The taxpayers group wants more details on how the revenue would be allocated and it is concerned Stockton's creditors could press for a bigger share, which would set back plans for hiring more police officers.
"Creditors will no doubt seek as large a recovery as possible leaving taxpayers with significantly reduced health, safety and welfare services," according to an exhibit attached to the taxpayers group's court filing.
A city of about 300,000 residents in California's Central Valley, Stockton is the biggest U.S. city to have filed for bankruptcy and is trying to impose steep losses on its bond insurers and bondholders to restructure it finances.
The U.S. municipal debt market is watching to see if the Stockton prevails or its so-called capital markets creditors can convince the bankruptcy court to have the city cut its pension spending as part of a plan to exit bankruptcy.
Stockton has refused to cut pensions, saying it is prohibited by state law, and that its employees have suffered several years of pay and job cuts while its retired workers are losing subsidized medical coverage.
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