City Council

CITY OF GRANTS SPECIAL CITY COUNCIL MEETING Thursday, July 24, 2025 MINUTES MEETING CALLED TO ORDER Meeting called to order at 10:00 AM. ROLL CALL Present: Mayor Erik Garcia Councilor Beverly Michael Councilor George Garcia Absent: Councilor Fred E Rodarte Councilor Zachery Gutierrez PLEDGE OF ALLEGIANCE APPROVAL OF AGENDA Motion: Approval of Agenda, removing item 1.2 Motion: George Garcia Second: Beverly Michael Ayes:2 Nays: O DISCUSSION OF CHARTER COMPLIANCE No citizens wished to discuss charter compliance. CITIZENS TO ADDRESS THE COUNCIL No citizens wished to address the Council. 1. DISCUSSION/ACTION ITEMS: 1.1 Public Hearing -Final Budget for Fiscal Year (FY) 2025-2026 Finance Director Victor Villalobos approached the bench, entertaining public comments on the city's budget and announcing that the budget was posted publicly. 1.2 Discussion/Action -Approval of Resolution No. 25-1900: Budget Adjustment No. 7, with Attachment  The item was removed during the approval of the agenda. 1.3 Discussion/Action -Approval of Resolution No. 25-1901: Fourth Quarter Financial Report Finance Director Victor Villalobos took the floor, presenting the Quarterly recap Resolution, which sums up the quarter, and the whole year. Villalobos then cited the report which included a 13 million in revenues; a 10 million in expenses; a $392,000 transfer due to project reimbursements, overall, in addition to project revenues of 55.3million and 50.5 million in expenses; a EMS Service enterprise of $42,000, collection in revenue; a 1.2 million was transferred for two ambulance purchased, and expenses were 1.5 million. Villalobos then entertained questions. Councilor Garcia questioned EMS transfers; Villalobos stated that the transfers were taken from the general fund due to project reimbursements from the utility account. Councilor Garcia questioned the sources of the EMS ambulances; Villalobos confirmed that one was purchased with a partial award of $150,000 from the governor's office and the other was purchased in full by the City. Mayor Garcia asked for comparisons in the budget from the last year; Villalobos replied, stating that this year, many new equipment and vehicle purchases have been made due to government funding, stating the growth was nominal, which he will cover in the next presentation. Motion: Approval of Resolution No. 25-1901, Fourth Quarter Financial Report. Motion: Beverly Michael Second: George Garcia Ayes: 2 Nays: O 1.4 Discussion/Action -Approval of Resolution No. 25-1902: Adoption of Final Budget for Fiscal Year 2025-2026 Villalobos presented the Final Budget, including the Fiscal Year 26 resolution for adoption, via feedback from a budget survey via council and staff; per DFA requirements the budget is due on May 31st in which the final budget is due on July 31st; economic and community challenges are economic stagnation, which leaves limited opportunity for spending growth; a Marketing Director was contracted to assist with local growth, and mining companies have entertained business in the area. Villalobos then presented projected revenues with 13.6 million in General Funds, with all funds being 34 million, and he then discussed notable changes, which included grants, outlay awards, and EMS services growth; expenses being 13.5 million, and expenditures in all funds at 35.6 million. He then stated that included in the budget is a 4% increase in employees' pay. 2  Councilor Garcia questioned increases in insurance rates, asking if the increase of 9% in costs; Villalobos stated that the cost would be paid by the City. Villalobos then announced Capital Projects and equipment, including property acquisition for sewer infrastructure; policy changes, including the transition to four days a week. He then stated that the next steps would be to adopt the budget via resolution. Mayor Garcia entertained a motion. Motion: Approval of Resolution No. 25-1902, Adoption of Final Budget for Fiscal Year 2025-2026 Motion: George Garcia Second: Beverly Michael Ayes:2 Nays: O 1.5 Discussion/Action -Approval of Grants Community Pantry Benefits Service Agreement City Manager Valencia presented the Community Pantry's Agreement, stating the contract provides food to citizens, in the past $25,000 was paid, and in the current contract, the services will be paid by measurable deliverables. Councilor Garcia questioned if the organization spent the award last year; Valencia confirmed they did. Motion: Approval of Grants Community Pantry Benefits Service Agreement Motion: Beverly Michael Second: George Garcia Ayes:2 Nays: O 1.6 Discussion/Action -Approval of Memorandum of Understanding with Rockin' 66 Express City Manager Valencia presented the MOU (Memorandum of Understanding), which included the Village of Milan and Cibola County, and stated that with the approval of the MOU, the current JPA can be amended. Councilor Garcia questioned the Community Pantries' location and asked if transportation could be provided to the pantry; City Manager Valencia stated that the agreement would have to be agreed upon internally. Rockin' 66 Director, Melissa Porter, approached the bench; Councilor Garcia asked if the organization could transport citizens to the pantry. Porter stated that the organization already provides these services. City Manager Valencia pointed out that Porter provides thorough invoices. Finance Villalobos asked if the City could receive an estimate of the cost for all citizens to ride so that the City could prepay for citizens to ride. 3  Mayor Garcia praised the organization. Motion: Approval of Memorandum of Understanding with Rockin' 66 Express Motion: Beverly Michael Second: George Garcia Ayes: 2 Nays: 0 1. 