Monticello weighs up to $1 million grant for residential water and sewer repairs

Monticello could seek up to $1 million in outside funding for residential water and sewer repairs after the City Council reviewed a Community Development Block Grant opportunity during a special-called work session July 16, 2026.

The grant would be aimed at addressing ongoing water and sewer problems in residential areas. The council appeared to favor that use of the funding, according to information presented during the meeting.

Residential work would be required

Tyler Gregory of Gregory STC presented information about the grant program to council members. If Monticello’s application is awarded, the city could receive as much as $1 million for eligible improvements.

The program requires funded work to take place in residential areas. Grant money could not be used for commercial areas or treatment plants, limiting the types of projects Monticello could pursue through the application.

That restriction means the potential funding would be directed toward neighborhood-level water and sewer infrastructure rather than commercial properties or upgrades at a treatment facility.

Eligibility and potential local impact

Monticello’s low-to-moderate-income population was reported at 51%. That figure was described as 20 percentage points below the program’s maximum eligibility threshold.

The eligibility figure does not guarantee funding, but it supports the city’s consideration of an application. A successful application could bring substantial outside funding to work that otherwise could place more pressure on local resources. It could also help address ongoing service problems affecting residential water and sewer infrastructure.

The grant remains a possibility rather than an award. No grant approval or funding decision was announced at the July 16 work session.

The city has not announced which streets or properties would be included, how much work would be completed, whether a local match would be required or when construction could begin. Those details would depend on the application and any later award.

For now, the council’s discussion marks an early step in evaluating whether Monticello can use the Community Development Block Grant program to help pay for residential water and sewer upgrades. The next known step is the city’s consideration of the application; a specific application, award or construction deadline has not been announced.