Moberly financial fallout improvements
MOBERLY - The Moberly City Council approved new financial policies Monday night after fallout from the Mamtek investment caused Moberly's bond rating to take a hit.
Moberly currently has a "B" credit rating after it failed to make bond payments.
The council approved new investment and debt management policies in hopes of returning to an "A" rating in the future.
"There is no magic pill you can take to restore your credit rating, but there are certainly some steps that the city can take, city administration and council can take, and there are 11 of those which I have identified in that report, this what we have done here knocks off one of them," said Moberly City Manager Andy Morris.
These policies are a part of a report put together by Piper Jaffray, an investment banking and advisory firm. It outlined the 11 goals Moberly needed to reach.
Morris says the biggest obstacle the lower bond rating poses for the city is acquiring debt equity for larger projects.
"The ability to secure that kind of financing with our credit rating, when you have other municipals or other governmental institutions that have a higher rating, they're just probably going to stand in line a lot shorter than we are," said Morris. He says specifically the prison has requested to hook up to Moberly's sewer system, but right now that might be too large of a project to undertake.
So far Morris says Moberly has checked off four of the goals outlined by the consulting firm. He says he hopes to have all the goals checked off by spring.
Other areas around Mid-Missouri have similar policies in place.
Fulton's chief financial officer Kathy Holschlag says Fulton has an investment policy in place that helps them avoid risk situations.
In Jefferson City, Steve Crowell, city administrator says the city follows state regulations and is in the process of consolidating individual policies into one set of financial guidelines.