7 Discussion/Action - Approval of Cibola Arts Council Benefits Service Agreement City Manager Valencia presented the agreement, stating that it promotes art, culture, and enrichment throughout the City. Under the agreement, the City would provide $28,000 in funding with proof of deliverables, one of the key aspects being "executive director requirement...throughout the term of the agreement." Valencia then pointed out that the lack of executive directors has provided discrepancies in following through on funding. He then pointed out that past lease agreements left the organization short on operational funding, which, in this agreement, the rent was almost eliminated at $1, and made for a better track of accountability. John Martinez, Interim Director, took the floor, expressing his gratitude towards the assistance his organization has received from the City. He also pointed out that the Cibola Arts Council Board of Directors is passionate about sharing the arts with the community. Mayor Garcia questioned Martinez's dream for the organization; Martinez stated he would like to see the gallery grow, but also turn into a cultural center as well to promote local cultures such as the Filipino community, the local Hispanic community, and the Native American cultures. Mayor Garcia thanked the organization. Motion: Approval of Cibola Arts Council Benefits Service Agreement Motion: George Garcia Second: Beverly Michael Ayes: 2 Nays: O 1.8 Discussion/Action - Approval of Grants Mainstreet Project, Inc. Benefits Services Agreement City Manager Valencia presented the approval of the agreement, stating that Grants Mainstreet is a vital organization to the community throughout its goals and community development; Mainstreet has had an increase in activity, and a partnership with Mainstreet will provide increased activities at the surrounding parks. He then stated that an MOU does exist with the organization, which will be re-evaluated in the future. Councilor Garcia questioned MOU state requirements. 4  Valencia stated that measurable goals have to be met, but there are no particular requirements. Councilor Michael questioned if the agreement requires a director position; City Manager Valencia stated that a director is a condition in the agreement. Councilor Michael then asked if a director exists; Kenneth Brown then stated that Denise Hanson is the MainStreet Director. Denise Hanson, Marketing Director, then took the floor, explaining that the Mainstreet Director and the Marketing Director's position complement each other. Councilor Garcia questioned the sustainability of Hanson working both positions; Hanson stated that the work is fun. Councilor Garcia questioned the upcoming Route 66 Events; Hanson discussed networking across the state and internationally. Councilor Michael thanked Hanson for making the QR Codes to promote businesses. Hanson then discussed marketing plans for the outdoor community. Councilor Garcia thanked Hanson. City Manager Valencia pointed out the activity going on in the City parks. Hanson thanked the Public Works Department and the Parks Department for assisting in the revitalization of City Parks. Motion: Approval of Grants, Mainstreet Project, Inc. Benefits Services Agreement. Motion: Beverly Michael Second: George Garcia Ayes: 2 Nays: 0 1.9 Discussion/Action -Approval of Northwest New Mexico Council of Governments (COG) Membership Agreement City Manager Valencia presented the Membership Agreement for the Northwest New Mexico Council of Governments, which includes an increase of 2.5%; pointing out that the City works closely with the COG. He then recommended that the City continue the agreement. Councilor Garcia questioned the 2.5% increase; Brandon Howe, COG representative, approached the bench, stating that the increase was approved by the board to improve 5  inflation and to sustain operations, with half of the membership going to match state and federal programs. City Manager Valencia stated that the COG (Council of Governments) has never denied assistance. Howe expressed his organization's gratitude for the continued partnership. Mayor Garcia commented on the organization. Motion: Approval of Northwest New Mexico Council of Governments Membership Agreement Motion: George Garcia Second: Beverly Michael Ayes: 2 Nays: 0 COMMENTS City Manager Valencia thanked the Council for their patierice towards his efforts in revamping the organization's agreements. Councilor Michael thanked the Finance Department for their work on the budget and thanked City Manager Valencia's work on the Service Agreements. Councilor Garcia questioned the funding of the Mining Museum, discussing a recent trip he had near a mining community where the museum was discussed. Manager Valencia stated that agreements exist with the Mining Museum, and once they are approved by the state, he will share them with the Council. He then entertained direction in the future of marketing. Mayor Garcia praised City Manager Valencia and expressed excitement about the next five years. City Manager Valencia stated that the Menzi Muck is being utilized in town. ADJOURN Mayor Garcia adjourned the meeting at 11:00 AM. APPROVED Signed: 6 Mayor Erik Garcia Frances Salas, City Clerk 7