LOS ANGELES -- Stockton, Calif. residents can thank the city’s civic leaders, who failed to see the warning signs of an imminent bankruptcy, for much of its financial problems, according to an audit released Monday by State Controller John Chiang.

City management should have revisited their spending and borrowing decisions by taking information about revenue and expenditure trends, the housing contraction, and other data into account earlier than they did, the report found.

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