PELL CITY, Ala. (AP) - Pell City's mayor and city council have
approved raising the citys sales tax from 9 to 10 percent.

Officials say the tax increase will generate $2 million to $2.5 million annually.

The school system will receive half the tax increase for the first four years and the city will receive the other half.

After four years, the city will receive all the revenue.

Schools Superintendent Bobby Hathcock said the money will allow
the school system to tap into bonds with an interest rate of 1.8
percent, available through the federal stimulus program, to
renovate an elementary school.

Mayor Bill Hereford said the city needs the money to meet obligations, including money to pay off a $12 million bond used to fix sewer system problems.