The City of Lipscomb, Alabama can now pay its employees after the state Attorney General's Office released $107,000 from frozen city accounts. The funds were initially frozen due to allegations of illegal gambling operations.

The city council recently repealed its controversial bingo ordinance, prompting the release of funds. However, a temporary restraining order remains in effect for seven more days while litigation continues.

State Attorney General Steve Marshall previously accused the city of licensing Jay's Charity Bingo, an electronic bingo establishment, and receiving illegal gambling funds. The facility was raided twice by the AG's Office - first in August 2023, when authorities discovered stolen gaming machines still bearing state evidence stickers, and again in November when the establishment reopened without authorization.

Five individuals were arrested and charged with third-degree burglary following the initial raid. The situation escalated when Marshall sued the city for allegedly being complicit in the illegal operation.

The controversy deepened when Deputy Attorney General John Kachelman revealed that the city had transferred over $200,000 from the bingo account to its general fund last month - funds he claims are proceeds of crime and subject to state seizure.

Lipscomb, a city of roughly 2,000 residents, faces significant financial challenges. Mayor Tonja Baldwin defended the bingo operation, citing the city's desperate need for revenue. Jefferson County Commissioner Sheila Tyson noted that local tax revenue alone is insufficient to maintain city operations, highlighting the broader economic struggles facing this small Alabama community.

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