DETROIT — The first report by Detroit's emergency manager declares that the city is broke and at risk of running completely out of money — a financial meltdown that could mean employees don't get paid, retirees lose their pensions and residents endure even deeper cuts in municipal services.
If Detroit cannot avert disaster by reducing its debt payments, the only remaining option appears to be bankruptcy, a threat that looms large over Kevyn Orr's urgent efforts to make deals with creditors and debt holders. Orr says he will have to seek concessions from those groups to keep the Motor City afloat.
"On a cash-flow basis, we don't have it. We're broke," Orr said Monday at a news conference. He said the city can make payroll through the rest of the year, but that some other bills and obligations are not being paid or are being deferred.
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