LIPSCOMB, Ala. (WIAT) — A small Jefferson County city is unsure how it is going to continue paying its employees and bills.

The uncertainty comes because of lawsuit filed by the Alabama Attorney General’s Office for illegal gambling in which the city is listed as a defendant. It alleges the city failed to enforce gambling regulations and profited illegally from gambling operations.

As of right now, the city is essentially shut down. The mayor said she’s unsure if it will be able to make payroll next week for the city’s 25 employees. City workers are volunteering to continue working with the hope this can be resolved quickly.

The lawsuit, filed Wednesday, names the city and the owner of Jay’s Charity Bingo as defendants.

“The fact that you see machines that were stolen from another illegal operation showing up at a facility there demonstrates the blatant disregard that certain individuals have for the law,” said Alabama Attorney General Steve Marshall. “We have a responsibility to enforce it, and that is what we intend to do.”

A temporary restraining order has frozen the assets of the city, leaving it unable to pay bills, payroll or spend any money. Marshall said he tried to contact the city and resolve the issue before the asset freeze.

“We were proactive in reaching out to local officials to be able to talk about the seizure and then the release of certain funds,” Marshall said. “The fact they didn’t choose to respond back to us is an issue for them and not for the AG’s office.”

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Lipscomb Mayor Tonja Baldwin said she never heard from the attorney generals’ office.

“I have no idea what he’s speaking of,” Baldwin said. “But we are represented with attorneys, and that’s who he should have been trying to contact. I have no idea if they tried to contact me or not because anybody that answers city phone is going to say, ‘Call the attorney’s office.’”

With its assets frozen, the mayor said she has no idea if the city will be able to pay employees next week. In the meantime, employees are volunteering to continue working with the hope a resolution is found.

“That’s the dedication and love for the city that we have,” Baldwin said. “The AG office should have never been contacted in the first place, but they were. It happened, and we have to deal with it.”

To help city employees, Jefferson County Commissioner Sheila Tyson provided them with groceries free of charge Tuesday.

Baldwin said she plans on addressing the Lipscomb City Council at the Dec. 13 city council meeting about the asset freeze.

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