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 in November due to allegations of illegal gambling operations.

The city council repealed its controversial bingo ordinance on Monday, though a temporary restraining order remains on the accounts for seven more days while litigation concludes.

Attorney General Steve Marshall had accused the city of licensing Jay's Charity Bingo, an electronic bingo establishment, and receiving illegal gambling funds. The situation escalated after two raids by the AG's Office:

• Late August: Officials discovered stolen gambling machines still bearing "state evidence" stickers
• Late November: A second raid occurred after the establishment reopened, leading to legal action against the city

Five individuals face third-degree burglary charges in connection with the stolen machines.

Deputy Attorney General John Kachelman revealed the city 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.

The situation highlights Lipscomb's financial struggles. With just over 2,000 residents and numerous vacant businesses, city officials argue they lack sufficient tax revenue to maintain operations. Jefferson County Commissioner Sheila Tyson noted the city's dependence on bingo revenue, stating regular tax income isn't enough to keep the city functioning.

Mayor Tonja Baldwin faced criticism from council members for allegedly authorizing Jay's continued operation without council approval, underscoring the tension between maintaining city services and complying with state gambling laws.

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