Council hears overview of transportation utility fee; study cost estimated at $50,000'$100,000

At the July 28 Mona City Council meeting, staff member Shay Sands (speaker 5) presented details about a possible transportation utility fee, telling the council that about 15 cities in the state currently impose a version of the fee and that it is controversial in smaller communities.

Shay emphasized legal and accounting requirements: "It's important to note, it's not a tax. It's a fee," he said, and explained the fee must be proportionally tied to the costs of services provided (roads, sidewalks and other transportation infrastructure), cannot supplant existing budgeted costs, and requires a study that the state code details. He estimated a study would likely cost in the ballpark of $50,000 to $100,000 depending on city size and recommended issuing an RFP or pursuing grant funding to pay for the study so the city would not be in a net negative position.

Shay outlined procedural requirements: the city must adopt an ordinance, establish an appeals process, provide required public notice and hearings (similar to the budget process), adopt a dedicated transportation fund where revenues cannot be commingled, and file annual reporting documenting use of fee revenues. He noted classification tiers (residential, commercial and other users) are allowed under state code and that the study will determine the fee amount and structure. Councilmembers asked follow-up questions about zoning/uses and whether the fee can be zoned or targeted; Shay reiterated the fee is citywide but can use different classifications or zones in its rate structure.

Shay recommended that if the council is interested the next step is to scope a study with an engineering firm and consider funding options for the study itself. No ordinance or action was taken at the meeting; council asked for additional information and potential RFP language going forward.