Malta City Council approves levies, declines Rural Development loan

At a special meeting Friday afternoon in Malta, the Malta City Council discussed the mills to be levied for 2014/15 and for the 2014/15 Budget.

Malta Clerk and Treasurer presented a copy of Resolution #1183 for council review with 232 mills being levied, generating $440,048 in taxes. The motion carried with all four council members voting in favor.

Malta Mayor Shyla Jones then stated that there will be a retirement party for Carolyn Schmoeckel on Thursday, September 18 from 3 p.m. until 4 p.m. at the gym inside City Hall.

Two weeks ago, at the Malta City Council’s monthly meeting, the council refused a loan from Montana Rural Development.

The City of Malta asked Bear Paw to look into loans for a water project a few years ago, putting in loan applications to Montana Rural Development which would include grants from TSEP and RRGL.

Clerk Schmoeckel said that when Rural Development was first approached about the loan that the organization requested the city of Malta put $500,000 of taxpayer’s money into the project. That request jumped to $750,000, which the City of Malta agreed to. Rural Development then jumped that figure to $1 million and the City of Malta said no, decided they would not deplete the city’s reserves by that much money. At the latest City Council Meeting the amount of money being requested by Rural Development jumped again, this time with a counter offer of $1.4.

“They said, okay we will give you a $988,000 grant and we will loan you money but now we want you to put in $1.4 million,” Schmoeckel said after the meeting.

The loan would have been for 40 years at 3.25 percent and would have required the city to raise the base water rate to $38.99 per month.

Mayor Jones stated that taking out that big of a loan, and depleting the cities reserves, wouldn’t be fair to the people of Malta. Because the council voted to not accept the terms of the loan the grants from TSEP and RRGL will also go away as they were tied to the proposed water project. The project was initially looked at because of all the water breaks to water mains around town. The project grew to three phases eventually leading to a $16 million dollar project.

Though the council voted not to take the loan – which in part would have led to higher water rates in the city – a change to how people are billed for their water is coming sooner or later, according to Schmoeckel. Schmoeckel said that in late October or Early November the City of Malta is tentatively planning on having public meetings on how and when the water rates will raise and get the city of Malta in compliance with the Rural Development regulations.

In Department Reports, Public Works Director James Brown said that work on the dike near the Milk River continues to meet inspection requirements. Brown told the council that old, hallow trees in Trafton Park are being cut down and then stated that three loads of cardboard had been shipped out at the end of July.

In the New Business portion of the meeting, Mayor Jones presented the name of James Sintler to replace Mike Traynor on the Planning Board with a term that will run until December 31 of this year.

Mayor Jones then stated that the City of Malta had been asked to participate in a regional housing survey conducted by Bear Paw Development. The council unanimously voted in favor of being a part of the survey.