotiated wages, pensions, and fringe benefits. Stockton decided to redevelop its antiquated port area by building a hockey arena and a baseball stadium. Then the housing market crashed, and the convoluted method of taxation at the local level fell apart. The revenue wasn't there to pay the pension obligations, so the City of Stockton issued more bonds to pay the obligations, hoping that the real estate market would recover. It didn't, and now the bills are due. Other cities with pension headaches aren't even in the statewide system (San Diego, for instance) so there's lots of blame to go around. Stop beating up on the employees!
    Apr 5, 2013. 03:20 AM | 1 Like Like |Link to Comment
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