LOS ANGELES (CBS) — The mayor of the city of Montebello on Wednesday dismissed fears of widespread layoffs in the face of a mounting cash flow crisis.

KNX 1070’s Jon Baird reports Mayor Art Barajas has ordered city officials to stop the kinds of transactions that put Montebello in such a cash crunch in the first place.

Barajas says the city will be able to meet payroll and does not expect any layoffs.

Earlier this year, officials uncovered a couple of undocumented bank accounts of which the city had lost track.

The mayor said that although the D.A. is investigating, at least one account does appear legitimate and that there is documentation showing the money was approved at a council meeting.

Officials will hold a special meeting next Wednesday about the city’s crisis.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)


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