Prattville City Council votes to take out $1 million loan - WSFA.com Montgomery Alabama news.

Prattville City Council votes to take out $1 million loan

PRATTVILLE, AL (WSFA) -

The Prattville City Council voted Tuesday to take out another loan to help make a bond payment. The $1 million loan will help the city pay its obligations, Mayor Bill Gillespie said. 

The city is on the hook for millions in loan re-payments for incentives and infrastructure improvements.  Some of those incentives helped attract new stores and businesses - like the Bass Pro Shops and the new Kohl's.  The loans stirred up a controversy in Prattville when city leaders had to take out a $3 million loan to satisfy a payment back in October.  

That loan forced the city to make huge budget cuts and add an one-cent sales tax.  The mayor says that $3 million loan was paid back on Monday, but the city still needs to borrow a million dollars to make this latest payment.

The council unanimously approved that request.   The city will have to make another larger loan payment in November.  The council also discussed a plan to raise municipal court costs.  They put off a vote on the plan for a couple of weeks.

Copyright 2011 WSFA 12 News.  All rights reserved.

Powered by Frankly