Moberly Releases Statement on Mamtek Accountability Report
MOBERLY- The City of Moberly released the following statement regarding the Missouri House Interim Committee on Government Oversight and Accountability report on Mamtek.
"We appreciate the work of the House Interim Committee on Government Oversight and Accountability, and the resulting Mamtek Report.
The City of Moberly, Moberly Area Economic Development Corporation (EDC) and Moberly Industrial Development Authority (IDA) fully support the opportunity, created by the Mamtek situation, to take a close look at how the state and localities approach economic development.
Throughout this process, primary goals of the city, the EDC and IDA have always been to help spur economic growth, while acting as responsible stewards on behalf of our taxpayers. Pursuit of the first goal led us into discussions with Mamtek, after Missouri DED brought the opportunity to us.
The city's insistence on protecting our taxpayers led us to pursue a conservative budget for the city, regardless of the promised Mamtek revenues. The cost-cutting enacted by the city during the period of the Mamtek project has left us in a stronger financial position, despite Mamtek. In addition, in reaching the agreement with Mamtek, city officials made certain that the project financing was not an obligation of the City of Moberly.
We agree with the Committee's determination that Standard & Poor's rating of the Mamtek bonds, based only on the credit of the City of Moberly, is "shocking," since the city is not obligated to repay the bonds. S&P compounded their error in subsequently downgrading the City of Moberly's credit rating, despite the fact that the city's financial position is stronger now than at the time of it's last credit rating.
The city, the EDC and IDA all look forward to continuing our work with Missouri DED, the site trustee and bondholders to find an appropriate use for the Mamtek site, drawing on its strengths and commercial advantages."
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