Council OKS mill, overlay grant of over $1.35 million
Staff Reports
The City of Gallup Street Department will soon receive a substantial funding boost to improve local roads.
During the Sept. 8 meeting, city staff asked the Gallup City Council to approve the New Mexico Department of Transportation Local Government Road Fund Cooperative Agreement for the city’s annual mill and overlay program.
But the funding this year will be a little higher than what the city usually gets.
This year, NMDOT is providing just over $1 million. Coupled with the city’s 25% match of nearly $330,000, total project funding will top $1.35 million. To help fund its required match, the city will transfer almost $85,000 from the Street Repair operations fund.
Streets Superintendent John Lastyona explained that Gallup secured extra funds because other District 6 counties declined to participate in the program this year.
City Manager Frank Chiapetti elaborated on the change, noting that the New Mexico Council of Governments recognized a structural flaw in the original program: municipalities struggled to complete meaningful work with small annual allocations.
To fix this, NMCOG restructured the program into a four-year rotation among District 6 municipalities. Under the new model, one municipality receives a much larger block grant each turn, giving the others three years to save up for their required matches. Gallup’s turn in the rotation arrived this year.
Lastyona said that the influx of cash is large enough that the Street Department will have to “think outside the box” and look beyond routine milling and paving. Municipalities can use the Road Fund for a wide range of projects, including street construction, maintenance, public school parking lot repairs, and the acquisition of rights-of-way or materials.
Councilor Sarah Piano, Dist. 3, questioned why the Street Department requested extra local funds if it already had more grant money than it knew how to spend. Lastyona explained that receiving a larger NMDOT grant automatically increases the city’s required matching percentage, necessitating the budget transfer.
Piano ultimately voiced her support.
“We definitely need this money, and even though it’s a lot at once, we’re always looking for road money,” she said.
The city must spend the funds by December 2027 or forfeit them to the state. Lastyona noted that the city may file for an extension to ensure it uses the full amount.
Piano suggested the council hold a work session to prioritize specific road projects at a later date.
The council then unanimously approved the resolution, accepting the grant and authorizing the budget transfer.
