Monticello relaxes water rates... for now

by David Boyle
News Director
Monticello City Council relaxed water rates, approved a liquor license, and discussed budget concerns at their May 12 meeting.
The City Council decreased water rates after they had set secondary water rates at the highest Tier Four earlier in the year, members of the city council unanimously voted to move rates down to tier 3. The rate changes apply retroactively to May 1.
The City of Monticello has four tier rates for water, with the city charging more for water in dryer water years to promote conservation and less in more abundant years.
The city council heard from members of the public who raised concern about the higher rates, noting that with rising food and fuel prices, residents should be able to maintain gardens and yards. City residents also raised concern about higher rates for residents when the city golf course uses significant amounts of water.
City Manager Kaeden Kulow and Public Works Director Chris Baird shared data, including that Loyds Lake has risen by 280 acre-feet this spring. While the mountain collection has slowed, members of the council expressed that the move to tier three was necessary to ensure fairness with the council planning to review the water situation monthly.
Kulow noted moving back up to a more restrictive tier four level would require a public hearing and a month-long notice period.
Members of the city council also heard a sobering report on the general fund balance. As the city is preparing for the annual budgeting process, there are concerns about the upcoming year budget.
Kulow explained that the city faces a projected deficit of $1.26 million for the fiscal year 2027. The shortfall is attributed to several factors, including a slight decrease in sales tax, the loss of the “ZAP” (Zoo, Arts and Parks) tax revenue, and shifting the city justice court to the county, which removes a steady revenue stream.
To balance the books, Kulow recommended throttling back on operations with cuts possibly aimed at supplies, maintenance and fertilizer for the parks and golf course.
Kulow says they’ll protect staff but may rebalance how employee salaries are split between the general fund and enterprise funds like water and sewer.
Members of the city council approved a $50,000 repair to a well which was described by city staff as crucial with its ability to pump 100 gallons per minute to feed the golf course, Loyds Lake, or the culinary system.
Staff said that spending $50,000 to maintain a facility that cost $1.4 million to build was a prudent move to avoid an emergency scenario.
In other news, the council approved a Class C liquor license for Prohibition Pies LLC which will allow the Grainery Speakeasy to reopen. Owner Ben Breedlove explained the business would feature food trucks and a zero tolerance policy for public intoxication.
Members of the city council also heard concerns about the state of the highway on Main Street. Council acknowledged the road is in need of work but is under the Utah Department of Transportation jurisdiction. It was noted that a reconstruction project has been scheduled for next year.
Members of the council also heard from Sensei Mark Colgan regarding his Young Dragons youth karate development program. Parents spoke in support of Colgan and the system aims at building character traits including accountability and respect. Members of the city council expressed verbal support and planned a future proclamation of support for the program.