Lipscomb Mayor Lance McDade has tried to lay off at least 11 city employees while he says the city faces massive debt with very little revenue.
McDade says the city owes the IRS $500,000 and the state more that $100,000 because over the last 10 years, the city did not take out payroll and Social Security taxes for employees. He says workers cost $30,000 per month, but the city is only generating $10,000 per month in revenue.
McDade says he tried to meet with the city council Friday to discuss the crisis but council failed to show up. He laid off the eight-member police force and three street department employees but the city council met Saturday and recalled those employees.
McDade tells FOX6 News that he believes the Saturday meeting was illegal because no 24 hour notice given and he was unaware of it.
Jefferson County Sheriff Mike Hale says deputies will patrol and answer emergency calls only in the city until these issues are resolved. McDade says the city cannot pay the sheriff for his services.
McDade doesn't want to point fingers but he says he wants to solve the crisis. He says the last resort would be to dissolve the city's charter and become part of Birmingham or Bessemer.
City councilor Brenda Renz wants an emergency meeting with the mayor Tuesday. Reporter Alan Collins is following this story so please check his Twitter handle @fox6alancollins and MyFoxAl.com for continuing updates.
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