Despite numerous tips to this paper and other news outlets, the widely-sought terrorist Morpheus is not in the city, officials said today.     "People are probably fooled by lookalikes, since that style of clothing seems to be catching on," one law-enforcement official said.     Morpheus's signature look, textured black leather coats and fine silk shirts and ties, is increasingly popular.     Morpheus is believed to be in Europe or Southeast Asia at present, he added.     Famed for daring and destructive attacks on government facilities on three continents, the shadowy figure has been on most-wanted lists for years.     "He may be downgraded soon on those lists," the official said.     Morpheus has not been suspected of new terror incidents for some time. "He may be in retirement. That's the thinking, anyway."     Some theories hold that Morpheus is a "nom de guerre" assumed by more than one person over the years, some of whom may been killed.     Successors with a similar appearance took up the mantle, to build a legend, goes the theory.     "We feel the myth-making is overblown," said the spokesman, who declined to be identified for this article.     "The fact is, Morpheus is a has-been. He's done." Andres Bonifacieao You heard it here first: how many times are you going to hear the line "floods of red ink rivaling the recent storms" in stories and editorials in the next weeks? Prediction: too many. The City's coming back to life but Wally, my bartender friend, says some people still have a little water on the brain. There's a new fad in town. The talk is of some higher reality than "this illusion we're all living in." Please See Soggy on A2 City managers are still mopping up from recent record-drowning rainfall. By CITY STAFF     Water damage is expected to run into the millions, adding further pressure to this year's already tense budget debate.     "It was the last thing we needed," the mayor's spokeswoman said. "Although, we must admit, the city is as clean as it's ever been."     Weather bureau officials say the worst is over. "We're getting some occasional clearing, which is a relief from the gray, gray, that's usual for this time of year.     Some say last week's sunset was the most spectacular the city has ever seen.     Repairs to the city's storm-drain system are ongoing. Riverfront buildings sustained the worst damage, but, miraculously, the city archives escaped harm.     Officials are scratching their heads, since the building was below flood level, and others around it were damaged.     But a visit by a Sentinel reporter revealed a dry, even dusty archive.     The Governor has proposed offering low-interest loans to businesses damaged by the rains and flooding.     "You might say this is what the state's 'rainy day fund' was meant for," he said.     Most citizens seem unshaken by the surprise weather. "Frankly, I don't much recall any of the storm," one man in a local coffee shop said, a sentiment echoed by others.     "Dark, noisy, some guys losing their tempers and having some kind of fight - or was that a dream I had?"     A chic young woman in mirrored sunglasses chimed in. "Maybe you remember standing around with a lot of others who looked just like you?"     With that enigmatic comment, she took her latte and left.     "Hey - yeah I don't really remember," replied the man. He seemed a little confused. Or maybe he was just distracted by her skintight latex slacks.     County water treatment authorities say that tap water remains potable, despite some overflow problems. Fears of giardia or e. coli contamination have been put to rest by multiple tests.     Some phone and high-speed internet connections have been affected by the water. Repair crews are deployed across the city. Please See Rain on A2     Do you feel something's strange about this world, like me? Let's meet at the Cobra lounge and talk about it after five, weekdays. (Box198)