Gallup low on funds
1/4 cent gross receipts tax increase passed

By Kevin Killough
Staff writer

GALLUP — The City Council got the fiscal midyear update on the city’s budget situation, and the picture wasn’t great. With only $150,000 available, Judy Starkovich, administrative services division executive director, said the city would not be able to increase the expenditures budget.

“I wish I had some better news,” Starkovich told the council during the work session.

There is also not enough money in bond funds for the city to pursue any large capital projects. Starkovich said that revenues may increase over the next couple months. At that time, the city will review the budget for possible allocations.

The city also passed the one-quarter cent increase in the gross receipt sales tax. There was little discussion on the matter during the work session.

“I think (the ordinance) is pretty clear,” said Mayor Harry Mendoza.

Councilor Pat Butler was the only dissenting vote against the increase. In the last work session in December, Butler had voiced concerns that the increase would send people out of town, reducing revenues available for the city.

The city also voted to award AS Horner the contract to build a traffic light at U.S. Highway 66 and Toltec Drive.

The original request included designs for a city gateway sign, landscaping, and a bike trail. The award will only include the traffic light and improvements to the waterline.

“We don’t have the money to award the entire project,” said executive director of the city works division, Stan Henderson.

The city hopes to complete the project at a later date when funds are available.

The city will also be moving the water loading station, commonly referred to at the Third Street Spigot. The water loading station has been in use for four decades, providing a water source to many who are not connected to the city’s water system. Vandalism, aging equipment, and location have made it difficult to maintain the station. The city plans to build a whole new station on a part of a county parcel and voted to approve the agreement between the city and county to use the land. The agreement requires the city to perform improvements to the curbs and gutters.

“It would kind be a tradeoff ... I think it’s a win-win for everybody,” said Lance Allgood, executive director of Gallup Joint Utilities.

The current station has a coin operated timer, which Allgood said is not a reliable meter for measuring the amount of water used. The new station will be card operated, much like a gas card at a gas station.