Atwater, California, is going broke under the weight of public employee costs, lost revenue and a stagnant economy, pushing it toward becoming the state’s fourth city to seek bankruptcy protection.

The city of 28,000, situated among Merced County’s dairies and almond groves about 100 miles (about 160 kilometers) southeast of San Francisco, has a $3.3 million deficit that may leave it insolvent before year’s end, according to budget documents.

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