Residents Concerned about Major Money Problems in City

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Residents of Crab Orchard are concerned for their community now that the city is dealing with some major money problems.

Dozens of people packed into Crab Orchard's City Hall on Thursday night, all wanting an answers about a money problem the city is now facing.

The city owes $1.5 million dollars, with no way to pay it.

The debt comes after the city loaned a factory, ERJ Manufacturing, the money to start up in 2004. To community members, the thought of bringing industry to the area sounded like a great idea, but when the factory shut down the community was left with a bill they can't pay.

City officials say they are now working to find a solution to this problem and are hoping to avoid raising taxes, filing for bankruptcy, or even letting the town dissolve. They say they're just hoping the community can come together during this tough time, until they figure out a solution.

Crab Orchard's city attorney, Paul Long, says they plan on auctioning off the factory property next Friday. The city then hopes to use money from that sale to put toward the debt before figuring out what steps to take next.

City officials also say they will be getting help from the Kentucky League of Cities, which helps communities throughout the state. Members of the organization will look at Crab Orchard's revenue after the auction before helping them figure out what to do about this problem.