City enthralled by playwright, Bunting (7)
I believe the answer is:
ortolan
'bunting' is the definition.
(I know that ortolan is a type of bunting)
'city enthralled by playwright' is the wordplay.
'city' becomes 'LA' (Los Angeles).
'enthralled by' is an insertion indicator ('enthral' can mean 'capture').
'playwright' becomes 'orton' (US playwright Joe Orton).
'la' inserted within 'orton' is 'ORTOLAN'.
(Other definitions for ortolan that I've seen before include "European bunting" , "One flying" , "Bobolink" , "high-flying singer" , "Small songbird" .)