Compton's new city manager sought to assure the public yesterday that the financially troubled city is not planning to file for bankruptcy, but it may hire L.A. County to do a forensic audit to put allegations of fraud to rest, the Los Angeles Times reported today. "The rumors of the city of Compton's financial death have been far exaggerated," City Manager Harold Duffey said. "The city is not entertaining bankruptcy. We are not a distressed community. We wouldn't even qualify for bankruptcy." The city has a more than $40-million general fund deficit accrued by borrowing from other funds over the years, but the more pressing issue is cash flow to pay the bills, since the city has no reserves. City Treasurer Douglas Sanders told the council last week that, with $3 million in the bank, $5 million in bills to pay and bond payments coming due Aug. 1, including $1.1 million that would need to come from the general fund, they should talk about bankruptcy as an option. Sanders said since then that the city had received another $2.3 million in revenue, and Duffey said he was confident the city would pay its bills through the end of the year.
