March 11 (Bloomberg) — Sandwiched between bankrupt Detroit and two foundering cities that fell under state control, Lincoln Park is trying to avoid the same fate.

The bungalow suburb of 37,000 residents asked Michigan for a review of its finances, which are so shaky that it diverted $2.5 million to pensions from a water and sewer account. The audit, due by April 11, could prompt Governor Rick Snyder to appoint an emergency manager — a fate the town wants to avoid.

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