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Thu April 25, 2013
Moberly, Mo., takes costly financial hit this month due to Mamtek
Moberly has taken close to a sixty thousand dollar hit this month because of Mamtek, the failed artificial sweetener plant.
Throughout April, the city has spent that sum in legal fees due to the Mamtek fiasco.
These legal costs include attorneys’ fees that Moberly is paying in their fight against Mamtek in court.
The spent funds will take away from money that could have gone toward other departments in the city, such as the police and fire departments. That’s according to City Director of Finance Greg Hodge.
City Manager Andy Morris says he is not sure how long this process will take and at what cost.
“I don’t know how it’s going to pan out legally and financially," Morris said. "We have certain interests at hand that we need to defend, and we’re going to continue to do that, but I have no earthly idea how that’s going to, as I said, materialize in the end and at what time frame.”
Morris says Moberly budgets a certain amount of money every year for legal expenses and when they go over this budget, they dip into the general funds.
The Moberly city council will take these costs into account during their budget meeting in June.
In total, Mamtek has cost the city’s general fund more than six-hundred and seventy-seven thousand dollars since May 2010.