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Eastern Ky. officials approve water rate increase after IRS places lien on city accounts

Reported by: Associated Press
Reported: Thursday, June 19, 2014 12:48 PM EDT

Officials of a small city in Harlan County have approved a water rate increase to help raise enough money to pay past due taxes to the Internal Revenue Service.

Officials in Benham were told last year that they owed the IRS nearly $38,000.

The Harlan Daily Enterprise reports City Clerk Jessica Smith told City Council members on Wednesday that the agency placed liens last week on three city bank accounts. She says the action was taken just as the struggling city was about to make a payment.

She said the city is working with the IRS to try to remedy the situation, and one suggestion was temporarily increasing the water and sewer rates.

The council approved increasing the rates for three months.

Information from: Harlan Daily Enterprise,


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