It’s official. Montevallo has a moratorium on new residential development.

The Montevallo City Council approved a resolution Monday night giving what Mayor Sharon Anderson called &uot;legal standing&uot; to a 120-day moratorium on new residential development.

The council also approved a Fiscal Year 2006 budget that includes a 100 percent hike in garbage rates and a 4 percent cost of living increase for city employees.

In a meeting attended by a large crowd at Montevallo Elementary School on Aug. 22, the council unanimously approved a moratorium on new residential development not already accepted by the Water and Sewer Board or in the Planning and Development Process.

Following that meeting, the council failed to approve the minutes of the Aug. 22 meeting.

Mayor Sharon Anderson said a resolution was to be drafted to give legal standing to the Aug. 22 motion by Councilman Greg Pendleton.

During another well attended council meeting Monday, that resolution, the minutes of the Aug. 22 and Sept. 12 minutes were approved.

However, councilmembers Hollie Cost and Becky-Cox Rodgers maintained that as far as they are concerned, the moratorium has been in force since Aug. 22.

Cost said she received information from the Alabama League of Municipalities which stated that approval of the minutes did not validate council action.

According to the resolution approved Monday night, the moratorium will &uot;allow for technical studies, in progress planning, and citizen input to be complied and completed so we may move forward enlightened.&uot;

Under budget discussion, Pendleton reported that the city is losing money on its city-operated garbage collection program.

He suggested a 100 percent increase from $10 per household each month to $20 a month, which includes a $5 fee for limb and limb disposal.

The budget under consideration also included a 4 percent cost of living increase for city employees.

In answer to questions from the audience, Rodgers said the new rate brings the city’s charge to about where the city would be with a commercial service.

The $3.34 million budget was approved with Cost abstaining. She had asked for more time to review the budget.

In other matters the council:

Ratified an agreement between the city and Larry Robinson outlining the terms of sewer line installation to developments north of Moore’s Crossroads.

Set a work session on Oct. 4 at 5 p.m. to discuss a city vehicle use policy.

Approved an update to the park rental policy to allow exceptions where public purpose is served.

Discussed a meeting with department heads and board chairmen regarding steps and studies to develop a plan for growth in Montevallo and establish a timeline.

Received the nomination of Paula Renzi-Callahan to replace Mary Crawford on Park and Recreation Board No. 1 and Kristin Bridges to replace Robert Doyle on the Planning and Zoning Commission. Both Crawford and Doyle tendered letters of resignation.

Approved an agreement for the Montevallo Senior Program.

Approved an increase in mileage reimbursement to 48.5 cent per mile