Monticello revisiting ZAP tax, reviews unpaved road plan

by David Boyle
News Director
ZAP tax reauthorization on the ballot, road plans and updated fees were all part of the August 26 meeting of the Monticello City Council. Council approved a resolution to ask voters about reauthorizing a ZAP tax.
The move by the council will allow the city to ask an opinion of voters during November’s municipal elections related to a Zoo, Arts and Parks (ZAP) tax.
The city started the tax in 2008 to help fund the long-term costs of the newly built swimming pool. The tax collects an additional one-tenth of one percent on sales tax to fund publicly owned and operated recreation facilities, with the swimming pool being the main catalyst for originally passing the tax.
Renewal of the tax is required every ten years, with city staff reporting the tax brings in about $30-40,000 annually to help offset the $45,000 long-term debt payments the city makes on the pool.
City staff said that a “code under review” might mean the city would have to wait a year or two before the tax is reenacted. The issue may be resolved by the state legislature and allow the city to reenact the tax for an additional 10 years.
Members of the council unanimously approved to put the question to voters in November.
Members of the council also made plans for a public hearing to consider fee updates for the city. Among fee updates include adjusting water rates to encourage conservation, an average increase of $3.61 per month for a 5,000-gallon household usage.
While implementing the state-mandated fee for uncovered/unsecured loads, the city proposed doubling the load cost to follow the county landfill plan, or a $10 minimum whichever is greater. Also a $5 increase for yard waste and construction prices at the landfill. The city also proposes increased fees for golf at the Hideout.
Members of the council also reviewed a city plan to manage the 3.8 miles of dirt road within city limits. The plan includes annual grading of roads, application of road base every three to five years and every three to 10 years an applicant on the road which would likely be mag chloride.
City Manager Kaeden Kulow said that while the city is putting the plan into place, the maintenance schedule could be changed by future councils, or be impacted by available funds.
The procedural plan did not need adoption but was presented to the council to keep them updated on the plan. This was a request of residents along unpaved Monticello roads. The plan will be implemented by the street department.
Members of the city council also tabled a building permit extension for a house project on Oak Crest Drive. The council requested a detailed plan from the owner to be reviewed on September 23 before the council will consider approving an extension.
Assistant City Manager Megan Gallegos provided history on the project, noting the original building permit was approved by the city in July 2020. A formal complaint was filed against the lot related to drainage, and walls falling onto neighboring properties on February 26, 2024.
Gallegos reported she and Kulow sat down with the property owner in June 2024 to notify of the nuisance and make a plan to take care of the expired building permit, which originally expired in July 2021 under previous city administration. A new building permit was issued in August 2024 requiring residency in August 2025.
A nuisance letter was sent out in February 2024, with the letter asking for “immediate action to resume and diligently pursue completion of construction.” The letter outlined substantial construction activity within 90 days, a written plan and timeline and a certification of occupation by August 2025.
The letter also notes that penalties could include citations and fines, revocation of the building permit, and potential city-led abatement, including demolition with costs assessed against the property.
The property owner appeared before the council to ask for the extension and apologizing for the impacts and exstensive delays.
The homebuilder had planned to use as much cash as possible at the start of the project, but rising prices impacted the project and the property owner learned acquiring a loan is difficult for an already started project.
The property owner recently bought a different house and has been making it livable for his family with hopes to use the equity from that house to help finance the unfinished project on Oak Crest.
In addition to formal complaints filed through the city, staff and council also shared they had heard several informal concerns and complaints about the project, with one neighbor noting an altered grade caused water to flow towards her foundation. They added that three gas line breaks have necessitated evacuations with concerns raised if the project will pass building inspections.
The property owner said they addressed the grade issue and that the standing wood is weather treated.
Council members acknowledged the struggles related to the project but tabled the request for an extension, asking for a detailed plan to be brought back before the council in a month at the September 23 meeting.
Council asked for contractor bids, a clear financing plan and monthly milestones to see the project achieve occupancy within the year. Council added the plan is not a guarantee of extension.
At the meeting, the council also received a report on city efforts to formalize an agreement with the county for building inspection services. The county provided building inspection services to the city for years. The agreement is intended to help both parties plan.
The proposed agreement would include payments of $3,000 every six months to allow the city to budget for the inspections. The county and city are continuing to fine-tune the agreement.
Members of the council also shared an update on the update to the city general plan.
General plan updates are required about every decade by cities and towns. Members of the council and planning commission also held a special meeting on August 18 to discuss the plans for the update.
At the August 26 meeting, the city provided an update including a plan for a public survey to gather citizen ideas for future growth related to business, affordable housing and other goals.
The general plan not only shares a general guideline for the next 10 years but is also required for most grant applications. The city plans to run the survey from October through February, with the entire project likely taking 18-24 months.
The city said that the annexation policy update is nearly complete. The city once again emphasized that being in the expansion area only means those properties are eligible for annexation, not that they will be included. The annexation policy update will have a public hearing on September 9 before potential approval on September 23.
Members of the council also adopted rules of order and procedure for city council and planning commission meetings. The 11-page document outlines standard operations for meeting notices, agenda items, participation in public meetings and voting procedures.. Members of the council adopted the rules.
Members of the council also received an update on the Jet A fuel system at the city airport, which has been out of service since November 2021. Kulow said the city is trying to find a company to haul off the old fuel, clean the tank and refill it at an estimated cost of $25,000. Some of the project will be funded from savings, with a two-month project timeline for the city to get to the project after the water and sewer bond closures.
City staff also said the new playground equipment for Veterans Park has been received but the project is stalled with no contractors yet to bid on concrete or landscape work, possibly pushing installation to 2026.
The city is also working with the school district and sheriff’s office to continue to address traffic safety around school crossing zones.