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LOUISVILLE, KY. (WDRB) -- The city of La Grange is taking a big financial hit. La Grange mayor Bill Lammlein confirms that the city has had its credit rating cut five steps, to "junk" by Moody's Investors Service.
Moody's says the city was at risk of defaulting on money it borrowed to buy land for commercial development. The Oldham-La Grange Development Authority hasn't been able to sell most of the thousand acres it bought with the loan.
A payroll tax proposed by the mayor would have brought in $600,000 a year. Without that revenue, La Grange may have to default on an $8 million payment in June of 2015.