There's a new development in the case of York, Alabama and its money woes.

Councilman Anthony Dubose tells Newscenter 11 that the IRS has frozen two of the city's accounts.

Currently, the city of York owes the IRS $264,000 in unpaid payroll taxes.

Earlier this week York's administrator, Tim Sweezey, announced that the York City Council and Mayor Glenda Dubose had unanimously decided to take out a $350,000 loan from a Huntsville-based finance company to pay the IRS and other outstanding debts. We'll have more on this story as details become available.